Dutch financial institution ING has announced it will be working with the companies in its green investment portfolio, which is worth US$600bn (£456bn), to help them align their sustainability strategies with the Paris Agreement.
A partnership between ING and think tank 2C Investing Initiative (2Cii) will work toward the Paris Agreement’s key goal of keeping the rise in global temperature to below two degrees Celsius.
It will use a set of metrics called Terra to do so. The bank, which is being hailed as the first to use such a science-based approach for its strategic goals, said in a statement: “We are confident that the Terra approach will make a valuable impact because it enables us, and the rest of the banking sector, to finance the change the world needs to move towards a low-carbon economy.
“All banks would benefit from having an industry-wide standard, increasing transparency and therefore our collective effectiveness in fighting climate change.”
Terra metrics will work to tell the organisation what it needs to change across various sectors in order to ensure all clients are working effectively toward climate goals, with ING saying it will “show us whether our lending is adding up to contribute to climate resilience or not”.
Isabel Fernandez, head of wholesale banking at ING, concluded: “We believe the Terra approach will make a real difference. There’s no time to lose.”