ING informed that from its €500 billion lending portfolio, it will begin steering towards meeting the Paris Agreement’s well-below two-degree goal. ING will do this by creating the Terra approach, using science-based scenarios to steer its business strategy.
Terra measures that needed shift in technology against the actual technology clients are using today and planning on using in the future. ING worked on the Terra approach with the 2˚ Investing Initiative.
Terra also focuses on the sectors where the most greenhouse gas emissions come from: energy, automotive, shipping & aviation, steel, cement, residential mortgages and commercial real estate.
The information on what technology changes are needed by when, is given in detailed scenarios per sector made by independent organisations like the International Energy Agency.
Terra doesn’t only tell what needs to shift, but how much and by when. With this solution, it allows to identify those clients that are leading the transition to a low-carbon economy as well as those that need ING’s help the most. It will also show if the lending is adding up to contribute to climate resilience or not.
How Terra works in four steps:
- ING will use scenarios for the sectors responsible for most greenhouse gas emissions. These outline which technology must shift, by how much and by when to keep the rise in global temperatures to well below two degrees.
- ING measures that needed shift in technology against the actual technology clients are using today and planning on using in the future. Where relevant, the bank will look at whether individual clients have a strategy to adequately shift away from greenhouse-gas-intensive technologies towards greener technology.
- ING will support clients on their path to a sustainable future and are seeking to support potential clients that are contributing to the technology shift needed.
- ING measures its loan book to see whether it’s aligned with the shift to a low-carbon society.