ING Becomes First Global Systemic Bank with SBTi-Validated Climate Targets

ING became the first global systemically important bank to have its financed-emissions reduction targets validated by the Science Based Targets initiative under its Financial Institutions Near-term Criteria. The validation sets a benchmark for science-based bank decarbonisation that may inform expectations for Indian lenders' climate target-setting.

Amsterdam-based ING received SBTi validation confirming its targets align with the 1.5°C goal of the Paris Agreement. The assessment used the SBTi's Financial Institutions Near-term Criteria, a newly updated framework effective November 2024. ING's validated targets span carbon-intensive sectors representing 67% of its total financed emissions, including power generation, cement, steel, automotive, aviation and commercial real estate. The bank has ended financing for pure-play upstream oil and gas companies opening new fields and is phasing out lending to individual coal plants by the end of 2025.

The validation directly affects ING's corporate clients across fossil fuel and high-emitting sectors, who face tightened financing conditions as the bank aligns its Upstream Oil and Gas portfolio with the IEA Net Zero Emissions scenario and stops financing new thermal coal-fired power plants or mines. It contrasts with peers scaling back ambitions: HSBC delayed its net-zero target by 20 years, Wells Fargo dropped its financed-emissions goals, and several North American and European banks exited the Net-Zero Banking Alliance.

Banks and corporate borrowers should monitor the SBTi Financial Institutions Near-term Criteria as a likely template for credible, validated climate target-setting. Affected clients in power, cement, steel, automotive, aviation and real estate should prepare transition plans consistent with lender decarbonisation pathways. ING has stated it will continue engaging clients and building financing for new technologies; companies dependent on such financing should track which additional sector targets the bank integrates into future validations beyond those already approved.

Key figure — Validated sectors cover 67% of ING's total financed emissions