Nordea confirms quarantine for fossil fuel major
Nordea Group has confirmed an effective quarantine on TotalEnergies, with no further bonds or shares being bought amid growing concerns about the firm’s fossil fuel expansion in East Africa
The decision has been in place since the end of last year and comes amid increasing public pressure from environmental campaigners over the company’s alleged complicity in human rights abuses and environmental violations, a spokesperson for Nordea told Net Zero Investor.
The East African Crude Oil Pipeline Project (EACOP) is set to transport oil produced from Uganda’s Lake Albert oilfields to Tanzania, where it will be sold on to global markets. However, campaigners warn the $5bn project has already resulted in forced displacement, arbitrary arrests and assaults on citizens affected by the development.
Tim Whyte, secretary general at ActionAid Denmark, confirmed that Ugandan climate activists had met with Nordea's responsible investment team in spring last year to raise concerns and welcomed the quarantine. “This is an important step. If Total cannot raise money by issuing bonds and shares, then the company cannot build new destructive projects like EACOP,” he stressed.
ActionAid and other campaigners are now urging Nordea to fully divest from all new fossil fuel projects. "We believe that delegitimising TotalEnergies by divesting is the only step forward and that the reputational risk connected to this is a much greater threat to TotalEnergies, than a critical investor" argues Katrine Ehnhuus, senior advisor at the Nordic Center for Sustainable Finance.
“If Nordea is ready to quarantine Total as a consequence of an oil project, the bank should take the same step towards the 60 other companies in its portfolio that are also building new oil and gas fields, thereby undermining our ability to succeed with the global green transition,” Whyte argued.
A spokesperson for Nordea confirmed the decision and told Net Zero Investor that the bank currently holds a remaining €44m in TotalEnergies.
Climate campaigners had also put forward a resolution at Nordea’s AGM last month, calling on the bank to cease lending to fossil fuel firms. However, the proposals were rejected by shareholders.
Nordea Shareholders reject resolution on fossil fuel lending
