Nordea continues good progress towards its emission reduction targets

Nordea is committed to becoming a bank with net-zero emissions by 2050 at the latest. To reach this goal, Nordea has set a medium-term objective for 2030, which is to reduce carbon emissions across our lending portfolio of EUR 324 billion and our investment portfolio of EUR 378 billion by 40-50% compared with 2019. The latest data shows continued strong progress across all portfolios during 2023 and financed emissions are down by approximately 29% in the lending book.

“This progress shows that we’re genuinely committed to achieving our emission reduction targets and that our customers are also committed to creating positive societal impact. Our role is to support our customers on their transition journey, and to promote the benefits of sustainable business models,” says Anja Hannerz, Head of Nordea Group Sustainability.

Strong growth in the volume of ESG investment

An increasing number of Nordea’s customers are choosing sustainable investment products, which has grown the proportion of sustainable investments in our portfolios. Up to 69% of assets under management in 2023 were classified as ESG investments. This means that when we manage our fund portfolios, we take into account environmental, social and governance (ESG) factors in addition to traditional investment criteria. In other words, the majority of the assets under management by Nordea fulfil the requirements of Articles 8 or 9 of the SFDR, and the companies we invest in are required to commit to the climate goals set out in the Paris Agreement.

“People should definitely have a long-term perspective on sustainable investments. In the short term, the returns may fluctuate from growth to occasional drops, but we believe that focusing on sustainability is a winning strategy in the long run. By allocating money to sustainable and responsible projects, we can put money to work in the societal transition. Studies have also shown that companies with a sustainable business model are better at managing their financial and reputational risks,” says Anja Hannerz.

Nordea’s high ambitions are also getting acknowledged in different external ratings. For example, Nordea was once again ranked among the top 100 most sustainable companies in the world, according to the latest annual ranking by Corporate Knights, a media and research company. 

Nordea is now entering the next phase in its climate efforts within car finance and leasing. Road transport is critical on the path towards net zero, which is why we set an emission reduction target for car and van financing in February 2024 with the aim to support our customers in buying cars with lower emissions.