ING Enhances Climate Approach, Strengthens Client Engagement

ING's Commitment to Climate Action

ING has recently released its annual Climate Progress Update, detailing the bank's ongoing commitment to facilitating the transition to a low-carbon economy. This comprehensive update not only illuminates ING's efforts in client engagement but also sheds light on the steps taken to steer high-carbon sectors within its loan portfolio towards achieving global climate objectives.

Financing the Low-Carbon Transition

At the heart of ING's climate strategy is the recognition that financing plays a pivotal role in supporting clients as they transition to net zero. The bank is dedicated to aligning its financial services with the needs of clients seeking sustainable solutions. As part of this commitment, ING actively collaborates with its clients to finance technologies that foster a sustainable future, which is crucial for the collective global transition to a low-carbon economy.

Client Assessments and Tools

CEO Steven van Rijswijk expressed pride in the progressive evolution of ING's climate approach. The bank has undertaken a thorough assessment of the sustainability disclosures from around 2,000 of its largest clients, facilitated by a newly developed online tool. This tool, named ESG.X, serves as a foundation for data-informed dialogues with clients about their sustainability journeys, allowing ING to provide tailored support in lowering emissions.

Aiming for Robust Engagement

Looking ahead, ING aims to deepen its engagement with clients. By 2026, with two years of insight into client disclosures, the bank plans to evaluate its engagement strategy further. Clients demonstrating progress in their sustainability efforts may continue with favorable financing conditions, while those failing to meet expectations may face stricter terms or potential cessation of financing.

Revising Energy Financing Policies

The latest Climate Progress Update also introduces significant changes to ING's energy financing policies. Effective immediately, ING will terminate all new financing for pure-play upstream oil and gas companies focused on new oil and gas field development. This strategic move reflects ING's serious commitment to climate goals and aligns with guidance from the International Energy Agency's World Energy Outlook for 2023, which advises against financing new LNG export terminals post-2025.

Expanding Sustainable Sector Engagement

Moreover, ING has broadened its 'Terra' approach to encompass the aluminium and dairy sectors, increasing the total number of targeted industries to twelve. Initial assessments have shown that eight of these sectors are near their climate targets, while two are lagging behind and two are still undergoing evaluation due to new methodologies.

Collaboration as a Key Element

Recognizing that combating climate change requires a collective effort, ING emphasizes the importance of advocacy and cooperation in its climate strategy. The bank articulates specific actions it believes governments and policymakers should implement to facilitate the achievement of climate goals. Through this advocacy, ING aspires to influence climate standards and allocate resources where they can have the most significant impact.

The Path Ahead for ING

As ING continues transitioning towards a sustainable banking model, it remains transparent about its achievements and areas for improvement. While the bank finances many sustainable projects, it acknowledges the necessity to redirect resources strategically to ensure positive environmental outcomes. ING is committed to reporting and engaging actively with stakeholders about its sustainability efforts. The bank's transparency has garnered external validation from prominent ESG rating agencies, underscoring its dedication to integrating sustainability into core operations.

Ongoing Commitment to Sustainable Practices

With a workforce of over 60,000, ING operates across 40 countries, providing both retail and wholesale banking services. It has been recognized for its strong approach to managing ESG material risk, highlighted by Sustainalytics and MSCI ratings. ING's shares are included in leading sustainability indices, showcasing the bank's commitment to integrating sustainable practices throughout its operations.

Frequently Asked Questions

What is the essence of ING’s Climate Progress Update?

ING's Climate Progress Update provides insights into the bank's strategies for supporting clients in their transition to a low-carbon economy, with a focus on sustainable financing.

How does ING evaluate client sustainability?

ING assesses the sustainability disclosures of approximately 2,000 clients using a specialized online tool known as ESG.X, facilitating data-driven discussions regarding their sustainability progress.

What changes has ING made to its energy financing?

ING has stopped all new financing for upstream oil and gas companies focused on developing new fields and will cease financing new LNG export terminals after 2025.

What sectors does ING's 'Terra' approach cover?

ING’s 'Terra' approach now includes twelve sectors, with specific attention given to the aluminium and dairy industries recently added to the scope.

How does ING advocate for climate action?

ING actively engages in advocacy work by outlining necessary government policies and participating in climate standards development to promote effective environmental action.

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