ING Bank N.V. (2019)

Applying the Equator Principles (EP)

As an Equator Principles (EP) Financial Institution, we implement the EPs in our internal environmental and social policies, procedures and standards. We do not provide project finance or project-related corporate loans to clients that are unable, or choose not, to comply with the principles. All EP transactions are reviewed at least annually, at which time covenant compliance is typically affirmed.

The EPs are embedded in ING’s ESR Framework, and require involvement of the following three banking areas:
– Front Office: departments originate transactions and have direct contact with the client or project sponsors.
– Risk Managers: departments that provide control over Front Office activities and generally sign off on the environmental and social impacts for ’Low Risk’ or ‘Medium Risk’ EP deals, which generally refer to Category C projects or Category A and B in designated countries.
– Environmental and Social Risk: department within risk management fully dedicated to assessing environmental and social impacts associated with ’High Risk’ transactions, which in the context of EP generally refer to Category A and B projects in non-designated countries. Negative advice from the ESR Desk can only be waived by ING’s highest Credit Committee or the Executive Board. In practice such waivers are exceptional.

As our risk assessment processes are decentralised, each front-office team must be highly familiar with ING’s Environmental and Social framework and in particular Equator Principles III (EPIII). Hence, ING makes significant investment in internal training programs to help front office and risk management staff in assessing the environmental and social risk under EPIII. ING’s ESR team also provides training (both in-person and via webinars) to hundreds of colleagues around the world every year in risk, front-office, KYC and compliance teams, so that ESR knowledge, and knowledge on the Equator Principles, is built on and spread. Training in 2020 will concentrate on the implementation of EP4.

ING remains an active member and strong supporter of the Equator Principles. Although ING stepped down from the EP Steering Committee in 2018, we remain active within the Equator Principles Association by participating as a member of several working groups, including those on social risks, climate change and scope – and co-leading the capacity building and training working group. In addition ING co-coordinated the most recent update of the Principles that resulted in EP4, which is set to come into effect in October 2020.

For further information please refer to:

ING Group Annual Report 20192018

ING Group Annual Report 

ING Environmental and Social Risk Framework

ING’s Environmental Approach

ING and the Dakota Access pipeline