According to calculations made by Nordea’s sustainable finance team, moving your savings to sustainable funds can be 27 times more efficient in regard to improving your personal carbon footprint than eating less meat, using public transport, reduce water use, and flying less, combined.
The activities are based on statistics on Swedish habits, surveys and other data. Key assumptions used in the illustrative analysis include:
- Time-period used, defined as the span of the average working lifetime of a Swedish individual
- Sustainable investments, defined as investment funds that do not include companies with significant fossil exposure
- Traditional investments, defined as a selected global passive equity fund and its corresponding weights in companies with significant fossil exposure
- Emission levels, defined as scope 1 and 2 of the companies with significant fossil exposure
- Amount invested, defined by statistics on the average Swedish salary level and savings proportions
- Average annual return, defined by the selected global passive equity fund
Note: The illustrative analysis shows the improved personal carbon footprint from making changes in investments. Improving the personal carbon footprint in terms of carbon responsibility is not necessarily the same as emission reductions. Changes in the carbon intensity of financial portfolios can change capital flows and impact the cost of capital for a company. Emission reductions can be expected to be achieved as a result of collective efforts from investors over the long-term. Personal savings are key to mobilizing capital and we believe people should be aware of the potential for their savings to make a difference.
(This text was last updated 2018-11-19)
Other sustainability stories by Nordea
Responsible business Environment
In the capacity as a member of the Advisory Board of the network Atea Sustainability Focus (ASF), Nordea has teamed up with other large Nordic companies to d...
To satisfy a growing demand for sustainable alternatives, Nordea launched green car loans and green car leasing on the Swedish market on March 27.
Environment Responsible investment Our work
Nordea releases report on water risk.
As global interest in sustainability increases, Nordea is determined to be acknowledged as a leading European bank in the transition towards a more sustainab...
Awareness of circular economy has been on a steady rise in all Nordic countries from 2017 to 2019 and the trend to recycle and buy second hand fashion and go...