Bank of Ireland Raises EUR 750 Million for Sustainable Projects, Accelerating Green Finance
Bank of Ireland secures EUR 750 million for sustainable projects, driving green finance. Accelerating sustainability and supporting a net-zero economy.
The Bank of Ireland secured its funding through its second green bond issuance of 2023. The funds will be dedicated to financing clean transportation, renewable energy, and green buildings. With this latest issuance, Bank of Ireland has now raised a total of EUR 4 billion through its Green Bond Framework this year, reaffirming its commitment to driving sustainable development.
Setting ambitious targets
Bank of Ireland stands out as one of the pioneering Irish banks that have established scientifically-validated targets for reducing greenhouse gas emissions. These targets cover 76% of the bank's loan book and encompass all of its own operations. The bank has also set a clear objective to increase sustainability-related lending on its balance sheet from EUR 8 billion in 2022 to EUR 15 billion in 2025 and further to EUR 30 billion by 2030. Notably, green mortgages already constitute half of the bank's new mortgage lending in Ireland.
Transitioning towards a net zero economy
Bank of Ireland remains dedicated to collaborating with its customers, colleagues, and communities to support their transition towards a resilient, net zero economy by 2050, in alignment with the ambitions and targets of the Irish and UK governments. The bank has made significant progress in supporting green loans and mortgages for customers while transforming its own operations and reducing its carbon footprint. Moving forward, Bank of Ireland will continue to prioritize practical and effective solutions that contribute to Ireland's journey towards a low-carbon future.
Advancing climate risk management
In related eco-friendly initiatives, Finastra and Green RWA have jointly launched the Climate-Extended Risk Model (CERM) Sandbox. This innovative platform offers banks an interactive and immersive experience to understand and manage climate risks in a user-friendly manner. By integrating the CERM into the existing capital framework, banks gain a comprehensive approach for identifying and assessing both physical and transition climate risks, enabling more accurate calculations of potential losses. The launch of the CERM Sandbox supports Green RWA's goal of facilitating energy transition financing and enhancing financial resilience in the face of climate change.
Embracing sustainability in banking practices
Sustainability has become an integral part of every business strategy, including banking. MUFG Bank emphasizes that sustainability is no longer just a standalone pillar but is now integrated into all aspects of the banking ecosystem. With a focus on environmental, social, and governance (ESG) considerations, banks are strategically committed to achieving net-zero commitments, expanding ESG-connected product ranges, integrating ESG into operating models, and engaging with clients on their transition strategies. Operationally, banks incorporate ESG principles in product development, systems, controls, and decision-making processes. Moreover, banks actively ensure compliance with current regulations and prepare for future requirements in reporting both financial and non-financial information.
The initiatives undertaken by Bank of Ireland and the broader banking sector highlight the increasing importance and prioritization of sustainability within the industry. These efforts demonstrate the commitment to driving positive change and supporting the transition towards a more sustainable and resilient future.