Nordea and 37 banks show their progress on the Paris Agreement targets

Ylva Hannestad
Deputy head of Group Sustainable Finance, Ylva Hannestad.
20-12-10 9:05 | Sustainability

The United Nations Environment Programme Finance Initiative (UNEP FI) has published a report that outlines the first steps taken by Nordea and 37 banks worldwide in their work to meet the climate targets of Paris Agreement. 

The report tracks the progress by the banks that have signed the Collective Commitment to Climate Action (CCCA), one year after they pledged to align their portfolios and business practices with the goals of the Paris Agreement. The signatory banks are covering six continents and are representing more than USD 15 trillion in assets.

The report provides an overview of the concrete measures taken by the banks in the first 12 months to deliver on their commitment to support the transition to a greener economy by 2050. The report shows that overall there is a growing use of scientific climate scenarios in banks’ strategies and many banks have announced exclusion policies reflecting the timelines imposed by science for achieving “well-below 2 degrees” of global warming. 

While most banks still have some way to go before they can publish a full assessment of their portfolios’ alignment and set and publish scenario-based targets, all 38 banks have committed to doing so within three years of signing the commitment. 

Refining methods, expanding products 

“As a signatory bank, we are steadily aligning our policies and portfolio with the Paris Agreement to support the shift to a carbon neutral future, and we have made good progress in expanding our sustainable product offering to our customers, says deputy head of Group Sustainable Finance, Ylva Hannestad. 

“Through CCCA we continue to collaborate with other banks on sector specific methods and actions that can help facilitate the transition and keep up the pace. Nordea – and the industry – still have a lot to do to meet the targets of the Paris Agreement, but with the work being done in the bank and CCCA, we are working jointly in the right direction,” concludes Ylva Hannestad.

Download the report

Read the full text of the Collective Commitment to Climate Action

About the Collective Commitment to Climate Action

The CCCA members are a leadership group among the signatories of the UN’s Principles for Responsible Banking. The guidance and frameworks the CCCA banks are developing collectively will be used by the banks in the wider coalition implementing the Principles for Responsible Banking.

Signatories to the Collective Commitment to Climate Action are required to:

  • Take decisive action from the moment of signing, focusing on the most carbon-intensive and climate-vulnerable sectors within their portfolios
  • Within three years of signing, set and publish sector-specific targets for aligning their portfolios with a well-below 2 degrees and striving for 1.5 degrees Celsius trajectory, based on scientific climate scenarios
  • Drive and facilitate the necessary transition in the real economy through their client relationships, products and services.

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