ING Bank Increases Sustainable Financing to Bolster Climate Change Resilience (Just Means)

According to the World Economic Forum projections, investments to the tune of $5.7 trillion will be needed by 2020 in green infrastructure, much of which will be in the developing countries. Without a combined financial effort from both private and public banking institutions, it will be difficult for the world’s economy to transition to a low-carbon path.

ING Commercial Banking has increased its volume of financing for sustainable clients and projects by seven percent in the first half year of 2015, reaching over €20.9 billion as compared to 2014. Leonie Schreve, ING Global Head of Sustainable Finance, said that ING aims to grow its loans to renewable energy projects, environmental outperformers, and other sustainability programs.

The bank has also nearly doubled its lending in the areas of energy efficiency, greenhouse gas and waste reduction, sustainable real estate and public transport. According to Shreve, ING Bank’s focus is not limited to energy related areas, but also includes water, waste and other sectors of its mainstream portfolio, collaborating with companies that are transitioning to become tomorrow’s leaders in sustainability.

A recent KPMG report on sustainable banking, “Ready or Not?” lauded ING for establishing a sustainable lending team (SLT) and accelerating the transition towards a sustainable economy. The report noted that the SLT at ING aims to improve the quality of the bank’s lending portfolio by driving business opportunities with forward-thinking companies that are considered the clients of tomorrow.

Some of the recent sustainability-focused deals concluded by ING include the $143 million financing of Project Semangka, a hydroelectric power plant in Indonesia, which will generate clean energy for the next three decades and will reduce CO2 emissions by an estimated 200,000 tons per year. ING has also provided $800 million in financing to solar-powered ITN Towers to help build the telecom infrastructure in Africa.

Source: Finchannel.com

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