Source: Danmarks Nationalbank
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.
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).