Investor Presentation - FY 2022
Investor Presentation - FY 2022
Fossil fuels (coal and oil) exposure
•
Key points, Q4 22
Danske Bank
The exposure to fossil fuels includes customers involved in production, refining, and distribution (including shipping) of oil as well as utilities producing heat or power with coal.
The Group has updated it's 2030 climate target on oil majors, i.e. a 50% reduction target on absolute financed emissions, which reflects the decline in investment needs of the Nordic oil
and gas production companies. New targets set on downstream refining, i.e. a 25% reduction in scope 1 and 2 financed emissions and in scope 3 emission intensity. Climate target for
power utilities has also been further tightened from 30% to 50% emission reduction per unit of energy produced by 2030 against 2020 levels.
Exposure towards oil majors has decreased during the year, and is now below 3 DKK bn. The main risk on oil related exposures lies with exposures other than oil majors, and since the
end of 2019, these net exposures have been brought down 53% and have been stable the past year.
Exposures shown on this page is to utility customers with any coal-based power production (DKK 46.7 bn.) and hereof more than 5% of revenues from coal fired power production (2.5
bn.). Exposures increased in the beginning of 2022 and again during last quarter due to short-term facilities to help customers manage market risk due to energy price volatility. For most
customers, the use of coal is limited to a few remaining production facilities which are expected to phase-out in the longer term.
Customers' transition plans are continually being assessed, and our utility customers and customers in the distribution and refining segments are generally progressing well on the
transition. For instance by refineries switching to biofuels or by gas stations investing in infrastructure for charging of electric vehicles.
Group gross credit exposure
[DKK 2,535 bn.)
Fossil fuels exposure (coal and oil)
Oil-related net credit exposure, DKK bn.: Development (excl. oil majors)
Segment
Net exposure [DKK m)
-53%
G
■ Fossil fuels exposure Other
Crude and product tankers
Distribution and refining
2,516
15.1
8,728
Oil-related exposure
9,907
8.4
6.9
7.2
Oil majors
2,741
2.7%
Offshore and services
7,166
Power and heating utilities
46,695
3.9
with any coal-based
production
2019 04
2020 04
Hereof customers with more
2,475
than 5% revenue from coal
2021 04
■Of which covered by collateral
Net credit exposure
2022 04
Total fossil fuel exposure
67,846
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