Financing on commercial and sustainable terms

SEK takes a clear stand against corruption and other financial crimes and applies a risk based approach to prevent and mitigate the risk that our operations are misused for criminal purposes in compliance with applicable laws and regulations. Our Financial Crime Policy sets out how we address risks related to corruption, anti-money laundering and counter-terrorist financing, sanctions, fraud and tax evasion. We set expectations for our counterparties and take action when risks cannot be managed to an acceptable level.

Climate change, pollution, and biodiversity loss are among the major challenges of our time.

We require that the projects and activities we finance have the capacity to manage the risk of negative impacts on the environment and climate. Projects financed by SEK shall comply with the IFC Performance Standards. In accordance with the IFC mitigation hierarchy, negative environmental impacts shall, in the first instance, be avoided, thereafter minimized, restored, and, as a last resort, compensated. For financing that is not project-related but concerns existing operations with potentially high negative environmental impacts, the focus prior to the credit decision is on assessing the risks of the transaction and the parties’ capacity to manage these risks in their operations.

To contribute to achieving the goals of the Paris Agreement, SEK has, since 2019, ceased financing coal mines, coal-fired power generation, coal transportation, and new oil-fired power plants. As of December 2022, the exploration and extraction of oil and gas is also no longer financed. SEK may continue to finance projects and activities with high greenhouse gas emissions where fossil-free alternatives have not yet been developed, provided that the project is assessed over time to contribute positively to the transition. For more information, see SEK’s Sustainability Finance Policy

SEK requires that the activities and projects it finances have the capacity to manage the risk of human rights violations.

SEK adheres to the UN Guiding Principles on Business and Human Rights, which also includes, among other standards, the core conventions of the International Labour Organization (ILO).

SEK does not accept any form of forced labor or child labor in the transactions it finances. Human rights, including decent working conditions as well as health and safety, are areas analyzed within SEK’s lending portfolio. SEK applies enhanced due diligence when financing transactions in conflict-affected areas, as well as in countries and sectors with a high risk of human rights violations.