Danske Bank sets 2030 CO2 reduction targets in its loan portfolio

As the first Nordic bank to do so, Danske Bank sets concrete CO2 reduction targets for certain sectors by 2030 in relation to loans, with the aim of achieving a net zero loan portfolio by 2050 or earlier.

The new interim climate goals follow on from climate-focused initiatives that Danske Bank has taken in recent years to contribute to the green transition. With these objectives, we assume an even more active responsibility in reducing CO2 emissions in the societies of which we are part, thus facilitating the sustainable transitions of our customers and further contributing to the necessary green transition.

The 2030 interim targets are set against a 2020 baseline and cover the three sectors in our loan portfolio that contribute the highest CO2 emissions. For oil and gas production, the target is a 50% reduction in loan exposure, while the target for shipping is a 20-30% reduction in emissions per unit transported. For utility companies, a target of 30% reduction in carbon emissions per kWh of electricity and heat has been set.

We will continue our work on setting targets for 2030 by introducing targets for other sectors – including agriculture, housing and heavy industry – as the quality of data for these sectors improves. We plan to publish more sector targets this year.

Focus on transition

With these goals, we and our customers make a commitment; and as a bank, we are fully striving to offer our clients the best advisory services and attractive loan options to support the transition.

“We have over 3.3 million customers and we cover the majority of sectors – including sectors that have a large carbon footprint. That is why we are part of the solution needed to meet the climate challenges we face. For the most part, our customers are doing a lot of work related to the green transition, but we also recognize that we have an obligation – as a leading Nordic bank and with the resources we have – to support our customers and contribute to the green transition in the societies of which we are part, as well as Support Denmark achieve its 2030 target for reducing CO2 emissions”, explains Carsten Egeriis, Managing Director of Danske Bankand he continues:

‘Our ambition is to help all customers – who can and who want to. And we are seeing strong demand from our clients for consulting services and products that support their own clients’ green transitions. As an investor and lender, the issue for us is not so much to support the greenest companies today but to support the companies that have the greatest potential to be green tomorrow. Our objective is therefore above all to support our customers in the success of their own green transition. This could mean that our trip will take a bit longer. But in the end, the difference we will make for our customers and for society will be much greater.

The targets apply to customers’ CO2 emissions in specific sectors – emissions that Danske Bank plays a role in granting loans to customers.

AT Danske Bank, we have a strong focus on how we can contribute to a more sustainable economy, and our 2030 goals are part of that goal. Our ambition is to become a leader in the field of sustainable finance in the Nordic countries. In July 2021we have raised our ambitions for sustainable financing by increasing our target of 100 billion Danish kroner at 300 billion Danish crowns. We have also increased our ambitions for Danica Pension’s investments in the green transition by raising the 2023 target of 30 billion Danish kroner at 50 billion Danish kroner. Throughout 2021, both areas saw progress as we increased the amount of sustainable finance we facilitated from 102 billion Danish kroner at 192 billion Danish kronerand investments in the green transition have increased from 27 billion Danish kroner at 33.5 billion Danish kroner.

Fact on the 2030 Intermediate Goals

Shipping

By 2030, customers must have reduced their emissions per unit transported by 20-30% for the entire loan portfolio compared to 2020. Emissions are measured according to the Poseidon Principles standard, which also ensures continuous monitoring of customer progress. We provide transition funding to shipping customers to ensure they improve their efficiency and to allow older vessels to be replaced with new, more efficient vessels that will often run on alternative fuel technologies.

Energy utilities

By 2030, customers must have reduced their carbon emissions per kWh of electricity and heat production by 30% for the entire loan portfolio compared to 2020. Danske Bank customers operating in the utility sector are already well advanced in decarbonization due to their early and sustained investments in hydro, wind and biomass.

Oil and gas exploration and production (upstream)

By 2030, Danske Bank’s loan exposure to oil and gas production companies is to be reduced by 50% for the entire loan portfolio relative to 2020. There is currently no clear standard for measuring the transition of oil companies. Instead of setting a target based on activity, we are therefore targeting a reduction in loan exposure. The level set reflects the lower investment needs of Nordic oil and gas producing companies as defined in the main net zero scenarios, while also allowing support to be provided to the most efficient producers – also after 2030.

Danske Bank

Stefan Singh Kailay

Head of Press Relations, Danske Bank Group

Email: 	[email protected]

Journalists are also invited to contact our press office by telephone on +45 45 14 14 00, day and night.

Comments are closed.