Swedbank on the transformation of the property sector: “Strengthens competitiveness”

Energy efficiency and climate adaptation are increasingly becoming questions of financial performance and competitiveness for property companies. Yet many players still face a major challenge: turning ambitions into action. The question is no longer simply why the transition is needed, but how it should be carried out.

In many parts of the property sector, companies have already made significant progress in their transition work, particularly the larger players. At the same time, the focus has shifted. According to Johanna Fager, Head of Sustainability at Swedbank, the challenge is now increasingly about moving from plans and targets to concrete measures.

“Today, much of the focus is on implementation: energy efficiency, reuse, smarter energy use and climate smart investments. The companies in the strongest position are those that succeed in combining the transition with profitability,” she says.

When energy performance affects the business

High interest rates in recent years have also put pressure on the finances of property companies, making prioritisation more difficult. Investments increasingly need to be justified through lower costs and reduced risk. At the same time, the property must remain attractive to both tenants and investors.

However, the conditions vary considerably across different parts of the sector, according to Sarah Lindholm from Swedbank’s Sustainability Office.

“The large companies are largely driving the transition themselves. Where we need to do more is among smaller companies that have not really got started yet,” she explains.

At the same time, there are clear financial benefits for those who succeed in reducing energy use. A more energy efficient property is less exposed to fluctuations in the energy market, which can contribute to more stable costs. Improved net operating income can also strengthen the value of the property.

Financing becomes part of the plan

Capital is needed to implement the measures. This is where banks can play a role as enablers, but also as part of property companies’ longer term transition strategies. When individual energy efficiency measures are connected within a broader plan, financing becomes part of the overall picture.

Marika Dimming, responsible for ESG Finance and Advisory within Swedbank’s corporate banking operations, works closely with companies seeking financing for energy and transition related investments.

“We offer, among other things, green loans and energy loans to property companies that are our customers. Green financing can provide better opportunities to obtain financing from Swedbank, as well as slightly lower financing costs,” says Marika Dimming.

New requirements make time a factor

However, financial gains are not the only force driving development. In Sweden, buildings with energy performance class G must have been improved by 1 January 2030, and class F by 2033. As new calculation methods will be introduced at the end of 2026, today’s energy performance certificates cannot determine whether a building will be affected.

“Property companies with the poorest energy performance classes need to start developing a plan for how they will meet the requirements. They cannot wait until the last minute, because the measures need to be implemented and fine tuned before the requirements take effect,” says Sarah Lindholm.

For the bank, a property’s energy performance is also only one part of the overall risk assessment. Climate adaptation and the ability to insure the property also need to be considered when assessing long term risk.

“We have seen examples of this in other countries, where increased climate risks are generating higher insurance costs. In some cases, it can even be difficult to insure a property at all. That also links directly to financing and our credit risk. The whole system is interconnected,” says Johanna Fager.

Energy performance enters the financing dialogue

This long term perspective therefore also has concrete consequences for the dialogue between property companies and banks. When parts of a property portfolio have poorer energy performance, Swedbank may, as part of a financing process, want to see how the company plans to improve those properties over time.

“If we see that some properties have a poorer energy performance class, we want to see an energy renovation plan explaining how their energy performance will be improved,” she says.

But even with financial incentives and stricter requirements, moving from ambition to implementation is not always straightforward. Property owners need to be able to assess which measures will actually deliver the best results in each individual building.

“I think the complexity puts some people off. It can feel difficult when you have not yet started, whereas the property companies that have already begun have built up knowledge and can work through their portfolios step by step,” says Sarah Lindholm.

There is also the cost of investment. When finances are already under pressure, large upfront costs can be difficult to prioritise, particularly when there is uncertainty around returns, technology choices and how different regulations should be interpreted.

“The regulatory landscape has been somewhat inconsistent, and much is still open to interpretation. That can create uncertainty and cause decisions to be delayed. Uncertainty always creates inertia,” says Johanna Fager.

Taking a holistic approach can become a competitive advantage

For property companies that have already overcome these barriers and started implementing measures, there are several potential benefits. Swedbank’s assessment is that companies that take a long term approach and view the transition as a whole will be better positioned as requirements increase.

“It becomes easier to lease, easier to finance, easier to sell and easier to insure,” says Marika Dimming.

However, the path forward varies from one property to another. There is no universal solution. Sarah Lindholm therefore believes that each property’s individual conditions should be the starting point, and that the right expertise needs to be brought in to determine which measures will have the greatest impact.

“Do not assume that solar panels are right for your property just because your neighbour has them. Start with the conditions of your own property and get help from an energy expert. That gives you a roadmap that can then be incorporated into the regular maintenance plan and used in discussions with the bank about financing needs,” says Sarah Lindholm.

The transition requires a broader range of expertise

Capital, in other words, is only one part of the equation. To succeed with the transition, several different areas of expertise need to come together. This is one of the ideas behind Clima Energy Nordic, where the property sector meets actors from areas including energy, technology and finance.

Swedbank is involved in the development of the meeting place and sees it as an opportunity to bring together perspectives that might otherwise be handled separately.

“We banks are good at financing, but here we need to join forces with others to achieve a good end result,” says Sarah Lindholm.

Johanna Fager also emphasises the importance of not reducing the transition to a cost that property companies are forced to bear simply to comply with new requirements.

“See it as a strategic investment. Those already working with energy efficiency and climate adaptation today are not only creating more sustainable properties. They are also strengthening their competitiveness, reducing risk and positioning themselves better for the future,” she says.

Sarah Lindholm adds:

“In the vast majority of cases, energy efficiency can also improve margins. There is a win win here.”

About Clima Energy Nordic

Clima Energy Nordic is the first Nordic meeting place focused on efficient energy use in cooling, heating and ventilation for indoor climate. On 2–4 February 2027 at Svenska Mässan in Gothenburg, property owners, installers, suppliers, experts and decision makers will come together to share knowledge, create business opportunities and jointly drive the development of energy efficient and sustainable buildings.

Learn more about Clima Energy Nordic and book your ticket »