• ING sharpens focus on client engagement for net-zero transition, assessing sustainability disclosures of 2,000 clients.
• Immediate stop on financing new oil & gas fields; no new financing for LNG export terminals after 2025.
• Terra approach expanded to aluminium and dairy sectors, with eight sectors on track for climate goals.

ING has released its Climate Progress Update 2024, highlighting how it engages with clients in transitioning to a low-carbon economy. The update reflects ING’s commitment to steering the most carbon-intensive sectors of its loan portfolio towards global climate goals, following the Terra approach.

Steven van Rijswijk, CEO of ING, emphasized the bank’s role in financing this transition: “The urgency of climate change is becoming more evident all the time, and ING wants to play a leading role in accelerating the global transition to a low-carbon economy. We all have a part to play.”

Client Engagement for Net-Zero

ING has assessed the sustainability disclosures of 2,000 wholesale banking clients using a new tool called ESG.X. This tool provides ING with data-driven insights to guide its client engagements on emissions reduction.

Van Rijswijk added: “This gives us the foundation for more data-informed discussions with our clients about their progress and how we can support them.”

Policy Updates in Energy Financing

As part of the 2024 progress update, ING has announced it will stop all new financing to pure-play upstream oil & gas companies developing new fields. By 2026, ING plans to further evaluate clients’ progress, potentially applying stricter conditions or ceasing financing entirely for those not meeting transition goals.

Additionally, new financing for LNG export terminals will stop after 2025, aligning with the IEA World Energy Outlook 2023.

Expanding Terra’s Scope

ING’s Terra approach has been expanded to cover the aluminium and dairy sectors, raising the total number of covered sectors to twelve. Of these, eight sectors are on track, while two lag behind and two remain unassessed due to new methodologies.

Related Article: London Metal Exchange (LME) Plans for Aluminium Producers to Submit Carbon Emission Data by 2025

Advocating for Broader Climate Action

ING continues to play an active role in climate advocacy, urging governments and policymakers to take decisive action to meet global climate goals.

Read the full Climate Progress Update 2024 here.