Swedbank Sets Climate Target For Shipping Portfolio

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  • Swedbank has set a climate target for its shipping portfolio by integrating climate considerations into its loan decisions for ship finance.
  • Swedbank signed the Poseidon Principles, a global framework for integrating climate considerations into loan decisions for ship finance.

Swedbank has announced it has adopted a climate target for its shipping portfolio so that climate considerations will be integrated into the bank’s loan decisions for ship finance, reports Offshore Energy.

The new target means that, by 2030, the financed emission intensity of Swedbank’s shipping portfolio will be aligned with the most ambitious decarbonisation pathway of the International Maritime Organization (IMO), the Sweden-based bank said in a statement.

Climate targets for the shipping portfolio

In February, Swedbank signed the Poseidon Principles, a global framework for integrating climate considerations into loan decisions for ship finance. As a next step, Swedbank has adopted a climate target for its shipping portfolio, adding to the list of sectors in which the bank already measures financed emissions and have set climate targets.

Swedbank continues to strengthen its sustainability commitment by adopting additional climate targets,’ said Johanna Fager Wettergren, Head of Group Sustainability at Swedbank. ‘Shipping is the sixth sector in which we measure and set targets for our climate footprint. Collectively, these goals cover about 80% of our lending portfolio. Together with our customers, we continue to accelerate the transition.’

By aligning its shipping portfolio with the IMO’s 2030 target, Swedbank, which has set an overall emission target to reach net zero emissions by 2050, says the average emission intensity of the portfolio will be approximately halved compared with the 2022 baseline.

Our climate targets for the shipping portfolio highlight our commitment to reducing the climate impact of shipping industry,’ said Niels R. Bugge, Head of Ocean Industries at Swedbank. ‘The sector continues to lower its carbon dioxide emissions, and our role is to be an active partner, supporting our customers in their ongoing transition.’

The target applies to Swedbank’s lending to vessels covered by the Poseidon Principles, corresponding to vessels 5,000 gross tonnage and above.

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Source: Offshore Energy