Climate roadmap to zero emissions

The banking industry’s framework for climate action

Society is facing significant challenges to reduce emissions at a rate sufficient to achieve the climate goals and, thus, prevent the far-reaching costs that a high average global temperature rise entails. The responsibility rests primarily on the political system, but the financial system has both a responsibility and the ability and willingness to assist in financing the climate transition and adapting its operations to climate-related risks and opportunities.

The role of the banking industry in the climate action is to support its customers in the move to sustainable solutions and to integrate climaterelated risks and opportunities into the banks’ operations and lending. The banks per se have a relatively small direct impact on the environment and climate. First and foremost, the industry can help finance the climate action by helping to reallocate capital flows to low-carbon activities.

The banks’ core activities have already been adjusted to the climate aspects. For many years now, banks in Sweden have been working to adapt their advice, lending and savings products to support projects with high climate benefits and to price higher risk correctly, in the form of negative climate impacts in projects. 

Sweden’s climate goal of net-zero emissions by 2045 entails major demands for change. With this roadmap, the banks wish to be instrumental in ensuring that financing issues will not be an obstacle, but rather a promoter, in reaching the climate goal.

The purpose of the roadmap is to supplement the banks’ existing efforts to integrate climate aspects into their business. 

The Swedish Bankers’ Association is joining the PRB, Principles for Responsible Banking, as a support organisation and is encouraging those members who have not yet made the commitment to sign the PRB.