Nordea's shareholders vote against resolution relating to lending for fossil fuel projects
In the midst of growing concerns over climate change, Nordea Bank, one of the two largest banks in Norway and a significant player in the Nordic region, has come under fire for its continued support of oil and gas production expansion.
According to reports, Nordea has received loans and underwriting worth $641m over the past two years (July 2022 - June 2024) for oil and gas projects, a fact that has not gone unnoticed by environmental groups such as the Swedish Society for Nature Conservation and ActionAid Denmark. These organisations have criticised Nordea for its role in funding fossil fuel production expansion.
The criticism extends beyond Nordea's borders, with the bank facing scrutiny over its fossil fuel funding in Norway. Total, a company that has been criticised for its involvement in fossil fuel projects, has been described as a "dangerous company" that does not respond to pleas, and advocates have urged shareholders to stop investing in new fossil fuel projects.
Despite these calls, a proposal to end fossil fuel financing was rejected by 95.36% of all shareholders, according to advance votes. Nordea's chair of the board, Stephen Hester, did not commit to ceasing fossil fuel lending, despite acknowledging the remarks made against the bank.
Nordea's stance on fossil fuel lending stands in contrast to that of some of its Nordic peers. Danske Bank and Handelsbanken, for example, have shown stronger commitments towards fossil fuel phase-out. While many Nordic banks, including Danske, have progressively restricted financing for coal and sometimes oil and gas expansion, aligning more closely with calls for an immediate end to finance of fossil fuel expansion.
As of mid-2025, Nordea has not committed to fully ceasing fossil fuel lending, unlike some other Nordic banks. While many banks globally are members of initiatives such as the Net Zero Banking Alliance (NZBA) that pledge to reach net-zero financed emissions by 2050, this target often allows continued financing of fossil fuels with offsets and long time horizons, rather than an immediate cessation of fossil fuel lending.
The East African Crude Oil Pipeline (EACOP) project between Uganda and Tanzania has been a subject of controversy, with speakers at an AGM highlighting the deaths and violent crackdowns on dissent associated with the project. Nordea has been criticised for its role in financing the EACOP.
Nordea's continued funding of the fossil fuel industry has not gone unnoticed by its major shareholders. BlackRock, Norges Bank Investment Management, and Nordea Fonden are among the bank's largest shareholders.
Stephen Hester, the chair of Nordea's board, has emphasised the need for the bank to remain independent from Russian gas supplies. However, he also noted that Nordea cannot reject investment in the oil and gas industry due to Norway being the main source of oil and gas production in the Nordics.
| Bank | Fossil Fuel Lending Stance (2025) | |---------------|--------------------------------------------------------------| | Nordea | No full cessation; continues some fossil fuel lending; aligned with NZBA net-zero 2050 but no immediate fossil finance phase-out policy reported. | | Danske Bank | Has restricted coal and some fossil fuel expansion financing; stronger fossil phase-out commitments than Nordea. | | Handelsbanken | Similar to Danske, with growing fossil fuel lending limits aligned with Paris goals; less aggressive than full cessation but more restrictive than Nordea. |
In essence, Nordea remains less decisive than Danske and Handelsbanken regarding immediate fossil fuel lending cessation, reflecting the wider challenge within the banking sector of balancing net-zero ambition with fossil fuel finance realities.
[1] BankTrack, "Net-Zero Banking Alliance: A Critical Analysis", 2023. [3] Reuters, "Nordea Bank under fire for fossil fuel funding amid climate crisis", 2023.
The criticism of Nordea Bank's continued support for oil and gas production expansion by environmental groups like the Swedish Society for Nature Conservation and ActionAid Denmark extends to its role in funding fossil fuel projects, specifically fossil fuel financing. Despite expressing concerns over climate change, Nordea has not committed to fully ceasing fossil fuel lending, a stance that stands in contrast to some of its Nordic peers such as Danske Bank and Handelsbanken, who have shown stronger commitments towards fossil fuel phase-out.
