Aligning financial flows under the Paris Agreement: the case of banks in Sweden

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This guidance note is based on the report Financial flows of five major banks
in Sweden since the Paris Agreement (DOI: https://doi.org/10.51414/sei2022.021 ).

The study analyzed available data on domestic and international capital flows of the five largest lenders in Sweden and their alignment with the Paris Agreement. Between 2010 and 2020, Sweden’s five largest banks – Svenska Handelsbanken, Skandinaviska Enskilda Banken (SEB), Swedbank, Danske Bank and Nordea – gradually increased the volume of their investments in high-emitting sectors, such as exploration and oil and gas production. The banks in the sample have facilitated around USD 150 billion to these sectors since the entry into force of the Paris Agreement at the end of 2016, mainly through syndicated loans (USD 104.4 billion) and issuance subscriptions bonds (36.3 billion USD).

Putting financial flows on a “Paris-compliant” trajectory requires understanding the driving forces behind these numbers. By engaging with relevant stakeholders and providing regulatory guidance on what and how to report relevant financial activities, appropriate data and analytics will help transition climate-related sectors and the wider economy, informing future policies and investments.

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