Assessing Climate Transition Plan Disclosures: ING's Client Transition Plan Assessment Methodology (ING Group)

Summary

• ING's assessment of ~2,000 clients resulted in a Client Transition Plan (CTP) score for each company, placed into bands: Advanced, Moderate and Low.p.11
• A company in the Advanced band scores 60% or above.p.11
• The CTP score weights emission reporting at 25%, net zero commitment at 10%, targets at 35%, action plan at 20% and governance and strategy at 10%.p.11
• ING started its Terra approach in 2018, with 12 sectors in scope today, including aluminium and dairy added in the past year.p.6
• In 2021 ING joined the Net Zero Banking Alliance, committing to be net zero by 2050.p.6
• The Paris Agreement, signed by 195 countries, aims to hold global warming to 1.5°C above pre-industrial levels.p.4

Key insights

1. CTP scores are used solely for internal purposes and as one component of ING's decision-making, not as a stand-alone determinant.p.2
2. A credible transition plan is assessed on four main components: emission reporting, commitment and targets, action plan, and governance and strategy.p.10
3. Clients with no obligation to disclose score poorly on public data, which does not mean they have no transition plans.p.12
4. High-risk cases on a material ESG risk factor require binding advice from the global Environmental & Social Risk team.p.14
5. ING built an online tool called ESG.X to collect and store client transition plan data centrally.p.9
6. Planned improvements for 2025 include measuring progress, more granularity and collecting private information from clients.p.12