BNG works with its customers on a shared mission: a climate-neutral society by 2050. Climate change is a major social challenge. As a bank of and for the public domain, BNG takes responsibility in this area. In 2019, we signed the financial sector's Climate Commitment, in line with the Paris Climate Commitment.
By signing the Climate Commitment, BNG commits to three clear objectives:
Our climate plan, Going Green, sets out a clear ambition: to contribute to a future-proof and climate-neutral society. Our goal is to achieve net zero CO2e emissions in all relevant activities within our value chain by 2050. Since most emissions originate from our lending activities, we have set separate targets for the loan portfolio. For now, these targets focus on scope 1 and 2 emissions, where our customers can exert the greatest influence.
For the customer groups that were added to the emissions measurement for the first time in 2023, we do not have any comparative figures from 2018 onwards. We therefore apply our absolute targets to the sectors we have been measuring since 2018: housing associations, municipalities, provinces, water boards, healthcare, education and drinking water companies. These account for 91% of our outstanding long-term loans in 2023.
Absolute targets
The following medium-term targets have been set for 2018:
Relative targets
For sectors in which BNG primarily finances real estate, relative targets have been set based on CO2 emissions per square metre. Scientifically substantiated emission reduction pathways from the Carbon Risk Real Estate Monitor (CRREM) have been used for this purpose. These pathways are in line with the Paris Climate Agreement. For housing associations and healthcare institutions, BNG uses specific emission reduction pathways for these types of real estate. A separate pathway has been developed for municipalities and educational institutions, based on the emission reduction pathway for office buildings. BNG uses these emission reduction pathways to determine the targeted reduction for 2030 for each sector. We use 2018 as the base year. These relative climate targets differ per sector, because both the baseline measurement (2018) and the target emission level in 2030 differ per sector.
We have our medium-term emission reduction targets validated by the Science Based Targets initiative (SBTi). The SBTi is regarded as the gold standard for setting climate targets. It offers organisations a transparent and robust framework for setting emission reduction targets that are in line with the latest climate science. For 2025, we have confirmation from the SBTi that our targets are scientifically sound and comply with the Paris Climate Agreement.
We show the progress we have made in our annual climate progress report. In 2023, scope 1 and 2 emissions from our loan portfolio fell by 24% compared to 2018. This relates to emissions from sectors that we have been calculating since 2018 (91% of our long-term loan portfolio). We formulate separate targets for customer groups that have been newly added to the emissions measurement. We have also expanded our emissions measurements: we now map the associated CO2e emissions for 99.6% of our loan portfolio and 48% of our bond and medium-term note (MTN) portfolio. Customers are also taking clear steps:
We are also taking measures within our own organisation. Our office is being renovated to energy label A++, our vehicle fleet is becoming fully electric, and we report on our own emissions, including commuting and waste.
Our role extends beyond financing. We engage in strategic discussions, encourage sustainability plans, and develop targeted financing solutions. In this way, we assist our customers in achieving their climate goals – from district heating networks to emission-free public transport.
We strive for maximum transparency about our progress and continue to improve our approach. Every year, we refine our measurements, targets and strategy. Because only together with our customers, partners and investors can we make the Netherlands climate neutral.