Indirect impact
Since a large part of our lending is linked to real estate, we have chosen to analyse both physical climate risks, such as flooding and rising sea levels, and transition risks, such as the new requirements for energy efficiency. Our stress tests show that the real estate sector is facing major challenges, where energy efficiency requirements under the EU Energy Performance of Buildings Directive (EPBD) can affect real estate companies and households in our home markets. We also analyse scenarios where the climate transition may affect the national economy, and in our stress test according to the Network for Greening the Financial System (NGFS), the costs of greenhouse gas emissions are assessed to have a significant impact on certain property customers.
Within our three subsidiaries engaged in asset management, the bank manages approximately SEK 1,107 billion (as of 31 December, 2024), of which 89 per cent of the assets under management are within Handelsbanken Fonder in Sweden. Handelsbanken Fonder uses scenario analyses to understand climate risks and has excluded investments in fossil fuels by limiting holdings in companies where more than 5 per cent of revenues come from the extraction or refining of fossil fuels. The fund management company's stress tests show that the portfolios have a strong resilience compared to global indices, and we continue to develop investment strategies that support the transition to a low-carbon economy.
Direct consequences
We are working to reduce our own environmental impact. We aim to reduce our own emissions (Scope 1 and 2) by 50 per cent by 2030 compared to 2021 levels. Since 2018, we have been purchasing 100 percent renewable electricity for our operations and working to reduce energy consumption in our offices.
Through these efforts, we strengthen both our own and our customers' resilience to climate change and contribute to a more sustainable economy.
Handelsbanken's climate and nature reporting
Initiatives we support
In our effort to fight climate change we support a number of initiatives.
