ING group announced that it will cease offering new loans to companies solely focused on oil and gas extraction and the development of new fields as a part of its climate strategy. The bank emphasised its commitment to guiding carbon-intensive sectors in its loan portfolio toward global climate goals.
“We will stop all new general financing to so-called pure-play upstream oil and gas companies that continue to develop new oil and gas fields. This policy is applicable with immediate effect,” ING stated. This policy does not impact larger fossil fuel companies like Shell and BP, which have diversified operations beyond oil and gas extraction.
Additionally, ING will stop financing new liquefied natural gas (LNG) export terminals after 2025. The bank aims to phase out financing for companies extracting oil and gas entirely by 2040.
ING is currently monitoring around 2,000 wholesale banking clients and their sustainability practices, with plans to evaluate their progress by 2026 to determine future business relationships. The bank indicated that this timeline will allow for a better understanding of their sustainability efforts.
“The urgency of climate change is becoming more evident all the time and ING wants to play a leading role in accelerating the global transition to a low-carbon economy. We all have a part to play, and we can all make a difference for present and future generations if we work together towards the same goals,” ING CEO Steven van Rijswijk said.
Recently, ING has faced protests from Extinction Rebellion, with activists urging the bank to stop financing the fossil fuel industry immediately. A bank spokesperson clarified that the climate strategy is not a response to activist pressure, stating, “We have been working toward sustainability in our loan portfolio since 2018.”
