Following our progress in climate risk management over the past years, we have updated our sector target to further reduce financed emissions from oil and gas extraction.
As part of our regular review of climate targets and commitments, and following significant reductions in financed emissions from the upstream oil and gas segment over recent years, Nordea has updated its 2030 sector target for oil and gas extraction and production.
The updated target aligns with the requirements of the Science Based Targets initiative (SBTi), which is considered one of the most credible standards for climate target setting. Our previous target – a 55% reduction of financed emissions from a 2019 baseline – has already been surpassed, which means we can set a new ambition for 2035. The updated target aims for a 55% reduction of financed emissions for 2035, using 2024 as the base year, which reflects a significantly lower starting point than the previous target.
“Through careful risk-based customer selection, we have made significant reductions in our financed emissions from oil and gas exposure showing our commitment to contribute to reducing negative climate impacts,” explains Anja Hannerz, Head of Group Sustainability. “The updated sector target is a natural next step on our journey towards net zero.”
Strategy and direction unchanged
While the sector target sets the boundaries for our existing exposure to the upstream oil and gas segment, we have also formalised not to provide or facilitate financing to new customers in the upstream segment.
“Our strategy and direction remain unchanged. We have a restrictive approach to financing oil and gas extraction due to the elevated transition risks in the sector, and we have therefore decided to clarify our strategy in our fossil fuel policy, clearly stating that we have no intention of expanding our customer base,” says Anja Hannerz. “Our portfolio now consists of only a few customers, who operate mainly on the Norwegian continental shelf. These companies play an important role in ensuring energy security in Europe, and we see it as our responsibility to contribute to a balanced transition in our region.”
To further support our strategy, Nordea Asset Management will cease to provide new capital to oil and gas companies expanding their production by restricting investments in the primary issuance of bonds. This does not cover investments in bonds on the secondary market. This action aligns with our restrictive approach to providing capital to upstream oil and gas companies and will apply to all our Nordea-branded investment strategies.
These updates are part of the standard sector guideline review process. All the sector guidelines in scope for the review in 2026 will be published during the second quarter of 2026.
What is upstream oil and gas?
Upstream oil and gas refers to the exploration and production segment of the oil and gas industry. This sector encompasses all activities involved in finding, extracting and producing oil and natural gas from underground or underwater reserves.