In 2023, ING developed ESG.X, an online tool to collect and assess the publicly disclosed climate transition plans of its wholesale banking clients. ESG.X enables ING to refine its approach at the client level, providing insights to its front office and sustainability departments that help the bank engage with its clients and support their net-zero transition.
ESG.X brings together information from a range of sources, including existing public databases and publicly available sustainability reporting. It contains a list of metrics taken from a range of leading external standards and guidelines, including the CDP (Carbon Disclosure Project), SBTi (Science Based Targets initiative), NZBA (Net-Zero Banking Alliance), European Sustainability Reporting Standards (ESRS), Transition Pathway Initiative (TPI), GFANZ (Glasgow Financial Alliance for Net Zero), International Capital Market Association (ICMA), and the Task Force on Climate-related Financial Disclosures (TCFD).
ING uses the resulting data and scores to identify opportunities and financing needs that could enable clients to reduce their CO2 emissions, and to conduct sector and industry-level analysis of emissions, targets, and action plans to support its strategic planning at portfolio-level. In addition, the data provides inputs for risk models and informs discussions on how to meet net-zero targets. So far, ING has assessed the transition plans of around 2,000 clients.
ING now aims to expand the scope of its tool by using large language models, expanding the types of data it captures, and assessing other environmental and social aspects. In addition, ING is considering making its tool externally available to help accelerate the efforts of its peers and clients to meet their transition goals
Read more on ING’s net-zero targets here.
This case study was originally published in the Net-Zero Banking Alliance 2024 Progress Report (October 2024).
Disclaimer: NZBA shares case studies to promote member banks’ awareness of new approaches, tools, products, services, and transactions related to financing the transition to net zero. Featuring a case study naming a particular bank does not represent an endorsement of all actions from that bank.