SEB Group

RATING

SECTOR

Banking

WEBSITE

CONTACT

Kungsträdgårdsgatan 8
11147 Stockholm
Sweden

SEB Switchboard: 0771-621000
From abroad: +46771621000

STOCK EXCHANGE

LISTING

Forbes Lists

EMPLOYEES

15,946

CHIEF SUSTAINABILITY OFFICER

Hans Beyer

AWARDS

2020

  • RI Awards 2020 selected SEB Investment Management for its shortlist in the ESG incorporation initiative of the year category.

2018

  • SEB was awarded with the Gold Label of Responsible Business Index.
  • A reputable international business and finance magazine Global Finance elected SEB the Best Sub-Custodian in Estonia.
  • SEB was awarded the ‘Working Remotely 2018’ label.
  • Global Finance named SEB the ‘Best Digital Bank in Estonia’ both, in the private as well as corporates and institutions category of the Central and Eastern Europe region.
  • SEB was awarded the ‘Respecting Differences’ quality label, created in cooperation of the Estonian Human Rights Centre and the Ministry of Social Affairs.
  • The world’s leading journal of economy, Euromoney, awarded SEB the Real Estate Survey Award in the sub-category M&A Advisory. 
  • SEB was awarded the title ‘Estonian Top 4 Dream Employer’.
  • The Ministry of Culture recognised SEB with the ‘Friend of Culture’ title.

CONTENT SOURCE

FURTHER READING

Report created by Kavita Kripalani

SEB Group

SECTIONS :  Sustainability •  Targets    Evaluation  •  Key Points  •  Overview

Company Activity

Skandinaviska Enskilda Banken AB (SEB Group) engages in the provision of corporate, retail, investment and private banking services. It also provides asset management and life insurance service. The company operates through the following segments: Large Corporates & Financial Institutions, Corporate & Private Customers, Baltic, Life & Investment Management and Others. Skandinaviska Enskilda Banken was founded by André Oscar Wallenberg in 1856 and is headquartered in Stockholm, Sweden.

Company Sustainability Activity

SEB Group has a strong ambition to contribute to sustainable development and is committed to supporting their customers in the transformation towards a low-carbon economy. They are convinced that companies integrating sustainability perspectives into their operations are more successful in the long run.

Highlights

Green bonds

  • SEB is a pioneer in green bonds and has been a leader globally and in the Nordic region in this area for more than ten years. Since its inception, SEB has been the seventh-largest underwriter globally. In 2020, they had a leading position in the Nordic market with a share of 20% of global transactions by Nordic banks and had underwritten an aggregate volume of USD 4.7bn.

Microfinance funds

  • SEB is one of Europe’s largest microfinance fund managers. They manage 7 microfinance funds with a total value of close to SEK 9 billion, reaching more than 25 million entrepreneurs in 59 countries. They contribute to ensuring that low-income individuals have access to financial services and job opportunities, providing women with equal access to economic resources and opportunities. By financing micro-, small and medium enterprises the investments support the adoption of fair, equal and safe working practices. they contribute to creating equal opportunities and incomes irrespective of age, gender, origin, religion, or another status.

Lyxor SEB Impact Fund

  • Lyxor SEB Impact Fund invests in companies that contribute to solving future global challenges. The companies operate in five areas linked to the areas of sustainable energy, water supply, food and agriculture, resource efficiency and social development, where many of the UN Sustainable Development Goals are included. At year-end, the fund had SEK 1.4bn in assets under management.

SEB Impact Metric Tool

  • The SEB Impact Metric Tool is a quantitative analysis tool that measures sustainability in equity portfolios. In 2019, the tool was further developed so that, in addition to measuring the extent to which an investment portfolio is aligned with the SDGs, it also measures the percentage of a portfolio that can be classified as green according to the EU taxonomy.

Customer survey

  • Their SDG customer survey was conducted in 2019 for the third consecutive year. This time they asked 270,000 Swedish customers with savings in equity funds which sustainability areas they believe they should focus on, based on the SDGs. The answer showed that the respondents especially highlighted goals 6 and 13.

Targets

Innovation

  • 2020 Target: 5 new sustainable products or services
  • 2021 Target: 5 new sustainable products or services

Sustainable Financing

  • 2020 Target: 
    • Increase in Green Loans
    • Increase in Green Mortgages
    • #1 in Green bonds
    • Gradual transformation of credit portfolio to increase the share of transitional and sustainable assets.
  • 2021 Target: 
    • Gradual transformation of credit portfolio to increase the share of transitional and sustainable assets.

Sustainable Investment

  • 2020 Target: 
    • Increase in Total Assets under Management (AuM) assessed with sustainability criteria, as share of AuM (SEB total)
    • Increase in SEB funds assessed with sustainability criteria, as share of AuM (SEB Fund company
    • 100% SEB funds assessed with human rights criteria, as share of AuM (SEB Fund Company)
    • Increase in SEB Impact and Thematic funds, total AuM4

Progress

The company does not disclose this information.

Certificates

The company does not disclose this information.

UN Sustainable Development Goals

UN SDGs Compliance

SDG 5: Gender Equality

  • Through the Financial Equality initiative, SEB and the think tank Ownershift shed light on women’s ownership and on the fact that women in Sweden own only 15% of private land and 33% of privately owned equity shares. SEB is also working to increase the gender balance in SEB’s senior management.

SDG 8: Decent Work and Economic Growth

  • Through their business, they drive economic development and contribute to creating new jobs and growth in society, for example by supporting entrepreneurs. Their microfinance funds give individuals and companies access to capital and financial services.

SDG 9: Industry, Innovation and Infrastructure

  • Through their history of maintaining long-term relationships with industrial companies, they contribute to strengthened infrastructure and enable technological advancements. They cherish the innovation capacity in society. In 2020, they established SEB Greentech to support Nordic companies in the green technology sector

SDG 13: Climate Action

  • Climate action is addressed throughout their business, from their long history and pioneering role in green financing to the more recent work on classifying their corporate customers’ climate impact. In their investments, they take a restrictive approach to companies engaged in fossil fuels

SDG 16: Peace, Justice and Strong Institutions

  • They work to reduce corruption and bribery in all their forms. They protect their business and are committed to preventing money laundering, cybercrime, sabotage, intrusion attempts and financing of terrorism.

Evaluation

SEB Group expresses alignment with UN SDGs 5, 8, 9, 13, and 16. They have a respectable amount of awards and listings, and set detailed targets with supporting KPIs. The company has no certifications listed. 

Despite having no certificates, awards and listings, SEB produces a detailed report with specific targets and goals for reducing their CO2 emissions, gender equality, innovation, and anti-corruption in alignment with the UN Sustainable Development Goals.

Recently, it was revealed that the company was not in compliance with anti-laundering controls in the Baltics. This contradicts the company’s assertion that they work to reduce corruption in all forms.

SEB Group has the potential to set more ambitious goals and align more directly with SDGs. They have a long way to go in order to make meaningful progress toward a sustainable business model. This company has been rated a C. 

Analyst Outlook: Negative

The company has adopted good initiatives to position itself well with sustainability. However, the lack of certifications and listings does not support the company’s initiatives and strategies.

Furthermore, the company must demonstrate ethical practices in order to restore the public’s trust.

 

Key Points

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