Climate Change Data

Environmental Metrics

ESG Focus Areas

• Ethics
• Customers
• Employees
• Shareholders
• Environment
• Society

Environmental Achievements

• Reduced CO2 emissions per FTE by 11%
• Reduced one-day flights by 9%, leading to a 15% decrease in CO2 emissions from SEB travelers
• Increased video conferences by 28%
• Substantially increased train travel
• Environmentally friendly electricity accounted for 95% of total energy consumption in Sweden
• Total energy consumption dropped by 10% to 115 GWh
• 68% of total paper consumption in Sweden is environmentally certified
• Recycling rate increased to about 57% in Sweden
• Requested and received environmental policies from 85% of basic agreement suppliers

Social Achievements

• Launched a compliance framework for the new EU standards for marketing of investment services (MiFID)
• Initiated preparations for compliance with new EU guidelines on payment fees (SEPA)
• Appointed a diversity sales manager in SEB’s Swedish retail division
• Expanded engagement in the drug prevention program Mentor to include Germany
• Offered an online customer discussion forum in Lithuania
• SEB in Lithuania was a pioneer in recruiting a household economist and starting engaging in educational activities
• Support for social projects amounted to SEK 18m
• Won the Swedish Business Award for Corporate Social Responsibility (CSR)

Governance Achievements

• Adopted a new Code of Business Conduct
• Started a Compliance Transformation Project
• Received an award for Best Corporate Governance Report in Sweden
• SEB applies the Swedish Code of Corporate Governance and is 100% compliant

Climate Goals & Targets

Environmental Challenges

• Meeting growing societal priorities for sustainable development, including customer demands, employee expectations, and shareholder concerns regarding operational and reputational risks.

Mitigation Strategies

• Developing a group-wide strategic framework for corporate responsibility governance
• Reviewing indirect impact on society linked to products, services, and asset ownership (aiming for UN PRI compliance)
• Reviewing internal operations to minimize environmental impact (long-term goal of climate neutrality)
• Improving communications and stakeholder feedback on corporate responsibility reporting (aiming for GRI G3 Guidelines compliance)

Supply Chain Management

Supplier Audits: 85% of basic agreement suppliers provided environmental policies in 2007

Responsible Procurement

• Requesting environmental policies from all suppliers with basic agreements

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G3 Guidelines (aiming for compliance), UN Global Compact, Equator Principles, OECD Guidelines for Multinational Enterprises

Sustainable Products & Innovation

• Green Car Loan

Awards & Recognition

• Best Corporate Governance Report in Sweden (2007)

Environmental Metrics

ESG Focus Areas

• Responsible Business
• People and Community
• Environment

Environmental Achievements

• Reduced CO2 emissions from business travel by 6% compared to the 2015 baseline.
• Reduced CO2 emissions from company cars by 10% in 2016 compared to 2015.
• Achieved a 54% reduction in annual CO2 emissions over seven years (2008-2015), exceeding the 45% target.

Social Achievements

• Launched a Youth app for children to manage their finances.
• Maintained high employee engagement (77% in 2016).
• Improved gender balance at senior management level to 69/31 (m/f) from 73/27.

Governance Achievements

• Established a green bond framework and a dedicated green loan portfolio of SEK 11.8 billion.
• Introduced a new evaluation approach to ESG factors in equity research (SAFE model).
• Included in the Dow Jones Sustainability Index (the only Nordic bank).

Climate Goals & Targets

Environmental Challenges

• Business travel remains the most challenging source of CO2 emissions.
• Increased scrutiny and regulations in the financial sector.
• Global challenges such as climate change, population growth, and resource scarcity.

Mitigation Strategies

• Increased efforts to offer alternatives to business travel.
• Strengthened focus on cyber security, combating fraud, and financing of terrorism.
• Enhanced efforts to discuss ESG issues with clients, including sustainability meetings.

Supply Chain Management

Supplier Audits: 202 company groups evaluated through EcoVadis (representing 55% of supplier spend)

Responsible Procurement

• Risk model covering industry, geography, and importance to SEB (covering ~90% of supplier costs)
• EcoVadis screening (including human rights criteria)

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI G4 core guidelines for the Financial Services Sector

Certifications: ISO 14001 (printing company)

Third-party Assurance: PricewaterhouseCoopers AB (limited assurance)

UN Sustainable Development Goals

• Goal 8: Decent work and economic growth
• Goal 9: Industry, innovation and infrastructure
• Goal 13: Climate action
• Goal 16: Peace, justice and strong institutions

SEB's business strategy and sustainability approach are linked to these goals through various initiatives.

