ING's Commitment to Climate Action
Recently, ING unveiled its annual Climate Progress Update, showcasing the bank's ongoing dedication to advancing the shift towards a low-carbon economy. This detailed report highlights not only ING's client engagement efforts but also the measures taken to guide high-carbon sectors within its loan portfolio towards meeting global climate goals.
Financing the Low-Carbon Transition
Central to ING's climate strategy is the understanding that financing plays a critical role in helping clients achieve net-zero emissions. The bank is deeply committed to aligning its financial services with the needs of businesses seeking sustainable solutions. In this spirit, ING actively partners with clients to finance technologies that support a sustainable future, an essential component of the shared global transition to a low-carbon economy.
Client Assessments and Tools
CEO Steven van Rijswijk expressed pride in the positive advancements of ING's climate strategy. The bank has conducted extensive evaluations of sustainability disclosures from around 2,000 of its largest clients, enabled by a newly developed online tool. This tool, called ESG.X, is designed to facilitate data-driven discussions with clients about their sustainability journeys, ensuring that ING can offer tailored support aimed at reducing emissions.
Aiming for Robust Engagement
Looking forward, ING intends to strengthen its engagement with clients. By 2026, after two years of analyzing client disclosures, the bank plans to further assess its engagement strategy. Clients demonstrating progress in their sustainability efforts may benefit from favorable financing conditions, while those falling short of expectations could face stricter terms or even a halt in financing.
Revising Energy Financing Policies
In its latest Climate Progress Update, ING also announced significant revisions to its energy financing policies. Effective immediately, the bank will cease all new financing for pure-play upstream oil and gas companies that are focused on developing new oil and gas fields. This strategic decision reflects ING's serious commitment to climate objectives and aligns with guidance from the International Energy Agency's World Energy Outlook for 2023, which advises against financing new LNG export terminals beyond 2025.
Expanding Sustainable Sector Engagement
Additionally, ING has broadened its 'Terra' approach to incorporate the aluminium and dairy sectors, bringing the total targeted industries to twelve. Early assessments indicate that eight of these sectors are approaching their climate targets, while two are lagging and two are still being evaluated due to new methodologies.
Collaboration as a Key Element
Understanding that addressing climate change demands a collective effort, ING underscores the significance of advocacy and collaboration within its climate strategy. The bank outlines specific actions it believes governments and policymakers should take to help achieve climate goals. Through these advocacy efforts, ING aims to influence climate standards and direct resources towards initiatives that can create the most impact.
The Path Ahead for ING
As ING progresses toward a sustainable banking model, it remains open about its successes as well as areas needing improvement. Although the bank funds various sustainable projects, it recognizes the importance of strategically reallocating resources to secure positive environmental results. ING is dedicated to reporting on and actively engaging with stakeholders regarding its sustainability initiatives. The bank's transparency has earned external validation from leading ESG rating agencies, reinforcing its commitment to embedding sustainability into core functions.
Ongoing Commitment to Sustainable Practices
With more than 60,000 employees across 40 countries, ING delivers both retail and wholesale banking services. The bank has been acknowledged for its strong approach to managing ESG material risks, as demonstrated by ratings from Sustainalytics and MSCI. ING's shares are included in prominent sustainability indices, showcasing its commitment to integrating sustainable practices across all 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, focusing on sustainable financing options.
How does ING evaluate client sustainability?
ING assesses sustainability disclosures from approximately 2,000 clients using a special online tool called ESG.X, which facilitates data-driven discussions around sustainability progress.
What changes has ING made to its energy financing?
ING has halted all new financing for upstream oil and gas companies focused on developing new fields and will discontinue financing for new LNG export terminals after 2025.
What sectors does ING's 'Terra' approach cover?
ING’s 'Terra' approach now includes twelve sectors, with a recent expansion that adds specific focus to the aluminium and dairy industries.
How does ING advocate for climate action?
ING actively engages in advocacy by outlining essential government policies and participating in the development of climate standards to advance effective environmental action.
