Nordea Sets Emission Reduction Targets for Power Production and Agriculture

Nordea Bank Abp has introduced new sector targets for power production and agriculture as part of its ongoing efforts to decrease carbon emissions across its lending portfolio and assist clients in their transition towards net-zero. These initiatives are critical tools to break down the bank's broader sustainability objectives and guide its work in supporting clients' emission reduction journeys.

The newly set targets complement those previously established in December 2022 for shipping, residential real estate, and oil and gas. The power production and agriculture sectors together represent approximately 30% of Nordea's financed emissions. The bank aims to reduce the physical emission intensity of its power production lending portfolio by over 70% by 2030, compared to 2021 levels. For the agriculture sector, the goal is to decrease economic emission intensity by 40-50% within the same timeframe.

Both sectors are considered vital for achieving global climate goals. The power production targets encompass lending to companies primarily engaged in electricity generation, covering their Scope 1 and 2 emissions. The agriculture targets apply to lending for animal husbandry, crop production, and plantations, also covering Scope 1 and 2 emissions. These targets are aligned with science-based recommendations and the 1.5°C climate scenario.

Peter Sandahl, Head of Climate and Environment at Nordea, emphasized the importance of engaging with and supporting customers through financing and advisory services to accelerate emission reductions. Nordea will continue to analyze carbon-intensive sectors and set additional sector targets as needed to support its ambition of a 40-50% reduction in emissions across its entire lending and investment portfolios by 2030.

Nordea joined the Net Zero Banking Alliance in October 2021 and reports on its progress concerning sector targets in its annual report.