Amsterdam-based banking giant ING has achieved a significant milestone in climate finance, becoming the first global systemically important bank to have its financed emissions reduction targets validated by the Science Based Targets initiative (SBTi). This validation confirms that ING’s targets align with the 1.5°C goal of the Paris Agreement, setting a new precedent for climate leadership in the banking sector.
A Landmark Achievement in Sustainable Finance
The SBTi, which assesses corporate climate commitments against scientific criteria, validated ING’s targets under its Financial Institutions Near-term Criteria, a newly updated framework that came into effect in November 2024.
According to Nate Aden, Head of Financial Standards at SBTi:
“As the first global systemically important bank with a validated science-based target, ING is showing how large financial institutions can support climate stabilization in the real economy.”
Strengthening Climate Commitments Amid Industry Uncertainty
ING’s validation comes at a time when several banks worldwide have scaled back their climate ambitions. HSBC recently delayed its net-zero target by 20 years, Wells Fargo dropped its financed emissions reduction goals, and multiple North American and European banks exited the Net-Zero Banking Alliance.
In contrast, ING has strengthened its fossil fuel policies and climate commitments, incorporating these actions into its SBTi-approved strategy:
- Ending all financing for pure-play upstream oil and gas companies opening new fields
- No longer financing new thermal coal-fired power plants or mines
- Phasing out lending to individual coal plants by the end of 2025
- Aligning its Upstream Oil & Gas portfolio with the IEA’s Net Zero Emissions scenario
Sector-Specific Targets for High-Impact Industries
ING’s validated targets extend beyond fossil fuel financing to include emissions reduction plans across key carbon-intensive sectors, which represent 67% of its total financed emissions. These include:
- Power generation
- Cement
- Steel
- Automotive
- Aviation
- Commercial real estate
While some of ING’s newer sector targets were not included in this validation, the bank remains committed to integrating them into future climate strategies.
The Road Ahead
Anne-Sophie Castelnau, ING’s Global Head of Sustainability, emphasized the importance of science-based targets:
“Having our climate targets validated by the SBTi demonstrates that they are science-based and robust. We will continue to engage with clients, build up financing for new technologies, and find ways to include everyone in the transition.”
As the banking sector grapples with balancing climate ambitions and financial interests, ING’s SBTi validation places it at the forefront of sustainable finance. The move underscores the bank’s commitment to aligning its operations with a net-zero future while pressuring industry peers to follow suit.
