How we measure
We make our biggest contribution to a sustainable future through our financing. We are committed to better understanding the impact of our lending activities and working with our clients to drive progress towards a low-carbon and self-reliant society. We have ambitious targets to guide us.
The Terra approach
We have a loan book of about €600 billion euros across many sectors, which we have now begun steering towards meeting the Paris Agreement’s two-degree goal. We call our strategy to get there the Terra approach .
Our Responsible Finance portfolio is another way we measure how we work with our clients to drive progress towards a low-carbon and self-reliant society.
We aim to double our funding to companies and sectors that are helping to keep global warming below two degrees Celsius. We will do this by increasing our Climate Finance portfolio two-fold by 2022 compared to 2017. This includes funding projects that advance renewable energy, the circular economy and help combat climate change.
We will also double our Social Impact Finance portfolio by lending to projects that lead to, for example, affordable housing or basic infrastructure improvements. And we will double lending to environmental, social and governance (ESG) industry leaders by 2022 compared to 2017.
We were well on track in 2018 as Climate Finance rose 11% to €16.5 billion, Social Impact finance was up 73% to €774 million and lending to industry ESG leaders grew 29% to €7.1 billion. The tables below provide a breakdown of our Responsible Finance portfolio as of December 2018.
|Responsible Finance category 1,3,5|
|EUR billion||% total O/S 2018|
|Industry ESG leaders||7.1||4.0|
|Social Impact Finance||0.8||0.5|
2 If criteria are strengthened, the new criteria are applied from the moment they are implemented. Outcomes of transactions finalised prior to such changes remain "as is" at the time they were completed.
3 The amounts reported under the three categories may overlap with one another. For example, a transaction may be both environmentally and socially impactful. The category Outstandings should not be added up.
4 A list of sub-categories that are in scope of the methodology/definition but that have zero-to-low exposure can be found in the non-financial appendix.
5 All figures listed in Outstandings are as of December 2018 and the denominator is WB lending services.
|Climate Finance 1|
|in EUR million||2018||2017|
|Low carbon buildings||9,229||9,283|
|Information technology and communications||211||89|
|Water (including climate adaptation)||276||62|
|Other climate finance||147||154|
|Social Impact Finance1|
|in EUR million||2018||2017|
Sustainable assets under management
We can help our customers accelerate the transition to a sustainable world through sustainable investing, measured as sustainable assets under management (SAuM). ING provides investment solutions that have a positive impact on society and the environment and are expected to outperform on risk-adjusted return, now and in the future.
In 2018, ING signed up to the United Nations Principles for Responsible Investment, committing us to incorporate environmental, social and corporate governance issues into our investment decisions, policies and processes.
ING has provided customers with sustainable investment solutions since 1999. In 2018, we developed one overall ING sustainable investment portfolio, approach and strategy covering dedicated portfolios, structured products and investment funds in all asset classes. Sustainable investment is available to customers in Belgium, Luxembourg, Germany and the Netherlands, with other markets to be added in 2019.
We see a growing demand and opportunity for sustainable investment in the market and have an ambition to grow our SAuM, which were €6.28 billion at the end of 2018 (2017: €4.75 billion.) This represents 5% of ING’s total assets under management.