ING Advances Climate Action for a Low-Carbon Future

Key Takeaways

• ING accelerates transition to a low-carbon world through client engagement and data-driven actions.
• The bank measures its client climate data using the ESG.X platform, which also supports business transformation.
• ING will cease new financing for upstream oil & gas and LNG export terminals in line with international climate objectives.

In response to the climate crisis, ING, a Dutch multinational banking and financial services corporation, is accelerating the transition to a low-carbon world.

The bank recently published its Climate Progress Update 2024 to share its climate strategy and progress with stakeholders.

Strengthening client engagement for a sustainable future

ING has made progress in how it supports clients through business transformation. The bank has moved toward using a data-driven approach in advising and serving wholesale banking clients. This is with the application of a new tool called ESG.X, which pools and tracks climate data concerning more than 2,000 of its largest clients, who are mostly in high-emitting industries. It takes into consideration the existing level of emissions, climate targets, action plans, governance structures, and strategies.

Such information, through this score, allows ING to calculate a 'client transition plan' score representing transparency and action from each client. These scores now form an integral part of the bank's risk assessment process and decision-making.

More ESG data and tools

ING will expand the scope of the ESG.X tool and make it available to others. This will help peers and clients to meet their climate targets better.

Selective client relationships based on climate action

While ING will support its clients in their climate transition, it will also be firm when needed. The bank will finance the technologies and solutions for a low-carbon world, including for high-emitting clients. But from 2026, ING will apply stricter credit conditions or end relationships with clients who don’t show sufficient progress in their climate disclosures and strategies.

New measures in energy sector financing

ING has updated its energy financing policies to match climate science and global standards. The bank no longer finances new oil and gas fields or related infrastructure and will phase out funding for upstream oil and gas by 2040. From now on, ING will also no longer finance general corporate loans to companies focused solely on upstream oil and gas if they continue to develop new fields.

In line with the International Energy Agency’s guidance, ING will stop financing new LNG export terminals after 2025. LNG is a transitional fuel but still emits carbon.

Terra expanded

ING’s Terra strategy, which guides high-carbon parts of its loan book to net zero by 2050, now includes aluminium and dairy. Aluminium is crucial for technologies like solar panels and electric vehicles but is highly emissions-intensive. Dairy is a significant source of greenhouse gases in the food supply chain. ING will set and disclose transition plans for these sectors as part of the Net Zero Banking Alliance.

Advocacy and collaboration for climate action

ING holds the belief that collective action by all members of society is the only way to defeat climate change. The change will need to be brought about in policy through insight by the company and the encouragement of others to play a part in broader action on climate. ING is also committed towards climate-aligned finance standards, such as with initiatives in Poseidon Principles for shipping, Sustainable STEEL Principles, and the Sustainable Aluminum Financing Framework. The bank has recently adopted the Pegasus Guidelines, a new methodology for the aviation sector.

ING is working to bring meaningful progress on climate change by implementing tighter policies with teamwork.

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Source: ING