The EU has accelerated its work to clarify expectations on the financial sector in terms of environmental impact, and has developed new EU regulations for sustainability covering the entire financial sector. An example is the new taxonomy that will serve as a tool for classifying investments that are environmentally sustainable.

A common taxonomy provides mutual guidelines for what investments should be called “green”, and Swedbank will use the EU Taxonomy to further develop our business operations, products and services.

Business impacts for Swedbank

Swedbank will be affected by the EU Sustainable Finance Regulations in several areas, as the bank provides services in the asset management and insurance area as well as in corporate and retail lending. 

For Swedbank to be compliant with the EU legislation package, several activities are to be implemented. Examples of such activities include improved sustainability-related information on investment products, risk management practices within asset management and adjusted investment management processes, and specific training for employees to increase their awareness of sustainable finance to ensure high-quality sustainability advice to our customers.

Meeting the increased requirements from the EU Sustainable Finance Regulations means additional costs for all businesses active in the financial industry, e.g. increased costs for personnel, training, IT systems and reporting. 

Proactive work to mitigate risks related to the EU legislation

Swedbank is performing a regular overview on how the regulatory change will reshape the market. In parallel, the business strategy has been reviewed to strengthen sustainability integration throughout the business areas, in the business processes and in the strategic targets.

The EU Sustainable Finance Regulations also affect the sustainability governance model and the policy framework, which are being revised and improved to better manage the current and upcoming legislative changes.

Increased resources are also being directed at increasing capacity and insights on sustainability matters throughout Swedbank Group. All employees within Swedbank are to complete mandatory training on sustainability; some of the training focuses specifically on climate change.