Sustainable Products & Innovation

• Green bonds
• Green loan portfolio
• Sustainable funds
• Youth app

Awards & Recognition

• Included in The Sustainability Yearbook
• Global 100
• Corporate Knights Global 100 Most Sustainable Corporations in the World
• Global Woman’s Index
• Best Ethical Fund (SEB Hållbarhetsfond Global)

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Gender Equality
• Decent Work and Economic Growth

Environmental Achievements

• SA Taxi promotes efficient energy use, supports reforestation, and replaces older vehicles with more efficient ones to reduce emissions.

Social Achievements

• Reached 11.6 million borrowers, 50% of whom were women; sustained an estimated 150,860 MSME jobs per year; invested in institutions providing business development services, health education, and financial literacy training; 84% of investments were in investment-grade microfinance institutions resulting in only 0.44% cumulative write-offs.

Governance Achievements

• 84% of total investment volume was invested in investment grade microfinance institutions. Investee institutions assessed pre-investment against seven dimensions and 100 indicators of social responsibility.

Climate Goals & Targets

Environmental Challenges

• Currency risk in emerging and frontier markets; managing currency risk for investee microfinance institutions; COVID-19 impact on businesses; supply chain disruptions due to the Russia-Ukraine conflict; limited access to finance in rural areas; over-indebtedness of clients.

Mitigation Strategies

• Diversified portfolio across multiple currencies; unhedged local currency lending strategy; additional financial and development loans from HamkorBank; investments in institutions with infrastructure to serve rural communities; strict credit analysis processes and client protection policies; financial literacy training.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SFDR Article 9, UN SDGs

Third-party Assurance: Tameo Impact Fund Solutions

UN Sustainable Development Goals

• SDG 1 (No Poverty)
• SDG 5 (Gender Equality)
• SDG 8 (Decent Work and Economic Growth)
• SDG 2 (Zero Hunger)
• SDG 7 (Affordable and Clean Energy)
• SDG 4 (Quality Education)
• SDG 11 (Sustainable Cities and Communities)

Investments in microfinance institutions supporting low-income households, women entrepreneurs, and SMEs.

Environmental Metrics

ESG Focus Areas

• Responsible and proactive advice
• Sustainable financing
• Sustainable investments
• Innovation and entrepreneurship

Environmental Achievements

• Reduced total carbon emissions by 4.6% in 2019; 10% reduction of carbon emissions related to business travel (air and train)
• Green loan portfolio grew from SEK 16bn to SEK 19bn
• Green mortgage portfolio increased to SEK 1.5bn

Social Achievements

• Launched green car leasing for corporate customers and organizations
• Launched SEB FRN Fond Hållbar, a fixed income fund investing in Nordic corporate bonds with variable interest rates, excluding fossil fuel extractors and investing in green bonds
• Launched Lyxor SEB Impact Fund investing in companies contributing to solving global challenges linked to UN SDGs
• Launched discretionary portfolio Responsible for private banking customers, focusing on securities with clear working methods based on international standards for human rights, labor law, environment, and anti-corruption

Governance Achievements

• Integration of sustainability KPIs into long-term incentive programs for members of SEB’s Group Executive Committee
• Updated sustainability requirements in supplier agreement templates and published an updated Supplier Code of Conduct
• SEB’s fund company received an A in PRI’s grading of sustainable investments

Climate Goals & Targets

Environmental Challenges

• Managing climate-related risks to SEB’s credit portfolio and assets under management (transition and physical risks)
• Gradually aligning the credit portfolio with the Paris Agreement
• Lowering exposure to coal producers in fund holdings

Mitigation Strategies

• Developed a draft ESG classification framework to assess customers’ climate impact
• Developing methods to measure the climate impact of the credit portfolio and assets under management
• Working to grow the green loan portfolio and continuously launch new green products
• Enhancing advisory capacity to capture opportunities in a transforming energy sector

Supply Chain Management

Responsible Procurement

• Updated Supplier Code of Conduct
• Sustainability requirements included in supplier agreement templates

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Growth in green loan portfolio

Reporting Standards

Frameworks Used: GRI Standards, core option

Third-party Assurance: EY (limited assurance)

UN Sustainable Development Goals

• SDG 8
• SDG 9
• SDG 13
• SDG 16

SEB contributes to most SDGs directly and indirectly, with a particular focus on these four goals linked to its history and business strategy.

