FULLTEXT DEL 4 AV 11
Årsredovisning 2025
Nordea Annual Report 2025 121
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Exclusions
Our policies also define our rules for excluding companies
in sectors with the most material climate impacts. The
exclusions are another component of our transition plan.
Our climate impact- and risk-related exclusions are
described in our sector guideline for the fossil fuel based
industries and our sector guideline for the mining industry.
Lending customers are informed about our policies as part
of the customer dialogue and through our external
website. Climate impact- and risk-related investment
exclusions are continually updated in the relevant policies,
which include NAM’s Responsible Investment Policy and
Fossil Fuel Policy. For certain investment products, we
apply enhanced criteria with additional exclusions.
NLP’s exclusion criteria within coal, oil and gas explora-
tion and production, unconventional oil and gas, and
Arctic drilling were applied during 2025.
Portfolio Financing Investing (asset owner) Investing (asset manager) Further information
Coal • We do not provide financing to or facilitate financing for:
– companies that derive more than 5% of their revenue directly from
thermal coal (covers coal-fired energy production companies and
mining companies extracting thermal coal)
– companies with expansion plans for thermal coal or new and pre-
construction phase thermal coal activities
– projects dedicated to thermal coal mining, new thermal coal power
plants, or the construction of thermal coal transport infrastructure.
• NLP does not invest in companies with large and
sustained exposure to coal mining (5% revenue
threshold for thermal coal; 30% revenue threshold
for coal overall, including metallurgical coal).
• Companies in the coal mining and power
generation sectors must have a credible transition
plan aligned with, at most, a 2°C trajectory in
order for NLP to invest.
• NAM excludes companies with large and sustained exposure to
coal mining (5% revenue threshold for thermal coal; 30%
revenue threshold for coal overall, including metallurgical coal),
and companies that produce more than 50Mt of thermal coal
annually and do not have a coal phase-out commitment.
• In addition, NAM excludes:
– electric utility companies without a commitment to phase
out coal by 2040 (35% revenue threshold for advanced
economies, 50% for others)
– companies with coal power expansion plans if existing coal
power revenues exceed 10% of total revenue or if coal
capacity exceeds 5GW
– companies with coal expansion plans of above 1GW.
• The threshold for metallurgical coal is higher as there are currently no
widely available alternatives. We have still chosen to apply a threshold,
and expect to adjust it downwards as applicable coal-free technologies
emerge, for example in the area of steel production.
• A coal phase-out commitment is a public commitment to end the
production of thermal coal or coal-fired electricity generation by 2040 at
the latest.
• We require existing financing customers using thermal coal in power
production or mining to plan to exit such activities by 2030 at the latest for
industrialised countries and by 2040 globally.
• We also do not finance new or existing customers actively engaged in
mountaintop removal mining or asbestos mining.
Peat • We do not provide financing to or facilitate financing for:
– companies with expansion plans for thermal peat or new and pre-
construction phase thermal peat activities
– projects dedicated to thermal peat mining or new thermal peat power
or heating plants
– new customers that derive more than 5% of their revenue directly
from thermal peat (covers peat-fired energy production companies
and mining companies extracting thermal peat).
• We have required existing financing customers using thermal peat in
power or heat production or mining thermal peat to be committed to
exiting such activities by 2025 at the latest. An exception has been granted
to companies impacted by energy security measures taken in Finland.
Oil and gas
exploration and
production
• We do not provide or facilitate financing for projects dedicated to
expanding the exploration and production of oil and gas.
• Companies in the conventional oil and gas sector
must have a credible transition plan aligned with,
at most, a 2°C trajectory in order for NLP to invest.
Unconventional oil
and gas
• We do not provide or facilitate financing for projects dedicated to
expanding the exploration and production of unconventional oil and gas.
• NLP does not invest in companies involved in the
extraction of unconventional oil and gas.
• For Article 6 products managed by NAM, companies with
substantial and sustained exposure to oil sands (5% revenue
threshold) are excluded.
• For Article 9 funds and Article 8 funds managed by NAM (with
a small number of Article 8 exceptions), companies involved in
unconventional fossil fuel extraction methods are excluded.
These methods include oil sands extraction and hydraulic
fracturing (shale oil/gas).
Arctic drilling • We do not provide or facilitate financing for projects dedicated to
expanding the exploration and production of oil and gas through Arctic
drilling.
• Companies involved in exploration, development and/or extraction in the
Barents Sea are required to operate under a license awarded by the
Norwegian Ministry of Energy and to have permission from the
Norwegian Environment Agency and the Norwegian Ocean Industry
Authority to carry out such activities.
• NLP does not invest in companies involved in oil
and gas extraction through Arctic drilling.
• NAM excludes companies involved in oil and gas extraction
through Arctic drilling.
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Nordea Annual Report 2025 122
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Actions and resources in relation to climate change
Our policies are implemented through actions to mitigate
climate-related risks and negative impacts and boost posi-
tive impacts and opportunities. These actions require sig-
nificant effort and coordination. We engage with our cus-
tomers and investee companies, peers, civil society and
the public sector on climate action and, through our
financing and investments, contribute to the transition of
the real economy towards a low-carbon and climate-resil-
ient future. We also continue to play an active role in the
international climate finance ecosystem, helping to further
develop the ambition and standardisation of carbon
accounting, target setting and net zero alignment across
the financial industry.
Over the past few years, we have supported and made
voluntary commitments to the Net-Zero Banking Alliance
(NZBA), the Net-Zero Asset Owner Alliance (NZAOA) and
the Net Zero Asset Managers (NZAM) initiative. In 2025
these alliances reviewed their operations due to increasing
political risks and the evolving regulatory environment.
The NZBA subsequently disbanded and the NZAM initia-
tive restructured its operations. Despite these changes, we
continue to refer to the guidance provided by these initia-
tives for our target setting and continue to collaborate
with our peers to support progress towards our climate
targets and net zero commitment.
We have an active role in the Partnership for Carbon
Accounting Financials (PCAF) as a member of the Board
of Directors and a member of the Global Core Team.
Through our involvement, we seek to actively contribute
to the development of new methodologies and standards
for GHG emissions accounting in the financial industry.
Following the recommendations stemming from the
Glasgow Financial Alliance for Net Zero, we encourage our
customers and investee companies to adopt net zero tran-
sition strategies and advise them on their efforts. We rec-
ognise that it is also in our interest for customers and
investees to make a gradual and predictable transition,
which we can help to support.
We develop products and solutions that both support
our transition and enable us to increase positive impact
(financing sustainable activities) and decrease negative
impact (financing the transition away from high-emitting
activities). Through close dialogue, we encourage our cus-
tomers to further develop and strengthen their transition
plans, while providing them with financing to enable their
transitions. We have developed, and offer, ESG-focused
products and services such as sustainability-linked and
green financing.
Furthermore, we recognise that customer-facing
employees and employees in procurement play an impor-
tant role in implementing climate actions. We provide reg-
ular internal training on topics such as net zero transition
plans, sustainable finance, ESG data and the EU
Taxonomy, which helps build internal skills and a culture
focused on supporting customers’ transitions.
Integrating climate assessments into our credit and
investment processes is crucial to understanding and
managing risks in our portfolios. This includes continu-
ously updating our sector guidelines, industry credit poli-
cies and responsible investment policies.
Our policy development and stakeholder engagement
have informed different actions with respect to lending,
investments and own operations.
Lending portfolio
We monitor the development of our financed emissions
and customer-level transition plans to ensure progress
towards our lending portfolio targets for 2030 and our
objective to be net zero by 2050. We have performed port-
folio emissions and climate risk analysis in several areas to
understand the portfolio footprint, which has led to
actions to derisk the balance sheet and steer it in the right
direction. Between 2019 and 2025, the reduction in
financed emissions in our lending portfolio was driven
mainly by lower lending volumes in the Shipping and Oil &
Gas portfolios, an exit from the offshore segment, and
emissions reductions achieved by our customers.
We have identified sectors vulnerable to climate-related
risks, analysed these sectors, and established guidelines
and set sector targets for most of them. Our actions to
achieve our sector targets are further described in “Sector
analysis and targets for lending portfolio” on pages 131–
135. In addition to the sectors covered on these pages,
commercial real estate and aquaculture and fishing have
been identified as climate-vulnerable sectors.
Commercial real estate
In recent years we have performed a thorough analysis of
climate-related risks and opportunities in the commercial
real estate sector (excluding construction). While commer-
cial real estate represents a relatively low-emitting portfo-
lio for us, accounting for approximately 2% of our lending
portfolio financed emissions in 2025, customer emissions
profiles range widely across countries and asset types.
Customer emissions profiles mainly depend on local
energy sources. Norway relies mostly on hydro power,
Sweden on hydro power and nuclear power, and
Denmark and Finland on a mix of fossil and non-fossil
sources. Where the energy sources are predominantly
fossil free, energy efficiency is a more relevant metric
than GHG emissions.
We monitor financed emissions development against
relevant external benchmarks to strengthen our portfolio
risk management, and expect large commercial real estate
companies to develop climate transition plans. In this way,
we seek to help transition the lending book towards more
energy-efficient and low-emitting assets. In addition, we
support customers’ green transitions by financing already
energy-efficient buildings and building energy renovations
and onsite renewable power generation that lower the
energy consumption and emissions of buildings.
Aquaculture and fishing
Both the fishing and aquaculture sectors are important for
the Norwegian economy. Our fishing customer base con-
sists mainly of ocean-going fishing vessels that capture
wild fish resources. The majority of these customers do not
disclose their emissions or set targets for emissions reduc-
tions. Emissions reduction efforts within vessels rely on
transitioning to alternative fuels, integrating new technol-
ogies, retrofitting existing vessels and adopting the latest
sustainable practices for new builds. Our aquaculture cus-
tomer base consists predominantly of large Norwegian
companies with businesses diversified through vertically
integrated operations across the fish farming value chain.
These companies have set ambitious interim emissions
reduction targets.
In 2025 we collected GHG emissions data from the larg-
est customers in the fishing and aquaculture sectors and,
where possible, assessed the climate transition plans of
these customers using our proprietary Climate Transition
Plan Maturity Ladder.
Investment portfolio
We work strategically to align our investment strategies
with the goals of the Paris Agreement. Nordea Asset
Management (NAM) co-developed the Net Zero
Investment Framework along with other members of the
Institutional Investors Group on Climate Change (IIGCC)
and was among the first cohort of signatories to the Net
Zero Asset Managers (NZAM) initiative.
In practice, we pursue our climate ambitions through
three complementary mechanisms:
• active ownership, where we encourage investee compa-
nies to accelerate decarbonisation through strategic
engagement and voting
• solution-focused investing, where we invest in climate
solution providers and companies with credible transi-
tion plans, applicable to almost three-quarters of fund
assets under management (AuM)
• portfolio reallocation, where we restrict investments in
sectors with limited prospects in a decarbonised econ-
omy, and integrate the identification of relatively high
emitters into our overall investment process.
By the end of 2025, NAM had achieved its target to double
the share of AuM managed in line with net zero (“net-zero
committed AuM”), increasing it to 38.8% in 2025 from
17.5% in 2021. NAM also met its 2025 target to ensure 80%
of the top 200 carbon footprint contributors in its invest-
ment portfolio were either assessed as Paris aligned or
were subject to active engagement to encourage align-
ment. The final 2025 figure was 93%.
NAM also endorses the Oil and Gas Methane
Partnership (OGMP) 2.0 framework and collaborates with
selected partners and clients to encourage companies to
measure, disclose and mitigate their methane emissions.
In 2025, NAM engaged with approximately 60 companies
on methane reduction. Expand Energy joined OGMP 2.0 in
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Nordea Annual Report 2025 123
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E1 Climate change, cont.
2025 and is one of 15 companies who have joined due to
NAM engagement.
Going forward, NAM will continue engaging with inves-
tee companies to encourage Paris Agreement alignment.
NAM’s 2030 engagement target is to ensure that 100% of
transition-critical investee companies are either Paris
aligned or are subject to active stewardship to improve
alignment.
Nordea Life & Pension is one of the co-founding mem-
bers of the UN-convened Net-Zero Asset Owner Alliance
(NZAOA). NLP has divested from oil and gas exploration
and production companies that fail to present a credible
transition plan or are involved in unconventional oil and
gas production. NLP has also implemented tight restric-
tions for investments related to the mining of thermal and
metallurgical coal. External asset managers selected by
NLP must demonstrate their ability to integrate risks and
opportunities stemming from climate-related transition
and physical risks into their investment analysis and deci-
sion-making processes.
In 2025 NLP launched its second set of climate targets,
for 2029. As a next step towards reducing the emissions
intensity of its listed equity, corporate bond and directly
held real estate portfolios, NLP has increased the ambition
level to a reduction of 40–50% compared with 2019. By
the end of 2025, a 40% reduction had been achieved. In
line with its new engagement target for the period 2025–
29, NLP engaged with the 30 most material emitters in its
portfolios on the topic of net zero alignment during 2025.
In the long run, this engagement is intended to result in
emissions reductions in the real economy, thereby also
supporting NLP’s portfolio emissions target. NLP has also
set a goal to increase the share of investments that sup-
port nature and the climate transition by 20% between the
end of 2023 and the end of 2029. By the end of 2025, NLP
had increased the share by 26% across its portfolios in the
Nordic countries. While this outcome is positive, some of
the underlying drivers are volatile and are expected to
change over time.
Own operations
We aim to reduce the carbon emissions from our internal
operations by more than 50% by 2030 compared with
2019. The target scope and methodology are described on
page 129 and our GHG accounting methology is described
on page 148. Our work is based on the precautionary prin-
ciple and covers the countries in which we have our main
operations: Denmark, Finland, Norway, Sweden, Poland
and Estonia. Some of our key mitigation actions are out-
lined below.
Reduce GHG emissions from air travel
We have continued to manage air travel emissions via tar-
get setting, monthly reporting and dashboards shared
with leaders (including senior management) and via inter-
nal campaigns to promote our travel policy. The policy
includes travelling primarily to customer-related events,
virtual meeting options, and the expectation to use the
train when possible. Air travel patterns remained lower in
2025. An 80% reduction in air travel over the past six years
has contributed to us meeting our 2025 target to reduce
emissions by 40% compared with 2019.
Improve energy efficiency at head offices
We have changed 51% of the light fixtures in the Nordic
head office areas to LED fixtures and have started imple-
menting an Energy Management System (EnMS). In 2026
we will continue to change LED fixtures and roll out the
EnMS. We will also begin replacing our ventilation sys-
tems and optimising our building management systems.
Accelerate paperless banking
We have continued to systematically replace physical let-
ters with communications via digital channels to increase
customer satisfaction, support our sustainability targets
and improve cost efficiency. We consistently assess the
need for physical letter send-outs using thorough evalua-
tion processes.
Reduce emissions from company car fleet
During 2025 we continued to act on our commitment to
sustainable mobility and a complete shift away from fossil
fuel vehicles by taking further steps to transition our com-
pany car fleet to fully electric vehicles.
By the end of the year, gasoline and diesel vehicles had
been fully phased out of our company car portfolio. From
this point on, our fleet will consist exclusively of hybrid
and electric vehicles. Since January 2025, our policy has
been for all newly ordered company cars to be battery
electric vehicles (BEVs), marking a clear move towards
zero-emission mobility.
Align supply chain with our transition targets
To achieve our supply chain target, in 2025 we imple-
mented a tool to help us source company climate data. The
tool enables us to assess suppliers’ climate transition com-
mitments and plans, and track engagements. We have now
met our target to ensure that suppliers covering 80% of our
related spending are either aligned with the Paris
Agreement or are subject to active engagement to become
aligned: 53% of our spending is on suppliers that are
aligned and 28% is on suppliers subject to active engage-
ment. Since we have met our 2025 target, we have set a
new target: to ensure that, by 2030, all transition-critical
suppliers are aligned with the Paris agreement or are sub-
ject to active engagement to improve alignment.
Reduce waste generation from operations
All employee restaurants and cafes at head offices man-
aged by ISS have obtained the Nordic Swan Ecolabel.
Among other things, the certification requires a structured
approach to waste sorting, the reduction of food waste,
and the elimination of disposable item use.
Cap water withdrawal in the head offices
The Nordic Swan Ecolabel requirements include efforts to
reduce water withdrawal in kitchens. Actions taken
towards obtaining the certification of our ISS-operated
employee restaurants and cafes at the head offices further
support our capping of water withdrawal.
Technology reduction activities
After launching our “Wireless First” initiative in Sweden
and Denmark in 2024, we expanded the roll-out to
Finland, Norway and Poland in 2025. This transition has
enabled us to decommission redundant network hard-
ware, contributing to reduced energy consumption and
emissions. It also opens up further opportunities to
streamline infrastructure by eliminating additional
switches and routers.
As part of our cloud engineering work, we are migrating
VMware to Google Cloud, which supports our green IT
strategy by reducing our on-premises footprint, consoli-
dating workloads and leveraging Google’s energy-efficient
infrastructure.
The above-mentioned key mitigation actions are linked
to our decarbonisation levers related to own operations.
The decarbonisation levers are detailed and quantified in
the following section.
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E1 Climate change, cont.
Targets related to climate change
mitigation and adaptation
Our business objective is to achieve net-zero emissions
(scopes 1, 2 and 3) across our value chain by the end of
2050 at the latest. To support this long-term commitment
and align our business with the goals of the Paris
Agreement, we have set an interim objective to reduce
emissions across our lending and investment portfolios by
40–50% by the end of 2030 compared with 2019.
Instead of setting a combined scope 1, scope 2 and
scope 3 gross target, we have implemented separate,
measurable and time-bound outcome-oriented targets for
our own operations, our supply chain and relevant lending
and investment portfolios. Currently, the targets cover
scope 1 and 2 GHG emissions and scope 3 GHG emissions
in the following categories: 1 (purchased goods and ser-
vices), 2 (capital goods), 3 (fuel- and energy-related activi-
ties), 5 (waste generated in operations), 6 (business travel),
and 15 (investments – i.e. financed emissions in our lending
and investment portfolios). Counterparty scope 3 financed
emissions, while monitored (see the “Business loan
financed emissions” table on page 140 and the financed
emissions tables for NAM and NLP on pages 144 and 145,
respectively), are excluded from our target scopes.
The targets for the lending and investment portfolios
are aligned with our Group strategy, with the lending port-
folio target also supported by additional sector-specific
targets.
In addition, each business area has set individual cli-
mate-related targets and actions for 2024–29 and 2030,
which will be continually monitored and reported on (see
pages 125–130).
