Stockholm (NordSIP) – A simmering disagreement between Nordea and the Fair Finance Guide (FFG) has emerged over changes to the sustainability criteria applied in the Nordic bank’s lending policy. FFG is a collaboration between several civil society organisations that was founded in Sweden a decade ago. It currently evaluates the sustainability credentials of nine Swedish banks, with a further 20 countries covered in collaboration with the Dutch branch of Oxfam.
On 9 June 2025 FFG published an update on Nordea that included allegations that the bank had lowered its sustainability criteria to allow for new loans to the fossil fuel sector, including for projects employing controversial extraction methods or targeting fragile ecosystems. FFG argues that Nordea had already breached of its own policy when extending a SEK 2.4 billion loan to Norwegian oil producer Equinor that included a proportion of shale extraction exceeding the bank’s stated 5% production limit. FFG also criticises Nordea’s financial support for Equinor’s plans to explore for new oil and gas in the Arctic region, including in locations adjoining fragile and protected biodiversity-rich environments.
In a response published on 10 June 2025, Nordea pushed back on the FFG allegations. The bank reiterated its 2030 and 2050 climate targets, while defending its support for Norwegian fossil fuel production based on the need for greater European energy security in the context of the war in Ukraine and the resulting Russian sanctions. In the statement (translated here from Swedish), Nordea argues that: “As one of the largest banks in Norway, we see it as our responsibility to support the companies that help Europe to get out of their dependence on Russian gas.” With respect to ‘unconventional’ fossil fuel extraction, Nordea claims that it follows the same guidelines as the Norwegian State but had chosen to no longer specify this in its updated lending policy.
On 11 June 2025 FFG released a new statement dismissing Nordea’s counterarguments and supporting its original assessment of the bank. It points to the International Energy Agency’s (IEA) conclusion that any new fossil fuel projects are entirely incompatible with a 1.5-degree pathway. With respect to the European energy security argument, FFG also refers to the IEA’s belief that existing oil and gas production is sufficient for that purpose, and that Europe should instead focus on accelerating its transition towards renewables. FFG questions Nordea’s reasons for deleting references to Arctic extraction in its policy, while also pointing out that such projects have typically long timeframes and require oil and gas to be extracted over several decades to be profitable, which is incompatible with 2030 emissions reduction targets.
With the ball back in Nordea’s court, FFG head Jakob König further raised the temperature by hinting that Norges Bank Investment Management’s (NBIM) may have had an influence on some of these policy changes. NBIM manages Norway’s Government Pension Fund Global, previously commonly known as the Petroleum Fund, and has reportedly increased its holding beyond the 5% mark to become Nordea’s second largest shareholder.
Image courtesy of Gerg Altmann on Pixabay (edited)
Stockholm (NordSIP) – A simmering disagreement between Nordea and the Fair Finance Guide (FFG) has emerged over changes to the sustainability criteria applied in the Nordic bank’s lending policy. FFG is a collaboration between several civil society organisations that was founded in Sweden a decade ago. It currently evaluates the sustainability credentials of nine Swedish banks, with a further 20 countries covered in collaboration with the Dutch branch of Oxfam.
On 9 June 2025 FFG published an update on Nordea that included allegations that the bank had lowered its sustainability criteria to allow for new loans to the fossil fuel sector, including for projects employing controversial extraction methods or targeting fragile ecosystems. FFG argues that Nordea had already breached of its own policy when extending a SEK 2.4 billion loan to Norwegian oil producer Equinor that included a proportion of shale extraction exceeding the bank’s stated 5% production limit. FFG also criticises Nordea’s financial support for Equinor’s plans to explore for new oil and gas in the Arctic region, including in locations adjoining fragile and protected biodiversity-rich environments.
In a response published on 10 June 2025, Nordea pushed back on the FFG allegations. The bank reiterated its 2030 and 2050 climate targets, while defending its support for Norwegian fossil fuel production based on the need for greater European energy security in the context of the war in Ukraine and the resulting Russian sanctions. In the statement (translated here from Swedish), Nordea argues that: “As one of the largest banks in Norway, we see it as our responsibility to support the companies that help Europe to get out of their dependence on Russian gas.” With respect to ‘unconventional’ fossil fuel extraction, Nordea claims that it follows the same guidelines as the Norwegian State but had chosen to no longer specify this in its updated lending policy.
On 11 June 2025 FFG released a new statement dismissing Nordea’s counterarguments and supporting its original assessment of the bank. It points to the International Energy Agency’s (IEA) conclusion that any new fossil fuel projects are entirely incompatible with a 1.5-degree pathway. With respect to the European energy security argument, FFG also refers to the IEA’s belief that existing oil and gas production is sufficient for that purpose, and that Europe should instead focus on accelerating its transition towards renewables. FFG questions Nordea’s reasons for deleting references to Arctic extraction in its policy, while also pointing out that such projects have typically long timeframes and require oil and gas to be extracted over several decades to be profitable, which is incompatible with 2030 emissions reduction targets.
With the ball back in Nordea’s court, FFG head Jakob König further raised the temperature by hinting that Norges Bank Investment Management’s (NBIM) may have had an influence on some of these policy changes. NBIM manages Norway’s Government Pension Fund Global, previously commonly known as the Petroleum Fund, and has reportedly increased its holding beyond the 5% mark to become Nordea’s second largest shareholder.
Image courtesy of Gerg Altmann on Pixabay (edited)
