Stockholm — A growing number of Swedish banks will start turning clients away if their businesses aren’t clean enough to justify new loans.
The development comes amid criticism that banks aren’t doing enough within their core lending operations to address climate change. Most in the industry have made saving the environment a clear strategy in their asset management units, but continue to provide credit to companies that hurt the climate.
The step is in part symbolic. Oil and gas aren’t a big part of Swedbank’s balance sheet. But “it sends an important message,” Henriksson said.Banks in Europe can play a big role in the shift to carbon neutrality because businesses still get roughly two-thirds of their financing from lenders. In the US, capital markets do most of the financing. That potentially leaves banks in Europe with less of a financial incentive.
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