We have identified key mitigation actions and analysed
the decarbonisation levers that have contributed to our
emissions reductions between the base year and 2025. We
expect these decarbonisation levers to continue to support
the emissions reductions needed for the achievement of
our targets. The graphs presented alongside the relevant
targets indicate the past and expected future contribu-
tions of different decarbonisation levers.
On the way to net zero
2024–25 targets Status
Nordea Bank: Ensure that 90% of our exposure to large corporate customers in climate-vulnerable sectors is covered by transition plans by the end
of 2025 Target met
Nordea Asset Management: Ensure that 80% of the top 200 emissions contributors in Nordea Asset Management’s portfolios are either aligned
with the Paris Agreement or are subject to active engagement to become aligned by the end of 2025 Target met
Nordea Asset Management: Double the share of net-zero-committed assets under management by the end of 2025 compared with 2021 Target met
Operations and supply chain: Reduce the carbon emissions from our internal operations by 40% by the end of 2025 compared with 2019 Target met
Operations and supply chain: Ensure that suppliers covering 80% of our related spending are either aligned with the Paris Agreement or are
subject to active engagement to become aligned by the end of 2025 Target met
2029–30 targets Status
Nordea Bank: Reduce financed emissions in the lending portfolio by 40–50% by the end of 2030 compared with 2019 44% reduction
Nordea Asset Management: Reduce the weighted average carbon intensity (WACI) of listed equities and corporate bonds by 50% by the end of
2030 compared with 2019 52% reduction
Nordea Life & Pension: Engage annually with the 30 most material emitters on net zero alignment during the period 2025–29 Met for 2025
Nordea Life & Pension: Increase the share of assets under management supporting nature and the climate transition by 20% by the end of 2029
compared with 2023 26% increase
Nordea Life & Pension: Reduce the carbon footprint (intensity) of listed equity, corporate bond and directly held real estate portfolios by 40–50% by
the end of 2029 compared with 2019 40% reduction
Operations and supply chain: Reduce the carbon emissions from our internal operations by more than 50% by the end of 2030 compared with 2019
and achieve a net positive carbon contribution (through offsetting) 52% reduction
New 2030 targets Status
Nordea Bank: Engage annually with corporate customers (collectively representing at least 70% of financed emissions in the large corporate lending
portfolio) on the topic of net zero transition during the period 2026–30 New target
Nordea Asset Management: By 2030, ensure that 100% of transition-critical investee companies are either aligned with the Paris Agreement or are
subject to active stewardship to improve alignment New target
Operations and supply chain: By 2030, ensure that all identified transition-critical suppliers are either aligned with the Paris Agreement or are
subject to active engagement to improve alignment New target
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Nordea Annual Report 2025 125
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Nordea Bank targets for scope 3 category 15 GHG
emissions (lending and investment portfolios)
2025 Nordea Bank target (relative)
Ensure that 90% of our exposure to large corporate
customers in climate-vulnerable sectors is covered
by transition plans by the end of 2025
Target scope
The sectors covered by the target were those originally
defined in 2020 as potentially vulnerable to climate-re-
lated transition and/or physical risks. Details on these vul-
nerable sectors are disclosed in the table “Business loan
financed emissions” on page 140. The target was set to
support the mitigation of climate-related risks.
Methodologies
In the context of this target, a transition plan was defined
as a quantifiable and time-bound target to reduce GHG
emissions set by an obligor or parent company. We gath-
ered relevant climate commitments from publicly available
sustainability and annual reports, and supplemented these
with information gathered directly from customers.
Performance against target
91% of our exposure to large corporate customers in cli-
mate-vulnerable sectors was covered by transition plans
at the end of 2025. This percentage is based on 2025 year-
end exposures and transition plans reported during 2025.
2030 Nordea Bank target (absolute)
Reduce financed emissions in the lending portfolio
by 40–50% by the end of 2030 compared with 2019
Target scope
The target covers financed emissions across the asset
classes business loans, residential real estate, commercial
real estate, motor vehicles and shipping in the lending port-
folio. It was informed by the imperative to halve global
absolute emissions within the target time horizon in accord-
ance with the Intergovernmental Panel on Climate Change’s
no- and low-overshoot 1.5°C pathways (IPCC SR15). The
target relates to the policy objectives set in our
Sustainability Policy and was set to support the mitigation
of climate-related risks, limit negative impacts, increase
positive impacts and support opportunities.
Methodologies
The target is measured based on tCO2e and was deter-
mined to keep absolute emissions from our lending port-
folio below or on a par with two global benchmark scenar-
ios for absolute emissions reductions required across the
economy. These are the IPCC SR15 and the United Nations
Environment Programme (UNEP) Emissions Gap Report
2019. The selected IPCC pathways outline absolute CO2
emissions reductions of 40–50% by 2030 relative to 2010
levels; we held emissions in 2019 to be at a level similar to
or slightly higher than in 2010. In setting the target, we
drew on the Guidelines for Climate Target Setting for
Banks developed by the Net-Zero Banking Alliance, pub-
lished in collaboration with the UNEP Finance Initiative
and informed by non-governmental organisations (NGOs)
involved in the Science Based Targets initiative (SBTi). The
target is connected to the lending portfolio decarbonisa-
tion levers, which are detailed in the chart below.
Performance against target
Financed emissions in the lending portfolio had decreased
by 44% by the end of 2025 compared with the baseline (19.3
MtCO2e at the end of 2019). Details can be found in the table
“Breakdown of financed emissions in the lending portfolio”
on page 139.
Decarbonisation levers
Our lending portfolio emissions reductions fall into three
categories: exposure changes, counterparty reductions
and other drivers. The first two are considered to be actual
decarbonisation levers. Exposure changes reflect how
shifts in the portfolio composition affect financed emis-
sions, while counterparty reductions capture emissions
reductions achieved by companies we finance. Other driv-
ers relate to data quality and technical factors that cannot
directly be linked to mitigation actions. Following data
quality improvements across asset classes, the lending
portfolio baseline was recalculated to 19.3 MtCO2e in 2025
(23.1 MtCO2e in 2024). The change compared with the
levers reported in 2024 was mainly driven by the baseline
recalculation. Our decarbonisation lever methodology has
been updated to enable year-on-year comparisons
between reports. The relative contributions of the levers
for the 2019–24 period are assumed to be constant, with
the 2024–25 impact distributed accordingly.
Financed emissions reductions since 2019 have mainly
been driven by exposure changes resulting from our exclu-
sion policies and portfolio composition changes over time.
Counterparty reductions correspond to emissions reduc-
tions by customers in our lending portfolio. In the period
2019–24 the majority of these reductions were driven by a
few customers in the power production sector. We aim to
contribute to counterparty reductions, for example by
engaging with customers, ensuring transition plans are in
place and supporting customers in mapping emission-in-
tensive production within their supply chain.
Between today and 2030, we estimate that the majority
of our lending portfolio emissions reductions will be attrib-
utable to counterparty reductions, which decrease the
emission intensity of our lending portfolio. The estimated
impact of this lever is based on the assumption that our
lending portfolio emissions reductions reflect the national
and sector policy emissions reduction target trajectories
applied in the estimations. Exposure changes driven by
lending portfolio growth and portfolio balancing actions
are also estimated to impact our lending portfolio emis-
sions in the run-up to 2030. The higher relative contribu-
tion of exposure changes reflects anticipated growth over
the target horizon. The presence of inflation will naturally
inflate the balance sheets of companies while their actual
emissions may remain constant, decreasing the emission
intensity. The impact of inflation is estimated and isolated
in “other drivers”. The chart below shows the contribution
of each lever to a 50% reduction in our lending portfolio
emissions (the upper end of our target range).
Lending portfolio decarbonisation levers
Target
Reduce absolute financed emissions in the lending portfolio by 40–50% between 2019 and 2030
0
5
10
15
20
25
19.3 -6.2
MtCO 2 e
-3.1 +0.9
+2.6
-3.3
-0.510.9 9.7
Base year Exposure changes Counterparty reductions Other drivers Current year
Exposure changes Other driversCounterparty reductions Target year
Baseline/target Reduction Increase
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Nordea Annual Report 2025 126
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Nordea Asset Management (NAM) targets for scope
3 category 15 GHG emissions (investment portfolio)
2025 NAM target (relative)
Ensure that 80% of the top 200 emissions contribu-
tors in Nordea Asset Management’s portfolios are
either aligned with the Paris Agreement or are sub-
ject to active engagement to become aligned by the
end of 2025
Target scope
The target covered NAM’s portfolios and was linked to the
policy objectives set in NAM’s Responsible Investment
Policy. It was set to support opportunities related to
investing in activities linked to climate change mitigation
and to reduce negative impacts from GHG emissions gen-
erated by investees’ activities.
Methodologies
The target was informed by the Net Zero Investment
Framework (NZIF, first and second editions) of the
Institutional Investors Group on Climate Change, which
recommends setting Paris alignment and engagement tar-
gets across listed equity and corporate bond holdings.
We assessed individual issuers using the NZIF maturity
scale. The NZIF introduces six criteria, which can be com-
bined to sort companies into four categories: aligned,
aligning, committed to aligning, and not aligning. The six
criteria are as follows: a net zero ambition, Paris-aligned
reduction targets, good current performance, comprehen-
sive GHG disclosures, a decarbonisation strategy, and
Paris-aligned capital expenditure. The target required
companies to be assessed as Paris aligned, which means
meeting all six criteria, or else to be subject to engage-
ment to improve alignment.
Performance against target
At the end of 2025 93% of the top 200 companies were
either aligned or subject to active engagement to become
aligned.
2030 NAM target (relative)
Reduce the weighted average carbon intensity
(WACI) of listed equities and corporate bonds by
50% by the end of 2030 compared with 2019
Target scope
The target covers listed equities and corporate bonds in
NAM’s portfolios and is linked to the policy objectives set
in NAM’s Responsible Investment Policy. It was set to sup-
port the mitigation of climate-related risks and limit nega-
tive impacts from GHG emissions generated by investees’
activities.
Methodologies
The target is informed by the global imperative to halve
global absolute emissions within the target time horizon in
accordance with the IPCC’s no- and low-overshoot 1.5°C
pathways (IPCC AR6). The baseline is the 137 tCO2e/EURm
revenue as at the end of 2019.
The intensity target does not directly translate into an
absolute reduction value for 2030.
Performance against target
Between 2019 and 2025, the WACI of NAM’s listed equity
and corporate bond portfolios decreased by 52%. While
the change was partly driven by divestments from emis-
sion-intensive companies and new investments in low-
er-intensity alternatives, the main driver was a reduction
in the carbon intensity of companies held in NAM’s portfo-
lios over the period 2019–25. Here, the biggest driver was
an overall increase in company revenues without a corre-
sponding increase in emissions, which reduced carbon
intensity, defined as scope 1 and 2 GHG emissions per EUR
million in revenue. Such a reduction can signal both
improved operational efficiency and sensitivity to inflation.
From a real world decarbonisation perspective, we are pri-
marily interested in the former.
Progress on the target is tracked and shared with rele-
vant members of senior executive management, including
NAM’s CEO. This includes an annual presentation to NAM’s
Responsible Investments Committee. The NAM ESG
Committee acknowledges performance against targets
before external publication.
Decarbonisation levers
In 2025 NAM reached its 50% reduction target. The 52%
decrease in WACI between 2019 and 2025 was primarily
driven by three factors: reductions in investee company
emission intensities, changes in investment portfolio com-
position, and other drivers, such as inflation and data
availability. Most of the decrease was attributable to
reductions in investee company emissions intensities, par-
ticularly in high-emitting sectors such as utilities and
industrials. These intensity reductions were attributable in
approximately equal part to absolute emissions reductions
and non-inflationary increases in investee company reve-
nues without an associated increase in emissions. During
the period, NAM’s exposure to the energy sector was
halved due to fossil fuel-related exclusions. Within other
high-emitting sectors, NAM shifted its investments
towards companies with relatively lower emissions, par-
ticularly within utilities, where it focused more on renewa-
ble energy providers.
Based on existing policies and assuming a constant
portfolio composition, we project that there will be contin-
ued reductions in the WACI of NAM’s listed equity and
corporate bond portfolios, driven by (i) continued reduc-
tions in absolute emissions by counterparties and (ii) sales
revenue growth.
Investment portfolio (NAM) decarbonisation levers 1
Target
Reduce the weighted average carbon intensity (WACI) of listed equities and corporate bonds by 50% between 2019 and the end of 2030
0
20
40
60
80
100
120
140
137 -19
tCO 2 e/EURm in sales revenue
-35
-16 <68
66
Base year Exposure changes Counterparty reductions Other drivers Current year Target year
Baseline/target Reduction Increase
1) The levers have been subject to rounding.
===== SIDA 128 =====
Nordea Annual Report 2025 127
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
2025 NAM target (relative)
Double the share of net-zero-committed assets
under management by the end of 2025 compared
with 2021
Target scope
The target covered NAM’s portfolios and was linked to the
policy objectives set in NAM’s Responsible Investment
Policy. It was set to support opportunities related to
investing in activities linked to climate change mitigation.
Methodologies
The target was informed by the global imperative to halve
global absolute emissions by 2030 in accordance with the
IPCC’s no- and low-overshoot 1.5°C pathways (IPCC AR6).
According to the original Commitment Statement of the
Net Zero Asset Managers (NZAM) initiative, managing in
line with net zero means:
1. setting interim targets for 2030, consistent with a fair
share of the 50% global reduction in CO2 identified as a
requirement in the IPCC special report on global warm-
ing of 1.5°C
2. taking into account portfolio scope 1 and 2 emissions
and, to the extent possible, material portfolio scope 3
emissions
3. prioritising the achievement of real economy emissions
reductions within sectors and companies in the invest-
ment portfolio
4. if using offsets, investing in long-term carbon removal in
areas where there are no technologically and/or finan-
cially viable alternatives to eliminate emissions
5. as required, creating investment products aligned with
net-zero emissions by 2050 and facilitating increased
investment in climate solutions.
Our methodologies for managing in line with net zero
have been created to be commensurate with the above
principles, in particular principle 3 (prioritising real econ-
omy emissions reductions) and principle 5 (facilitating
investment in climate solutions).
During 2025 the NZAM initiative temporarily suspended
its activities with a view to revising the signatory commit-
ment statement. As a result, the five principles referred to
above have been superseded by an updated Commitment
Statement.
Performance against target
At the end of 2025 38.8% of AuM were assessed as being
managed in line with net zero, compared with 17.5% at the
end of 2021. These AuM cover investment strategies with
portfolio reduction targets or objectives to invest in cli-
mate solutions (including green bonds), and strategies
with a core investment objective to invest in transitioning
companies, such as our Global Climate Transition
Engagement strategy. They also cover investments in indi-
vidual companies that are subject to targeted engagement
to accelerate Paris alignment and a majority of our cov-
ered bond investment strategies.
Nordea Life & Pension (NLP) targets for scope 3
category 15 GHG emissions (investment portfolio)
2029 NLP target (relative)
Engage annually with the 30 most material emitters
on net zero alignment during the period 2025–29
Target scope
The target was launched in the first quarter of 2025 and
covers the 30 most material emitters in NLP’s portfolios.
These emitters typically represent around half of NLP’s
total GHG emissions. The target supports the policy objec-
tives set in NLP’s Responsible Investment Policy, which is
complemented by NLP’s Climate Change Policy and
Engagement Policy. It was set to support the decarbonisa-
tion of investee companies and help increase the share of
NLP companies aligning with a net zero trajectory.
Methodologies
The target is measured in terms of the number of compa-
nies among the 30 most material emitters that NLP has
engaged with annually. Engagement under this target
may be carried out by NLP or its asset managers, or
through coalitions of investors or other organisations in
which NLP participates as an active member.
Performance against target
NLP has achieved the target for 2025. Approximately one
third of the 2025 engagements were conducted bilaterally
by NLP, while the remaining two thirds were carried out
either in cooperation with NAM or as part of an investor
coalition, e.g. Climate Action 100+. The companies engaged
with were from sectors such as metal production, electric
utilities, basic materials, industrial gases and aviation.
2029 NLP target (relative)
Increase the share of assets under management
supporting nature and the climate transition by 20%
by the end of 2029 compared with 2023
Target scope
The target, launched in the first quarter of 2025, was set to
support the positive impacts associated with financing
and supporting the transition of companies and sectors. It
is linked to the policy objectives set in NLP’s Responsible
Investment Policy, which is complemented by NLP’s
Climate Change Policy and Engagement Policy.
The following assets are in scope:
• listed equities that are aligned or aligning with net zero
by 2050
• climate- or nature-themed equity funds (public and
private)
• labelled bonds with an environmental impact (corpo-
rate, sovereign, supranational and agency bonds) –
second- party opinion required
• directly owned buildings that comply with the technical
screening criteria for mitigation and adaptation in the EU
Taxonomy’s section on the acquisition and ownership of
buildings
• thematic investments with environmental characteristics
related to, for example, infrastructure or other real assets
that are important for the transition.
Methodologies
The target is based on the IPCC’s finding that the climate
transition is not happening fast enough to be in line with
the goals of the Paris Agreement. The baseline for the tar-
get is the 32% share of assets under management support-
ing nature and the climate transition as at the end of 2023.
Performance against target
NLP is on track to achieve the target. The share of invest-
ments supporting nature and the climate transition grew
by 26% between 2023 and the end of 2025. The growth
was to a significant degree driven by an increase in the
share of listed equities assessed as aligned or aligning
with a net zero by 2050 trajectory based on the Net Zero
Investment Framework methodology. Specifically, the
share increased from 49% in 2023 to 58% in 2025. This
was enabled by NLP’s selection of external managers and
funds and the choices made by these managers regarding
fund compositions. In addition, it reflects the net zero
efforts made by many companies. Other asset classes also
contributed positively to the performance. While this out-
come is positive, some of the underlying drivers are vola-
tile and are expected to change over time.
2029 NLP target (relative)
Reduce the carbon footprint (intensity) of listed
equity, corporate bond and directly held real estate
portfolios by 40–50% by the end of 2029 compared
with 2019
Target scope
The target, launched in the first quarter of 2025, is an
update of the previous interim target (for 2019–24). It cov-
ers listed equities, corporate bonds and directly held real
estate in Denmark, Finland, Norway and Sweden. The tar-
get is linked to NLP’s Responsible Investment Policy,
which is complemented by NLP’s Climate Change Policy
and Engagement Policy. It was set to support the mitiga-
tion of climate-related risks and limit negative impacts
associated with GHG emissions generated by investee
companies’ activities.
