GHG Emissions, Finance - October 8, 2020
ING cuts emissions linked to power industry lending
ING announced Oct. 8 that it reduced its link to emissions from the power industry by reducing funding to coal-fired power plants by 22% in 2019 while increasing renewable energy financing.
The Dutch financial institution said that it increased renewable power generation financing by 1.9 billion euros in 2019, Reuters reported. ING’s financing contribution is part of a larger combined 2.4 trillion-euro lending target established by a small group of banks in line with the Paris Agreement goals.
ING has been working alongside BBVA, BNP Paribas, Standard Chartered and Societe Generale and the 2° Investing Initiative to develop science-based methods for measuring its lending impact and carbon footprint. This past year, the company made the biggest impact in its lending to the power generation sector, where it reported a 14.9% drop in carbon intensity below the target pathway for their activity in that industry.
Below power generation, steel and cement sector-linked emission intensity was 0.6% and 0.9% below their pathways, respectively.
ING plans to begin reporting on the upstream oil and gas sector for the first time next year and plans to set a target for reducing the amount lent to the sector from its current 3,986 million euros.
Some sectors where ING’s linked emissions intensity were above the sector’s pathway were real estate, with a 2.4% increase, and automotive and aviation, with 0.7% and 0.3% increase, respectively.
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