“Climate change won’t stop just because it is politically unpopular”

Solange Rouschop discusses the bank’s efforts on its sustainability themes of climate, nature and social impact in 2024. “We can make the biggest impact through our clients and so we should throw the bank’s weight behind their sustainability transition: providing financing and expertise, as well as our network.”

What progress has the bank made on sustainability and where has it faced challenges?

“There is a lot to be proud of!We made steady progress on our climate strategy, structuring ESG data and setting decarbonisation targets in line with the bank’s overall strategy. These apply to the majority of our lending portfolio, including mid- and upstream oil and gas, agriculture, and residential mortgages. We put a lot of work into enabling our bankers to really support clients in their sustainability transition. Over the summer, we issued our Nature Statement, in which we support the Kunming-Montreal Global Biodiversity Framework. We haven’t set nature targets yet, but we are working on integrating nature into our strategy and specific loan portfolio reviews. Our Human Rights Remedy Mechanism, an industry first in Europe, can help us expand our social impact. It offers a facilitator to people who believe their human rights have been violated by a corporate client of the bank. And last but not least, we’re very proud to present our first annual report within the framework of the EU’s Corporate Sustainability Reporting Directive.”

But challenges remain. Our own business travel emissions increased; we are not on track to reach our 2030 target for this. We also had to postpone our circular deals target to 2027. We are really keen to help create a more circular economy, but there was a lack of suitable financing opportunities. We surpassed our 2025 renewable energy financing target of €4 billion in 2023 and raised it to €10 billion by 2030. Nearly half of our wealth management assets are aligned with sustainability goals and we’ve raised sustainable and impact investments. We have introduced loans with improvement incentives for small and medium-sized enterprises to complement our sustainability-linked loans for larger companies.”

How do we help clients move forward to become more sustainable?

“Corporate Banking finances energy-efficiency improvements and renewable energy and transition projects. Wealth Management supports clients to align their portfolio with the sustainability transition, find suitable investment opportunities and minimise risk. Solar panels and home insulation are financed by our Personal & Business Banking unit, which also helps clients find suppliers and subsidies. And our expertise goes beyond financing. Our Impact Nation programme, for example, helps companies decide on, for example, the viability of circular production processes. Our Transition Readiness Assessment enables us to benchmark clients’ progress and consider the next steps. We are also investing in our staff, including training 7,000 colleagues to better help female clients and other disadvantaged groups.”

What is the upside of the EU’s Corporate Sustainability Reporting Directive?

“A key feature of CSRD is the double materiality assessment. This requires us to consider both the direct impact of our own activities and the impact we have through our clients. At the same time, we also assess the risks and opportunities that, for example, climate change poses to the bank. We should consider those in our risk management and in our dealings with clients. As a result, we’re learning more on biodiversity loss and pollution, both of which are location-specific and can be a risk in lending to the agriculture and dairy sectors. By not only concentrating on carbon emissions, we can increase the resilience of the bank and its clients. So CSRD is helping us to focus our agenda on material topics, there where it matters.”

Political pressure has made some companies step back from their sustainability commitments. What does this mean for the bank?

“Stepping back raises the costs for society as it worsens problems like extreme weather and nature degradation. Climate change won’t stop just because it is politically unpopular. Our climate strategy and decarbonisation targets remain priorities and we continue to decarbonise. I believe the sustainability transition prepares the bank and its clients for long-term success. By sharing examples of successful, sustainable investments, we demonstrate that financial and sustainability goals do align.”

How does the bank team up with other stakeholders?

“Collaboration is crucial. For example, our partnership with the European Investment Bank unlocked EUR 250 million in cheaper transition financing for clients. We’re committed to the UN Principles for Responsible Banking and the World Economic Forum’s Climate Leaders Coalition, where companies team up to pursue significant carbon reductions. As a Northwest European bank, we see our region’s risks, such as warming at twice the global average and increased flooding. It is urgent that we cooperate, measure our impact and integrate sustainability into our businesses and decisions.”

If we get it right, what does the future look like?

“We’re working towards a more inclusive society where people and the economy thrive well within planetary boundaries. For the bank, that means mitigating risks and helping clients move to more sustainable business models. That way, we can really live up to our purpose of banking for better, for generations to come.”