===== SIDA 129 =====
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E1 Climate change, cont.
Methodologies
The same methodology used to calculate the carbon foot-
print during the first target period (2019–24) was applied for
the new target. The target is measured based on the carbon
footprint metric tCO2e (scopes 1 and 2) / USD million
invested. It was set in accordance with the fourth edition of
the Net-Zero Asset Owner Alliance’s target setting protocol,
where recommendations for members are based on the cli-
mate modelling published in the IPCC’s latest Assessment
Report (AR6), released in April 2022. Based on the IPCC’s no-
and low-overshoot 1.5°C pathways (C1 category), a global
average absolute emissions reduction in the range of
40–60% would be required by 2030, according to the
Alliance. The base year for the target is 2019 and the target
year is 2029.
The baseline for the target is the 46 tCO2e/USD million
invested at the end of 2019.
Performance against target
2025 figures for NLP show a carbon footprint decrease of
40% between 2019 and the end of 2025 for listed equities,
corporate bonds and directly held real estate. This is due
to factors such as divestments from fossil-intensive sectors
and investee company emissions reductions, especially in
the basic materials and utilities sectors. In addition, factors
unrelated to NLP’s climate strategy, such as enterprise
value, played a role. Some of these factors are volatile and
are expected to change over time.
Decarbonisation levers
Levers and underlying drivers for the period 2019–25 (year
end):
Exposure changes
Reductions due to exposure changes were mainly driven
by NLP’s divestments from certain fossil-intensive sectors
(-12%) and allocation of capital to other, less fossil-inten-
sive sectors (-4%). These reductions were moderated by
increases due to allocations within sectors to companies
with higher emission intensities (+5%), particularly within
basic materials. Many of the companies causing a large
share of this moderating impact fall within the scope of
NLP’s 2030 target to engage with the 30 most material
emitters in its portfolios on alignment with a net zero by
2050 trajectory.
Counterparty reductions
Emissions reductions by NLP’s investee companies contrib-
uted to the improvement in the carbon footprint (-11%). As
previously mentioned, NLP’s divestments from fossil-inten-
sive sectors and allocation of capital to less fossil-intensive
sectors led to a combined reduction of 16%. The total
reduction in the carbon footprint was therefore 27%. These
three drivers and the overall reductions achieved reflect
both NLP’s climate strategy, for example tight restrictions
on fossil fuel extraction as expressed in its Responsible
Investment Policy, and broader asset allocations between
asset classes and sectors decided by NLP or its fund man-
agers. Such allocations may vary over time.
Other
Within “other”, changes in companies’ enterprise value
including cash (EVIC) was the most relevant driver (-12%),
followed by changes due to improved data coverage
(-6%).
Levers and underlying drivers for the
period 2025–29 (year end):
During the period 2025–29 we estimate that there will be
a 6% reduction in NLP’s carbon footprint, equivalent to 2
tCO2/mUSD invested. Adopting a conservative approach,
we have factored in the possibility that companies may fall
short of their communicated targets. This assumption is
based on UNEP’s Emissions Gap Report 2019, which
reflects a delayed transition. Due to the methodology
applied, all changes are allocated to the lever “counter-
party reductions” and the underlying driver “emissions
reductions by investee companies”.
Operations and supply chain targets for
scope 1, 2 and 3 GHG emissions
2025 operations and supply
chain target (absolute)
Reduce the carbon emissions from internal opera-
tions by 40% by the end of 2025 compared with 2019
Target scope
As this target was set to support the achievement of the
2030 operations and supply chain target, the scope;
related impacts, risks and opportunities; and policy objec-
tives are the same as for the 2030 target described below.
Methodologies
The methodology and assumptions used were the same
as for the 2030 target. The target was measured based on
tCO2e and was connected to the decarbonisation levers for
own operations, which are detailed below.
Performance against target
Carbon emissions (market-based) from internal opera-
tions had been reduced by 52% by the end of 2025 com-
pared with 2019. In 2025 we incorporated the entire con-
solidated accounting group into our operational carbon
footprint baseline calculation. For more information, see
page 137. Currently, the reporting covers scope 1, scope 2,
and scope 3 categories 1, 2, 3, 4 and 6. More information
on the significant scope 3 categories, and the excluded
categories, can be found on page 148.
Investment portfolio (NLP) decarbonisation levers
Target
Reduce the carbon footprint (intensity)1 of listed equity, corporate bond and directly held real estate portfolios by 40-50% by the end of
2029 compared with 2019
0
10
20
30
40
50
60
53 -8
tCO 2 e/EURm invested
-6
-10
– -2 –29 27
Base year
2
Exposure changes Counterparty reductions Other drivers Current year
Exposure changes Other driversCounterparty reductions Target year
Baseline/target Reduction Increase
1) NLP uses a fixed exchange rate for EUR/USD.
2) The base year includes Denmark, Finland, Norway and Sweden.
===== SIDA 130 =====
Nordea Annual Report 2025 129
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
2025 operations and supply
chain target (relative)
Ensure that suppliers covering 80% of our related
spending are either aligned with the Paris
Agreement or are subject to active engagement to
become aligned by the end of 2025
Target scope
The target covered our own operations. Around 300 com-
panies were in scope, based on our spending or due to
them having operations in sectors exposed to high transi-
tion risk.
The target was linked to policy objectives set in our
Supplier Code of Conduct and was set to manage cli-
mate-related risks and limit negative impacts stemming
from our own operations.
Methodologies
The target was informed by the SBTi Portfolio Coverage
Approach and the Net Zero Investment Framework of the
Institutional Investors Group on Climate Change (IIGCC).
The SBTi Portfolio Coverage Approach, according to which
a share of companies’ suppliers should have sci-
ence-based targets in place by a particular date, is sup-
ported by NGOs such as the World Wide Fund for Nature
(WWF), the World Resources Institute and CDP.
The companies in scope were evaluated based on
whether they had a long-term net zero target and short-
term emissions reduction targets in place, whether they
publicly disclosed their GHG emissions, and whether their
targets had been third party validated.
In 2025 our manual assessment of company maturity
was replaced with a digital tool, enabling scaling and
improving data credibility and engagement
documentation.
Performance against target
At the end of 2025 53% of our spending was on companies
that were aligned with the Paris Agreement and 28% was
on companies subject to engagement to become aligned.
2030 operations and supply
chain target (absolute)
Reduce the carbon emissions from our internal oper-
ations by more than 50% by the end of 2030 com-
pared with 2019 and achieve a net positive carbon
contribution (through offsetting)
Target scope
The target covers our own operations and was informed
by the global imperative to halve global absolute emis-
sions within the target time horizon in accordance with
the IPCC’s no- and low-overshoot 1.5°C pathways (IPCC
SR15). The target is linked to the policy objectives set in
our Sustainability Policy. It was set to manage climate-
related risks and limit negative impacts from our own
operations.
The target scope covers scopes 1 and 2 and partially
covers scope 3 categories 1, 2, 3, 5 and 6, based on the
scope of our GHG accounting in 2021. We are in the pro-
cess of reviewing the target, its scope and our actions for
our 2026–30 strategy period.
Methodologies
The target is measured based on tCO2e. It was set using
the Absolute Contraction Approach and was determined
to keep absolute emissions from internal operations below
or on a par with two global benchmark scenarios for abso-
lute emissions reductions required across the economy.
These are the IPCC Special Report on 1.5°C no- and
low-overshoot pathways and the UNEP Emissions Gap
Report 2019. The selected IPCC pathways outline absolute
CO2 emissions reductions of 40–59% by 2030 relative to
2010 levels; we held emissions in 2019 to be at a level simi-
lar to or slightly higher than in 2010. The target is also
informed by the SBTi criteria for halving GHG emissions
between 2018 and 2030 for 1.5°C alignment. This target is
connected to the decarbonisation levers for own opera-
tions, which are detailed to the right.
Performance against target
Carbon emissions (market-based) from internal opera-
tions had been reduced by 52% by the end of 2025 com-
pared with 2019. Progress on the target is tracked and
shared with relevant Group functions. In 2025, we incorpo-
rated the entire consolidated accounting group into our
operational carbon footprint baseline calculation. For more
information, see page 137.
Decarbonisation levers
The achieved reduction for the period 2019–25 surpassed
the target level, reaching 52% in 2025. The most significant
decarbonisation levers for this period were a reduction in
air travel (contributing to 56% of the reduction) and
energy consumption in buildings (contributing to 20% of
the reduction).
The most significant decarbonisation levers for the 2030
target have been identified to be the following.
1. Business travel: a reduction in scope 3 business travel
emissions, mainly through reduced air travel (emissions
are assumed to remain stable between 2025 and 2030).
2. Company cars: a transition to zero-emission vehicles in
the company car fleet (estimated to reduce scope 1
emissions connected to mobile combustion by 80%
between 2019 and 2030).
3. Electricity, cooling and heating:
• Utilities decarbonisation according to nationally deter-
mined contributions (NDCs). The decarbonisation of
the utilities sector in the Nordic countries according to
NDCs is expected to drive a further reduction in scope
2 and 3 emission intensity-related electricity, cooling
and heating.
• Energy efficiency measures in line with the EU Energy
Efficiency Directive taken between 2023 and 2030.
Own operations decarbonisation levers 1
Target
Reduce the carbon emissions from our internal operations by 40% by end of 2025 and by more than 50% by the end of 2030, and achieve a
net positive carbon contribution (through offsetting) by 2030 at the latest
0
10,000
20,000
30,000
40,000
50,000
60,000 61,460 -17,785
tCO 2 e
-2,367 -384
-4,984
<30,730
–
-6,320
29,630
Base year Air travel
Electric company cars only policy Paperless banking Energy consumption
in buildings
Other sustainability
initiatives Current year Target year
Baseline/target Reduction Increase
1) The levers have been subject to rounding.
===== SIDA 131 =====
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E1 Climate change, cont.
Our new climate targets for 2030
Below, are our three new climate targets for 2030. The
new targets are all aimed at driving emissions reductions
through active engagement with key stakeholders. They
will support us in progressing towards our commitment to
be net zero by 2050 and will guide us in helping customers
progress with their sustainability transitions.
Nordea bank target for scope 3 category 15 GHG
emissions (lending and investment portfolios)
2030 Nordea bank target (relative) NEW
Engage annually with corporate customers (collec-
tively representing at least 70% of financed emis-
sions in the large corporate lending portfolio) on the
topic of net zero transition during the period
2026–30
Target scope
The target covers the LC&I corporate lending portfolio.
The aim is to engage customers representing at least 70%
of the portfolio financed emissions as at the end of the
previous year. As the customers in scope are reassessed on
an annual basis, the targeted number of engagements per
year is expected to fluctuate.
Methodologies
The target level was set to cover the majority of financed
emissions in the large corporate lending portfolio. While
UNEP FI’s Guidelines for Climate Target Setting for Banks
do not specify a target level for engagements, the chosen
level is aligned with the Net-Zero Asset Owner Alliance’s
Target-Setting Protocol, which recommends engaging
with companies representing at least 65% of the financed
emissions in the portfolio.
To identify customers in scope, we will use our internal
emissions estimation tool to obtain financed emissions
data on our large corporate lending portfolio as at the end
of the year. Once this data has been compiled, we will
extract the list of top emissions contributors.
Nordea Asset Management (NAM) target for scope
3 category 15 GHG emissions (investment portfolio)
2030 NAM target (relative) NEW
By 2030, ensure that 100% of transition-critical inves-
tee companies are either aligned with the Paris
Agreement or are subject to active stewardship to
improve alignment
Target scope
The target covers NAM’s portfolios and is linked to the
policy objectives set in NAM’s Responsible Investment
Policy. It was set to support opportunities related to
investing in activities linked to climate change mitigation
and to reduce negative impacts from GHG emissions gen-
erated by investees’ activities.
Methodologies
We define transition-critical as our investments in listed
equity and corporate bond holdings at a value exceeding
EUR 25m in key transition sectors, including basic materi-
als (cement, chemicals, mining, iron/steel, and paper); util-
ities (electricity, gas, and waste management); transporta-
tion (aviation, automobiles and shipping); energy (oil and
gas); and technology (big tech, specifically AI and data
centres). Additional companies may be included if deemed
transition critical as a result of individual analysis.
Our stewardship approach encompasses unilateral and
collaborative engagement, as well as strategic voting at
shareholder meetings to accelerate alignment where pro-
gress is stalling.
The target is informed by the IIGCC’s NZIF (first and
second editions), which recommends setting Paris align-
ment and engagement targets across listed equity and
corporate bond holdings.
We assess individual issuers using the NZIF maturity
scale. The NZIF introduces six criteria, which can be com-
bined to sort companies into four categories:
• aligned
• aligning
• committed to aligning
• not aligning.
The six criteria are as follows:
• a net zero ambition
• Paris-aligned reduction targets
• good current performance
• comprehensive GHG disclosures
• a decarbonisation strategy
• Paris-aligned capital expenditure.
As an example of the comprehensiveness of this approach,
having a science-based target fulfils one of the six criteria,
but is not on its own sufficient for the issuer to be catego-
rised as “aligning”. For this, we also need to see adequate
GHG disclosures and a supporting decarbonisation strat-
egy. The target requires companies to be assessed as Paris
aligned, which means meeting each of the six criteria, or
else to be subject to active stewardship to improve
alignment.
Operations and supply chain target for
scope 1, 2 and 3 GHG emissions
2030 operations and supply
chain target (relative) NEW
By 2030, ensure that all identified transition-critical
suppliers are aligned with the Paris Agreement or
are subject to active engagement to improve
alignment
Target scope
The target covers our own operations.
Methodologies
The target is informed by the SBTi Portfolio Coverage
Approach, where a share of companies’ suppliers should
have science-based targets in place by a particular date,
and the IIGCC’s NZIF.
A sector, or a supplier within a sector, is defined as transi-
tion critical if one or more of the following conditions are
met.
• The sector is exposed to high climate transition risk.
• The sector has a high emission intensity.
• The sector represents a substantial amount of our
embodied emissions.
• The sector is subject to regulatory pressure to reduce
emissions (this means that the sectors in scope might
change to cater for regulatory changes).
• Engagement is feasible and relevant for us.
===== SIDA 132 =====
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Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Sector analysis and targets for lending portfolio
Our annual business environment scanning (BES) includes
a sector-specific analysis of climate-vulnerable sectors
aligned with our materiality assessment of climate and
environmental risks. The analysis covers the most relevant
climate policies and regulations as well as sector decar-
bonisation roadmaps in the Nordic region. Sectors are
individually assessed for risks and opportunities related to
climate and environmental drivers. The results are used
throughout the organisation to inform strategic decisions
on climate and environmental goals and policies, and help
us adapt to the drivers that affect climate and environ-
mental risks and opportunities. As one of our transition
planning tools, we set sector-specific targets to mitigate
climate-related risks, limit negative impacts, increase
positive impacts and support opportunities. The sectors in
scope for target setting are selected based on their contri-
bution to the total financed emissions profile of our lend-
ing portfolio, their climate vulnerability or inclusion on the
list of prioritised carbon-intensive sectors defined in UNEP
FI’s Guidelines for Climate Target Setting for Banks, and
the availability of sector-specific science- or policy-based
transition pathways. The assessment of sectors in scope
for target setting is performed on an annual basis. The
sector targets are approved by the President and Group
CEO. Relevant sector guidelines provide guidance on how
to achieve the targets.
Since 2021, we have had eight sector targets and transi-
tion pathways consistent with Paris-aligned benchmarks.
In 2025 the sector targets combined covered 54% of our
exposures and 47% of our financed emissions in the
lending portfolio.
We cannot disclose the exact share of the reduction of
financed emissions since 2019 as we set the sector targets
using different base years. This practice follows UNEP FI’s
guidelines to set the baseline no more than two full
reporting years prior to the setting of the target and to
choose the earliest point in time for which the sector has
sufficiently reliable data.
Sector targets do not include GHG emissions removals,
carbon credits or avoided emissions as means of achieving
emissions reduction targets.
Our scope 1 and 2 financed emissions from iron and
steel, aluminium, cement, and commercial real estate are
covered by our lending portfolio target. In 2025 iron and
steel, aluminium and cement together accounted for just
1% of our lending portfolio financed emissions and com-
mercial real estate accounted for 2%.
Each quarter, senior management receives an internal
ESG report detailing our performance and progress on the
portfolio-wide and sector-specific targets at the Group level
and at the business area levels where applicable. The report
informs subsequent actions and provides a basis for future
target setting. The following table provides basic informa-
tion on our sector targets and our progress towards them.
Sector targets
Sector Sub-sector Emissions scope Metric Benchmark scenarios Base year Baseline1 Target year Target 2025 actuals2 2025 vs baseline (%)
Residential Real Estate Households and tenant-owner associations 1 and 2 Emissions intensity kgCO2e/m2 CRREM v1.093 2019 12.2 2030 -40–50% 8.1 -33.7
Shipping Vessels 1 Emissions intensity AER, gCO2/dwt-nm Poseidon Principles (IMO 2050) 2019 8.3 2030 -30% 7.0 -15.4
Agriculture Animal husbandry; Crops, plantation and hunting 1 and 2 Emissions intensity tCO2e/EURm4 National sector targets and SBTi FLAG 2021 363 2030 -40–50% 368 1.4
Motor Vehicles Cars and vans 13 Emissions intensity gCO2e/km IEA NZE5 2022 114 2030 -40% 94 -17.5
Power Production – 1 and 2 Emissions intensity gCO2e/kWh IEA NZE5
SBTi 1.5C
2021 220 2030 -70% 20 -90.9
Oil & Gas Exploration and production 1, 2 and 3 Absolute emissions MtCO2e4 IEA NZE5 2019 2.8 2030 -55% 0.01 -99.6
Offshore Drilling rigs and Offshore service vessels within
Oil & Gas and Shipping
– Lending EURm – 2019 1,872 2025 -100% 0 -100.0
Mining Thermal peat – Lending EURm IEA NZE5 2022 52 2025 -100% 18 -65.3
Thermal coal – Lending EURm IEA NZE5 Restrictive policy Full phase-out
achieved in 2021
1) Due to data quality improvements, the following baseline figures were recalculated from what was reported in 2024: Residential Real Estate (17.4 kgCO2e/m2); Agriculture (758 tCO2e/EURm); Motor Vehicles (113gCO2e/km).
2) Shipping and Power Production are 2024 actuals.
3) Scope 1 covers tank-to-wheel emissions.
4) Including methane emissions in CO2 equivalents for scope 1 for Agriculture, and scopes 1 and 2 for Oil & Gas.
