Statistical news focuses on the latest figures and trends in Danmarks Nationalbank’s statistics. Statistical news is targeted at people who want quick insight into current financial data.
The climate footprint of the financial sector is concentrated on few investments
The Danish financial sector had invested nearly kr. 2,000 billion in listed companies by the end of 2024. New figures from Danmarks Nationalbank show that the sector financed emissions of a total of 11.8 million tons of greenhouse gases in 2024. The figure reflects the financial sector's financing of greenhouse gas emissions from investments in listed stocks and corporate bonds but does not include the financed emissions through loans and credits from credit institutions. The financed emissions are concentrated in a few listed stocks and bonds. Thus, the ten companies among the financial sector's investments that emit the most accounted for about 1 percent of the investments, while they represented over one-fifth of the sector's financed emissions.
100 companies account for 52 percent of the financed emissions
Note:
Share of financed emissions (scope 1 and 2) from the financial sector's investments in listed non-financial corporations (S.11) distributed by 10, 50, 100, 250, and 500 companies, which constitute the majority of the financed scope 1 and 2 emissions, as well as the proportion of total investments they represent. Financed emissions through the issuance of loans and credits are not included in the data. The figures are calculated at the end of the year, i.e., Q4 2024. The figures are preliminary; see sources and methods (link).
Source:
Danmarks Nationalbank, Morgan Stanley Capital International (MSCI) and Institutional Shareholder Services (ISS).
Few sectors account for a large part of the climate footprint
9 million tons of greenhouse gases (CO2e), corresponding to 76 percent, of the financial sector's financed emissions come from investments in companies within the manufacturing of materials, supply, industry, and energy, which have large emissions both directly and due to the purchase of electricity, water, and heat. The four sectors together account for only 24 percent of the financial sector's total investments in listed companies.
76 percent of the financial sector's climate footprint comes from investments in four sectors
Note:
Financed emissions (scope 1 and 2) through the financial sector's investments in non-financial corporations (S.11) distributed across the four most emitting sectors as well as all other sectors. Sector division is based on GICS codes. The figures are preliminary, see sources and methods (link).
Source:
Danmarks Nationalbank, Morgan Stanley Capital International (MSCI) and Institutional Shareholder Services (ISS).
Increase in financed emissions in 2024
Preliminary figures show that the financial sector's emissions have increased slightly in 2024. The sector's financed emissions of greenhouse gases have thus risen by 1.4 million tons, corresponding to an increase of 13 percent compared to the end of 2023.
The financed emissions in 2024 are a preliminary estimate based on emissions and accounting data from 2023 and the portfolio composition from 2024. The development in financed emissions from 2023 to 2024 is mainly due to the portfolio growing during 2024 and the share of emission-intensive companies increasing.
Insurance and pension companies account for the majority of the financial sector's financed emissions through investments in equities and corporate bonds. These companies represent 61 percent of the investments and just over 60 percent of the financial sector's financed emissions. The remaining investments come from investment funds as well as banks and mortgage credit institutions, which account for 34 and 5 percent of the investments, respectively. Banks primarily finance companies through business loans, which are not included in the data.
The financial sector's climate footprint amounted to 11.8 million tons at the end of 2024
Note:
Financed emissions calculated at the end of the year, i.e. Q4, and accounted for as the financial sector's financed scope 1 and 2 emissions through investments in non-financial corporations (S.11). *2024 are preliminary figures, see sources and methods (link). Find chart data here.
Source:
Danmarks Nationalbank, Morgan Stanley Capital International (MSCI) and Institutional Shareholder Services (ISS).
What is included in the climate-related indicators for the financial sector?
Note: The climate-related indicators cover insurance and pension companies, investment funds, as well as banks and mortgage credit institutions, while holding companies and other credit institutions are not included, see sources and methods.
The climate-related indicators show the financial sector's climate footprint in terms of financed emissions from investments in listed companies. The data covers the majority of the sector's investments, with some exceptions. For example, financing of greenhouse gas emissions from bank loans is not included. The same applies to emissions from unlisted equities and bonds, which are also not included. The central bank is working to fully illuminate the financial sector's financing of greenhouse gas emissions. The coverage will gradually be expanded as relevant data becomes available.
Data can be found in the statistics database, and you can read more about the accounting method and uncertainties in sources and methods on the central bank's website (link).