ING's Strategic Climate Engagement and Sustainable Financing

ING's Commitment to Climate Action and Client Engagement

ING recently released its annual Climate Progress Update, shedding light on its proactive measures to assist clients in their transition towards a low-carbon economy. This update not only reflects ING's policies but also highlights its unique 'Terra' approach, aimed at steering carbon-intensive sectors toward global climate objectives. As a leading financial institution, ING recognizes that its most significant impact is through responsible financing and working alongside clients to mitigate their carbon emissions.

Key Insights from the Climate Progress Update

According to ING's CEO, Steven van Rijswijk, the climate strategy evolves continually. In the past year, substantial strides have been made to refine engagement with clients on their journeys to net-zero emissions. The bank has implemented an online tool enabling detailed assessments of sustainability disclosures from around 2,000 of its largest clients. This tool acts as a foundation for insightful discussions regarding clients' progress and the kind of support ING can provide to reduce their climate impact.

Tools for Improvement

ING has developed the ESG.X tool that streamlines the assessment process for its wholesale banking clients. The aim of this tool is to promote transparency and foster dialogue among stakeholders. By 2026, after two years of rigorous assessment and collaboration, ING will have a clearer understanding of how its clients are adapting to sustainable practices. This data will inform whether to continue standard business operations or impose stricter conditions on clients lagging in their sustainability commitments.

Energy Financing Policy Updates

To fortify its position on climate action, ING has announced significant changes in its energy financing policy. The bank will cease all new general financing directed towards pure-play upstream oil and gas companies that persist in developing new oil and gas fields. This policy is effective immediately and signifies ING's commitment to backing only those enterprises that align with sustainable energy practices. Furthermore, guided by the International Energy Agency's World Energy Outlook for 2023, ING has decided to halt new financing for LNG export terminals post-2025.

Expanding Sustainability Efforts

ING's Terra approach now encompasses a total of twelve sectors, having recently included the aluminium and dairy sectors. Presently, eight of these sectors are on track to achieve climate objectives. However, two sectors are lagging, and two remain unassessed due to the introduction of a new methodology. This thorough examination ensures that ING is aiding only those clients sincerely aiming for sustainability.

The Role of Advocacy in Climate Progress

Combatting climate change demands collective effort across all facets of society. Recognizing this, ING emphasizes advocacy and collaboration within its strategy. The bank remains assertive about the roles that governments and policymakers should fulfill to facilitate societal climate goals. ING actively participates in standard-setting for climate policies and directs resources where the impact can be maximized.

ING Group's Vision for the Future

As society transitions to a low-carbon economy, ING aims to be at the forefront of this change, alongside its clients. While the bank supports numerous sustainable initiatives, they acknowledge the need for continued efforts to prioritize sustainability within their financing activities. The latest news from ING reflects a vigorous commitment to driving significant change while maintaining transparency and accountability.

Frequently Asked Questions

What is ING's 'Terra' approach?

ING's 'Terra' approach is designed to guide clients in carbon-intensive sectors towards achieving global climate goals through focused engagement and financing.

How does ING evaluate client sustainability?

ING uses the ESG.X tool to assess sustainability disclosures from its clients, providing a basis for data-driven conversations about their emission reductions.

What changes were made to ING's energy financing policy?

ING has stopped new financing for pure-play upstream oil and gas companies and will cease financing new LNG export terminals after 2025.

How many sectors does ING cover under its climate initiative?

ING's approach currently includes twelve sectors, with ongoing assessments to ensure compliance with sustainability objectives.

What is ING's role in climate advocacy?

ING actively advocates for necessary government actions to meet climate commitments and participates in directing resources for impactful climate initiatives.

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