5) A normative International Energy Agency (IEA) scenario that shows a pathway for the global energy sector to achieve net-zero CO2 emissions by 2050 and is consistent with limiting the global temperature rise to 1.5°C without a temperature overshoot (with a 50% probability), in line with the IPCC special report on global warming of 1.5°C.
===== SIDA 133 =====
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Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Residential Real Estate
By 2030, we aim to reduce the physical carbon
intensity (CO2e/m2) of our residential real estate loan
portfolio by 40–50% compared with 2019 levels. The
Residential Real Estate portfolio is benchmarked
against relevant country and building type decar-
bonisation pathways provided by the Carbon Risk
Real Estate Monitor (CRREM). Due to significant
data quality updates, a baseline recalculation update
was done in 2025. More information can be found on
page 137.
The sector includes single-family homes and ter-
raced housing, apartments, and tenant-owner asso-
ciations. The overall housing market is projected to
continue growing in terms of both the number of
homes and the average home size in square metres.
Total energy demand, however, is being somewhat
offset by the replacement of older buildings with
new and more energy-efficient buildings.
Residential Real Estate
0
3
6
9
12
15
18
'30'29'28'27'26'25'24'23'22'21'20'19
Emission intensity (kgCO 2 e/m 2 )
Actuals Target CRREM
12.2
10.7 10.0 10.2
6.1
9.1 9.0 8.1 7.3
-40–50%
Road ahead for net zero
Achieving net zero in the residential real estate sector will
require home energy renovations to improve energy effi-
ciency (by reducing the amount of energy needed) and
decarbonise the energy used (by switching from fossil fuels
to renewable energy sources). Homes relying on fossil fuels
such as gas and oil need incentives and support to transi-
tion to renewables. Since 90% of homes in the Nordics rely
on utilities for heating and electricity, the good progress
made in decarbonising the energy sector needs to be main-
tained. This is especially relevant for Denmark and Finland,
which still partially rely on fossil fuels for heating and cool-
ing. Changes in the residential real estate sector will also be
driven by the upcoming implementation of the EU Energy
Performance of Buildings Directive by member states.
Actions
We support the transition in the sector through advisory
services, products, and energy efficiency insights.
Regarding advisory services, during 2024 we introduced
new training on sustainable homes and energy efficiency,
enabling all our mortgage advisers to discuss energy effi-
ciency and its financial implications. In 2025 we integrated
the training into our sustainability curriculum and made it
mandatory for all our customer-facing staff.
We have and continue to develop relevant offerings and
products for customers who wish to live in an energy-effi-
cient home or improve the energy efficiency of their home
through renovation. These include incentives such as price
reductions on relevant products, for example green mort-
gages, and partnerships with vendors of, for example, heat
pumps and solar panels.
In addition, we provide homeowners with insights
regarding their energy efficiency and the potential for
improving it. These include insights regarding the impacts
of relying on fossil energy sources and the estimated
impacts of home renovation, for example improved insula-
tion, new windows, and solar panel/heat pump installa-
tions. For these purposes, we engage with data providers
and experts who are well positioned to support homeown-
ers, such as energy authorities, sector data solution provid-
ers, energy consultancy companies and energy solution
providers.
We also engage with business associations and policy-
makers to advocate for more accurate and accessible ener-
gy-related data, for example energy performance certificates.
Methodologies
We measure carbon intensity by dividing our total sector
financed emissions by the total financed floor area, as recom-
mended by the Science Based Targets initiative (SBTi). We
calculate the sector financed emissions by multiplying prop-
erty scope 1 and 2 emissions by an attribution factor as in the
Global GHG Accounting and Reporting Standard developed
by the Partnership for Carbon Accounting Financials.
Similarly, we calculate the financed floor area by multiplying
the property floor area by the attribution factor. The latter is
calculated as the ratio of the current outstanding lending
amount to the oldest available property value. The value of
each property is used as the denominator in the attribution
factor equation for all subsequent years until repayment of
the outstanding balance or refinancing of the loan.
The target was set using the Sectoral Decarbonization
Approach (SDA), with external benchmark scenarios from
the CRREM. The CRREM V1.093 pathway, weighted against
our known financed floor area per country, indicates that
our financed residential properties in the Nordics will have
to decarbonise by at least 45% between 2019 and 2030 to
continue on the pathway to reach net zero by 2050 at the
latest. The weighted CRREM pathway will be updated as
more financed floor area data becomes available.
Shipping
By 2030, we aim to reduce the carbon intensity of our
shipping loan portfolio by 30% compared with 2019
levels. The target encompasses shipping vessels that
fall within the scope of the Poseidon Principles
reporting. The sector is material for us due to the high
transition risk associated with shifting to alternative
fuels and developing ships, and the fact that shipping
loans accounted for 30% of our lending portfolio
financed emissions from business loans in 2025.
Shipping
0
2
4
6
8
10
'30'29'28'27'26'25'24'23'22'21'20'19
Annual efficiency ratio (gCO 2 /dwt-nm)
8.3 7.8 8.4
5.8
8.1 7.4 7.0
Poseidon Principles tr ajectoryActuals Target
-30%
Road ahead for net zero
In 2023 the International Maritime Organization (IMO)
adopted revised targets and an enhanced common ambi-
tion to reach net-zero emissions from international ship-
ping by 2050. We are continuously monitoring our Shipping
target in the light of ongoing regulatory developments, and
will update our target as soon as deemed relevant.
The transition of the shipping industry will require access
to capital. In the near term, emissions reductions in the sec-
tor will mainly depend on the implementation of energy-ef-
ficient design and operational measures across vessel
fleets. In the medium-to-long term, there must be a pro-
gressive transition to alternative fuels, new technologies
and new builds.
Actions
As a leading shipping bank and an early signatory to the
Poseidon Principles, we are committed to promoting a
cleaner and more responsible shipping industry by ensur-
ing accountability and enforcing climate reporting. We
work with our customers to understand their plans for
transition and how they can succeed in them. In addition,
we actively engage with the Poseidon Principles
Secretariat, industry stakeholders and other banks in order
to set net-zero-aligned targets for shipping, in line with the
===== SIDA 134 =====
Nordea Annual Report 2025 133
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Poseidon Principles Ambition Statement. We are also a sig-
natory to the Responsible Ship Recycling Standards, which
are aimed at minimising the dangers associated with dis-
mantling vessels and minimising adverse impacts on the
environment.
Methodologies
We measure carbon intensity by way of the Annual
Efficiency Ratio (AER), following the tank-to-wake meth-
odology of the Poseidon Principles, with 2019 as the base
year. In the AER, carbon intensity is a quotient of fuel con-
sumption by distance travelled times dead weight tonnage
(dwt) over a calendar year.
The target was set using the Poseidon Principles trajec-
tories, which are aligned with the benchmark scenario
employed by the IMO strategy adopted in 2018.
Agriculture
By 2030, we aim to reduce the economic emission
intensity of our agriculture loan portfolio by 40–50%
compared with 2021. In 2025 the largest share of
exposure and emissions within animal husbandry
and crops, plantation and hunting was in Denmark.
The increase in intensity between 2024 and 2025 is
mainly due to new exposures to customers where
we do not yet have customer data but use high-end
estimations from the PCAF Database. Due to signifi-
cant data quality updates, the baseline was recalcu-
lated in 2025. More information can be found on
page 137.
The target covers lending to companies whose
primary activity is animal husbandry and/or crops,
plantation and hunting, and covers customers’ scope
1 and 2 emissions. It is aligned with the national
agriculture targets in Denmark and Finland and the
SBTi Forest, Land and Agriculture (FLAG) target-
setting tool, and is assessed to fulfil the 1.5°C
requirements.
Agriculture
0
100
200
300
400
500
'30'29'28'27'26'25'24'23'22'21
Economic emission intensity (tCO 2 e/EURm)
348 342 327
368
182
218
Actuals Target
363
-40–50%
Road ahead for net zero
The agriculture sector is under political pressure to reduce
GHG emissions and increase carbon removals to contrib-
ute to national and EU climate targets. In general, the
return on investments, including climate investments, is
modest, which could be a barrier to climate transition. The
transition of the sector is dependent on market demand
for sustainably produced food, with policy implementation
and subsidies as key levers.
Multiple EU policy frameworks (such as the Common
Agriculture Policy, the Fit for 55 package and the Biodiversity
Strategy for 2030) and national sector targets in Denmark
and Finland are aimed at contributing to the sector transition.
Climate mitigation measures such as solutions to reduce
manure- related emissions are important levers across the
Nordics.
Actions
To ensure a transition in agriculture, farmers will need to
implement different measures. One of the most important
will be changing the way land is used by planting trees,
reducing farmland and taking peat soils out of agricultural
production. Farmers will also need to implement climate
friendly technologies, for example technology to reduce
methane emissions from manure, biogas production, the
use of feed additives, and precision technology. Biochar is
also expected to play a significant role in carbon removals.
As a financial partner and adviser, we will support our cus-
tomers and provide financing for the changes needed.
We will continue to collect climate data from customers,
map where the most significant challenges lie, and perform
climate screening in connection with new financing and the
extension of existing financing of animal husbandry. We
have developed internal tools to assess the maturity of cus-
tomers’ climate transition plans.
Methodologies
The target was set using the Economic Intensity
Contraction Approach. An economic intensity-level metric
offers a comparable format across customers, sub-sectors
and portfolios. The sector target was set based on a poli-
cy-based benchmark scenario, drawing on national sector
targets for Denmark and Finland and the SBTi FLAG sec-
tor target. For Norway and Sweden, we used the SBTi
FLAG Tool to reduce emissions by 30% between 2021 and
2030, with two thirds of the reduction achieved through
emissions reductions and one third through carbon remov-
als. The chosen pathway is comparable to the few other
emissions pathways for agriculture available (the
University of Technology Sidney One Earth Climate Model
all-sector and agricultural pathways, and the SBTi FLAG
tool), indicating that it is aligned with or more ambitious
than available model pathways.
Motor Vehicles
We aim to reduce the emission intensity of our car
and van loan portfolio by at least 40% by 2030 com-
pared with 2022 levels. The target is based on the
1.5°C requirement in line with the Paris Agreement
and more concretely on the IEA’s Net Zero Emissions
by 2050 Scenario for cars and vans. The sector is
material for us due to (i) the high transition risks
associated with the fossil fuel dependency of inter-
nal combustion engine vehicles and (ii) financing
opportunities in the shift to zero-emission vehicles
and electrification.
Motor Vehicles – Cars and vans
0
30
60
90
120
150
'30'29'28'27'26'25'24'23'22
Physical emission intensity (gCO 2 e/km, tank-to-wheel)
114 106 102 94
68
IEA Net zero emissions 6% p.a.Actuals Target
-40%
Road ahead for net zero
Progress in the electrification of road transport has been
one of the most promising recent developments in the
transition for the sector. The Nordic car market and wider
transport ecosystem are among the fastest in the world in
transitioning towards net zero. While technological pro-
gress and market uptake are promising, the transition as a
whole requires more than just a supply-side change in cars
and vans. Full transition in road transport requires further
policy support in, for example, infrastructure, and all other
segments need to be addressed. National and local targets
and policies need to encourage a wider shift to zero-emis-
sion transport along with operational and technical energy
efficiency measures. However, this will be challenging if
the EU’s softened 2035 regulation slows progress towards
fully zero-emission transport. The revised regulation
replaces the full internal combustion engine sales ban with
a requirement for a 90% fleet-wide CO2 reduction and con-
tinued limited sales of hybrids and vehicles running on
e-fuels or biofuels.
Actions
We make business decisions, develop products and pursue
financing opportunities based on emissions data and other
business parameters to ensure alignment with our target. In
addition, we closely follow the carbon footprint of our car
financing by measuring the portfolio carbon intensity each
===== SIDA 135 =====
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Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
quarter. To ensure continuous improvement, we are cur-
rently updating our car financing strategy, focusing on the
sustainability perspective. This will include thorough analy-
sis of market and technology trends and engagement with
the full value chain. By end of 2025 the share of financed
battery electric vehicles had grown to 31% of our total cars
and vans exposure.
Methodologies
The target is aligned with industry practice and focuses on
the actual use of vehicles. We source actual vehicle emis-
sions and combine these with national averages for kilo-
metres driven to calculate the emissions of the stock of
vehicles that we finance. Estimates are applied where
actual vehicle emissions are not found.
The target was set using the IEA Net Zero Emissions by
2050 Scenario (NZE Scenario), which requires annual
emissions reductions of 6% by 2030 for cars and vans. In
ensuring that our entire vehicle stock is in scope and using
a contraction approach, we aim for the target to be in line
with the NZE Scenario.
Power Production
By 2030, we aim to reduce the physical emission
intensity of our power production loan portfolio by
more than 70% compared with 2021 levels. The tar-
get allows us to increasingly support investment in
renewable and carbon-neutral power production
while reducing absolute emissions in the lending
book. The sector is relevant for us due to the high
climate risk associated with fossil fuels (in particular
thermal coal) and the significance of fossil-free
power sources for the decarbonisation of other
sectors.
Power Production
0
100
200
300
400
500
'30'29'28'27'26'25'24'23'22'21
Physical emission intensity (gCO 2 e/kWh)
IEA NZE Scenario
220
117
23 20 66
SBTi 1.5Actuals Target
-70%
Road ahead for net zero
As we are the largest Nordic financial services company, it
is in our interest to support and help ensure speed and
scale in the transition within the power production sector
while helping to preserve affordability, energy security
and economic growth. Nordic customers continue to lead
in decarbonisation efforts compared with global peers,
with a power mix dominated by low-carbon sources.
Nordic electricity demand is increasing, driven by electrifi-
cation across transport, industrial processes and heating/
cooling, with emerging sectors such as the data centre
sector further contributing to the increase.
Wind power, including offshore, continues to hold signifi-
cant long-term potential and is expected to play a key role in
expanding renewable capacity across the Nordics, despite
recent market setbacks. Combined wind and solar power
production will likely be higher than hydropower production
by 2038. From a technology perspective, renewable energy
is commercially viable, with several well-proven technolo-
gies in use.
Nuclear power, both conventional and emerging small
modular reactor technology, has been a material part of the
power strategy in both Finland and Sweden since 2023 and
will contribute to a stable base load in a power mix consist-
ing of a higher proportion of intermittent energy sources
than previously.
Actions
We are committed to supporting the decarbonisation of
Nordic power production and clearly state in our sector
guidelines what we do not finance. However, we consider
it even more crucial to put capital behind real progress by
helping to increase investment in low-carbon power.
We do not provide financing to or facilitate financing for
companies that derive more than 5% of their revenue from
thermal coal, including coal-fired energy production.
Existing customers are required to have plans for exiting
power production based on thermal coal by 2030 at the
latest for industrialised countries and 2040 at the latest for
the rest of the world.
Moreover, we do not provide financing to or facilitate
financing for new customers that derive more than 5% of
their revenue from peat-fired energy production. Existing
customers were required to exit power and heat produc-
tion based on thermal peat by 2025. Due to the war in
Ukraine, an exemption has been granted for companies
impacted by energy security measures taken in Finland.
Our policy will be updated in 2026.
We collect individual customer-level data, including
absolute emissions, production intensity and production
mix, so we can follow up on and support the transition of
each customer. We also follow up on policies and trends in
the energy market generally, including the use of non-fos-
sil sources of electricity such as biomass.
Methodologies
The chosen metric is aligned with the SBTi sectoral guid-
ance and is the metric predominantly used in the industry.
Low-carbon generation (hydro, nuclear, wind, bioenergy
and solar) emission intensity is based on customers’
reported annual production volumes. Where customer-
specific emissions are not reported, a low-carbon estimate
of 5gCO2e/kWh is used, based on research on life cycle
emissions by the Intergovernmental Panel on Climate
Change (IPCC) (2012) and the United Nations Economic
Commission for Europe (2020).
The target was set following the SBTi’s Sectoral
Decarbonization Approach (SDA), a convergence approach,
using the SBTi’s SDA tool for the power production sector,
which is based on a combination of different 1.5°C
pathways and scenarios from the IPCC and the IEA. While
the target-setting tool is designed for scope 1 emissions, we
used it to cover both scope 1 and scope 2 emissions.
Oil & Gas
By 2030, we aim to reduce the combined scope 1, 2
and 3 financed emissions from our lending to explo-
ration and production (E&P) companies by 55% rela-
tive to 2019 levels, targeting a maximum of 1.2
MtCO2e. The target includes scope 3 emissions, with
“Use of Sold Products” being the most material cate-
gory for E&P companies. Methane emissions are
included as CO2 equivalents for scopes 1 and 2. In
2019 business loans to oil and gas sector clients
accounted for a relatively high share of our financed
emissions when including their scope 3 emissions.
Oil & Gas – Exploration and production
0
1
2
3
4
5
'30'29'28'27'26'25'24'23'22'21'20'19
Scope 1, 2 & 3 (MtCO 2 e)
0.0 0.01
1.20.70.70.7
1.7
2.8
IEA NZE ScenarioActuals Target
-55%
Road ahead for net zero
Oil and gas currently account for just over half of the
world’s total energy supply, providing essential energy
services across transport, industry and heating. At the
same time, they are among the largest contributors to
global greenhouse gas emissions, particularly through the
use of sold products. The global oil and gas markets are
facing increasing uncertainty and challenges driven by
geopolitical tensions and structural changes in
===== SIDA 136 =====
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Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
consumption and supply patterns. There is a stark contrast
between demand and supply curves for oil and gas in sce-
narios based on current policies and scenarios limiting the
global temperature rise to 1.5°C. In the IEA NZE Scenario,
oil and gas demand decline at an accelerating rate, driven
by electrification and behavioural changes, but will still
play a role in the global economy by 2050 (with signifi-
cantly lower levels of production and consumption).
Reaching net-zero emissions by 2050 requires transforma-
tive and significantly accelerated action in all areas of soci-
ety, and coordinated action on both the demand and sup-
ply sides.
Actions
We closely monitor the sector due to the high transition
risk associated with fossil fuel extraction. We have already
rebalanced our exposure to the exploration and produc-
tion segment by exiting relationships with a large number
of European clients. The remaining portfolio consists of a
few carefully selected customers who operate primarily on
the Norwegian Continental Shelf and have the lowest
emission intensity of production (CO2e/boe) among their
peers. This reflects the need to manage energy security
concerns amid considerable geopolitical upheaval in addi-
tion to managing emission intensity. We do not provide or
facilitate financing for projects dedicated to expanding the
exploration and production of oil and gas, including
through Arctic drilling, or the exploration and production
of unconventional oil and gas.
