Nordea receives UN-backed responsible investment award for its work to reduce portfolio companies’ methane emissions

“We are honoured to receive the 2024 PRI Recognition for Action – Climate award. The success of the NAM methane engagement initiative underscores the importance of collaboration in addressing climate change,” says Nils Bolmstrand, CEO of Nordea Asset Management.

NAM is recognised by the Principles for Responsible Investment (PRI) for launching and leading a collaborative engagement of approximately 20 investors, focused on enhancing disclosures and reducing company methane emissions to near zero at more than 60 companies in the energy, utilities and waste management sectors. The independent judging panel commended NAM’s efforts, stating that: 

“This targeted initiative has elevated methane as a concern and is consistent with science. Good results to date. Great collaborative outreach. Just a smart, well-designed and executed programme that has tackled an important climate issue smartly."

Investor collaborations effective to progress towards net-zero

Methane is a powerful greenhouse gas contributing to 30% of global warming today. Methane reduction offers one of the best near-term opportunities to mitigate climate change, explains Eric Pedersen, Head of Responsible Investment at NAM.

“It can often be done at no or low net cost, which makes it an obvious ask when meeting companies which we hold shares or bonds in. This gives us a way, as investors, to play a significant role in driving corporate action on methane reduction as part of our goal to deliver returns with responsibility," says Eric Pedersen.

NAM’s initiative began in July 2022, when it launched the first phase of its collaboration with select partners and clients, to engage companies in the oil and gas industry on methane emissions disclosure and mitigation. In its engagement, NAM also cooperates with the global non-profit organisation the Environmental Defense Fund.

A key focus of this effort is to encourage investee companies to join the Oil and Gas Methane Partnership 2.0 (OGMP 2.0), the global ‘gold standard’ framework for methane measurement, reporting and target-setting, under the United Nations Environment Programme’s International Methane Emissions Observatory. The OGMP 2.0 aims to deliver a 45% reduction in the industry’s methane emissions by 2025 and a 60-75% reduction by 2030.