In early 2025, several major US banks – including Bank of America, Goldman Sachs and JPMorgan Chase – withdrew from the Net-Zero Banking Alliance, sparking concerns that this marked the beginning of the end for banks' net zero targets. This was particularly alarming due to the pivotal role banks play in steering investments toward sustainable solutions, especially as industries and governments work to phase down fossil fuels and scale up renewable energy. Amid this uncertainty, ING has emerged as a leader in maintaining climate commitments, becoming the first bank to set SBTi-approved targets to reduce its financed emissions.
Who:
ING, a Dutch multinational banking and financial services corporation headquartered in Amsterdam, with €22.6 billion in revenue (as of FY 2023).
What particular challenge do they face?
As a major financial institution, ING faces the challenge of aligning its lending and investment portfolios with global climate goals. This involves reducing greenhouse gas emissions not only from its own operations but also from the activities it finances across various high-emission sectors. Moreover, this comes at a time when the majority of large banks are walking back their net zero goals.
What did they do?
ING has become the first global financial institute to have its climate targets validated by the SBTi, not only for its own operations but also its client portfolio.
How did they do it?
ING took several steps to achieve SBTi validation for its financed emissions reduction targets, setting a precedent for climate leadership among global banks. The banking giant:
- Set sector-specific emission reduction targets for key industries – such as fossil fuels, power generation, cement, steel, automotive, aviation and commercial real estate – covering 67% of its financed emissions. These targets are aligned with the SBTi Financial Institutions’ Near-Term Criteria to meet the Paris Agreement’s 1.5°C warming limit goal.
- Implemented stricter fossil fuel policies, in the form of ending financing for organizations developing new oil and gas fields and committing to phasing out lending for oil and gas exploration by 2040. It also pledged to stop new financing for thermal coal-fired power plants by 2025, as well as tripling financing for renewable energy in the same year.
- Continued annual reporting on its financed emissions, as well as actions and progress to achieve the validated targets, on its website and through its sustainability reports. While ING already reported the vast majority of this information, lending targets for upstream oil and gas will now be reported in loan commitments/limits instead of in amounts outstanding.
Where you can find out more:
For more about the initiative, read ING's announcement. To learn more about measuring financed emissions, read the Verdantix Strategic Focus: Strategies For Measuring Financed Emissions report.