Methodologies
The chosen metric for this target is financed emissions in
tCO2e. The baseline is based on a combination of compa-
ny-reported data and proxies, as scope 3 disclosures in
particular were not consistent throughout the industry at
the time the target was set. With increased convergence
expected over time, we expect to rebase with higher-qual-
ity data to ensure adequate transparency.
The target pathway was set based on an absolute con-
traction approach. Total GHG emissions from the supply
and energy-related use of oil and gas, including methane
and scope 3 emissions, need to fall by 25–33% by the end
of 2030 to be aligned with the 1.5°C-aligned pathways of
the IEA NZE Scenario and the One Earth Climate Model.
Offshore
In 2022 we announced that we were targeting a full
exit from the offshore sector by 2025 – which we
have now completed. Offshore refers to the sub-sec-
tors drilling rigs and offshore service vessels, which
were formerly included in our Oil & Gas and Shipping
(maritime) portfolios. The sector was material for us
due to credit risk and the fact that business loans to
offshore customers accounted for a relatively large
share of our financed emissions in 2019 (the base
year).
Offshore
0
500
1,000
1,500
2,000
2,500
'25'24'23'22'21'20'19
Lending volume (EURm)
Actuals
1,507
0126 72
1,872
1,399
386
-100%
Actions
In 2019 we had EUR 1.9bn in lending to the sector, which
was evenly split between drilling rigs and offshore service
vessels. By the end of 2025, we had made a complete exit
from the sector and had thus met the target.
Methodologies
As the target was for an exposure-based phase-out, emis-
sions-based benchmark scenarios were not applicable.
Mining
In 2022 we announced that we were targeting a full
exit from the thermal coal and thermal peat
sub-sectors by 2025. Thermal coal and thermal peat
have high GHG emission intensities. Their explora-
tion is therefore associated with high climate risk
and stranded asset risk. We phased out lending to
thermal coal customers in 2021. For thermal peat
mining customers, we phased out lending in 2025,
with an exception relating to the war in Ukraine and
energy security measures in Finland taken after the
target was set. We support the resilience of the
energy supply in our home markets and continue to
provide and facilitate lending to customers under
certain exceptional conditions. Our policy for ther-
mal peat will be updated in 2026.
Thermal peat mining
0
15
30
45
60
75
'25 target'25'24'23'22
Lending volume (EURm)
52 51
18 18
–
Actuals
-100%
Road ahead for net zero
Total demand for metals and minerals is projected to
increase sixfold by 2040, driven by the rapid need to scale
up clean technologies in all the EU’s industrial ecosystems.
As reflected in the EU Commission’s RESourceEU plan,
domestic mining is part of the EU’s Strategic Compass for
Security and Defence. The Nordic countries have an abun-
dance of some critical minerals and a mature mining sec-
tor operating under strict environmental regulations.
Actions
As a financial services provider, we seek opportunities to
support mining companies helping to enable the green
transition.
Methodologies
The target was set using an absolute contraction approach
and refers to financing for both thermal coal mining and
thermal peat mining. The IEA NZE Scenario states that,
following a transition in the energy sector, no new coal or
peat mines or extensions thereof will be required as of
2021. It also states that there should be a phase-out of
existing activities by 2030 for OECD countries and by 2040
for the rest of the world. The Scenario includes peat under
coal estimates.
===== SIDA 137 =====
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E1 Climate change, cont.
Energy consumption and mix
Our energy consumption stems from the use of fuel, elec-
tricity, heating and cooling in our operations.
We have direct access to energy consumption data for
our head offices and company cars, while energy consump-
tion data for other locations is estimated. Nuclear energy
consumption data is gathered from national sources. We
use 100% renewable electricity purchased through
Guarantee of Origin certificates.
We continuously monitor the energy consumption of our
own operations and intend to increase our energy efficiency
and the effectiveness of our energy use in addition to
reducing emissions.
In 2025 our total energy consumption amounted 148,966
MWh. The estimated energy consumption for the branches
amounted to 55,786 MWh, which is an increase of 1% since
2024.
Energy consumption and mix
2023 2024 2025
Fuel consumption from coal and coal products – – –
Fuel consumption from crude oil and petroleum products 6,728 7,700 4,390
Fuel consumption from natural gas 6 – –
Consumption of purchased or acquired electricity, heat, and cooling from fossil sources
(MWh) 26,059 28,298 26,138
Total fossil energy consumption (MWh) 1 32,793 35,998 30,528
Of which share of fossil sources in total energy consumption (%) 23% 23% 20%
Consumption from nuclear sources (MWh) 9,905 11,160 12,302
Of which consumption from nuclear sources in total energy consumption (%) 7% 7% 8%
Fuel consumption for renewable sources, including biomass (MWh) 400 379 208
Consumption of purchased or acquired electricity, heat, and cooling from renewable
sources (MWh) 100,137 109,619 105,657
Self-generated non-fuel renewable energy (MWh) 2 237 285 271
Total renewable energy consumption (MWh) 100,774 110,283 106,136
Of which share of renewable sources in total energy consumption (%) 70% 70% 71%
Total energy consumption (MWh) 3 143,472 157,441 148,966
Energy Intensity4 12 13 13
1) Includes EcoPar A, with 450 litres in 2023, 1,932 litres in 2024 and 1,932 litres in 2025.
2) 271 MWh of electricity consumption in 2025 originated from own rooftop solar energy production.
3) The total energy consumption covers the consolidated accounting group.
4) This is an entity-specific metric, which is calculated as total energy consumption divided by total operating income. The energy intensity figures for 2023 and 2024 have been
restated from 8mWh/EURm and 8mWh/EURm, respectively. The total operating income figures are EUR 11,742m for 2023, EUR 12,100m for 2024 and EUR 11,743m for 2025.
Gross scopes 1, 2, 3 and total GHG emissions
Our methodology for estimating GHG emissions is based
on the principles, requirements and guidance set out in
the GHG Protocol Corporate Standard (2004 version) and
the Partnership for Carbon Accounting Financials (PCAF)
Global GHG Accounting and Reporting Standard Part A
(2nd version) and Part B, but also applies certain devia-
tions and own methods to meet the specific characteristics
of our lending, investment and capital market portfolios. A
summary of our methodologies can be found on pages
147–148. In our GHG accounting and disclosures we use
the operational control approach for measuring our opera-
tional and financed emissions.
Our total emissions provide transparency on climate-
related risks and negative impacts, and inform actions to
support positive impacts and business opportunities.
In 2025 our total emissions were 19,791,381 tCO2e, rep-
resenting a 34% reduction relative to the 2019 baseline.
Financed emissions in the lending and investment portfo-
lios represented the most significant portion (99.9%) of
our total emissions.
The total emissions figure for scope 3 category 15
(Investments) in the table “Gross scopes 1, 2, 3 and total
GHG emissions” below includes counterparty scope 1 and
2 emissions and is lower than the sum of the financed
emissions figures in the separate tables under “Lending
portfolio” and “Investment portfolio”. This is because, in
the gross emissions table, we have deducted Nordea Life
& Pension’s financed emissions stemming from invest-
ments in fund products created by Nordea Asset
Management (NAM). We made the deduction to avoid
double-counting, as these emissions are already reported
by NAM (see “Investment portfolio” on page 143).
Our interim absolute emissions targets (those to be met
by the end of 2030) are not reflected in the gross emissions
table below. This is because these targets are not set for
gross scope 1, 2, and 3 emissions separately. Instead, we
have set interim absolute targets for own operations emis-
sions where data quality is sufficient and for the lending
portfolio. NAM and Nordea Life & Pension (NLP) have
intensity-based targets and do not currently have mile-
stones or targets for absolute financed emissions.
Furthermore, emissions from sovereign debt financing
and capital market activities are excluded from all years in
the gross emissions table, as are counterparty scope 3
emissions. We are awaiting formal guidance from the
European Financial Reporting Advisory Group (EFRAG)
and the PCAF on whether or not financial institutions are
expected to aggregate these. We follow the guidance for
reporting them separately, which is very clear. Detailed dis-
closures on these emissions can be found in the following
tables: “Sovereign debt financed emissions” on page 145,
“Facilitated emissions” on page 149, “Business loan
financed emissions” on page 140 (for lending portfolio
counterparty scope 3 emissions), and “Financed emissions
– investment portfolio coverage” on pages 144–146 (for
investment portfolio counterparty scope 3 emissions for
NAM and NLP).
The total GHG emission intensity is calculated based on
the sum of scope 1, 2 and 3 emissions divided by total oper-
ating income, which is aligned with our income statement.
The structure of our current disclosures on total GHG
emissions and intensity may change if there are updates to
ESRS E1 Climate change, the PCAF Standard or our own
reporting boundaries, or if a standardised market-wide dis-
closure framework is developed.
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E1 Climate change, cont.
Gross scopes 1, 2, 3 and total GHG emissions
Retrospective
Achieved emissions Base year1 2024 2025
%
2025/2024
Scope 1 GHG emissions
Gross scope 1 GHG emissions (tCO2e)2,3 2,796 1,810 1,032 -43
of which from regulated emission trading scheme (%) 0 0 0 –
Scope 2 GHG emissions 2,3
Gross location-based scope 2 GHG emissions (tCO2e) 23,304 16,779 13,688 -18
Gross market-based scope 2 GHG emissions (tCO2e) 18,902 16,540 12,829 -22
Significant Scope 3 GHG emissions4
Total Gross indirect (Scope 3) GHG emissions (tCO2e) 29,998,043 19,827,749 19,777,520 0
1 Purchased goods and services2 4,639 3,111 2,725 -12
2 Capital Goods 103 – – –
3 Fuel and energy related activities2,3 7,244 7,211 6,448 -11
5 Waste generated 2 734 316 404 28
6 Business traveling 2 27,042 11,490 6,192 -46
15 Investment – Financed Emissions – Lending5,6 19,345,822 10,734,680 10,906,684 2
15 Investment – Financed Emissions – Investment5,6 10,612,459 9,070,941 8,855,067 -2
Total Emissions
Total GHG emissions (location-based) (tCO2e) 30,024,143 19,846,338 19,792,240 0
Total GHG emissions (market-based) (tCO2e) 30,019,741 19,846,099 19,791,381 0
1) The base year is 2019 in the GHG emissions calculation.
2) The operational carbon footprint (OCF) includes scope 1, scope 2, and scope 3 categories 1, 3, 5 and 6, and has been restated for the years 2019 and 2024. The restatements
were due to updates to emission factors and full coverage of the consolidated accounting group. For the year 2019, the restatements (in tCO2e) were for scope 1 from 1,636 to
2,796, scope 2 from 11,636 to 23,304 (location-based) and 5,567 to 18,902 (market-based), scope 3 category 1 from 5,825 to 4,639, category 3 from 3,894 to 7,244, category 5
from 371 to 734 and category 6 from 25,015 to 27,042. For the year 2024, the restatements (in tCO2e) were for scope 1 from 1,025 to 1,810, scope 2 from 6,299 to 16,779 (loca-
tion-based) and 3,037 to 16,540 (market-based), scope 3 category 1 from 1,863 to 3,111, category 3 from 2,404 to 7,211, category 5 from 183 to 316 and category 6 from 11,270 to
11,490.
3) Biogenic emissions from diesel and petrol corresponded to 1 tCO2e in 2025. Biogenic emissions from purchased electricity, heating and cooling corresponded to 5,134 tCO2e in
2025. We assessed the biogenic emissions from scope 3 category 3 and category 6 as insignificant for the 2025 reporting.
4) Category 1 (paper and postal data), category 5 (waste data) and category 6 (own car usage data) emissions are calculated using primary activity data and together represent
0% of all significant scope 3 GHG emissions reported.
5) Scope 3 category 15 Investments covers financed emissions in our lending portfolio and investment portfolio, including counterparty scopes 1 and 2. The estimated GHG emis-
sions calculation is based on the PCAF Standard; the main assumptions and deviations from the standard are presented on page 147.
6) We recalculated the 2019 baseline and the 2024 figures for the lending portfolio due to data quality improvements across the portfolio. Further details on the updates are pro-
vided in the accompanying text to the right.
Reported GHG emissions covered by targets
100%
Lending
portfolio
100%
Investment
portfolio
100%
Own
operations
The table presents the share of reported gross scope 1,
2, 3 and total GHG emissions for which we have a near-
term reduction target reported in the section “Targets
related to climate change mitigation and adaptation”.
These gross totals do not include emissions from
investments in sovereign debt, emissions from capital
market activities or counterparty scope 3 emissions –
which are disclosed separately.
We included the entire consolidated accounting group in
our operational carbon footprint baseline calculation,
which led to a 35% increase in the baseline for the
location- based calculation and a 44% increase in the base-
line for the market-based calculation.
In 2025 data quality improvements across the lending
portfolio impacted the baseline, historical data and sector
targets. The improvements were significant and reduced
the financed emissions from the base year 2019 and
onwards by several million tCO2e. Details can be found in
the table “Breakdown of financed emissions in the lending
portfolio” and the asset-class-specific tables in this report.
One improvement was that we incorporated more
customer-reported data for cor porate exposures and farm-
activity-specific emission fac tors for the Danish Agriculture
portfolio. These updates enhanced data quality in the busi-
ness loans asset class. Following significant improvements
in the data quality of the emission factors used for
Agriculture, we updated the target baseline from 758 to 363
tCO2e/ EURm of lending.
When customer-reported emissions data was unavaila-
ble, we defaulted to emission factors provided by the
PCAF. For sectors where relevant external data existed,
we adjusted the PCAF emission factors to reflect the aver-
age changes in emissions over time and the gross value
added within the sector. This adjustment enabled us to
estimate emissions in the lowest data quality category
more precisely, aligning with actual societal trends.
For the residential and commercial real estate asset
classes, we gathered publicly accessible energy performance
certificates and information about the properties’ heating
sources to improve the emissions estimates. Following signif-
icant improvements in the data quality of the emission fac-
tors used for the Residential Real Estate portfolio, we
updated the target baseline from 17.4 to 12.2 kgCO2e/m2.
For the motor vehicles asset class, we obtained data on
passenger cars and vans from external providers and
applied more detailed emission factors based on model,
series and/or category for heavy-duty vehicles and machin-
ery, thereby enhancing data quality in this portfolio.
Total Emissions Intensity
Base year1 ,2 2024 2 2025
%
2025/2024
Total GHG emissions (location-based) per net revenue (tCO2e/monetary unit)3 3,482 1,640 1,685 3
Total GHG emissions (market-based) per net revenue (tCO2e/monetary unit)3 3,481 1,640 1,685 3
1) The base year is 2019 in the GHG emissions calculation.
2) The total emission intensity has been restated for the years 2019 (3,919 tCO2e/monetary unit) and 2024 (1,981tCO2e/monetary unit).
3) “Net revenue” refers to the total operating income of the respective year: EUR 8,623m in the base year 2019, EUR 12,100m in 2024, and EUR 11,743m in 2025.
===== SIDA 139 =====
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E1 Climate change, cont.
The methodology defines the circumstances under
which base year financed emissions must be recalculated
and the significance threshold triggering a recalculation
(>5%). We also consider recalculating the baseline when a
change of lesser significance occurs to enable more trans-
parent target monitoring. We plan to continue refining the
methodology and increasing data granularity.
Our financed emissions
We are committed to disclosing our share of GHG emis-
sions associated with the loans and investments we pro-
vide to customers and investees, known as financed emis-
sions. While we face the challenge of limited data availa-
bility and must use assumptions in places, we are
determined to improve data quality, increase transparency
for our stakeholders and – most importantly – show pro-
gress on our decarbonisation journey.
Our financed emissions disclosures cover a selection of on-
and off-balance sheet asset classes in our lending and
investment portfolios. Our lending portfolio (on-balance
sheet) includes the PCAF asset classes business loans, motor
vehicles, residential real estate and commercial real estate. In
2025 we managed to cover financed emissions for 96% of
our total on-balance sheet lending portfolio exposures.
Our investment portfolio includes NAM and NLP invest-
ments in listed equities and corporate bonds, and directly
held real estate in NLP. Since 2024, we have also included
financed emissions from sovereign debt financing across
NAM, NLP and Group Treasury. NAM investments do not
appear on the Nordea Group balance sheet.
Our lending and investment portfolio financed emissions
disclosures include counterparty scope 1 and 2 emissions.
Furthermore, in accordance with the PCAF Standard, we
report our counterparty scope 3 emissions for business
loans and listed equities and corporate bonds separately
for all sectors. This practice is also in line with the
European Banking Authority’s Implementing Technical
Standards on Pillar 3 Disclosures on ESG Risks as adopted
in Commission Implementing Regulation (EU) 2024/3172.
Metrics for sector-specific targets for the lending portfolio
and the weighted average carbon intensity for the NAM and
NLP portfolios are provided in the relevant tables below.
Estimates across all asset classes in the lending and invest-
ment portfolios were based on 2025 or earlier financial data,
and on 2024 or earlier emissions data, depending on the latest
available information from customers and investees.
Our disclosures do not cover financed emissions from
bonds and equities in Markets and Treasury operations, as
these are held for shorter durations and for liquidity man-
agement purposes. Our disclosures do not cover financed
emissions from covered bonds, undrawn loan commit-
ments or other items included in the latest updates to the
PCAF Standard. The PCAF Standard updates were made
in December 2025 and were therefore not reflected in the
external reporting for 2025. We expect to include informa-
tion on several of these Standard updates in the near
future as work progresses.
Distribution of total emissions (tCO 2e)
0
30,000
7,500,000
15,000,000
22,500,000
30,000,000
Scope 1 / scope 2 (market-based)
Scope 3 category 1
Scope 3 categories 2–14
Scope 3 category 15
Lending
Scope 3 category 15
Investments1
Scope 1 Scope 2
(market-
based)
Scope 3
1,032
12,829 2,725
13,044
10,906,684
8,855,067
1) ”Investments” is defined as the combination of NAM and NLP.
Financed emissions
Business
loans, 41%
Motor vehicles, 9%
Commercial
real estate, 1%
Residential
real estate, 4%
Investments1,
45%
1) “Investments” is defined as the combined investment portfolios of NAM and NLP. The total percentage
has been subject to rounding.
Motor vehicle loansBusiness loans and
unlisted equity
Lending
Financed emissions
Listed equities and
corporate bonds
Sovereign debt
Investments
Financed emissions
Debt
Capital market activities
Facilitated emissions
Commercial
real estate
Residential
real estate (mortgages)
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E1 Climate change, cont.
