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Environmental & Social Information • Feb 23, 2022

Swedbank's Annual and Sustainability Report 2021: Sustainability at the core of our business

Swedbank's Annual and Sustainability Report 2021: Sustainability at the core of our business

Swedbank's Annual and Sustainability Report for 2021 has now been published.

Swedbank continued to support customers during the ongoing pandemic and

established sustainability as the core of our business strategy.

The 2021 result is the second best full year net profit in the bank's history.

Income was higher, thanks to record-high net commission income. Expenses

developed according to plan during 2021 and return on equity increased to 13.2

percent.

"We maintained strong profitability as the pandemic continued in 2021 and

intensified our business focus so that we can deliver on our strategy," says

Jens Henriksson, President and CEO of Swedbank.

For the second consecutive year, Swedbank's sustainability work earned us a

place on the Dow Jones Sustainability Index. During the year, we continued to

develop new solutions to help our corporate clients transition to

sustainability. Swedbank acted as advisor when Nasdaq launched its Green

Designations Framework enabling green labelling for equities.

"Our green business is growing, and during 2022, we aim to achieve a continued

increase. On average, we originated two corporate green bonds per week for our

clients during 2021. It is gratifying to see how we as a bank can contribute to

sustainability in practice, such as by supporting our real estate clients as

they look for new ways to become even more sustainable," says Jens Henriksson.

Swedbank has a market-leading position in mortgages on all our home markets -

Sweden, Estonia, Latvia and Lithuania.

In 2021, the green asset register increased considerably due to mortgage assets

connected to energy-efficient properties being included, enabling the bank to

issue three green bonds in EUR, USD and GBP. Swedbank now has green bonds with a

total outstanding value of SEK 30.5 billion.

The bank's direct greenhouse gas emissions have decreased by 63% since 2019,

primarily due to a decrease in business travel. During 2021, the bank decided to

stop offering direct financing of unconventional fossil fuel production and

exploration of new oil and gas fields. Since 2015, Swedbank's oil-related

decommission portfolio has declined significantly, from SEK 23.5 billion to SEK

3.5 billion.

Swedbank is working to ensure that climate-related transition risks are taken

into account in credit decisions. The Task Force on Climate-Related Financial

Disclosure (TCFD) reporting in our Annual and Sustainability Report describes

the potential financial impact of climate change on our business. We have also

initiated a collaboration with the Swedish Meteorological and Hydrological

Institute (SMHI) to identify additional physical climate risks.

Swedbank has in February 2022 joined the Partnership for Carbon Accounting

Financials (PCAF), a worldwide collaboration of financial institutions aimed at

enabling harmonized assessments and disclosures of greenhouse gas emissions that

are financed by loans and investments.

"As part of our work to establish science-based carbon emission reduction

targets, we have begun to measure our financed emissions, using PCAF's

methodology. The bank is working to develop carbon emission reduction targets

for various asset classes, with an initial focus on the real estate sector,"

says Head of Group Sustainability Fredrik Nilzén.

The Risk Management and Capital Adequacy Report and the ESG Factbook for 2021

have also been published today. Read the reports on www.swedbank.com/ir

Contact:

Fredrik Nilzén, Head of Group Sustainability, Swedbank, telephone +46 76 773 19

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Amanda Billner, Press Manager, Swedbank, telephone +46 73 045 11 68

This disclosure contains information that Swedbank is obliged to make public

pursuant to the Swedish Securities Markets Act (2007:528). The information was

submitted for publication, through the agency of the contact person, on 23

February 2022, 14:00 CET

Swedbank empowers the many people and businesses to create a better future. Our

vision is a financially sound and sustainable society. Swedbank is the leading

bank with over 7 million retail customers and 600 000 corporate customers in our

four home markets Sweden, Estonia, Latvia and Lithuania. Swedbank is also

present in other Nordic countries, the U.S. and China. Together we make your

financial life easier. Find out more: www.swedbank.com