Dutch bank ING is to call a halt to the financial backing of all pure-play upstream oil and gas companies working in either development or production and exploration of new fields. The decision will come into effect immediately.
The new plan was revealed on Thursday in the bank's 2024 Climate Progress Update.
The decision has taken in support of the International Energy Agency (IEA)'s 2050 net-zero pathway, which includes strategies such as improving energy efficiency in existing fields, as well as stopping new oil and gas extraction projects.
ING previously announced last December that it was planning to reduce, and eventually wrap up financial support for oil and gas production and exploration.
Liquified natural gas terminals also affected
It is also planning to stop new financial support for liquified natural gas (LNG) export terminals after next year.
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ING reiterates commitment to support green transition
Steven van Rijswijk, the chief executive officer (CEO) of ING, said in the report: "ING's ambition is to be a leader in accelerating the low-carbon transition because it matters to our company, our customers, society and the environment.
"As a systemically important bank, we believe that showing leadership means helping our customers and society decarbonise and drive down emissions, with a thriving net-zero world as our mutual goal. It also means being a frontrunner in financing the future economy and the change that's needed to get there. And it means finding ways to empower people to prepare for the future, starting with customers whose homes we help to finance.
"We're also taking the next steps with our approach to oil and gas. This year we committed to phasing out our financing of oil and gas exploration and production to zero by 2040, which is well in advance of the International Energy Agency's (IEA's) guidance. We're now expanding our policy - as of today we'll also stop all new financing to pure-play upstream oil and gas companies that continue to develop new fields."
The bank has also been very vocal about not hesitating to cut ties with clients who do not agree with its green transition philosophy.
ING has a strategy known as the Terra approach, which aims to help it decrease the carbon intensity of its loan portfolios.
It is focusing on sectors with the highest emissions, such as oil and gas, shipping, power generation, aviation, cement, commercial real estate, steel and more, helping them with their green transition goals with financing and client engagement.
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