Lending portfolio
Between 2019 and 2025 our total lending portfolio
financed emissions decreased by 44%, mainly due to
reductions in exposures to the shipping, oil and gas and
offshore sectors within business loans.
When available, we use company-specific data to calcu-
late our scope 1, 2 and 3 financed emissions. The remaining
financed emissions are estimated using a mix of proxies
from the PCAF Database and our own proxies adapted for
the Nordic region, which we apply using a purpose-built
internal emissions estimation tool. For more information see
“Methodology for financed emissions” on page 147.
Our financed emissions from business loans are dis-
played for different climate-vulnerable sectors in the lend-
ing portfolio. Company-specific data, when weighted by
exposure, covers 30% of the business loans asset class,
corresponding to an average PCAF data quality score of
3.9. To provide further transparency on our progress
towards sector targets, we report the latest available
emission intensity data for shipping vessels that are in line
with the Poseidon Principles; animal husbandry; crops,
plantation and hunting; and power production.
Our financed emissions from motor vehicles include
those associated with lending and leasing. Leasing
accounts for the major share (68%) of financed emissions
from this asset class. In 2025 we managed to source emis-
sions data for passenger cars, vans and heavy-duty vehi-
cles from external vendors. The average PCAF data quality
score was 3.3 in 2025.
For residential and commercial real estate, recent data
quality improvements have centered around the collection
and updating of EPC labels, properties’ heating sources
and emissions from these in the Nordic region. The aver-
age PCAF data quality score for residential real estate was
3.6 and for commercial real estate was 3.9 in 2025.
Financed emissions from tenant-owner associations
(TOAs) are estimated and included in residential real
estate as TOAs are mainly used for residential purposes.
Emission intensity metrics for residential real estate and
commercial real estate are also reported in the tables
below. Although we do not have a sector target for com-
mercial real estate, we report and actively work to reduce
the emission intensity in line with the Net-Zero Banking
Alliance guidelines.
Breakdown of financed emissions in the lending portfolio
2025 2024 2023 2019
Asset class Exposure (EURm)1
Financed emissions
scope 1 and 2 (tCO2e)
Company/asset-
specific data (%)2
Overall data
quality score (1–5) 3
Financed emissions
scope 1 and 2 (tCO2e)
Company/asset-
specific data (%)2
Overall data
quality score (1–5) 3
Financed emissions
scope 1 and 2 (tCO2e)
Company/asset-
specific data (%)2
Overall data
quality score (1–5) 3
Financed emissions
scope 1 and 2 (tCO2e)
2019–25
financed emissions
development
(tCO2e) (%)4
Business loans 96,386 8,167,423 30 3.9 7,775,985 32 3.9 8,891,799 38 3.7 15,724,330 -48
Motor vehicles5 10,549 1,837,108 37 3.3 1,968,998 41 3.3 2,051,395 48 3.2 2,233,288 -18
Residential real estate 6 193,484 702,708 60 3.6 796,396 58 3.6 797,660 55 3.6 1,128,395 -38
Commercial real estate 34,844 199,444 53 3.9 193,302 57 3.8 189,190 55 3.8 259,809 -23
Sub-total7 335,263 10,906,684 – – 10,734,680 – – 11,930,045 – – 19,345,822 -44
Other exposures8 13,080
Total7 348,343
1) ”Exposure” covers on-balance sheet items, with an adjustment to the nominal value of exposures reported at fair value on the balance sheet (Nordea Realkreditaktieselskab).
2) Company/asset-specific data percentages are weighted by exposure. The asset-specific data percentages for “residential real estate” and “commercial real estate” represent the coverage of the exposure-weighted share of the collateral with an EPC label, including EPC labels that have expired within the past five years.
3) Overall data quality scores are weighted by exposure and cover counterparty scope 1 and 2 emissions.
4) In 2025 the baseline for financed emissions in the lending portfolio (2019) was recalculated and decreased by 16% (from 23,141,420 tCO2e). The reported financed emissions were recalculated for 2023, decreasing by 26% (from 16,045,061 tCO2e) and for 2024, decreasing by 28% (from 14,842,062 tCO2e). The baseline recalculation includes data improvements
across all asset classes and years.
5) Data for “motor vehicles” includes loans and leasing.
6) “ R esidential real estate” includes tenant-owner associations (TOAs) with residential real estate as collateral. “Residential real estate” corresponds to the PCAF asset class “mortgages”.
7) The total lending portfolio coverage is 96%.
8) ”Other exposures” includes other consumer lending exposures.
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E1 Climate change, cont.
Business loan financed emissions
2025 2024 2023
Sector Exposure (EURm)1
Counterparty
scope 1 and 2
(tCO2e)
Counterparty
scope 3 (tCO2e)
Emission
intensity2 Exposure (EURm)1
Counterparty
scope 1 and 2
(tCO2e)
Counterparty
scope 3 (tCO2e)
Emission
intensity2 Exposure (EURm)1
Counterparty
scope 1 and 2
(tCO2e)
Counterparty
scope 3 (tCO2e)
Emission
intensity2
2025 share of
financed emissions
in % (vs 2019, %)
Mining and supporting activities 490 123,280 287,882 343 108,469 228,377 309 128,531 373,131 1 (2)
Oil, gas and offshore 332 129,763 173,939 439 172,914 887,247 507 111,423 1,030,560 1 (10)
of which oil and gas exploration and production 3 338 11,616 74 15,144 713,965 75 15,386 709,254 0 (1)
Shipping 4,010 2,415,124 1,673,926 4,169 2,459,823 1,780,565 4,921 3,165,345 2,278,184 30 (38)
of which shipping vessels3 2,658 1,600,745 1,168,221 3,275 2,020,931 1,415,647 7.0gCO2/dwt*nm 4,098 2,751,614 1,962,271 7.4gCO2/dwt*nm 20 (27)
Transport (air and land) 1,885 79,942 573,732 1,512 62,806 449,503 1,571 106,307 414,506 1 (4)
Construction 5,799 167,212 2,476,124 5,538 162,506 2,374,178 6,576 205,610 3,461,921 2 (1)
Materials 2,287 395,487 1,744,143 2,159 335,389 1,719,192 2,122 355,358 1,895,448 5 (6)
Paper and forest products 1,243 123,833 473,773 1,331 139,282 481,048 1,214 116,665 455,745 2 (1)
Agriculture4 7,500 2,087,707 1,918,698 7,099 1,802,514 1,873,997 7,282 1,896,539 1,973,147 26 (15)
of which animal husbandry and crops, plantation
and hunting 4 4,311 1,587,661 864,306 368 tCO2e/EURm 4,270 1,396,844 868,208 327 tCO2e/EURm 4,549 1,556,213 893,735 342 tCO2e/EURm 19 (13)
Power production 5 2,429 361,603 402,380 2,170 321,783 365,728 20 gCO2e/kWh 2,451 383,293 799,636 23 gCO2e/kWh 5 (4)
Utilities, distribution and waste management 5,018 812,733 645,623 4,338 794,963 627,554 4,281 801,471 615,032 10 (5)
Capital goods 4,304 119,406 8,075,049 3,719 102,080 5,790,971 3,782 109,632 9,591,272 1 (1)
Accommodation and leisure 1,926 53,413 464,657 1,770 50,522 425,892 1,972 49,913 451,625 0 (0)
Insurance 1,246 12,823 59,493 1,243 13,034 59,130 1,027 11,356 55,789 0 (0)
Other 6 57,918 1,285,096 32,757,766 53,430 1,249,899 27,876,390 52,002 1,450,358 30,710,371 16 (13)
Total 7 96,386 8,167,423 51,727,185 89,260 7,775,985 44,939,772 90,017 8,891,799 54,106,367 100 (100)
1) Exposures relate to on-balance sheet items.
2) The emission intensities correspond to those presented in “Sector analysis and targets for lending portfolio” on page 131. The latest available data for shipping and power production is from 2024.
3) Shipping vessels in line with the Poseidon Principles.
4) “Agriculture” includes fishing and aquaculture; animal husbandry; and crops, plantation and hunting. Due to data quality improvements, the emission intensity figures for 2023 and 2024 have been restated, from 704 tCO2e/EURm and 730 tCO2e/EURm, respectively.
5) For financed emissions from renewable energy producers, we apply an internally developed proxy of 5g/kWh.
6) “Other” includes the real estate management industry (REMI), buildings management, other industrial activities, and other sectors within business loans not defined as climate-vulnerable sectors.
7) The t otal increase in business loan scope 3 emissions was mainly driven by increased exposure to the capital goods sector, which is associated with high counterparty scope 3 emission intensity. This increased exposure outweighed the large decrease in exposure to the oil and gas exploration and production sector.
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E1 Climate change, cont.
Company-specific data and PCAF data quality scores 1
2025 2024 2023
Counterparty scope 1 and 2 Counterparty scope 3 Counterparty scope 1 and 2 Counterparty scope 3 Counterparty scope 1 and 2 Counterparty scope 3
Company-specific
data (%)
Overall data
quality score
Company-specific
data (%)
Overall data
quality score
Company-specific
data (%)
Overall data
quality score
Company-specific
data (%)
Overall data
quality score
Company-specific
data (%)
Overall data
quality score
Company-specific
data (%)
Overall data
quality score
Sector
Mining and supporting activities 84 2.2 84 2.2 76 2.5 76 2.5 56 3.0 56 3.0
Oil, gas and offshore 80 2.4 80 2.4 66 2.5 66 2.5 93 1.8 85 2.1
of which oil and gas exploration and production 95 1.0 100 1.0 6 2.9 6 2.9 100 1.0 100 1.1
Shipping 86 1.9 29 3.9 92 1.4 37 2.9 91 1.4 45 3.8
of which shipping vessels2 100 1.0 26 4.1 100 1.0 30 4.0 100 1.0 46 3.6
Transport (air and land) 47 3.2 46 3.2 32 3.8 35 3.7 27 3.9 30 3.9
Construction 19 4.3 20 4.3 19 4.4 18 4.4 21 4.3 22 4.3
Materials 52 3.1 51 3.2 45 3.4 43 3.5 50 3.2 46 3.4
Paper and forest products 33 3.8 26 4.0 42 3.4 36 3.6 47 3.3 34 3.7
Agriculture3 32 3.8 9 4.7 39 3.5 12 4.5 43 3.4 15 4.4
of which animal husbandry and crops,
plantation and hunting 41 3.5 1 5.0 46 3.3 1 4.9 45 3.4 1 5.0
Power production 39 3.3 18 4.4 44 3.1 21 4.3 73 2.5 40 3.8
Utilities, distribution and waste management 70 2.9 31 4.1 67 3.0 31 4.1 71 2.9 26 4.2
Capital goods 34 3.8 29 4.0 34 3.8 31 3.9 43 3.6 31 3.9
Accommodation and leisure 22 4.3 22 4.3 22 4.3 22 4.3 36 3.9 36 3.9
Insurance 0 5.0 0 5.0 0 5.0 0 5.0 0 5.0 0 5.0
Other4 22 4.2 20 4.3 24 4.2 22 4.2 29 4.0 25 4.2
Total 30 3.9 22 4.2 32 3.9 24 4.2 38 3.7 27 4.1
1) Company-specific data and overall data quality scores are weighted by exposure.
2) Shipping v essels in line with the Poseidon Principles.
3) “ Agriculture” includes fishing and aquaculture; animal husbandry; and crops, plantation and hunting .
4) ”Other” includes the real estate management industry (REMI), buildings management, and other sectors within business loans not defined as climate-vulnerable sectors.
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E1 Climate change, cont.
Motor vehicles financed emissions 1
2025 2024 2023
Vehicle type Exposure (EURm)
Counterparty
scope 1 and 2 (tCO2e)
Emission intensity
(gCO2/km)2 Exposure (EURm)
Counterparty
scope 1 and 2 (tCO2e)
Emission intensity
(gCO2/km)2 Exposure (EURm)
Counterparty
scope 1 and 2 (tCO2e)
Emission intensity
(gCO2/km)2
2025 share of financed
emissions in %
(vs 2019, %)
Cars and vans 4,636 216,815 94 4,475 236,424 102 4,491 243,671 106 11 (12)
Industrial vehicles and mobile machinery 2,256 622,315 2,287 689,536 2,412 743,285 34 (37)
Trucks and heavy vehicles 1,479 476,636 1,467 491,638 1,480 486,150 26 (20)
Farming machinery incl. tractors 1,155 391,199 1,123 426,486 1,093 456,849 22 (20)
Other 1,023 130,143 907 124,913 861 121,441 7 (11)
Total 10,549 1,837,108 10,259 1,968,998 10,337 2,051,395 100 (100)
1) “Motor vehicles” includes loans and leasing.
2) Emission intensity covers counterparty scope 1 emissions in line with our cars and vans target.
Residential real estate financed emissions 1
2025 2024 2023
Country Exposure (EURm)
Counterparty
scope 1 and 2 (tCO2e) 2
Emission intensity
(kgCO2e/m2)2 Exposure (EURm)
Counterparty
scope 1 and 2 (tCO2e) 2
Emission intensity
(kgCO2e/m2)2 Exposure (EURm)
Counterparty
scope 1 and 2 (tCO2e) 2
Emission intensity
(kgCO2e/m2)2
2025 share of financed
emissions in %
(vs 2019, %)
Denmark 50,192 259,778 13 50,917 311,379 13 51,884 338,560 14 37 (35)
Finland 36,418 314,913 15 36,101 360,310 18 36,456 333,971 15 45 (48)
Norway 42,185 12,137 1 41,522 12,428 1 34,013 10,394 1 2 (2)
Sweden 64,689 115,880 5 58,552 112,278 5 59,106 114,735 5 16 (15)
Total 193,484 702,708 8 187,093 796,396 9 181,459 797,660 9 100 (100)
1) ”Residential real estate” includes tenant-owner associations (TOAs). “Residential real estate” corresponds to the PCAF asset class “mortgages”.
2) Financed emissions from residential real estate are based on national data on average energy consumption according to EPC label and property energy source, if known. If not known, a national average is used. Financed emissions and emission intensities are impacted by portfolio EPC composition.
===== SIDA 144 =====
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E1 Climate change, cont.
Commercial real estate financed emissions
2025 2024 2023
Country
Exposure
(EURm)
Counterparty
scope 1 and 2
(tCO2e)
Emission
intensity1
(kgCO2e/m2)
Exposure
(EURm)
Counterparty
scope 1 and 2
(tCO2e)
Emission
intensity
(kgCO2e/m2)
Exposure
(EURm)
Counterparty
scope 1 and 2
(tCO2e)
Emission
intensity
(kgCO2e/m2)
2025 share of
financed emissions
in % (vs 2019, %)
Denmark 7,775 46,993 14 6,955 56,125 15 6,984 51,418 14 23 (35)
Finland 6,730 99,659 23 5,980 92,473 23 5,650 91,124 23 50 (45)
Norway 7,610 5,437 6 7,440 5,967 6 8,467 6,719 6 3 (3)
Sweden 12,729 47,356 8 10,517 38,736 7 10,316 39,929 8 24 (17)
Total 34,844 199,444 13 30,892 193,302 14 31,417 189,190 14 100 (100)
1) Financed emissions for commercial real estate are based on national data on average energy consumption according to EPC label and property energy source, if known. If not known, a national average is used. Financed emissions and emission intensities are
impacted by portfolio EPC composition.
Real estate portfolios by EPCs 1
EPC available
Residential real estate Commercial real estate
Denmark Finland Norway Sweden Denmark Finland Norway Sweden
Volume
(EURm) Share (%)
Volume
(EURm) Share (%)
Volume
(EURm) Share (%)
Volume
(EURm) Share (%)
Volume
(EURm) Share (%)
Volume
(EURm) Share (%)
Volume
(EURm) Share (%)
Volume
(EURm) Share (%)
A 4,262 8 911 2 675 1 394 1 2,108 27 48 1 519 7 332 3
B 2,065 4 3,624 10 3,064 7 4,236 7 479 6 263 4 1,213 16 1,051 8
C 7,931 16 4,345 12 2,485 6 7,719 12 1,303 17 383 6 822 11 1,538 12
D 5,285 11 5,814 16 2,960 7 9,820 15 470 6 170 2 583 8 1,814 14
E 1,637 3 4,239 12 2,790 7 11,306 17 260 3 91 1 569 7 1,560 12
F 573 1 1,047 3 3,483 8 4,814 7 36 1 19 0 293 4 791 6
G 234 1 178 0 5,072 12 1,229 2 26 0 9 0 175 2 283 2
EPC proxy2 5,478 11 410 1 3,760 9 3,426 5 636 8 53 1 520 7 78 1
No label 22,727 45 15,850 44 17,896 42 21,745 34 2,458 32 5,694 85 2,916 38 5,281 42
Total 50,192 100 36,418 100 42,185 100 64,689 100 7,775 100 6,730 100 7,610 100 12,729 100
1) EPC data is based on the data available on the local market. EPC coverage in all markets is expected to increase over time and may impact the emissions calculations.
2) “EPC proxy” refers to EPCs that have expired but no longer than five years ago.
Investment portfolio
Estimates for financed emissions in NAM’s off-balance
sheet investment portfolio are based on data collected
from investee companies through the vendors MSCI and
ISS ESG. The GHG emissions data sourced from these ven-
dors includes emissions directly reported by investee com-
panies and modelled estimates (when reported emissions
are not available).
Reported emissions data is considered equivalent to a
PCAF data quality score of 2. For this data, the vendors
have governance and quality assurance procedures in
place to validate accuracy. In MSCI’s case, this includes
processes such as anomaly detection, dual vendor valida-
tion (comparing values collected from various sources)
and company outreach. NAM consolidates data from sev-
eral data vendors to improve the overall data coverage.
This makes it possible to identify cases where different
vendors have provided significantly different emissions
data for the same company and the same year. In these
cases, NAM carries out additional quality assurance to
ensure it selects the data that is most likely to be correct.
If reported data is not available, or is not of sufficient
quality, the data vendors provide estimated scope 1 and 2
GHG emissions values based on their respective estima-
tion models. MSCI’s production model is used for electric
utility companies where the type of fuel is known; here,
the modelled data is considered equivalent to a PCAF
score of 2. MSCI’s company-specific intensity model is
used for companies where NAM has historical but not cur-
rent emissions data, with the modelled data considered
equivalent to a PCAF score of 3. MSCI’s industry seg-
ment-specific intensity model (E. Segmt) is based on sec-
tor averages for companies that have not made any disclo-
sures; in this case, the modelled data is considered equiva-
lent to a PCAF score of 4. In addition, NAM supplements
MSCI data with data from ISS ESG. The data reported by
ISS ESG is assigned a PCAF score of 2.