Sustainable Products & Innovation

• Green bonds
• Green loans
• Green mortgages
• Green construction loans
• Sustainability-linked loans
• SEB Impact Metric Tool

Environmental Metrics

ESG Focus Areas

• Sustainability
• Climate Change
• Digitalization
• Human Rights
• Anti-corruption

Environmental Achievements

• Reduced total carbon emissions by 57% from 22,525 tonnes in 2019 to 9,734 tonnes in 2020 (mainly due to reduced travel).
• Reached the 2020 target of reducing CO2 emissions by 20% between 2016 and 2020.

Social Achievements

• Launched the Financial Equality initiative to address gender inequality in savings and ownership.
• Launched a mandatory sustainability seminar for all employees.
• Maintained high employee engagement scores above the financial sector average.

Climate Goals & Targets

Environmental Challenges

• Covid-19 pandemic impacting the global economy and accelerating digitalization and sustainability trends.
• Increased uncertainty regarding expected credit losses.
• Challenges in the offshore segment of the oil industry due to lower oil prices.
• Swedish Financial Supervisory Authority (FSA) issued an administrative fine of SEK 1bn for shortcomings in anti-money laundering routines.

Mitigation Strategies

• Leveraged financial strength to support customers with credit requests, amortisation grace periods, and tailored advice.
• Developed a customer sustainability classification model to assess corporate and real estate customers' climate impacts and transition plans.
• Strengthened anti-money laundering capabilities and processes.
• Established a new central sustainability organization.
• Did not appeal the FSA's decision.

Supply Chain Management

Responsible Procurement

• SEB’s Code of Conduct for Suppliers

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Changes in climate policy, regulation, technology, or market sentiment.

Opportunities

• Development of sustainable financial products and services.

Reporting Standards

Frameworks Used: GRI Standards, core option, TCFD, UN Global Compact, Principles for Responsible Banking

Third-party Assurance: EY (limited review)

UN Sustainable Development Goals

• Goal 7 (Affordable and clean energy)
• Goal 13 (Climate action)
• Goal 8 (Decent work and economic growth)
• Goal 10 (Reduced inequalities)
• Goal 16 (Peace, justice and strong institutions)

SEB supports its customers in their transition to a low-carbon economy and aligns its business strategy with the SDGs.

Sustainable Products & Innovation

• Green bonds
• Green loans
• Green mortgages
• Sustainability-linked loans

Awards & Recognition

• 2020 Anna Equality and Diversity Award

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance
• Renewable Energy
• Social Impact
• Governance

Environmental Achievements

• Total sustainable bond issuance amounted to USD 569bn in the first half of 2021, exceeding the total issuance in all of 2020.
• Total sustainable financing - bonds and loans - stood at USD 761bn, also exceeding the level for all of 2020.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Decline in global clean energy investments in Q1 2021.
• Protracted slowdown in low- and middle-income economies.
• Concerns about social damage from portfolio reallocation, especially in lower-income countries.
• Matching global compliance with regional approaches.
• Waning 'greenium' effect in green bond market.

Mitigation Strategies

• Optimism about decarbonization by 2050 due to strengthening political commitment and scaling key technologies.
• EU's 'Fit for 55 Package' regulatory changes to reduce emissions.
• Nasdaq's Green Designations to add transparency.
• G20 Sustainable Finance Roundtable to accelerate capital mobilization.
• Continued growth in sustainability-linked bonds and loans.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Record high temperatures, droughts, wildfires and flooding

Transition Risks

• Job losses in affected industries

Opportunities

• Creation of new and more sustainable jobs

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Sustainable financing
• Sustainable savings and investments
• Innovation
• People and community
• Environment

Environmental Achievements

• Reduced absolute CO2 emissions to 11,098 tonnes (net zero through compensation), below the target of 17,000 tonnes +/- 5% by 2025.

