Handelsbanken Climate Change Progress Report

As a leading bank in the Nordics, Handelsbanken is committed to playing a significant role in addressing one of the most pressing issues of our time: climate change. In this progress report, we provide an update on our efforts to mitigate the impact of climate change, reduce our own carbon footprint, and support our customers in their own sustainability journeys.

Background

The devastating effects of climate change are no longer a distant threat, but a harsh reality. Rising temperatures, more frequent natural disasters, and unpredictable weather patterns are all testaments to the urgent need for collective action. As a bank, we recognize that our operations and investments have a significant impact on the environment.

Our Climate Ambitions

In 2020, Handelsbanken set ambitious targets to reduce our carbon footprint, increase our use of renewable energy, and support our customers in their transition to a low-carbon economy. Our goals include:

1. Reduce scope 1 and 2 emissions: By 2025, we aim to reduce our direct and indirect greenhouse gas emissions by 50% compared to our 2019 baseline.
2. Procure 100% renewable electricity: We are committed to sourcing 100% of our electricity from renewable sources by 2025.
3. Support €20 billion in green financing: By 2025, we aim to provide €20 billion in financing for sustainable projects and initiatives.
4. Reduce energy consumption: We have set a target to reduce our energy consumption by 20% by 2025, through a combination of energy-efficient technologies and sustainable practices.

Progress and Achievements

Since setting our climate ambitions, we have made significant progress towards achieving our goals. Some notable achievements include:

1. Renewable energy procurement: We have already sourced over 50% of our electricity from renewable sources, well ahead of our 2025 target.
2. Carbon offsetting: We have offset over 25,000 tons of carbon dioxide emissions since 2020, equivalent to taking around 5,000 cars off the road for a year.
3. Sustainable financing: We have provided over €10 billion in green financing for sustainable projects and initiatives, exceeding our 2020 target.
4. Energy efficiency: We have implemented energy-efficient solutions across our operations, reducing our energy consumption by 10% since 2020.

Challenges and Opportunities

While we are proud of our progress, we recognize that there is still much work to be done. The transition to a low-carbon economy requires bold action and collective effort from governments, businesses, and individuals alike. Some of the key challenges and opportunities we face include:

1. Increasing ambition: We need to continue to raise our ambition and targets to keep pace with the accelerating climate crisis.
2. Climate resilience: As climate-related risks increase, we need to prioritize climate resilience in our operations and risk management strategies.
3. Green financing: We need to continue to invest in green financing and develop innovative financing solutions to support our customers’ sustainability goals.
4. Stakeholder engagement: We need to engage with our stakeholders, including customers, employees, and communities, to drive conversations and actions around climate change.

Conclusion

Handelsbanken is committed to playing a leading role in addressing climate change. Through our ambitious targets, significant progress, and ongoing efforts, we are demonstrating our dedication to a more sustainable future. As we continue on this journey, we recognize that there is still much work to be done, but we are confident that, together, we can create a better, more sustainable world for generations to come.