Stockholm (NordSIP) – Although the Nordics, in general and the region’s financial institutions in particular, are known for their sustainability credentials, not all banks are equal in their efforts to support the green transition. In a recent note from the Anthropocene Fixed Income Institute (AFII), CEO and Founder Ulf Erlandsson questions the credibility of DNB Carnegie’s commitment to the green transition.
AFII’s Criticism
Using the AFII’s, “The Box“, a tool which considers fees data from the bank’s activity arranging bonds and loans for clients, Erlandsson shows that DNB has fallen significantly in rank from 6th place to 13th place (or 22nd place, depending on what deals are included).
The article was motivated by a recent Bloomberg article reporting on the participation of DNB and Pareto Securities on a bond by Pembroke Resources, an Australian-based company focused on the acquisition and development of a portfolio of high quality, steelmaking coal assets. According to Erlandsson, the article suggests that the (sustainable) banks participating in these transactions “have shifted from fly-fishing for trout to trawling for bottom-feeders” and is a good example of the path that DNB has been on.
Regarding a quote provided by DNB Carnegie’s global head of investment banking arguing that there are always banks ready to participate in these transactions, Erlandsson notes that this is incorrect. “The financing for heavy polluting activities such as thermal coal has been drastically reduced. Deals being done today are taking place in private markets. As is clear in from the Bloomberg article, other banks have chosen to step away from some segments of the market,” Erlandsson says.
“Not DNB. We believe this has real implications for both investors and issuers — for both how they select counterparties and how they allocate green bonds. At a time when banks are increasingly profiting by tilting green (see our latest ‘The Box’ report), one of the most meaningful forms of impact could be investors and issuers applying pressure on banks that go against the trend,” Erlandsson adds. (emphasis original)
He points to the experience of Adani to illustrate this point, quoting from a February 5th 2025 article in the Australian Financial Review: “Adani, the Indian conglomerate which operates the vast Carmichael coal mine, is close to sealing a [AUD]$332 million debt deal for its Queensland port in a litmus test of lenders’ appetite to work with fossil fuels. Adani’s Abbot Point terminal business felt the brunt of a broad reluctance to lend to coal businesses between 2020 and 2023, when efforts to refinance the port’s regular debt maturities failed.”
DNB’s Commitments
DNB has made significant commitments for climate change in the past. “According to DNB’s sustainable strategy, we commit ourselves to achieving net zero GHG emissions from financing and investment activities by 2050, and this strategy is maintained,” Nina Ahlstrand, Global Head of Sustainable Finance, DNB Markets, tells NordSIP.
According to DNB’s PRI Transparency Report, “In 2021, the DNB Group launched a revitalized sustainability strategy, outlining goals for 2025, 2030 and 2050. The overall aim is to become a bank with Net zero emissions by 2050, which includes both lending and investments portfolios as well as the group’s operations. The group’s strategy set expectations and outlines clear sub-goals and targets for DNB AM.”
According to DNB’s 2023 Transition Plan, “the Norwegian bank has set a target to finance and facilitate sustainable activities worth NOK 1 500 billion by 2030, as well as two targets for our mutual funds with a sustainability profile.” By 2025, DNB Group hopes to have increased the total assets in mutual funds with a sustainability profile to NOK 200 and that 50% of net flows of total assets should go to mutual funds with a sustainability profile.
Unfortunately, NordSIP was unable to find detailed net-zero commitments for the group’s investment banking operations, which are the ones criticised by the AFII’s Erlandsson.
Bright Spot
Nevertheless, not all is gloom. One seemingly positive takeaway from the AFII’s The Box seems to be the progress made by the ANZ Banking Group, which appears to have gone from 20th place from 4th place (or 10th place, depending on what deals are included) since September 2022.
