Swedish financier aligns shipping portfolio with net-zero by 2050 goal

It has set the target to achieve 41% reduction in the average GHG emission intensity of its shipping portfolio by 2030, compared to 2022 levels, according to Swedish banker SEB Group.

PHOTO: Deck view of an oil tanker. Getty Images

Greenhouse gas (GHG) emissions will be calculated on a well-to-wake basis, the bank clarified.

This intermediate target aligns the bank's shipping portfolio with the wider climate goals of the Net-Zero Banking Alliance (NZBA), SEB Group said.

UN-convened NZBA includes more than 140 banks worldwide. Through long-term and intermediate goals aligned with the Paris Climate agreement, the alliance aims to assist clients in achieving net-zero GHG emissions by 2050.

“The target covers all lending where ships are used as collateral for the lending, which makes it possible to follow the emission development at the ship level,” the bank explained. It has reported that around 11% of its total financed emissions in 2022 are covered under the 2030 target for the shipping sector.

“The shipping sector faces a major challenge in transitioning to a low-carbon future,” Hans Christian Kjelsrud, head of shipping at SEB noted.

“To reach this target, it is necessary that we continuously review our credit portfolio, but above all, that our customers optimise their fleets with new energy-efficient ships, investments in energy-saving devices and technologies, and adoption of low and zero-carbon fuels when available”, he added.

By Konica Bhatt

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