In 2023, Nordea launched a Customer Climate Transition Maturity Ladder to evaluate clients’ climate transition plans and enhance targeted client engagement efforts. The objective is to better understand how clients are adapting their business models and strategies in transitioning towards a more sustainable economy.
The assessments of clients’ climate transition plans provide useful insights for Nordea to manage climate and environmental risks embedded in its lending portfolio. The approach also helps steer and monitor Nordea’s customer base over time.
The maturity ladder was developed with reference to the European Union’s Corporate Sustainability Reporting Directive, European Central Bank best practices, and Net-Zero Banking Alliance Guidelines.
It scores companies across five tiers of maturity based on four aspects of their climate performance: climate-related targets, greenhouse gas (GHG) reporting, implementation, and governance. Data is collected from publicly available sustainability and annual reports as well as directly from customers.
Read more on Nordea’s net-zero targets here.
This case study was originally published in the Net-Zero Banking Alliance 2024 Progress Report (October 2024).
Disclaimer: NZBA shares case studies to promote member banks’ awareness of new approaches, tools, products, services, and transactions related to financing the transition to net zero. Featuring a case study naming a particular bank does not represent an endorsement of all actions from that bank.