Nordea Cuts Financed Emissions by 44%, Exceeds 2025 Climate Targets

Nordea Bank Abp announced strong progress towards its climate commitments, reporting a 44% reduction in financed emissions across its lending portfolio by the end of 2025, compared to 2019 levels. The bank has also facilitated EUR 235 billion in sustainable financing, exceeding its target for 2025 and placing it on track to meet its 2030 climate goals.

The reductions were achieved through increased customer engagement and a broader sustainable finance offering, including green loans and sustainability-linked loans. Nordea stated that financing for the transition is a key focus, with green and sustainability-linked assets now making up 15% of total assets, nearly double the 2022 level.

The bank has also significantly reduced its exposure to fossil fuels, particularly in the oil and gas extraction sector, where lending exposure now accounts for just 0.001% of total lending. Nordea has also reduced carbon emissions from its own operations by over 50% since 2019, well ahead of its 2025 target.

Nordea Asset Management integrates ESG factors into its investment strategies and engages with portfolio companies to drive alignment with climate goals. The bank participates in initiatives such as the Oil and Gas Methane Partnership 2.0 framework to encourage methane emission reductions.

Several of Nordea's 2025 climate targets have been met, including 91% coverage of large corporate customers in climate-vulnerable sectors with transition plans, 93% alignment with the Paris Agreement or active engagement by emissions contributors in portfolios, and a 52% reduction in emissions from internal operations.