===== SIDA 145 =====
Nordea Annual Report 2025 144
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
NAM’s final data consolidation across providers is aimed
at optimising the overall PCAF data quality. In 2025 NAM
chose to report unscaled financed emissions, i.e. financed
emissions for companies where data coverage was com-
plete. These corresponded to 97% of the investments under
NAM’s management. This approach was chosen because it
was considered the most transparent and fully enabled
interested parties to calculate scaled emissions.
For NLP, financed emissions are reported for all man-
aged assets where NLP makes investment choices on
behalf of beneficiaries. NLP reports financed emissions
from all asset classes where data coverage is sufficient and
established methodologies are available. For asset classes
where this is not yet the case, NLP assumes that data and
methodologies will become available in the future.
Reported financed emissions from NLP’s investments
are unscaled and based on data from investee companies
provided by MSCI. See the table “Financed emissions –
investment portfolio coverage” below for details on port-
folio coverage and data quality. Data quality is largely
determined as described above for NAM, except for the
fact that MSCI is NLP’s sole data provider for listed equi-
ties and fixed-income instruments. For NLP’s directly held
real estate portfolio, NLP uses vendor-specific reported
data, corresponding to a PCAF score of 2.
We also report sovereign debt financed emissions for
NAM, NLP and Group Treasury. Here, the PCAF recom-
mends using production emissions, including exported
emissions, which have the best data quality score as they
are reported by sovereign entities. Following the PCAF
recommendations, we report scope 1 sovereign emissions
both including and excluding land use, land use change
and forestry (LULUCF), as countries have different
approaches to LULUCF emissions accounting.
Financed emissions are calculated in accordance with
Part A of the PCAF Standard. MSCI data is used for sover-
eign debt emissions for NLP and NAM. MSCI data is
aligned with the 2021 PCAF emission factors data (which
has a data quality score of 1 according to the PCAF
Standard).
Financed emissions – investment portfolio coverage
Value of investments (EURm)2 Financed emissions (tCO2e) Company-specific data (%) Overall data quality score (1–5)
Nordea Asset Management
Listed equities and corporate bonds (scope 1 and 2)1 299,146 8,739,742 96 2.1
Sovereign debt (scope 1, excl. LULUCF) 20,958 3,115,297 97 1.1
Nordea Life and Pension3,4
Listed equities and corporate bonds (scope 1 and 2)1 52,176 1,614,074 95 2.1
Directly held real estate 3,498 5,890 100 2.0
Sovereign debt (scope 1 excl. LULUCF) 2,834 389,604 – 4.0
Group Treasury
Sovereign debt (scope 1 excl. LULUCF) 12,185 1,981,082 – 4.0
1) P ortfolio coverage of 97% for NAM and 95% for NLP.
2) Appr oximately 80% of NLP’s assets under management (AuM) are managed by NAM. The resulting double counting of emissions is not accounted for in this table.
3) NLP uses the most recent data available, which in the case of sovereign bonds is estimated data, not country-reported data.
4) Ass ets on NLP’s balance sheet consist of (a) assets managed by NLP (67% of total AuM on NLP’s balance sheet at the end of 2025) and (b) assets not managed by NLP (33% of NLP’s AuM). The former are in scope for NLP’s reporting and reflect GHG emissions gener-
ated by NLP’s insurance- and pension-based investment products, where NLP makes decisions as to which internally or externally managed instruments (for example, mandates, structured investment products or single securities) to invest in. Assets not managed by
NLP are excluded from NLP’s reporting and consist of assets where the customer makes the investment selection through our investment platforms. These are mostly NAM funds (26% of NLP’s total balance sheet AuM), c overed by NAM’s reporting and targets. They are
also funds provided by external asset managers, single equities, and other instruments (6% of NLP’s total balance sheet AuM). The distribution of non-Nordea funds is governed by Nordea’s Responsible Investment Distribution Policy.
MSCI also includes emission factors based on estimated
models for 2022 data (with a data quality score of 4). NLP
uses the most recent data available, i.e. 2022 data. While
NAM uses the PCAF emission factors included in MSCI
data, i.e. 2021 data, Group Treasury uses emission factors
taken directly from the PCAF database.
NLP’s financed scope 1, 2 and 3 emissions have
increased since the end of 2024, mainly due to capital
allocations across economic sectors, in particular alloca -
tions to the basic materials sector. The increase in scope 3
financed emissions for NAM was primarily driven by a
significant increase in scope 3 emissions within the con -
sumer cyclical segment. A contributing factor here was
significantly higher scope 3 emissions estimates for many
companies within the automotive sector.
Financed emissions Nordea Asset Management
Financed emissions (tCO2e)1
2025 2024 2023
Investee scope 1
and 2 emissions
Investee scope 3
emissions
Investee scope 1
and 2 emissions
Investee scope 3
emissions
Investee scope 1
and 2 emissions
Investee scope 3
emissions
Basic materials 2,635,506 8,299,242 2,162,997 7,553,948 2,112,856 7,092,425
Communications 179,860 1,568,890 177,432 1,831,864 136,795 1,354,377
Consumer, cyclical 565,120 26,312,582 441,775 16,696,480 438,778 14,103,682
Consumer, non-cyclical 545,968 8,153,735 620,314 8,033,225 557,687 6,853,093
Energy 406,974 4,473,151 391,282 3,919,631 431,257 4,434,306
Financials 113,137 7,202,072 123,283 7,600,147 96,158 5,468,552
Industrial 2,100,814 14,067,019 2,585,218 11,119,139 2,055,177 10,523,113
Technology 267,582 2,567,985 175,212 1,973,182 206,334 1,967,335
Utilities 1,745,973 3,849,930 2,188,188 3,945,719 2,336,505 3,441,622
Diversified 20,616 54,152 18,441 38,526 27,859 33,226
Other 158,190 1,592,217 53,764 591,263 87,933 854,535
Listed equities 6,703,492 54,637,365 6,220,745 40,344,689 5,682,747 38,531,863
Corporate bonds 2,036,250 23,503,611 2,717,162 22,958,434 2,804,593 17,594,403
Total listed equities and
corporate bonds 8,739,742 78,140,976 8,937,907 63,303,123 8,487,339 56,126,266
1) F or scope 3 emissions, we prioritise estimated emissions over reported emissions. This is to minimise the risk of under-reporting, as many companies fail to disclose emis-
sions for material scope 3 categories. The average PCAF data quality score for these scope 3 emissions was 3.9 in 2025.
===== SIDA 146 =====
Nordea Annual Report 2025 145
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Financed emissions Nordea Life & Pension
2025 2024 2023
Financed emissions (tCO2e)
Investee scope 1
and 2 emissions
Investee scope 3
emissions
Investee scope 1
and 2 emissions
Investee scope 3
emissions2
Investee scope 1
and 2 emissions
Investee scope 3
emissions2
Basic materials 687,471 1,550,230 319,733 1,033,611 400,713 884,115
Communications 40,286 492,217 24,391 386,261 18,005 252,411
Consumer, cyclical 110,304 5,567,094 64,919 2,955,879 51,573 3,368,685
Consumer, non-cyclical 120,740 2,107,237 90,284 1,350,429 89,822 1,199,871
Energy 8,213 219,587 3,808 94,354 3,865 56,526
Financials 21,162 1,320,040 13,438 583,232 31,367 565,548
Industrial 365,380 11,160,713 274,100 5,569,195 226,406 3,506,941
Technology 57,793 333,786 27,604 230,122 44,348 390,849
Utilities 199,598 747,328 210,101 655,571 208,346 533,201
Diversified 425 11,954 463 214 171 189
Other 2,701 69,089 281,345 3,256 113,142 1,167,625
Directly held real estate 5,890 2,088 8,260 2,878 9,872 2,111
Listed equities 1,331,239 19,587,721 948,839 10,484,480 881,374 10,150,641
Corporate bonds 282,836 3,991,555 361,348 2,377,645 306,386 1,775,319
Total listed equities and
corporate bonds 1,614,074 23,579,276 1,310,187 12,862,124 1,187,760 11,925,960
Directly held real estate1 5,890 2,088 8,260 2,878 9,872 2,111
1) Sc ope 3 figures reflect emissions from tenants’ energy consumption. Embodied carbon is not included.
2) Sc ope 3 emissions for 2023 and 2024 have been restated due to a methodological change to improve data quality.
Sovereign debt financed emissions 1
2025 2024 2023
Exposure (EURm)
Counterparty scope 1
incl. LULUCF (tCO2e)
Counterparty scope 1
excl. LULUCF (tCO2e) Exposure (EURm)
Counterparty scope 1 incl.
LULUCF (tCO2e)
Counterparty scope 1
excl. LULUCF (tCO2e) Exposure (EURm)
Counterparty scope 1
incl. LULUCF (tCO2e)
Counterparty scope 1
excl. LULUCF (tCO2e)
Nordea Asset Management 20,958 2,838,829 3,115,297 15,856 2,748,855 2,994,322 14,536 3,122,497 3,373,869
Nordea Life & Pension 2,834 369,371 389,604 2,552 322,308 348,785 2,486 379,464 398,943
Group Treasury 12,185 2,284,761 1,981,082 12,809 2,266,835 2,583,002 10,048 1,922,585 2,195,011
Total 35,978 5,492,961 5,485,984 31,216 5,337,998 5,926,109 27,070 5,424,546 5,967,823
1) In ac cordance with the PCAF Standard, this asset class includes sovereign bonds and sovereign loans of all maturities issued in domestic or foreign currencies. Other types of sovereign debt, such as cash, foreign exchange and derivative (repo) transactions, are not included. Moreover, the figures do not include debt issued by sub-sovereign entities and agen-
cies, such as state-owned development banks.
===== SIDA 147 =====
Nordea Annual Report 2025 146
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Average PCAF data quality (DQ) and portfolio coverage (PC)
2025 2024 2023
Scope 1 and 2 Scope 3 Scope 1 and 2 Scope 3 Scope 1 and 2 Scope 3
DQ (1–5) PC (%) DQ (1–5) PC (%) DQ (1–5) PC (%) DQ (1–5) PC (%) DQ (1–5) PC (%) DQ (1–5) PC (%)
Nordea Asset Management
Listed equities 2.0 100 4.0 100 2.1 100 3.9 100 2.1 100 3.9 100
Corporate bonds 1 2.1 92 3.9 92 2.1 91 3.8 91 2.1 88 3.8 88
Sovereign debt (scope 1 excl. LULUCF) 2 1.1 100 1.2 98 1.4 99 – –
Nordea Life & Pension
Listed equities 3 2.0 99 2.1 99 2.6 98 2.3 99 2.1 98 2.3 93
Corporate bonds 3 2.3 79 2.5 79 2.2 73 2.6 74 2.1 44 2.3 44
Directly held real estate 4 2.0 100 2.0 100 2.0 100 2.0 100 2.0 100 2.0 100
Sovereign debt (scope 1 excl. LULUCF)5 4.0 98 – – 4.0 98 – – 4.0 96 – –
Group Treasury
Sovereign debt (scope 1 excl. LULUCF) 5 4 100 – – 1 100 – – 1 100 – –
1) The por tfolio coverage figures for scope 3 in 2023 and 2024 have been restated. In the 2024 Annual Report the stated coverage for both years was 100%.
2) The por tfolio coverage figure for sovereign debt in 2023 has been restated. In the 2024 Annual Report the stated coverage was 98%.
3) The da ta quality scores and portfolio coverage figures for scope 3 for listed equities and corporate bonds in 2023 and 2024 have been restated due to a methodological change to improve data quality.
4) The por tfolio coverage figures for directly held real estate in 2023 and 2024 have been restated to 100% due to a data error.
5) NLP used the most recent data available for the 2023–25 calculations, while Group Treasury used the most recent data available for the 2025 calculation. In the case of sovereign bonds, this is estimated data, not country-reported data.
Listed equities and corporate bonds
Carbon footprint (tCO2e/EURm invested)1 2025 2024 2023
Nordea Asset Management
Listed equities 34 36 40
Corporate bonds 20 29 33
Total listed equities and corporate bonds 29 34 37
Nordea Life & Pension
Listed equities 33 29 37
Corporate bonds 32 48 62
Directly held real estate 2 3 4
Total listed equities, corporate bonds and directly held real estate 31 32 38
1) The da ta quality and portfolio coverage for the listed equities and corporate bonds carbon footprints are described in the table “Average PCAF data quality (DQ) and portfolio
coverage (PC)” above.
Weighted average carbon intensity 1
Weighted average carbon intensity1 2025 2024 2023
Nordea Asset Management (tCO2e/EURm in revenue)2
Listed equities 83 93 107
Corporate bonds 34 45 48
Total listed equities and corporate bonds 66 76 84
Nordea Life & Pension (tCO2e/EURm in revenue)3
Listed equities 59 68 78
Corporate bonds 55 87 86
Total listed equities and corporate bonds 58 72 80
1) ”Revenue” refers to the weighted average of investee company revenues.
2) NAM por tfolio coverage was 97% in 2025, 97% in 2024 and 96% in 2023.
3) NLP portfolio coverage was 95% in 2025, 75% in 2024 and 87% in 2023.
===== SIDA 148 =====
Nordea Annual Report 2025 147
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Methodology for financed emissions
Our methodology for estimating financed emissions is
mainly based on the PCAF Standard, but also applies certain
deviations and own methods to meet the specific character-
istics of our lending portfolio. We are continually reviewing
and updating the methodology, which is approved on an
annual basis by the Asset & Liability Committee.
To ensure the transparency of the financed emissions
estimates, we assess the data using the PCAF scoring sys-
tem. The scores range from 1 to 5, with 1 corresponding to
the most accurate data (audited and directly reported cus-
tomer and investee data) and 5 to the most uncertain data
(estimated data). For the 2025 reporting of financed emis-
sions, estimates across all asset classes in the lending and
investment portfolios were based on 2025 or earlier finan-
cial data and on 2024 or earlier emissions data, depending
on the latest available information from customers and
investees.
Asset class Emissions data sources Methodology summary
Business loans • Customer-reported emissions data
• External vendors
• PCAF emission factor database
• Poseidon Principles, IMO strategy for the shipping sector
• Own green production proxy
• Own oil and gas exploration and production proxy
Financed emissions are calculated in accordance with Part A of the PCAF Standard.
Deviations and own approaches
• For sectors where relevant external data exists, we adjust the static PCAF Database emission factors from the year 2015 to reflect the average changes in emissions over time
and gross value added within the sector in our region. This adjustment enables us to estimate emissions in the lowest data quality category more precisely, aligning with actual
societal trends.
• For the power production sector, we apply a green production proxy for fully renewable energy producers that do not report emissions, based on information from the
Intergovernmental Panel on Climate Change (IPCC) and the United Nations Economic Commission for Europe (UNECE). We have estimated that these customers can generate
5gCO2/kWh, which has led to an improvement in the data quality score, from 5 to 3.
• Shipping is included within the business loan asset class and the calculation of financed emissions is based on the Danish CO2 model.
• We apply our own dynamic proxy for shipping vessels and offshore vessels that do not follow the Poseidon Principles. The proxy uses emissions per nautical mile from the
actual vessel fleet that we finance. The customers’ operating costs are considered, so financed emissions are based on the actual operational activity of the customers/vessels.
• We apply our own proxy for oil and gas exploration and production companies without reported scope 3 emissions. In 2019 and 2022 we used internal estimates based on
applicable combustion-related emission factors from regional peers and production data and assessed these as having a data quality score of 3. The “project finance” PCAF
asset class is embedded within business loans and unlisted equities.
Motor vehicles
• PCAF emission factor database
• Emissions data for passenger cars, vans and heavy-duty vehicles from
external vendors
Financed emissions are calculated in accordance with Part A of the PCAF Standard.
Deviations and own approaches
Financed emissions from motor vehicles include lending and leasing, with the same methodology applied. This is because customers always gain possession of the vehicle after
the short lease term.
Residential real estate and
commercial real estate
• PCAF emission factor database (2018 emission factors)
• EPC labels
• International Energy Agency emission factors for energy sources
• District heating emission factors from the energy agency or national
statistics bureau in Denmark, Finland, Norway and Sweden
Financed emissions are calculated in accordance with Part A of the PCAF Standard.
Deviations and own approaches
• We have chosen to treat EPCs that have expired within the past five years as valid and give them a data quality score of 4. We believe this provides a better estimate of financed
emissions from properties with expired EPCs than the PCAF proxy does.
• An internal proxy is applied for financed emissions from commercial real estate with a data quality score of 5 in order to close the information gap on physical emission intensity.
• Financed emissions from tenant-owner associations (TOAs) are also estimated and included in residential real estate as TOAs are mainly used for residential purposes.
Listed equities and corporate bonds • External vendors Financed emissions are calculated in accordance with the Part A of the PCAF Standard.
Deviations and own approaches
• NAM listed equities and corporate bonds include covered bonds and green bonds.
• NLP listed equities and corporate bonds include green bonds and a portion of covered bonds.
Directly held real estate • Primary data on direct fuel use, purchased electricity and heating, and
tenant energy consumption
• Emission factors as available
GHG emissions from NLP directly held real estate are estimated in accordance with the GHG Protocol. The emissions are systematically collected through accurate data on direct
fuel use (scope 1), purchased electricity and heating (scope 2) and tenant energy consumption (scope 3). The best available emission factors are applied to calculate total
emissions.
Sovereign debt • PCAF emission factor database
• External vendors
Financed emissions are calculated in accordance with Part A of the PCAF Standard. MSCI data is used for sovereign debt emissions for NLP and NAM. MSCI data is aligned with
the 2021 PCAF emission factors database (which has a data quality score of 1 according to the PCAF Standard). MSCI also includes emission factors based on estimated models
for 2022 data (with a data quality score of 4). NLP uses the most recent data available, i.e. 2022 data. While NAM uses the PCAF emission factors included in MSCI data, i.e. 2021
data, Group Treasury uses emission factors taken directly from the PCAF Database.
