Nordea exits environmental project finance network

Nordea has announced its decision to depart from the Equator Principles, a voluntary framework for environmental and social risk management in project financing. The principles form the basis of a global network of 126 financial institutions who are currently signatories.

This marks the second such exit from the network this year, preceded by Taiwan’s Bank of Kaohsiung.

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Nordea had been an EP signatory since 2007, four years after the framework was launched. In a statement, Nordea said its exit reflected maturing ESG risk management capacities backed up by robust internal processes.

“Over the past 18 years, our sustainability and ESG risk management capabilities have matured significantly, and ESG risk considerations are now fully embedded in Nordea’s internal credit processes”, the statement reads.

The statement stresses that internal frameworks and processes continue to reflect Nordea’s long-term commitment to achieving net zero emissions by 2050.

“We will continue to apply stringent ESG criteria to all project finance decisions, in line with our strategy and sustainability priorities”, the statement adds.

Equator Principles

The ten EPs collectively form a risk management framework for environmental and social risks in project financing. The application of the principles in lending decisions is intended to reduce and mitigate negative environmental impacts, among other factors.

They apply to five financial products according to the latest activity report. This includes project finance and related advisory services, project-related corporate loans, bridge loans and project-related refinance and acquisition financing.

At last count, 1838 total in-scope transactions were reported globally. 77% of these were project finance related. Power sector transactions (988) represented the largest shares.

Nordea’s exit sits against the backdrop of the principles continuing to evolve. According to its disclosures, the scope of the voluntary principles has broadened and environmental considerations have been ‘refined and expanded’ over time.

Its latest guidance came in January 2026, when the EP collaborated with the United Nations Environment Programme Finance Initiative to launch guidance on nature risk assessment.

EP’s statement at the time said the new guidance is intended to highlight ‘how existing approaches can be applied more consistently and used by corporate and portfolio teams to build a more integrated view of nature‑based risks’. The principles have historically reflected biodiversity and nature risk in their framework.

The governance of the voluntary network has also evolved in recent years. Dutch lender ING currently chairs the steering committee which coordinates development of the principles.

In January 2024, a new limited company – the Equator Principles Limited – was registered in the UK. Simultaneously, 2024 marked a three-year high in signatory exits. 10 signatories – including Bank of America, Citigroup, and JP Morgan Chase — voluntarily exited the network in 2024, an increase from five voluntary exits the year before.

Currently, 126 financial institutions are signatories to the EP. The latest to join were Turkish financial services group Garanti BBVA and German lender Commerzbank – both joining in 2025.

Equator Principles did not comment on Nordea’s exit.

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