After thousands of protests, Swedbank has stopped lending to oil companies, as Handelsbanken has done before. But SEB, Danske Bank and Nordea continue to pump billions into the fossil fuel industry, despite the banks’ climate promises. This is shown by our and the Swedish Society for Nature’s New Review.
– The banks must stop financing the hunt for more fossil fuels, it completely undermines the climate transition. I don’t think Swedish bank customers appreciate their money were used in this way, says Jakob König, who heads the Fair Finance Guide.
60 new billions to fossil fuel companies
The New Report Banking on Thin Ice 3 shows that SEB, Nordea and Danske Bank, despite promises of climate responsibility, have given over SEK 60 billion in new loans to fossil fuel companies in the last two years. This is almost four times the Swedish government’s total climate and environmental budget for 2025. Almost SEK 22 billion has gone to companies drilling for new oil and gas discoveries. Expanding the extraction of fossil energy is contrary to the climate goals of the Paris Agreement.
“The banks have long responded to criticism by saying that they are helping the oil companies to adjust. But the companies are in the completely wrong direction by increasing their extraction instead of phasing it out. Now the banks must stop the loans just as Handelsbanken and Swedbank have done, says Karin Lexén, Secretary of the Swedish Society for Nature Conservation.
Funding oil exploration in the Arctic and Africa
The Swedish-financed oil hunt is ongoing in several parts of the world. Eight billion SEK has gone to companies looking for more oil discoveries in the Norwegian Arctic, where nature is particularly sensitive and species such as seals, dolphins and whales are threatened by extraction. Last year, Norway quadrupled the number of extraction licenses sold in the Arctic compared to the year before. A of majority the licensees were by purchased Norway’s Aker BP, which is also the oil company that has been the largest loan from Swedish banks, a total of seven billion SEK from SEB and Nordea.
The banks have also lent SEK 5.7 billion to companies drilling for oil in African countries. Extraction there is becoming all risky as companies seek ever greater depths to find new deposits. In Namibia, oil drilling at depths of up to 3,000 meters. Other countries where the Swedish-financed companies are active are Congo, Ghana, Nigeria and Aquatorial Guinea.
Swedbank stops oil loans
The report, however, shows that Swedbank has stopped lending to oil companies, just as Handelsbanken did two years ago. This is likely a result of the thousands of customer protests that our previous reviews have given rise to, as well as the motions that have been put forward at the banks’ general meetings. Swedbank and Handelsbanken are now among a small group of banks in the world that have stopped lending to oil companies.
– It is gratifying that another major Swedish bank has become an international role model when it comes to sustainable financing. Now more must follow suit and take responsibility, because there are still large fossil fuel companies that receive loans to continue operations that exacerbate the climate crisis, says Karin Lexén.
Original: fairfinanceguide-se
