ING Becomes First Global Bank With SBTi-Approved Targets

Global banking leader ING, headquartered in Amsterdam, has revealed a major milestone in its climate ambition with the first global systemically important bank to gain Science Based Targets initiative (SBTi) validation for reducing financed emissions. This endorsement acknowledges that ING's climate targets are in accordance with the 1.5°C Paris Agreement ambition.

The SBTi certified ING's targets against its new Financial Institutions Near-term Criteria, a framework launched in November 2024 to establish more stringent standards for the climate ambitions of financial institutions. This certification makes ING stand out as a number of large banks across the globe have reduced or deserted their climate ambitions.

Nate Aden, head of Financial Standards at SBTi, highlighted the significance of ING’s achievement, emphasizing that it sets a new benchmark for financial institutions looking to support climate stabilization in the real economy. Aden pointed out that ING has built on years of sector-level benchmarking and demonstrated climate leadership by integrating six sector-specific targets alongside broader fossil fuel financing restrictions.

The move follows increasing uncertainty in the banking industry over climate goals. Over the past few months, a number of banks have walked back their net-zero pledges. HSBC, for instance, has pushed its goal back 20 years and put its interim financed emissions targets on hold. Wells Fargo, on the other hand, has dropped both its long-term net-zero financed emissions goal and its sector-specific 2030 interim targets. Further, most of the U.S. and Canadian large banks, and some others, have also dropped out of the Net-Zero Banking Alliance. This general tendency of banks pulling back from climate initiatives has been attributed to issues of financial risk, regulatory doubts, and the draconian constraints on fossil fuel lending that have been included in the new SBTi standards.

Unlike some of its competitors, ING has opted to press on with its climate targets, enacting a set of fossil fuel policies that were key to SBTi endorsement. These include measures such as ING having discontinued all financing, including corporate lending and bonds, to pure-play upstream oil and gas companies that are still exploring new oil and gas fields. The bank has also discontinued lending to any new thermal coal-powered power stations or coal mines and no longer deals with new customers whose overall power generation is dependent on over 5% coal. In addition, ING aims to end financing of individual coal-fired power stations by 2025 and has pledged to bring its Upstream Oil and Gas portfolio into alignment with the International Energy Agency's (IEA) Net Zero Emissions advanced economy scenario.

Besides fossil fuel finance restrictions, ING's approved targets comprise sector-specific greenhouse gas reduction targets in its most material carbon-intensive sectors. They are power generation, cement, steel, automotive, aviation, and commercial real estate, which represent 67% of ING's overall financed emissions. The bank explained that a number of its sector targets were excluded from the validation due to being newly created or revised during the review.

Anne-Sophie Castelnau, ING's Global Head of Sustainability, noted that attaining SBTi approval boosts the bank's credibility and resilience of climate objectives. She restated ING's intention to work with customers to reduce emissions as well as drive the finance of new low-carbon systems and technologies more rapidly. Castelnau added that ING strives to bring about inclusiveness in transitioning into a low-carbon economy by supporting clients regardless of their size in adapting to the change.

This new milestone solidifies ING's position as a leader in sustainable finance, especially in the midst of the financial sector's growing pressure to show concrete progress in cutting emissions. While other banks are reluctant to sign up for more stringent climate regulations, ING's commitment to abiding by science-based goals and ending financing of fossil fuels represents a huge stride in the global banking sector to help combat climate change.

By achieving SBTi certification, ING has emerged as a leader among financial institutions to mobilize significant climate action. The bank's sector-by-sector strategy, in addition to its pledge to end financing for high-emission activities, serves as a blueprint for other institutions to align their portfolios with international climate objectives. As ING commits to working with customers and investing in green solutions, its work might provide a template for how banks can facilitate the shift to a net-zero economy.