- About: ING is a leading European bank of Dutch origin. Its more than 60,000 employees serve more than 38 million customers, corporate clients and financial institutions in over 40 countries.
- Business type: Bank
- Product: Asset-level data
- Region(s) of operation: Global
ING is at the forefront of the global transition to a low-carbon economy, primarily through its Terra approach, which steers the bank’s most carbon-intensive sectors towards alignment with global climate goals. In their recently published progress report, ING explains how they asset-based climate data from Asset Impact to assess and engage with clients in sectors such as power, automotive, and cement. This data-driven approach allows ING to guide clients on their journey toward net-zero emissions.
Sector-specific impact
In most carbon-intensive sectors such as power, automotive, and cement, emission intensity is ING’s key metric. ING follows the IEA’s recommendations that these sectors need to expand under a net zero scenario, but they have to decarbonize at the same time.
Not only does asset-based data provide a useful benchmark to compare companies, but the granularity of the data enables ING to go beyond high-level assumptions and paint a more accurate picture of what is happening in a given sector. Let’s use the shipping sector as an example: We know that the newer a ship the more energy efficient it is, however, newer ships require experience to operate. If you sped up the whole journey, but then needed to wait in the port for two days until there was space to dock, this could generate the same amount of emissions as an older ship that could dock straight away. Asset-based data helps uncover these nuances and details.
It also helps them to identify key areas where clients can reduce their emissions and helps prioritize financing for sustainable technologies. For example, in the power sector, our asset-level data allows ING to assess which clients are actively transitioning to renewable energy sources and support those efforts through tailored financing solutions.
Role of asset-based data in client engagement
ING has committed to stepping up its approach to engaging clients on their transition by becoming more proactive and data led. Starting in 2023, ING has built a tool for measuring client transition plans with asset-based data used to validate the data.
Asset-based data is a powerful means to inform ING’s sustainable finance team where their clients are heading, providing a starting point for meaningful, fact-based discussions. It also allows for a more in-depth understanding of a client’s current and future environmental impact as its forecasts are based on actual capital expenditure rather than just commitments.
Climate steering with data
The Terra approach, which encompasses a range of sectors, is supported by data-driven insights from Asset Impact. The approach, powered asset-based data, helps ING understand its clients' progress as well as how they can steer them toward climate alignment. It allows them to steer funding towards those clients who are willing and able to transition to meet ING's net zero ambition. For clients unable or unwilling to progress, ING has the option to apply stricter crediting conditions or cease financing altogether, ensuring its portfolio stays aligned with its climate goals.
Asset-based data from Asset Impact is a vital tool in ING’s strategy to drive client engagement and support the transition to a low-carbon economy. By leveraging detailed asset-based data, ING is able to engage with clients more effectively, provide targeted financing, and ensure that its loan portfolio aligns with global climate goals, further solidifying its role as a leader in climate action.
Learn more about ING's climate approach here.