ING for the Win: First to Get Science Backed Climate Approval

IING, the Dutch based financial services corporation, has become a pioneer in the banking sector by receiving approval from the Science Based Targets initiative (SBTi) for their financed emissions reduction targets. While other global banks have pulled away from their climate change initiatives, ING is leading the way by aligning itself with the goals of the Paris agreement.  

Why it matters 

• This occurs as prominent U.S. and Canadian Banks leave the Net Zero Banking Alliance.  

• ING is cutting financing for oil and gas companies that continue to rely on high carbon output strategies.

• ING’s commitment to reduce its financed emissions across key sectors.  

  
  

Details 

While ING is advancing its efforts to the climate commitments outlined in the Paris Agreement, now backed by official validation from the SBTi, a contrasting trend is seen in major North American banks. Several leading financial institutions such as Bank of America, Goldman Sachs, and Scotiabank withdrew from the Net-Zero Banking Alliance, an initiative aimed at aligning banking activities with net-zero greenhouse gas emission by 2050.  

To meet these specific goals, ING has pledged to cut financing for oil and gas companies whose total power generation is reliant on coal-fired power plants. The bank is working with clients in the power generation, steel, aviation, and other carbon intensive sectors to reduce financed emissions across its portfolio. These targets collectively represent over 2/s of ING’s total Financed emissions.  

Nate Aden, head of Financial Standards at SBTi, said:

“As the first global systemically important bank with a validated science-based target, ING is showing how large financial institutions can support climate stabilisation in the real economy. This target builds on years of ING leadership on sector-level benchmarking – the combination of six sector targets with cross-portfolio fossil fuel targets sets a new precedent for climate leadership.”

Implications and Action Items

ING's validation demonstrates that major banks can credibly align with the 1.5°C target of the Paris Agreement. It is not merely symbolic; it is indicative of a strategic transition toward the integration of climate objectives into banking operations. ING sets a strong example at a time when many other banks are retreating from their climate commitments by working closely with clients and supporting low-carbon technologies. 

Anne-Sophie Castelnau, Global Head of Sustainability at ING, said:

“Having our climate targets validated by the SBTi demonstrates that they are science-based and robust. We will continue to engage with clients and support them in driving down emissions, keep building up the financing of new technologies and sustainable systems of the future, and find ways to include everyone and enable them to play their part in the transition.”