Our Climate Strategy

We recognise our important role in achieving a net-zero transition for our clients and the real economy by 2050. Therefore, we develop a strategy to allocate our capital and expertise to clients in such sectors in line with credible transition plans.

Transitioning to a net-zero emissions world subsequently implies that all economic actors work towards this objective. For banks, this requires changes in their capital allocation or granting criteria, engagement with clients to navigate their net-zero journeys, managed phaseouts of carbon-intensive economic activities, and a massive re-orientation of capital flows towards “transition” activities and solutions. By acting in an aligned manner, banks can support a consistent best practice approach and drive further efficiency across the whole economy towards a net-zero emissions pathway.

By the end of 2023, NLB Group reaffirmed its commitment to achieving net zero by setting targets for reducing its financed emissions and maintaining a coal exclusion policy. This strategic move aligns the Bank’s financing activities with the goals of the Paris Agreement and marks an important step in its journey to become a regional leader in addressing the climate crisis.

In its first Net-Zero Disclosure Report, NLB Group has set and publicly disclosed 2030 targets for reducing emissions associated with financing activities for four key sectors, and committed to mobilise EUR 1.9 billion in sustainable, i.e. transition finance.

As NZBA member, NLB has committed to individually setting initial emission reduction targets covering certain carbon-intensive sectors within 18 months of joining. Target setting required a cross-functional collaboration within the Bank to set credible and actionable targets, which supported the internal mainstreaming of net-zero transition planning.