ING has become the first globally systemic bank to receive validation from the Science Based Targets initiative (SBTi) for its climate targets aligned with the 1.5°C pathway—a threshold widely accepted as crucial to avoiding the most catastrophic impacts of climate change.
ING has become the first globally systemic bank to receive validation from the Science Based Targets initiative (SBTi) for its climate targets aligned with the 1.5°C pathway—a threshold widely accepted as crucial to avoiding the most catastrophic impacts of climate change. The announcement, made on March 26, underscores ING’s leadership in aligning its portfolio emissions and internal operations with the goals of the Paris Agreement.
RELEVANT SUSTAINABLE GOALS
SBTi’s validation applies to ING’s emission reduction targets across key sectors: fossil fuels, power generation, cement, steel, automotive, aviation, and commercial real estate. These targets reflect ING’s commitment to steering its lending practices toward industries that are decarbonizing in line with climate science.
ING Tightens Fossil Fuel Financing Policies
The Dutch lender had previously committed to phasing out upstream oil and gas financing by 2040. In 2024, it began restricting access to general-purpose loans and bond issuance for selected oil and gas companies. These changes reflect ING’s sharper focus on sustainable finance and its intent to reduce the carbon intensity of its client portfolio.
Anne-Sophie Castelnau, ING’s global head of Sustainability, emphasized that the SBTi’s endorsement affirms the bank’s robust and science-based approach. “We will continue to engage with clients and support them in driving down emissions, financing new technologies, and building sustainable systems for the future,” she said.
The validation comes at a time when the banking sector is increasingly divided on its climate ambitions. The Net-Zero Banking Alliance (NZBA)—a leading global climate initiative for banks—recently proposed dropping the 1.5°C target as its central guideline, amid exits by several major banks and mounting concerns about the feasibility of meeting the goal under current global policy trajectories.
In this context, ING’s commitment stands out. Nate Aden, Head of Financial Standards at SBTi, praised the bank’s leadership: “ING is showing how large financial institutions can support climate stabilization in the real economy. Their science-based target sets a new precedent.”
What the Validation Means
The SBTi is a global authority on science-based climate targets, co-founded by CDP, the UN Global Compact, WRI, and WWF. To date, over 7,400 companies have used its frameworks to align their operations with climate science.
ING’s targets were assessed against the SBTi’s Financial Institutions Near-term Criteria—a global benchmark that evaluates the credibility and ambition of near-term emission reductions for banks and investors.
The organization has maintained that targets must align with a 1.5°C trajectory wherever possible. If a pathway is not available for a given sector, targets must still stay well below 2°C. ING’s multi-sector alignment, combined with cross-portfolio fossil fuel reductions, represents one of the most comprehensive climate strategies in the banking world.
SBTi-aligned targets are becoming a reference point in financial decision-making. Some banks now require companies in high-emission sectors to have SBTi-approved targets before extending financing. ING’s move may deepen this trend, increasing pressure on corporates to decarbonize.
For clients, the validation sends a clear message: financing from ING will increasingly favor those committed to climate action. This aligns financial incentives with environmental imperatives—a shift crucial for global emissions to decline fast enough to meet international goals.
Lead image courtesy of REUTERS
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