Amsterdam-based ING has become the first global systemically important bank to have its financed emissions reduction targets validated by the Science Based Targets initiative (SBTi), aligning with the 1.5°C goal of the Paris Agreement.

This milestone comes as some major banks are scaling back their climate commitments. ING’s targets cover financed emissions in client portfolios as well as its own operations, ensuring a robust and science-backed approach to reducing climate impact.

SBTi Validation and Climate Leadership

The SBTi validated ING’s goals against its Financial Institutions Near-term Criteria, a newly updated framework that took effect in November 2024. This validation sets a new benchmark for banks worldwide.

“As the first global systemically important bank with a validated science-based target, ING is showing how large financial institutions can support climate stabilization in the real economy,” said Nate Aden, Head of Financial Standards at SBTi.

Unlike some of its peers, ING has remained committed to ambitious climate policies, even as other global banks weaken or withdraw from key net-zero alliances.

Diverging Paths in Banking’s Climate Commitments

While ING pushes forward with climate action, several banks have been rolling back their commitments:

HSBC delayed its net-zero goal by 20 years and placed its interim financed emissions targets under review.
Wells Fargo completely abandoned its 2050 net-zero financed emissions target.
Major banks from the U.S., Canada, and beyond have exited the Net-Zero Banking Alliance (NZBA).
Some banks dropped out of SBTi validation processes due to stricter fossil fuel financing criteria.

ING’s persistence in aligning with SBTi’s rigorous standards marks it as a leader in sustainable finance.

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Fossil Fuel Policies and Sector Targets

As part of its SBTi validation, ING has implemented strict fossil fuel financing policies, including:

Ending all financing to pure-play upstream oil and gas companies that continue to develop new fields.
No new thermal coal-fired power plant or coal mine financing.
Aligning its upstream oil and gas portfolio with the Net Zero Emissions scenario for advanced economies by the International Energy Agency (IEA).

Additionally, ING is committed to reducing financed emissions across high-carbon sectors, covering 67% of its total financed emissions. These sectors include:

Power Generation
Cement
Steel
Automotive
Aviation
Commercial Real Estate

While some targets were excluded from validation due to ongoing updates, ING stated that it remains committed to further refinement and expansion of its net-zero strategies.

A Model for Climate-Conscious Banking

Anne-Sophie Castelnau, Global Head of Sustainability at ING, emphasized the importance of having science-backed, transparent targets:

“Having our climate targets validated by the SBTi demonstrates that they are science-based and robust. We will continue to engage with clients and support them in driving down emissions, keep building up the financing of new technologies and sustainable systems of the future, and find ways to include everyone in the transition.”

Looking Ahead: A Defining Moment for Sustainable Finance

As banks globally face increasing pressure to act on climate change, ING’s leadership in securing SBTi validation could set a precedent for others. Will more financial institutions follow suit, or will they continue to retreat from climate commitments?

With stricter regulations and growing investor scrutiny, ING’s proactive stance may offer a competitive advantage, reinforcing its role as a frontrunner in sustainable finance.

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