Climate Change Data

Environmental Metrics

ESG Focus Areas

• Sustainability
• Customer centricity
• Responsible investment
• Renewable energy
• Employee well-being

Environmental Achievements

• 39% of ING’s total electricity portfolio comprised renewable energy projects (up from 5% in 2005).
• Financing of the Butendiek offshore wind farm in Germany.

Social Achievements

• Launched Dreamstarter, a crowdfunding platform in Australia, raising over 100,000 Australian dollars for social projects.
• Introduced ING Savings Account for UNICEF, donating a percentage of savings to UNICEF.
• Named a Great Place to Work in Luxembourg, Germany, and Spain.

Governance Achievements

• Successfully listed ING U.S. on the New York Stock Exchange.
• Largely completed the divestment of Asian insurance and investment management activities.
• Reached an agreement with the Dutch State about the settlement of the Alt-A facility.

Climate Goals & Targets

Environmental Challenges

• Tougher capital requirements potentially affecting lending ability and global competitive position.
• Balancing the interests of customers, employees, shareholders, and society.
• Maintaining margins and volumes in a competitive lending market.
• Economic downturn affecting non-life insurance business.

Mitigation Strategies

• Strengthened capital position.
• Constant dialogue with stakeholders.
• Investing in processes and systems to deliver faster and more efficient service.
• Adjusting premiums and making operational improvements in the claims process for non-life insurance.

Supply Chain Management

Climate-Related Risks & Opportunities

Opportunities

• Renewable energy projects

Reporting Standards

Frameworks Used: Equator Principles

Sustainable Products & Innovation

• Eco-friendly credit
• ING Savings Account for UNICEF
• Eco-friendly real estate and car loans

Awards & Recognition

• Bank of the Year 2013 (Netherlands, Belgium, Western Europe)
• Corporate Deal of the Year Award (Europe)
• Best Structured Commodity Finance Bank (Global)
• Most customer friendly life insurance company in Poland
• People’s Choice award for “Best Fund Manager” (Netherlands)

Environmental Metrics

ESG Focus Areas

• Digitalisation and interconnectivity
• Innovation
• Usability and accessibility of our products
• IT systems and platforms
• Customer privacy and information security
• Cyber resilience
• Culture, ethics and integrity
• Climate change

Environmental Achievements

• 22% year-on-year reduction in lending to coal-fired power plants
• EUR 18.7 billion in Climate Finance

Social Achievements

• Ranked 1st in seven out of 14 retail markets in Net Promoter Score
• Retail Banking primary relationships reached 13.3 million

Governance Achievements

• Further standardised and automated User Access Management (UAM) processes
• Implemented Orange Code dilemma model to support integrity-led decision-making

Climate Goals & Targets

Environmental Challenges

• Growing competition from disruptive newcomers
• Increasing frequency and intensity of cyber-attacks
• Increasing use of third-party vendors presenting fraud management and IT security challenges
• Concerns over the potential impact of insider threats

Mitigation Strategies

• Investing in a flawless and seamless customer experience and security of IT systems
• Continuous improvement of fraud management capabilities
• Better alignment and standardization of cross-border fraud management
• Strengthening global cybercrime and fraud resilience through collaboration
• Dedicated Cyber Crime Expertise and Response Team

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: SASB, GRI

Environmental Metrics

ESG Focus Areas

• Climate Change
• Customer Privacy & Information Security
• Cybercrime Resilience
• Culture, Ethics and Integrity
• Innovation
• System Availability
• Digitalisation & Interconnectivity
• Customer Experience
• Employee Development
• Environmental & Social Risk Management

Environmental Achievements

• Not disclosed

Social Achievements

• 6220 employees trained in the KYC learning module in 2020 (87% of all KYC employees)

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Increasing sophistication and frequency of cyberattacks
• Breaches at third parties or service providers

Mitigation Strategies

• Not disclosed

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Action
• Green Finance

Environmental Achievements

• Published integrated climate report integrating progress on climate alignment of loan book and climate risk management.
• 5 of 9 sectors covered by Terra approach are within decarbonisation pathway per initial Paris-aligned ambition.
• Raised ambition to reach net zero by 2050.
• Set more ambitious net zero target for upstream Oil & Gas: 12% reduction in funding (from 2019 levels) by 2025.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• Strained supply chains, staffing shortages, and rising prices due to surge in demand as economies reopened.

