Sustainable finance highlights at Nordea
Innovation: Nordea’s Sustainability-linked Loan Funding Framework
In 2022, Nordea launched its Sustainability-linked Loan Funding Framework, further advancing the market for innovative sustainable finance product offerings. The framework gives investors the opportunity to invest in Nordea’s sustainability-linked loan financing activity. In 2023, Nordea issued an inaugural EUR 1 billion bond under the framework.
Commitment: reduce carbon emissions by 40-50% across lending and investment portfolios by 2030
Nordea has set an interim target for 2030, with the goal of cutting carbon emissions by 40-50% across our lending and investment portfolios. We are one of very few banks to set an emissions-reduction target that covers the entire portfolio. We have also set sector-specific climate targets that cover the majority of our financed emissions in our lending portfolio. By the end of 2023, the financed emissions for our lending portfolio were down by 29% compared with 2019 levels, putting us on track to reach our target by 2030.
Engagement: clients’ climate transition plans and ESG training curriculum
We have launched an active strategy to engage with our customers on their climate transition plans. Our target is to ensure that 90% of our exposure to large corporate customers in climate-vulnerable sectors is covered by transition plans by the end of 2025. By Q3 2023, we were on track at 69%. In addition, we have launched a bespoke ESG training curriculum to build the competence and knowledge among Nordea’s workforce to support our clients’ transition to a low-carbon economy.
Advisory: sole structuring advisor to Pandora’s inaugural EUR 500 million sustainability-linked bond
Nordea played a pivotal role as sole sustainability structuring advisor for Pandora’s sustainability-linked bond framework, supporting the world’s largest jewellery company in formulating its framework and selecting ambitious sustainability targets. The company broke new ground in 2023 when it issued an inaugural EUR 500 million sustainability-linked bond under the framework, tying its financing to its climate and circularity goals.