ING's 2023 Climate Commitments
ING Groep NV
ING has released its annual Climate Report, shedding light on the impact of its financing on climate change and the reciprocal influence of climate change on its business operations.
The report encompasses an account of the bank's efforts to align nine of the most carbon-intensive sectors in its loan portfolio with global climate objectives, as encapsulated in its Terra approach.
It also delves into ING's client engagement strategies to facilitate their transition towards sustainable practices and its endeavours to assess and mitigate climate-related risks.
"Climate change is an undeniable reality, and its ramifications are becoming increasingly evident," emphasised ING CEO Steven van Rijswijk. "Recent climate science issues a stark warning that we have only a narrow window of opportunity to limit global warming to 1.5°C. I firmly believe that every action, regardless of its scale, carries significance, and even a fraction of a degree holds significance. All stakeholders—governments, NGOs, businesses, and individuals—must play their part, and through collective effort, we can effect meaningful change for the current and future generations by striving toward shared objectives."
Integrating sustainability into its core operations constitutes one of the twin pillars of ING's strategic framework.
The bank takes pride in its strides towards leveraging its financing to facilitate its customers' transition towards sustainability, but it acknowledges that there is still more to be done.
The journey towards transformation is a gradual process, and the path to sustainability is marked by nuances. ING acknowledges that, despite its substantial financing of sustainable initiatives, a substantial portion of its portfolio remains conventional. As society and clients shift towards a low-carbon economy, ING is actively evolving in tandem.
Key highlights from the report include:
ING's continued role in establishing industry financing standards for decarbonisation, with notable contributions in sectors such as steel and shipping. Collaborative efforts are underway to devise a novel methodology for the aluminium sector.
The setting of ambitious 2030 and 2050 targets encompasses not only the upstream but also the midstream and downstream facets of the oil & gas value chain. ING is also extending its Terra approach to encompass trade and commodity finance, aiming for comprehensive coverage of the oil & gas value chain.
The growing integration of climate considerations into ING's decision-making processes and broader business strategies.
The expansion of the Terra approach into new domains, including Business Banking (specifically agriculture and transportation in the Netherlands) and global commercial real estate.
Specific recommendations to governments and regulators, urging them to provide clearer guidance and harmonised policies with incentives to expedite the global economy's decarbonisation.
As the landscape of climate action continues to evolve rapidly, ING is committed to refining its approach. The report serves as a platform for introspection on the progress made and a roadmap for future endeavours, emphasising the need for increased collaboration and stronger calls for guidance.
For those interested in further details, the 2023 Climate Report can be accessed for download here.
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Source: ING