===== SIDA 149 =====
Nordea Annual Report 2025 148
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Methodology for the operational carbon footprint
The GHG emissions calculations for our operational car-
bon footprint include emissions from our consolidated
entities. The calculation for scope 1 emissions covers
mobile combustion from leased cars and stationary com-
bustion from diesel generators. The calculation for scope 2
covers purchased electricity, heating and cooling. The cal-
culation for scope 3 partially covers the following GHG
Protocol categories (reported activities/emission sources
for each category are presented in parentheses): category
1: purchased goods and services (including postal services;
paper and water consumption); category 2: capital goods
(solar panel systems installed); category 3: fuel and ener-
gy-related activities not included in scope 1 or scope 2 (the
production of energy carriers); category 5: waste gener-
ated in operations (waste; waste and water management);
and category 6: business travel (air travel, taxi use, the use
of employees’ own cars for business travel purposes, and
hotel accommodation). Other activities and scope 3 cate-
gories are excluded for 2025 to align with our target scope.
The significant scope 3 categories assessment and report-
ing boundaries will be revisited in 2026 as part of our pro-
cess to review the target, its scope and our associated
actions for our 2026–30 strategy period. The calculations
follow the quantification of GHG emissions by multiplying
activity data by emission factors and relevant global
warming potentials (GWPs). All emissions are stated in
tonnes of CO2e. The calculations cover the relevant GHGs
(CO2, CH4 and N2O), and the applied GWPs based on the
Intergovernmental Panel on Climate Change (IPCC)
Fourth Assessment Report (AR5) (2014) are CO2 – 1, CH4
– 28 and N2O – 265. The emission factors per source are
provided in the table to the right.
The total GHG emissions (market-based) from our own
operations were 29,630tCO2e for 2025.
The table to the right details the sources included in our
operational footprint calculation, which follows the GHG
Protocol guidance.
Operational carbon footprint emissions sources
Source of emissions Year Emission factors used
Diesel generators
(scope 1: stationary
combustion/scope 3,
category 3)
2025 Energy Institute (EI) 2025 Statistical Review of World Energy; Swedish Environmental Protection Agency (EPA) 2025; UK
Department for Energy Security & Net Zero (DESNZ) Greenhouse gas reporting: conversion factors 2025
2024 As above (2024 editions)
2019 As above (2019 editions)
Leased cars
(scope 1: mobile
combustion/scope 3,
category 3)
2025 Swedish EPA 2025; European Commission Joint Research Centre Data Catalogue 2025; International Energy Agency (IEA)
Emissions Factors 2025; UK DESNZ Greenhouse gas reporting: conversion factors 2025
2024 As above (2024 editions)
2019 As above (2019 editions)
Electricity
(scope 2/scope 3,
category 3)
2025 GHG Protocol 2024; IEA Emissions Factors 2025; EI 2025 Statistical Review of World Energy; Association of Issuing Bodies (AIB)
European Residual Mixes 2024; European Commission Joint Research Centre Data Catalogue 2025
2024 As above (2024 editions)
2019 As above (2019 editions)
Heating
(scope 2/scope 3,
category 3)
2025 IEA Emissions Factors 2025; AIB European Residual Mixes 2024; European Commission Joint Research Centre Data Catalogue 2025;
Ecoinvent 2025; UK DESNZ Greenhouse gas reporting: conversion factors 2025; GHG Protocol 2024; Statistics Norway 2025; Finnish
Energy Authority 2025; Danish District Heating Association 2025; Swedish EPA 2025
2024 As above (2024 editions)
2019 As above (2019 editions)
Cooling
(scope 2/scope 3,
category 3)
2025 IEA Emissions Factors 2025; AIB European Residual Mixes 2024; GHG Protocol 2024; Stockholm Exergi 2025; Helen 2025; Ecoinvent
2025
2024 As above (2024 editions)
2019 As above (2019 editions)
Postal services
(scope 3, category 1)
2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025
2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024
2019 UK Department for Business, Energy & Industrial Strategy (BEIS) Greenhouse gas reporting: conversion factors 2019
Paper and water
consumption
(scope 3, category 1)
2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025
2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024
2019 UK BEIS Greenhouse gas reporting: conversion factors 2019
Waste
(scope 3, category 5)
2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025
2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024
2019 UK BEIS Greenhouse gas reporting: conversion factors 2019
Air travel and taxi use
(scope 3, category 6)
2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025; PCAF emission factors
2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024; PCAF emission factors
2019 UK BEIS Greenhouse gas reporting: conversion factors 2019; PCAF emission factors
Own car use
(scope 3, category 6)
2025 UK DESNZ Greenhouse gas reporting: conversion factors 2025; PCAF emission factors
2024 UK DESNZ Greenhouse gas reporting: conversion factors 2024; PCAF emission factors
2019 UK BEIS Greenhouse gas reporting: conversion factors 2019; PCAF emission factors
Hotel accommodation
(scope 3, category 6)
2025 Cornell Hotel Sustainability Benchmarking (CHSB) Index 2023
2024 CHSB Index 2023
2019 CHSB Index 2019
===== SIDA 150 =====
Nordea Annual Report 2025 149
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
Facilitated emissions
Investment banks serve as important intermediaries in the
financial ecosystem, linking issuers with investors and facil-
itating transactions that are vital for the effective function-
ing of capital markets. Due to the important role we play in
facilitating financing through our investment banking
activities, we are now reporting our facilitated GHG emis-
sions. This follows the publication of the PCAF Facilitated
Emissions Standard, which provides detailed methodologi-
cal guidance for facilitated emissions accounting.
In 2025 we facilitated over 600 transactions across
diverse markets. We estimate that facilitated emissions for
bond transactions arranged by us amounted to 156 ktCO2e
in 2025. Here, we were guided by the PCAF Facilitated
Emissions Standard, which excludes, for example, green
bonds and sovereign bonds. The largest share of these
facilitated emissions related to the healthcare sector. The
average facilitated emission intensity for the portfolio was
low due to facilitation for industries with modest emis-
sions from own operations, such as financial services.
Facilitated emissions attributed to us are calculated using
the methodology outlined in PCAF Global GHG Accounting
and Reporting Standard Part B: Facilitated Emissions. In our
2025 reporting, and in line with PCAF guidelines, our pub-
lished facilitated emissions cover primary markets (new issu-
ances), but not secondary markets or the trading of existing
capital market instruments. In addition, only the portion of
primary issuances that are actually facilitated by us are in
scope for the facilitated emissions calculations. Figures are
included for all our active facilitator roles in a deal.
The facilitated emissions table below includes new pub-
lic debt issuances facilitated during the reporting year that
meet these criteria. The issuer in our methodology is a cor-
porate entity. Facilitated equity and syndicated loans are
not yet accounted for. Sovereign entities, supranational
entities, agency issuers, securitised products, covered
bonds, green bonds and commercial paper are excluded
from the scope. Emissions are calculated using the formula
outlined by the PCAF, and using a 33% weighting and the
transaction volume over one year (2025). For deal data, we
use Bloomberg. We source emissions data from the same
source used for financed emissions in the lending portfolio.
Within the corporate space, the sectors in scope are the
same as for financed emissions.
In 2025 the total facilitated debt amount in scope was
EUR 19bn and total facilitated counterparty scope 1 and 2
emissions amounted to 156 ktCO2e. Only 12% of the facili-
tated amount in scope was in climate-vulnerable sectors,
while these sectors accounted for 19% of the total facili-
tated counterparty scope 1 and 2 emissions. Going forward,
we will work towards improving the data quality scores for
our facilitated emissions disclosures.
Facilitated emissions
2025
Sector
Facilitated amount
(EURm)1
Counterparty scope
1 and 2 (tCO2e)2
Counterparty
scope 3 (tCO2e)2
Overall data quality
score scope 1 and 23
Overall data quality
score scope 3
Climate-vulnerable sectors 2,315 30,299 200,587 4.9 4.0
Other sectors 16,667 125,361 806,985 4.9 4.9
Total 18,982 155,660 1,007,573 4.9 4.8
1) Debt capital market volumes.
2) Based on a 33% weighting following the PCAF Standard .
3) Overall data quality scores are weighted by facilitated amount.
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Nordea Annual Report 2025 150
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E1 Climate change, cont.
GHG removals and GHG mitigation projects
financed through carbon credits
Emissions removals in our own operations
Despite our efforts to limit our operational carbon foot-
print, some emissions remain difficult to reduce. We have
therefore purchased carbon offsets for all emissions from
our own operations within the current target scope.
Up until 2023, we supported the generation of renewa-
ble energy through the purchase of avoided emissions
credits, meaning that greenhouse gas (GHG) emissions
reduction projects accounted for 100% of our offsetting.
These credits were issued outside the European Union and
were verified against the Verra Verified Carbon Standard
(83%) and the Gold Standard (17%) in 2023.
In 2024 we revised our offsetting strategy and switched
from purchasing avoided emissions credits to building a
long-term emissions removal portfolio. Our revised offset-
ting strategy is based on the following guiding principles.
• We will cut own emissions by at least 90–95% by 2050,
use high-quality offsets for residual emissions and regu-
larly revise our offsetting strategy as best practice
evolves.
• We will follow a high-ambition path to net zero for our
own operations and related offsetting strategy.
• We will shift from emissions avoidance to emissions
removals with long-lived storage and a low risk of
release back into the atmosphere.
• We will support the development of net-zero-aligned
offsetting in our engagement with stakeholders.
• We will align our offsetting strategy with the Corporate
Sustainability Reporting Directive (CSRD) criteria, the
Oxford Principles for Net Zero Aligned Carbon Offsetting
and relevant guidance from the United Nations Environ-
ment Programme Finance Initiative.
Our aim for the future is for all our carbon credits to come
from removal projects, preferably high-quality projects
within the Nordic region. We will periodically review our
offsetting strategy and gradually cover more and more of
our estimated GHG emissions to support the achievement
of net-zero emissions by 2050. To the same end, we have
committed to reduce the carbon emissions from our own
operations within the current target scope by more than
50% by the end of 2030 and make a net positive carbon
contribution (through offsetting). This means that by the
end of 2030 our emissions removal credits will exceed
emissions from our own operations. The switch to emis-
sion removal credits entails a higher cost per tCO2e for our
operational emissions. This cost is increasingly being inter-
nalised, with the aim of speeding up, rather than imped-
ing, the reduction of our GHG emissions.
Our first, five-year offtake agreement for emission
removal credits was developed with Inherit Carbon
Solutions in 2024 and signed in 2025. The agreement cov-
ers a total minimum commitment of 68,428 tCO2e in
high-permanence removal credits from a Danish biogas
facility with a carbon capture and geological storage site
in the North Sea (bioenergy with carbon capture and stor-
age, BECCS). The first removal credits from this project are
planned to be generated and cancelled in 2026. Given that
the first emissions removals have not yet been generated,
there are no reversals at this point in time. These first
emissions removal credits will be verified against the Puro
Standard Geologically Stored Carbon methodology for CO2
removal, and will all be issued from within the European
Union (EU). The durability for geologically stored carbon is
high and the risk of non-permanence is low as the storage
provider is committed to managing and monitoring poten-
tial leakage and reversal events. The percentage of gener-
ated credits that will be authorised as internationally
transferred mitigation outcomes, subject to corresponding
adjustment by the host country Denmark, is still unknown.
This will be included in future disclosures.
Types of carbon credits cancelled
2023 2024 2025
Emissions removals (tCO2e) – – –
Nature-based – – –
Technology-based – – –
Avoided emissions (tCO2e) 18,155 3,372 17,000
Total (tCO2e) 18,155 3,372 17,000
Volume and shares of carbon credits cancelled
2023 2024 2025
Total (tCO2e) 18,155 3,372 17,000
Share from removal projects – – –
Share from reduction projects 100% 100% 100%
Clean Development Mechanism 100% – –
Verra Verified
Carbon Standard – – 100%
Gold Standard – 100% –
Share from projects
within the EU – – –
Carbon credits planned to be cancelled in the future
amount up to and
incl. 2030
Total (tCO2e) 68,428
Emissions removals in our portfolios
Our internal methodology for financed emissions removals
accounting was approved in 2024. We have concluded that
there is a lack of available data for financed emissions
removals and there are inconsistencies in the removal data
currently available. Therefore, financed emissions removals
are not included in our reporting for 2025. We expect more
and more companies to start reporting on emissions remov-
als due to the CSRD requirements and companies’ net zero
commitments. We will continue to assess the availability and
quality of data for reporting financed emissions removals in
the near future.
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151
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
ENVIRONMENT INFORMATION
E4 Biodiversity and Ecosystems
Nature is the foundation of a resilient economy and financial stability,
and issues connected to nature and biodiversity are accordingly high
on our agenda from an impact, risk and opportunity perspective.
To address the growing threat of biodiversity loss and eco-
system degradation, we are engaging with stakeholders to
build awareness and support transition within the area of
nature and biodiversity.
There is more and more evidence that short-term
warming and more frequent, severe and prolonged
extreme events as climate change progresses will likely
place many terrestrial, freshwater, coastal and marine eco-
systems across the globe at high or very high risk of bio-
diversity loss. Major global economic implications are
expected if “planetary boundary” tipping points, triggered
by temperature increases and environmental degradation,
are reached.
Our work related to nature and biodiversity is based on
the capacity we have built in this area in recent years –
capacity which we continue to develop. In 2025, for
example, we piloted a biodiversity footprint and eco-
system dependency tool to increase our understanding of
biodiversity impacts and related risks and opportunities in
a more granular and quantified way.
As a financial services provider, we seek to support the
preservation and restoration of nature through our financing.
To this end, in 2025, we expanded our green funding frame-
work to cover activities specifically addressing biodiversity.
Going forward, we will engage with large corporate
customers in high-impact sectors to use and increase our
expertise regarding nature-related risks and opportunities,
supported by our 2030 dialogue targets. We will also con-
tinue developing our data assessment capacity, connect-
ing with customers on matters related to nature and
exploring financial opportunities in this area.
Key projects qualifying for biodiversity financing
Third-party-certified
conventional farming meeting
strict biodiversity criteria
Terrestrial and aquatic
conservation projects that
create biodiversity credits
Remedial projects in shipping,
e.g. noise pollution reduction
technology and dynamic
route planning systems
95%
of assets in NLP’s listed equity and corporate
bond portfolios managed by members of a
global biodiversity initiative
9
high-impact sectors in scope for targeted
engagement on nature under our
2030 sustainability strategy
2028 target
By the end of 2028, engage in dialogues on biodiversity with customers representing ≥80% of our large corporate
lending exposure in relevant sectors with a high impact on nature
===== SIDA 153 =====
Nordea Annual Report 2025 152
Introduction Strategic report Our stakeholders Business areas Board of Directors’ report Financial statements Other
E4 Biodiversity and ecosystems, cont.
Impacts, risks and opportunities overview for E4 Biodiversity and ecosystems
Impact, risk or opportunity Title Value chain Time horizon
Direct impact drivers of biodiversity loss
Negative impact
(actual)
Contribution to biodiversity loss resulting from pollution and land,
freshwater and sea use change
Risk Biodiversity-related transition risks
Impacts on the state of species
Negative impact
(actual)
Contribution to biodiversity loss resulting from impacts on the
state of species
V ery long term Shor t term Medium t erm L ong term Upstream Own oper ations Downstream
In this section
We focus on how we manage the impacts of our busi-
ness activities on biodiversity and ecosystems, and how
we manage the associated transition risks. We look at
the material impacts and risks identified in our double
materiality assessment, explaining why they are rele-
vant for our strategy and business model and how we
are addressing them – through our policies, actions and
targets.
Material impacts and risks and their interaction
with strategy and business model
Matters concerning biodiversity and ecosystems are
directly relevant for our strategy and business model.
In acknowledgement of the growing strategic impor-
tance of addressing biodiversity- and ecosystem-related
impacts, risks and opportunities, one of the new sustaina-
bility themes embedded in our business strategy is nature.
Our business model could be materially impacted by
nature-related effects, for example through decreases in
credit quality or in the value of collateral securing our
lending, or new financing opportunities related to activi-
ties which reduce negative impacts on biodiversity loss or
the state of species, especially in the very long term.
Identified material biodiversity- and ecosystem-related
impacts, risks and opportunities will inform future biodiversity
target setting, decision-making regarding our business model,
and actions supporting our nature-related transition plan.
Impact materiality
Our impact materiality assessment under the double
materiality assessment (DMA) was based on analysis of
financial exposures, extensive literature reviews, and
expert judgement. It was supported by use of the ENCORE
tool, which helps financial institutions and companies
understand how their activities both depend on and
impact nature. The literature reviewed included extensive
scientific and policy assessments of how the agriculture,
forestry, and fishing and aquaculture sectors drive bio-
diversity loss and affect the state of species. In addition to
these three sectors, we identified the real estate and con-
struction sectors as significant where nature-related
impacts are concerned. Based on our portfolio composi-
tion and the proportionally large contribution of the five
aforementioned sectors to drivers of biodiversity loss, we
concluded that biodiversity and eco sys tems are material
for us from a lending perspective. The relevant drivers of
biodiversity loss include pollution; land, freshwater and
sea use change; and use of natural resources.
The impacts and dependencies of our site locations on
biodiversity and ecosystems were assessed to be immate-
rial and our own operations were not considered to affect
threatened species. The affected communities were there-
fore not consulted on these matters.
Risk materiality
Our risk materiality assessment under the DMA focused on
how biodiversity- and ecosystem-related hazards could
act as drivers of financial and non-financial risks for us
over time and across geographies, industries and business
areas. It was conducted across portfolios, countries and
risk categories and considered the short-, medium-, long-
and very long-term time horizons.
The risk materiality assessment process drew on our
internal capital and liquidity adequacy assessment process
(ICLAAP) framework and its risk materiality banding sys-
tem, which considers risk in terms of potential losses rela-
tive to our Common Equity Tier 1 capital. The analysis was
both qualitative and quantitative, and was based on our
taxonomy of nature-related risk factors and hazards. It
integrated extensive literature reviews, expert consulta-
tions and heat maps, and was done internally, without the
involvement of external stakeholders.
In 2025 we worked to improve our methodology so we
could better capture risks arising from our value chain. We
also deepened our sectoral analysis.
The risk materiality assessment considered risks stem-
ming from impacts on biodiversity or transition risks, and
risks stemming from dependencies on ecosystem services
or physical risks. In our transition risk analysis we consid-
ered a range of risk drivers, including regulatory, technol-
ogy, societal, customer and demographic changes, as well
as the competitive landscape, and legal and reputational
effects.
We identified biodiversity-related transition risks as
material for us. These risks, which are mainly driven by
regulatory changes aimed at halting and reversing nature
degradation, could have a material impact on our credit,
operational and business model risks. Direct and material
impact drivers of biodiversity loss include climate change;
land, freshwater and sea use change; and the direct
exploitation of species.
In contrast to our risk materiality assessment for 2024,
we deemed risks stemming from the degradation of eco-
systems not to be material, mainly due to methodological
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