Energy

Here we provide our views on the various ways energy is generated, our energy sector commitments, and reflect on our own energy footprint.

Renewable energy

About 80% of energy used today is fossil-fuel based. The best way to reduce society’s use of fossil fuels is to make sure there are enough affordable green alternatives available.

In 2023, ING announced that we aim to triple our financing of renewable power generation to €7.5 billion annually by 2025, up from our earlier €2.5 billion target for 2025 as set in 2022. This follows the agreement made by governments at COP28 and the guidance provided by the IEA that renewable power generation must triple in capacity by 2030 to meet net-zero goals. Our new target, which is five years ahead of the COP28 guidance, replaces the previous target of increasing renewables financing by 50% by 2025 from the €1.5 billion base in 2021.

Coal Power

Ahead of the Paris Climate Conference in 2015, we decided to stop financing new coal-fired power plants (excluding a standing commitment to the project Cirebon II in Indonesia). We have since declined multiple coal-related projects and transactions.

In 2017, we set a goal to bring our financing down to close to zero by the end of 2025. As a result of these policies, lending to individual coal-fired power plants decreased by over 87% to €77 million by year-end 2023.

By the end of 2025, it is our policy to no longer finance clients in the utilities sector that are over 5% reliant on coal. We will, however, continue to finance non-coal energy projects for these clients in support of their energy transition.

Coal in the steel industry

The type of coal used in power generation is called thermal coal, which can be readily substituted by renewables or gas while clients transition to renewables such as wind and solar. When smelting steel, however, a different kind of coal is used to fire up the process: coking (or metallurgical) coal. The steel industry cannot do without this type of coal yet, but ING is taking steps to support the decarbonisation of this sector, including measures to lower our exposure to coking coal.

ING decided to no longer provide dedicated finance to new coking (metallurgical) coal mines or the expansion of existing coking coal mines in 2023. We will take an engagement-based approach for clients that are involved in operating coking coal mines, asking them to explain to us how they plan to align with 1.5-degree Celsius goals on time. And in line with our stance on coking coal mines, we also decided to no longer provide new dedicated finance for new unabated blast furnaces or the life extension of existing unabated blast furnaces for steel making.

ING co-led the development of the framework for the Sustainable STEEL Principles, which enables lenders to support the decarbonisation of the steel sector in 2022. We are also acting as a leading financial structurer for the world’s first green steel plant utilising hydrogen rather than coking coal.

Nuclear energy

Nuclear power can generate electricity with low greenhouse gas emissions. However, there are significant environmental and social risks associated with producing nuclear energy. These are mainly linked to exposure to radiation due to accidents, mismanagement of nuclear waste, and lack of security in the country where the nuclear plant is located.

We have a limited appetite for financing nuclear energy facilities and any requests for such financing would be subject to stringent environmental & social due diligence and a reputational risk assessment.

For instance, we do not finance high-level nuclear waste processing, transportation, or storage activities. We also restrict financing for new nuclear power plants, expansions or refurbishments of existing nuclear power plants, and equipment or services related to the above in ING-designated medium or high-risk countries.

We apply strict standards for loans to utility companies operating nuclear power plants, capturing the risks related to reactor technology, potential earthquakes, and political and economic stability in the country where they are located.

Ammonia and Hydrogen

ING aims to steer its portfolio and policies to be in line with the International Energy Agency (IEA)’s Net Zero Emissions scenario (NZE Scenario). Achieving the NZE Scenario requires a holistic approach involving multiple technologies which will necessarily involve low emissions fuels such as ammonia and hydrogen.

Ammonia and hydrogen are expected to play an important role in the decarbonisation of sectors such as shipping, aviation, chemicals, iron and steel production, and transport.

ING is supportive of providing financing for low-emissions hydrogen and ammonia facilities.

Our own energy footprint

To understand and reduce our energy use, we carry out regular monitoring, reporting and reduction strategies across our global operations. Our strategies range from more efficient use of building space to increasing the energy efficiency of our buildings and data centres, to the sourcing of renewable electricity. We’ve reduced our overall energy consumption and aim to source 100% renewable electricity for the buildings where we have management control using purchase agreements and renewable energy certificates (RECs). See our operations section for more information.