The road ahead: from climate agreement to climate action

After ABN AMRO backed the Climate Agreement, the bank published its own climate plan and joined the Net-Zero Banking Alliance at the end of 2022. The result? The bank now has a road map for reducing carbon emissions from the operations it finances.

What exactly does ABN AMRO’s climate plan entail?

Anne: “The signatories to the Dutch Climate Agreement are expected to draft their own individual climate plans, setting out their goals and how they intend to meet them. ABN AMRO aims to ensure its own operations are carbon-neutral by 2030, and all the operations it finances by 2050. We’ve set specific targets for various sectors in order to achieve this.”

Which sectors?

Anke: “We started out with five energy-intensive sectors where we can make a big impact: oil & gas, commercial real estate, power generation, shipping and mortgages. We’ve also set a sustainability target for the investments we make on our clients’ behalf.”

What are the bank’s plans for mortgages?

Anne: “Energy labels are our main focus. We know what the average energy label is for the homes we finance. The question now is, what label will that have to be if we want to meet our carbon targets? In terms of the homes we finance, we’re counting on their cutting carbon emissions by one-third by 2030. And that means better energy labels. Some people might wonder why the bank doesn’t just finance lots of new-build housing. The challenge for us is all about existing mortgages – especially those homes with energy labels G or F, many of which homes listed as monuments or homes belonging to those with less to spend. It’s those people we want to support. That’s why we’re making tools available and are partnering with municipalities and installation companies.”

How do you plan to get businesses and companies to reduce their carbon footprint?

Anke: “We’re focusing on helping firms make the transition to sustainability by discussing where they are now and where they want to be. In addition, we’re launching a pilot project involving oil & gas, shipping, and commercial real estate this summer and have selected a diverse group of clients. These participants will complete an ABN AMRO questionnaire about their transition, answering a range of questions like, how prepared are you? Which measures are you taking, and how can the bank support you? Besides financing, we also share the knowledge and expertise that is abundantly available at the bank.”

Anne: “We’re taking an active role – it’s not like we’re just sending out a list of questions to these clients and will be checking in again with them five years from now to see how they’re getting on. We want to know what their level of commitment is and expect to see results. Obviously, businesses need time to do all this, and we understand that. But it’s not something they can opt out of. The Paris Agreement is serious stuff, and we intend to stick to those commitments.”

What challenges is ABN AMRO facing?

Anke: “We’re working hard to share knowledge and to train colleagues internally. A training session on the climate will be available to each of the bank’s employees at the end of June. We’re also developing specific courses for those of our colleagues whose roles or tasks are directly affected by the climate plan so that they can support our clients in the best possible way. The hard part, though, is that we can’t go it alone, which is why we’re counting on the commitment of all our clients and stakeholders. Sometimes there are challenges, too. Let’s say, for instance, that you want to work with builders and developers in modular construction, but zoning plans end up being a barrier.”

What now?

Anne: “We’re going to be adding other sectors to the climate plan – probably agribusinesses and land transport next. We’re currently analysing the data and anticipate being able to set targets by the end of 2023. A common misconception is that businesses take action only as a result of outside pressure. Fortunately, we’re seeing more and more intrinsic motivation – so many businesses are already hard at work in this area. And that’s the best way to make the transition together, by helping one another along the way.”