Supporting statement
The Paris Agreement states that all financial flows must be directed away from activities that
exacerbate the climate crisis and instead be directed towards activities that offer solutions to it. It has
never been clearer that climate action must be radically accelerated; the world is headed for a
warming of more than 2.9 degrees with devastating consequences. The banks play an important role
in breaking this trend and speeding up the transition.
The report Banking on Thin Ice (2022) from ActionAid Denmark, BankTrack, Fair Finance Guide,
Friends of the Earth Finland (Hiilivapaa Suomi), Greenpeace and the Swedish Society for Nature
Conservation (Naturskyddsföreningen) shows that Nordea has continued to support fossil fuel
companies with new loans totalling USD 3.2 billion over the past two years (July 2020 – June 2022).
The majority of the loans have gone to companies that are expanding their extraction, including in
sensitive areas such as the Arctic. This despite the fact that the International Energy Agency (IEA) has
concluded that the expansion of the extraction of fossil fuels must stop immediately, if we are to limit
global warming in accordance with the Paris Agreement's 1.5-degree target.
A new report The real carbon footprint of Swedish banks (2024) from Fair Finance Guide and Swedish
Society for Nature Conservation shows that the emissions from Nordea’s lending to the oil and gas
sector accounts for three per cent of its total financed emissions, despite that the lending to this
sector accounts for only 0.21 per cent of the total lending. It clearly illustrates that acting to reduce
the financed emissions from the oil and gas sector is both necessary and an effective way to reduce
the bank’s overall climate footprint, and thereby contributing to its overall commitment to align with
the 1.5-degree target.
Nordea’s current fossil fuel sector policy does not live up to best practice. Two of its main
competitors, Handelsbanken and Danske Bank, have in the last year imposed restrictions that to a
large extent are in line with this shareholder resolution. Handelsbanken published its new climate
policy in June last year and already see a positive impact on their business. The bank’s new climate
policy has been appreciated by many of its clients, and also attracted new clients. Nordea needs to
take the same steps to remain competitive in the Nordic market where sustainability issues is a
growing business risk and opportunity.
Nordea's continued support of expanding fossil fuel companies that lack robust transition plans
violates the bank’s own climate commitments to contribute to the fulfilment of the Paris Agreement.
By strengthening its overall climate strategy and its financing requirements, Nordea could become
part of the solution to the climate crisis instead of being part of the problem.