Bank of Ireland sets the standards with scientifically-validated greenhouse gas emission reduction targets
- Targets validated by SBTi cover all of Bank’s own operations and 76% of loan book
- Bank targets 49% reduction in emissions from own operations by 2030
- Bank targets 48% reduction in mortgage loan book financed emissions and 56% reduction in commercial real estate portfolio emissions by 2030
09 Dec 2022 – Bank of Ireland Group today announced 2030 greenhouse gas emission reduction targets which have been formally validated by the Science Based Targets initiative (SBTi). The Bank is one of the first in Europe, to have its goals validated by the SBTi, and will regularly and transparently report on progress towards its targets.
The SBTi has validated Bank of Ireland’s target of a 49% reduction in greenhouse gas emissions from its own operations (Scope 1 and 2) by 2030, which supports its broader aim of net zero emissions by 2030. Reduction targets have also been set for emissions arising from the Bank’s lending activities (Scope 3) which are consistent with levels required to meet the goals set by the Paris Agreement and are supported by increased sustainable lending as part of the important green transition for wider society.
Under the targets, Bank of Ireland is committing to a 48% reduction in mortgage portfolio emissions (UK & Ireland) and a 56% reduction in commercial real estate portfolio emissions by 2030. The base year for the reduction targets is 2020. 25% of the Bank’s corporate loan portfolio will have SBTi-validated targets by 2025.
The SBTi is a collaboration between the Carbon Disclosure Project, the United Nations Global Compact, World Resources Institute and the Worldwide Fund for Nature. It defines and promotes best practice in science-based target setting and independently assesses companies’ emission reduction goals. At end 2021, more than 2,200 companies covering over a third of the global economy’s market capitalisation, were working with the SBTi.
Eamonn Hughes, Chief Sustainability & Investor Relations Officer, said: “The SBTi plays an extremely important role in ensuring emission reduction ambitions set by businesses are in line with the latest climate science. These independently validated targets will guide our emission reduction plans and are contingent on the current UK and Irish governments’ Climate Plan ambitions and planned actions. We are proud to be one of the first banks in Europe to have these targets approved.
“The vast majority of our emissions are associated with our lending into the economy so meeting these challenging targets will require real progress on national climate action plans in both the UK and Ireland. It will also, of course, depend on our customers’ own actions. Our ambition is to strongly support them in their transition to a greener way of living and doing business.
“The financial services sector is embedded in our economies and societies, and from this position it can be a key enabler of the low-carbon transition. Bank of Ireland’s setting of emission reduction targets shows its commitment to supporting real change for our customers and society.”
Enabling the low-carbon transition
Bank of Ireland is committed to supporting the transition to a resilient, net zero economy by 2050, in line with the ambitions and actions of the UK and Irish Governments and the goals of the Paris Agreement. The Bank will help facilitate this transition through its core financing and advisory capabilities and will continue to develop and expand its range of sustainable products and services, all supported by its green bond programme.