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February 4, 2021

Nordea sets target to become a net-zero emissions bank by 2050

By Alejandro Gonzalez

Nordea Bank – a provider of asset finance and leasing in Norway, Sweden, Denmark and Finland – has updated its plan to fully integrate sustainability into its business strategy with a long-term objective to become a net-zero emissions bank by 2050 at the latest. 

Nordea’s ambition is to become a bank with net-zero emissions by 2050 at the latest, the bank said in a statement. 

To reach this goal, Nordea has set a mid-term objective to reduce carbon emissions from its lending and investment portfolios by 40-50% by 2030, the bank said.

Nordea will also reduce its internal carbon emissions by at least 50% and achieve net positive carbon contribution by 2030. The baseline measurement for the objectives is 2019, the bank said.

“We will deliver on our targets by supporting and working together with our customers towards sustainable development and ensure that we have a plan for sectors where the climate impact is significant”, said president and group CEO Frank Vang-Jensen.

Sustainability is embedded across Nordea’s business strategy, backed by measurable targets, strong governance and one of the broadest sustainability customer offerings in the market, Vang-Jensen said.

Sustainable transition

Nordea has committed to aligning its business strategy to be consistent with the goals listed in the UN Sustainable Development Goals and the Paris Climate Agreement. 

“We believe in being an active bank and a driving force in the transition towards a sustainable economy. Increasing demand for sustainability-linked products and services is good for society and for our business. 

“We want to make a difference for a greater good – not only for ourselves but for the future and for generations to come”, said Vang-Jensen.

Nordea Bank: Q4 & FY 2020 results

CET1 ratio

In its latest fourth-quarter and full-year results for 2020, Nordea Bank said it had a capital position among the best in Europe with a common equity tier 1 (CET1) ratio of 17.1%.

After deducting the proposed 2019 and 2020 dividends in full, the Group’s CET1 ratio was up 70bp on the previous quarter at 17.1%. This is 6.9 percentage points above the current regulatory requirement.”

SME business

Nordea said its SME lending increased by 8% year-on-year, supported by the acquisition of SG Finans, now Nordea Finance Equipment (NFE).

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