ING wins Green Bond Award 2019 (Climate Bonds)
ING has won the Green Bond Pioneer Award 2019 by Climate Bonds Initiative for the largest ever green bond transaction from a European bank.
The Green Bond Pioneer Awards celebrate financial institutions, organisations and governments who demonstrate global leadership in bond issuance. Now in its fourth year, the ceremony is the highlight of the Climate Bonds annual conference, one of the largest green finance events in the world.
Hans Biemans, head of Sustainable Markets at ING, was there to accept the award on behalf of ING on 5 March. “This is just one part of ING’s strong Sustainable Finance portfolio and we are committed to continue to develop sustainable finance initiatives,” said Hans. "Financial institutions play a significant role in tackling climate change and green bonds are a vital step towards meeting the goals of the Paris Agreement.”
ING issued the 12-year €1.5 billion and 7-year $1.25 billion green bond in November 2018. The money raised will fund a green loan portfolio of new and existing loans in the categories renewable energy and green buildings.
While ING often structures green bonds for clients, this is the second one the bank has issued. The first was in November 2015, raising approximately €1.2 billion to fund sustainable projects while also aiming to accelerate the development of what was then a fledgling green bond market.
Biggest impact through financing
ING is committed to better understanding the impact of its lending activities and working with clients to drive progress towards a low-carbon and self-reliant society. The bank makes its biggest contribution to a sustainable future through its financing, and has a clear set of objectives and targets for guidance.
For example, together with the 2˚ Investing Initiative (2˚ii), a global think tank developing climate metrics in financial markets, we co-created an innovative way to measure our portfolio. Sector-by-sector, we look at the technology shift that is needed to keep the rise of global temperatures below dangerous levels. We focus on the sectors in our loan book that are responsible for most greenhouse gas emissions: energy, automotive, shipping & aviation, steel, cement, residential mortgages and commercial real estate. This methodology helps us measure the gap between the technology necessary for that shift, versus what clients are actually using today.
ING's Responsible Finance portfolio encompasses its climate finance portfolio (funding for companies and sectors helping to keep global warming to below two degrees Celsius, the social impact portfolio, and the funding of industry ESG leaders. The green bond will be used to fund ING's climate finance portfolio.
“ING is demonstrating the financial leadership that banks and corporates need to emulate if we are to accelerate climate-based investment and low carbon transition,” said Manual Adamini, head of Investor Engagement at Climate Bonds Initiative.