ING has been joined by BBVA, BNP Paribas, Société Générale and Standard Chartered in a pledge to align our loan portfolios with global climate goals. We call this the ‘Katowice Commitment’.
The milestone pledge came as one of the world’s biggest gatherings on climate took place in Poland in December 2018. With a combined loan book of €2.4 trillion at the time, ING and the four banks jointly commit to steer our portfolios towards the well-below two-degree goal of the Paris Agreement and to collaborate on the ongoing development of tools and metrics to do so.
ING already started this in September 2019 when we announced the Terra approach. As part of our approach, ING is co-creating an innovative measurement method with the 2˚ Investing Initiative.
The banks pledge to start by focusing on the most carbon-intense sectors, developing an approach per sector, and engaging with companies rather than simply excluding them. We’ll work with clients to support their shift to low-carbon assets in line with science-based pathways.
We see the Katowice Commitment as a first step towards an industry-wide movement of more and more banks taking bold action in the fight against climate change.
We’ll continue to work on growing the coalition of the willing, as we believe that banks have an important role to play in scaling and accelerating the transition toward a climate-resilient world.
Key characteristics of our pledge
Co-createdWe will work together to co-develop the tools and metrics needed to support our contribution, partnering with organisations like the 2˚ Investing Initiative.
Impact-drivenWe will initially focus on the most carbon-intensive sectors which are key to the transition to the low-carbon economy.
Engagement-focusedWe believe in an engagement-focused approach, which means not simply excluding clients but working with them on their transition.
Sector-specificWe believe that each sector has its own transition pathway. Therefore we will use a sector-specific approach and apply the key strategies necessary per sector.
Forward-lookingTo effectively steer, we believe in using forward-looking data that will give us the insight we need to know where our clients are headed and how we can support the right investments.
Science-basedWe will focus on ensuring that we and our clients are supporting a shift from high- to low-carbon assets in line with science-based scenarios.