Mitigation Strategies

• Closely monitoring loan book given market dynamics.
• Prudent risk framework remained unchanged under Covid-19.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate Change
• Biodiversity
• Human Rights
• Circular Economy

Environmental Achievements

• Five sectors (power generation, upstream oil & gas, automotive, commercial real estate, and shipping) are on track towards net-zero 1.5-degree climate goals. Two sectors (cement and residential real estate) are within 5% of their pathway, and steel is just above 5%.

Social Achievements

• Not disclosed

Governance Achievements

• Aligned the structure of the Climate Report with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

Climate Goals & Targets

Environmental Challenges

• The war in Ukraine, high inflation, and soaring energy prices.
• Covid-19's impact on the aviation sector.

Mitigation Strategies

• Expanding the approach to additional carbon-intensive sectors (e.g., aluminum).
• Continuing to adapt the approach to climate-related and environmental disclosures.
• Working to link biodiversity, human rights, and the circular economy to the integrated climate approach.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change mitigation
• Financial health & inclusion
• Human rights

Environmental Achievements

• Mobilized €115 billion of financing for clients contributing to their transition (up from €101 billion in 2022). Supported 792 sustainability transactions (up 62% from 491 in 2022).

Social Achievements

• 9% increase in Dutch customers with products connected to long-term saving and investment plans by the end of 2023 (compared to 2022 baseline).

Governance Achievements

• At least 50% of Executive Board’s variable remuneration targets are based on non-financial performance criteria, including ESG-related targets. Nearly 38,000 employees completed the 'Putting sustainability at the heart' e-learning course by end-August 2023.

Climate Goals & Targets

Environmental Challenges

• Data availability
• Data quality
• Conducting an impact analysis

Mitigation Strategies

• Refer to ING’s Climate Report 2023, page 11, ‘Scope and boundaries’ for more information.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, SASB, CDP, IFRS Sustainability Disclosure Standards, TCFD, Net Zero Banking Alliance (NZBA) Guidelines for Climate Target Setting for Banks, UN Guiding Principles on Business and Human Rights, International Integrated Reporting Framework

Third-party Assurance: Limited assurance report in Annual Report 2023

UN Sustainable Development Goals

• SDG 8
• SDG 10
• SDG 12
• SDG 13

Contribution through business strategy and financing of clients and projects.

Sustainable Products & Innovation

• Green and social financing, sustainability-linked loans and bonds

Environmental Metrics

ESG Focus Areas

• Sustainability
• Energy Consumption
• Digital Safety

Environmental Achievements

• Tele2, Telia and Deutsche Telekom cut Scope 1 and 2 emissions by 99%, 96%, and 93% respectively between 2016 and 2021 through procurement of sustainable energy and decommissioning of copper networks.
• Telecom operators use 11% more sustainable energy than other companies on average.

Social Achievements

• Not disclosed

Governance Achievements

• Not disclosed

Climate Goals & Targets

Environmental Challenges

• 5G rollout could require more energy than 4G.
• Scope 3 emissions (70% of telecoms' supply chain emissions) remain a challenge.
• Higher interest rates and wage increases make closing the investment gap for fibre rollout more difficult.
• Overbuild risk in developed fibre markets.
• Stiff competition in the fibre market.
• High phishing activity and increasing opportunities for criminals due to AI.
• Need for enhanced digital safety measures.

Mitigation Strategies

• Telecoms will likely procure enough sustainable energy to offset higher 5G energy use.
• Telecoms are making strides in green transition.
• Private and public sector investments are necessary to achieve Europe's connectivity goals.
• Companies are investing in fibre rollout despite challenges.
• Private-public partnerships are showing promise (e.g., Proximus and Belgian Infrastructure Fund).
• Increased training and software to combat phishing.
• Multi-factor authentication, secure connections (VPNs), and endpoint protection software are being implemented.
• Telecom operators are offering security software and services (e.g., Vodafone, KPN).

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed