Dutch bank ING will now gear up its lending to shipping towards greener offerings.
ING’s landmark decision is with a view towards meeting the Paris Agreement’s well-below two-degree goal.
Using something called the Terra approach ING has become the first global bank to commit to using science-based scenarios to steer its business strategy.
The Terra approach looks at the technology shift that’s needed across certain sectors – including shipping – to keep the rise of global temperatures to well below two degrees Celsius.
Terra then measures that needed shift in technology against the actual technology clients are using today and planning on using in the future.
“Banks have a responsibility to finance positive change and we are stepping up to that. We believe the Terra approach will enable us to make a real difference,” said Isabel Fernandez, head of ING Wholesale Banking.
Terra focuses on the sectors where the most greenhouse gas emissions come from: energy (including oil, gas, renewables and conventional power), automotive, shipping, aviation, steel, cement, residential mortgages and commercial real estate.
The Terra approach is open source and ING is in dialogue with other banks and stakeholders.
“All banks would benefit from having an industry-wide standard, increasing transparency and therefore our collective effectiveness in fighting climate change,” the bank stated in a release.