AMSTERDAM - ING Bank must stop its cooperation with polluting companies "that endanger our future," Milieudefensie demanded on Friday. To enforce this, the climate activist organization is filing a lawsuit against the Dutch bank. The country's association of banks, NVB, responded to say that it is counterproductive for banks and environmental groups to square off in front of a judge.
ING reported in 2022 that it is responsible for the emissions of more than 61 million metric tons of greenhouse gases. That is more than all other Dutch banks, and yet Milieudefensie believes that the actual share is higher. The organization previously accused ING of being responsible for 102 million tons of carbon emissions. A large part of ING's emissions are caused by loans to and partnerships with polluting companies, the climate organization emphasized. As such, ING must slash the emissions linked to the bank by nearly 50 percent by 2030, Milieudefensie said.
All polluting companies that ING does business with must make a plan to reduce emissions and achieve climate goals. ING is now "the Netherlands' most influential banker on the climate crisis," said Milieudefensie leader Donald Pols. The climate organization found success in the past by filing a massive lawsuit against Shell.
In 2021, Milieudefensie won that lawsuit when the court determined that Shell must reduce its carbon emissions by at least 45 percent by 2030, when compared to 2019 levels. Milieudefensie announced at the end of November that the organization now also wants to demand "climate justice policy" in the financial sector.
Milieudefensie has commissioned research in which seven banks, insurers and pension funds in the Netherlands were examined. Credit insurer Atradius performed the worst, followed by ING, Rabobank and ABN Amro. A spokesperson said that ING was chosen because the organization believes it can make a greater impact. "Ultimately, the climate policy of all companies must be improved, so future issues cannot be ruled out."
The climate organization previously left it unclear which of the companies mentioned should defend themselves in court. According to Milieudefensie, ING is taking "baby steps" in the right direction. Ultimately, the "policy is still seriously inadequate," the organization stated. The bank recently announced measures, including a plan to stop financing oil and gas production by 2040, and to triple its loans in sustainable energy in the next few years.
Currently, only Milieudefensie and Milieudefensie Jong are plaintiffs in the lawsuit. The organization still plans to recruit co-plaintiffs. "We can count on tens of thousands of Dutch people to join," said Pols.
Banks want to work with environmental clubs, not go to court
Banks and environmental organizations would be better off continuing to work together than fighting each other in court, said Medy van der Laan, the chair of banking association NVB. "To realize a sustainable economy, effective interaction is required between the government, the financial sector and the real economy," said Van der Laan. "Environmental organizations can work with us to achieve this, but lawsuits are counterproductive."
Banks have already committed to achieving climate goals, the NVB said. This concerns both the goals from the Paris Climate Agreement and the goals in Dutch climate policy with regard to reducing carbon emissions.
The agreements made about this were laid down in the Dutch financial sector's Climate Commitment. In that deal, financial institutions submitted their plans to enact improvements, according to the NVB.
