To strengthen the role of the SEB Group in the transition to a sustainable society, to support clients in their efforts to reduce their climate impact, and to decrease exposure to fossil fuels, SEB has updated its sustainability strategy. The SEB Group has set new climate-related ambitions and will simultaneously begin measuring the environmental impact of its investment and loan portfolio.
“Sustainability has been on the SEB Group’s agenda for a long time, supporting clients in sustainable transformation and providing sustainable financial service solutions. Consequently, the new SEB Group sustainability strategy is a logical step, fostering a faster shift for citizens, companies, and society towards a more sustainable future. With this strategy, SEB defines specific actions and reachable goals that will help achieve the greatest positive climate impact,” states Ieva Tetere, Chairwoman of the Management Board of SEB banka.
The updated sustainability strategy is both a component of the SEB Group’s 2022-2024 business plan and a cornerstone of the SEB Strategy 2030. By focusing on the importance of climate neutrality, SEB will further expand its activities in the field of sustainability, more precisely define its role in the transition process of society and business towards a green course, and integrate sustainability aspects into its products, processes, and decisions.
“The goals set by the SEB Group regarding the reduction of climate impact are ambitious, but it is clear that without active and decisive action from companies and countries, it will not be possible to reach the goals defined in the Paris Agreement on climate change. At the same time, we have the necessary resources and expertise to support our clients in this transformation process, which is challenging for everyone yet essential,” says Viktors Toropovs, Head of Sustainability at SEB banka in Latvia.
In its strategy, the SEB Group has defined specific outcomes to be achieved across three indicators, including the Carbon Exposure Index, which sets a target to reduce the volume of loans directly linked to fossil resources by 45-60 percent by 2030. This includes both electricity generation and distribution, as well as oil and gas extraction.
The Sustainable Activity Index reflects sustainable lending, financial advice, investment products, and venture capital investments in smart technologies (greentech), with the goal of increasing activity 6–8 times by 2030.
Meanwhile, the Transition Coefficient reflects the performance of our clients in transitioning their business models in accordance with the terms of the Paris Agreement. By using this assessment, we will gain a better understanding of our clients' progress in the transition process and will be able to support them in reducing carbon emissions.
In 2009, the SEB Group developed its first sustainability strategy. In subsequent years, SEB continued to strengthen its climate guidelines. In 2019, SEB signed the UN initiative “Principles for Responsible Banking”, i.e., our commitment to continuously adjust our business strategy to align with the UN Sustainable Development Goals and the Paris Agreement, as well as to contribute to the achievement of those goals. We are also committed to fulfilling several other important international obligations that support the transition to sustainability, such as the “Net-Zero Banking Alliance”, the “Net Zero Asset Managers initiative”, and the “Poseidon Principles”.
In February 2021, SEB approved an updated sector policy on fossil fuels to clarify the bank’s guidelines by including more areas and clearer positions, including a roadmap for how SEB will gradually reduce its exposure to coal and unconventional oil. In the same month, the SEB investment management company SEB Investment Management strengthened its sustainability policy by introducing uniform exclusion criteria for all funds managed by SEB and the exclusion of fossil fuels from all funds.