Social Achievements

• 96% of employees completed mandatory sexual harassment training.
• Launched Tellus, an ESG data hub for employees.
• Made a targeted contribution to support employees in the Baltics due to high inflation.

Governance Achievements

• Updated overarching thematic policies on Environment and Social & Human Rights.
• Included sustainability ambitions and goals as KPIs in executive management variable remuneration.

Climate Goals & Targets

Environmental Challenges

• Air travel increased in 2022 compared to 2021 (post-pandemic effect).
• High inflation in the Baltic countries.
• Incomplete or unavailable data from reporting entities for EU Taxonomy reporting.

Mitigation Strategies

• Continued efforts to reduce energy consumption and limit business travel.
• One-off payment to employees in the Baltics.
• Using external data providers and acknowledging data limitations in EU Taxonomy reporting.

Supply Chain Management

Supplier Audits: Close to 250 suppliers (44% of total supplier costs) underwent enhanced screening in 2022.

Responsible Procurement

• SEB’s Code of Conduct for Suppliers; risk model tool considering country, industry sector, and business criticality.

Climate-Related Risks & Opportunities

Physical Risks

• Acute weather events (flooding); changes in chronic weather patterns; impacting collateral values and default risk.

Transition Risks

• Surge in carbon price; rapid breakthrough in low-carbon technologies; change in consumer preferences; reputation and litigation risks.

Opportunities

• Supporting customers in the transition to a low-carbon society; developing green and sustainable banking products.

Reporting Standards

Frameworks Used: GRI Standards, TCFD

Third-party Assurance: EY (limited review)

UN Sustainable Development Goals

• SDG 13 (Climate Action)
• SDG 6 (Clean Water and Sanitation)
• SDG 8 (Decent Work and Economic Growth)
• SDG 9 (Industry, Innovation and Infrastructure)
• SDG 12 (Responsible Consumption and Production)
• SDG 5 (Gender Equality)
• SDG 16 (Peace, Justice and Strong Institutions)

Impact analysis of credit portfolio shows potential negative impact on SDG 13, 14, 15, and 6; significant potential positive impact on SDG 8 and 9; actively working to contribute to SDG 16 and 5.

Sustainable Products & Innovation

• Green mortgages; green bonds; sustainability-linked loans and bonds; Article 9 funds; SEB EU Sustainability Certificate.

Environmental Metrics

ESG Focus Areas

• Climate Change
• Sustainable Finance

Environmental Achievements

• Green bond issuance continued to grow by fifteen percent or USD 86 billion to a total of USD 665bn in 2023.

Climate Goals & Targets

Environmental Challenges

• Clean energy investment has levelled off in 2023, and 2024 is likely to see the first decline in annual investment since 2018.
• 2023 was the second consecutive year of decline in sustainable finance.
• The cost of renewable energy projects was temporarily increased by the supply shocks during/after the pandemic and the sharp increase in funding costs caused by rising interest rates.
• Lack of political and popular support for renewable energy in Europe and the US.
• Negative media portrayal of renewable energy as an economic punishment.
• 45% drop in sustainability-linked loans in 2023.

Mitigation Strategies

• Falling interest rates and new investment pledges at COP28 point to a rebound in 2025.
• Increased willingness to raise prices for renewable energy projects.
• COP28 pledge to triple renewable energy investment by 2030.
• Refocusing the narrative on the economic benefits of renewable energy.
• Regulatory guidance on transition finance to mitigate greenwashing risk.
• Lower interest rates will have a positive impact on the bond market, benefiting sustainable debt.

Supply Chain Management

Climate-Related Risks & Opportunities

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Environmental Metrics

ESG Focus Areas

• Environmental
• Social
• Governance
• Animal Welfare

Climate Goals & Targets

Environmental Challenges

• Potential negative impacts of agriculture, aquaculture, and fishing on climate, nature, and animal welfare.

Mitigation Strategies

• Development of this Sector Policy to align business decisions with SEB Group’s sustainability ambitions.

Supply Chain Management

Responsible Procurement

• Commitment to no deforestation for palm oil, soy, coffee, and cocoa trading from 2025.
• Requirements for sustainable production standard certifications for palm oil, soy, coffee, cocoa, and sugar cane cultivation.

Climate-Related Risks & Opportunities