Climate Solution of the Week - ING
Saturday, May 04, 2024
05:06:21 PM
As part of our Climate Solution of the Week campaign, we want to talk about ING: This European universal bank aims to be at the forefront of the shift to a low-carbon economy. Through its Terra approach, ING aims to guide the carbon-intensive sectors of its portfolio towards net zero by 2050.
The biggest impact ING can make is by actively collaborating with clients to finance their shift to low-carbon technologies and energy sources. ING’s Terra approach focuses on sectors like power generation, oil & gas, automotive, and more. The bank is working to include additional carbon-intensive sectors to have more impact.
How Terra works
Terra evaluates if the lending across sectors aligns with the 2050 net-zero goal. Depending on the sector, ING employs various methods. For instance, PACTA for Banks assesses the technological shift required to mitigate global warming and compares it to the technology adopted by ING's clients.
Collaboration is key for ING. Alongside other financiers, ING develops measurement methods, data frameworks, and governance structures to back the net-zero transition. ING also urges governments to provide clearer directions for achieving the 2050 target.
While sustainability is part of ING’s strategy, it acknowledges the challenge of balancing urgent climate action with an inclusive transition and is transparent that it finances more activities that aren’t sustainable, which is a reflection of society. The bank's primary impact lies in supporting clients' climate objectives and financing their journey towards them.
Want to know more about ING’s Terra approach? Then click on the link down below: here