DNV supports Danske Bank’s broadened strategy for financing the green transition
Danske Bank, with DNV’s support, has launched its new approach for financing the transition, designed to drive credible, large-scale decarbonization across its most pertinent hard-to-abate sectors. By moving beyond traditional sustainable finance tools, the bank aims to play a central role in enabling long-term climate transitions across high-emitting sectors.
Enabling real-world decarbonization
Recognizing that project-level green finance often falls short in supporting systemic change, Danske Bank sought to empower their largest corporate clients with strategic, organization-wide transition plans. With climate change intensifying, the bank sees its financing role as pivotal to enabling credible, long-term progress in challenging sectors like steel, cement, and transportation.
A more holistic, broader approach
In partnership with DNV, Danske Bank introduced a comprehensive approach to financing the transition. This includes both a company-wide transition strategy assessment and a proprietary risk methodology to classify companies by their transition maturity relative to key external benchmarks, enabling greater alignment and impact across value chains.
Building trust and driving long-term change
Danske Bank’s approach is better aligned with the reality many large companies face: the short-term costs of decarbonization can be high, even when the long-term business case is strong.
As a financial institution dedicated to supporting large organizations across Northern Europe, Danske Bank sees it as essential to leverage finance as a tool to enable the climate transition. When customers commit to credible, long-term decarbonization strategies, the bank is committed to helping them navigate the associated short-term challenges.
The new approach also reinforces the bank’s existing climate commitments. It remains aligned with Danske Bank’s Climate Action Plan, continues to monitor financed emissions targets, and upholds the decision to stop financing oil and gas exploration and production (E&P) companies (E&P) that expand production to new fields.
In addition, Danske Bank will not provide financing services to E&P companies that do not have a credible transition plan aligned with the Paris Agreement. This includes a long-term net-zero by 2050 goal, ambitious short- and medium-term targets for reducing scope 1 and 2 emissions, and a material target for reducing scope 3 emissions.
Partnering for impact: DNV’s role in strengthening transition finance
To support the development of this broader approach, Danske Bank partnered with DNV to advise on balancing credibility with practical implementation.
Drawing on experience in sustainable finance and assurance, DNV supported the design of a methodology that reduces complexity for clients, strengthens climate transparency, and supports banks in taking credible action at scale.
The collaboration helped ensure the framework is grounded in robust science, aligned with international expectations, and built to scale as the market evolves.
