Swedbank, situated in Stockholm, has set new decarbonization targets for its lending portfolio, aiming to reduce emissions in five important corporate sectors by 2030. These sectors include mortgages, commercial real estate, oil & gas, power generation, and steel.
According to the corporation, the sectors were chosen based on their impact on climate change, the bank's portfolio exposure, and the availability of data.
Jens Henriksson, President and CEO, Swedbank, said:
"Climate change is one of our generation's major challenges. And as the largest real estate bank in Sweden, we have a unique chance to help the shift to green energy in this industry."
The new climate targets include a 39% reduction in financed emissions intensity in the mortgage sector, 43% reduction in the real estate sector, 50% reduction in the oil and gas sector, 59% reduction in the power generation sector, and 28% reduction in the steel sector by 2030, relative to a 2019 baseline.
Swedbank reports that the new aims are part of the bank's commitments to the Science Based Targets initiative (SBTi) and the Net-Zero Banking Alliance. Swedbank stated that SBTi has been sent the targets for validation.
"Immediate action is required to curb global warming. Swedbank is playing an active role in this initiative by advising and assisting our clients throughout the transition."