ING Is Sued in Landmark Dutch Case Targeting CO2 Emissions

(Bloomberg) — ING Groep NV is being sued in the Netherlands for allegedly failing to take adequate steps to rein in its emissions.

The Dutch branch of Friends of the Earth, Milieudefensie, contends that ING “has a huge impact on the climate and must take responsibility for it,” according to the text of the suit it sent to ING on Friday. “ING must clearly report all emissions for which the company is responsible, but must also halve those emissions.”

A spokesperson for the Dutch bank confirmed receipt of the filing. 

The suit, which follows a similar case in France against BNP Paribas SA, highlights the very different legal perils that banks face on either side of the Atlantic. In the US, financial firms risk litigation if they’re suspected by the Republican Party of embracing pro-climate policies. In Europe, whose banks are among the world’s greenest, it’s the other way around. 

Friends of the Earth alleges that ING’s emissions have risen since 2016 and now dwarf those of Netherlands. Roger Cox, the lawyer representing Milieudefensie, says the goal of the lawsuit is “to pierce the status quo and change the way companies do business.”

The nonprofit’s strategy materialized about two years ago, after an initial analysis of the climate policies of almost 30 Dutch companies identified ING as the ideal target, according to Cox. “Through them, you address a lot of other sectors,” he said.

The team examined ING’s carbon footprint — looking at loans, project finance and investments — while the lawyers constructed an argument around a legal principle known as duty of care, which obliges companies to avoid damage to people or property. 

ING has long been aware the case was coming and has had time to study the allegations before they were formally filed. In an interview on Thursday, ING’s head of business ethics, Arnaud Cohen Stuart, said the demands put forward by Milieudefensie are “unrealistic and unreasonable.” ING takes climate “very seriously,” he said. 

In a statement on Friday, ING said it’s now prepared for a “lengthy” court process. “In the meantime, most importantly, we will continue to progress with our climate-action strategy,” it said.

The bank also pointed to the challenges of reaching emissions targets, as long as the wider economy still relies heavily on fossil fuels. 

“It’s important to note that as society transitions to a low-carbon economy, about 80% of energy used globally today is still fossil-fuel based,” ING said on Friday. “So even though we finance a lot of sustainable activities, we still finance more that’s not sustainable. That is a reflection of the current global economy.”

ING says it has taken a number of steps to reduce its carbon footprint. For example, it no longer provides dedicated finance for new oil and gas fields, and its financing of coal-powered power plants is expected to drop to near-zero by the end of the year.

Earlier this week, ING had its climate targets validated by the Science Based Targets initiative, making it the only global systemically important bank to receive the certification.

“It’s a confirmation that we are on the right track to address climate change,” Stuart said.

In its suit filed on Friday, Milieudefensie made the following demands:

On a September morning last year, staff from Friends of the Earth gathered at their Amsterdam office, reviewing a ING climate report. They then presented their findings to Cox, who joined on a video call from his base in the southern city of Maastricht.

Two months later, the team got a shock when a Dutch appeals court overturned a 2021 ruling that Shell Plc reduce its emissions by 45% by 2030 from 2019 levels.

“It was a disappointment,” said Donald Pols, Milieudefensie’s director, in a March 20 interview.

But the nonprofit took comfort from the court’s view that Shell has a duty to reduce its emissions. It then decided to move ahead with its legal case against ING.

–With assistance from Dale Crofts and Sarah Jacob.

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