ING Bank N.V. (2021)

Adoption Date: 23 Jun 2003
Country of Headquarters: Netherlands
Region of Headquarters: Europe
Current EPFI Reporting Year/Period: 2021
Institutional Reporting: No Report Available

 

Please read the important notes and disclaimer for further information on ‘EPFI Reporting’, compliance and publication on the Equator Principles Association website.

Further information on this EPFI may be obtained through the Institutional Reporting hyperlink.

Project Finance Advisory Services

Total number mandated in the reporting period: 0

Project Finance Transactions

Total number that reached Financial Close in the reporting period: 38

Equator Principles Category A1 B2 C3
Sector
Mining 2 1
Infrastructure 1
Oil & Gas 1
Power 1 24 7
Others 1
Region
Americas 2 16 1
Europe, Middle East & Africa 8 5
Asia Pacific 1 3 2
Country Designation
Designated Country4 1 24 8
Non Designated Country 2 3
Independent Review
Yes 3 19 6
No 8 2
Totals 3 27 8
1

Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.

2

Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.

3

Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.

4

Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. See list of Designated Countries.

Project-related Refinance & Project-related Acquisition For Project Finance

This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.

Project Name Reporting For Project Finance (And Project-related Refinance & Project-related Acquisition Finance For Project Finance)

No. Project Name Sector Country(s) Year of Financial Close
1 Adani Green Renewable Energy Portfolio Rajasthan Power India 2021
2 Ichalkil and Pokoch Oil & Gas Mexico 2021
3 Kawakami 2 Power Japan 2021
4 West Wyalong & Woolooga Solar Farms Power Australia 2021
5 Windrose Holding Power Italy 2021
6 Azuma Kofuji Solar Power Project Power Japan 2021
7 PowAR - Tilt Renewables Power Australia 2021
8 Brazoria West Power United States 2021
9 Sodegaura Solar Photovoltaic Farm Power Japan 2021
10 Project Galileo Power Italy 2021
11 Solis Srl Power Italy 2021
12 EdgeConneX Warsaw II sp. z o.o. Power Poland 2021
13 Dogger Bank Wind Farm Phase C Power Japan 2021
14 Lucara Botswana (Pty) Ltd. Mining Botswana 2021

Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 24

Under EP4, project name reporting is required for Project Finance transactions that have reached Financial Close and encouraged for Project-Related Corporate Loans that have reached Financial Close.

Project-Related Corporate Loans

Total number that reached Financial Close in the reporting period: 1

Equator Principles Category A1 B2 C3
Sector
Mining
Infrastructure
Oil & Gas 1
Power
Others
Region
Americas
Europe, Middle East & Africa 1
Asia Pacific
Country Designation
Designated Country4
Non Designated Country 1
Independent Review
Yes 1
No
Totals 1
1

Category A – Projects with potential significant adverse environmental and social risks and/or impacts that are diverse, irreversible or unprecedented.

2

Category B – Projects with potential limited adverse environmental and social risks and/or impacts that are few in number, generally site-specific, largely reversible and readily addressed through mitigation measures.

3

Category C – Projects with minimal or no adverse environmental and social risks and/or impacts.

4

Designated Countries are those countries deemed to have robust environmental and social governance, legislation systems and institutional capacity designed to protect their people and the natural environment. See list of Designated Countries.

Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans

This information is required under EP4. EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.

Project Name Reporting For Project-related Corporate Loans (And Project-related Refinance & Project-related Acquisition For Project-related Corporate Loans)

Number of projects that were not disclosed as per the disclosure conditions specified in Annex B of the Principles: 1

Under EP4, project name reporting is encouraged for Project-Related Corporate Loans that have reached Financial Close and required for Project Finance transactions that have reached Financial Close.

EP4 applies for those transactions mandated after 1 October 2020 and that have reached Financial Close by the end of the period being reported.

Implementation of the Equator Principles

Applying the Equator Principles (EP)

As an Equator Principles Financial Institution (EPFI), 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 EP are embedded in ING’s ESR Framework, which is publicly available. Assessment and approval for any transaction potentially falling under the scope of EP requires involvement of the following three banking areas:

  • Front Office: The primary responsibility for the application of the ESR Framework lies with Front Office (FO) and deal FO departments originate transactions and have direct contact with the client or project sponsors. FO must evidence compliance with the applicable ESR sector policy to the satisfaction of the Approval Authority. FO is responsible for: verifying whether the client and transaction are in-scope of the ESR Framework; completing the ESR screening; applying mandatory evaluation as stipulated by the relevant ESR sector policy and/or Equator Principles; actively monitoring clients’ actions and timelines to assure compliance with the applicable ESR sector policy; acting on and monitoring client’s compliance with conditions.
  • Risk Managers: Credit Risk Management (CRM) provides the 2nd Line of Defence control function for FO and as such verifies compliance of a transaction with the ESR Framework to the satisfaction of the Approval The CRM function is performed by either the Local Risk Manager (LRM) or a Sector or Product Senior Credit Officer (SCO). In the context of EP, CRM provides control over Front Office activities and generally sign off on the environmental and social impacts for ’Low Risk’ or ‘Medium Risk’ EP deals, which refer to Category C projects or Category A and B in designated countries.
  • Environmental and Social Risk (ESR): The ESR department must verify compliance with the applicable policy to the satisfaction of Approval The ESR department sits within risk management and is 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 Risk framework and in particular, the Equator Principles 4 (EP4). 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 EP4. 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.

ING remains an active member and strong supporter of the Equator Principles. ING was elected to the EP Steering Committee in 2022 for a minimum 2-year term and 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.

For further information please refer to:

ING Group Annual Report 2021

https://www.ing.com/About-us/Profile/Annual-reporting-suite/Annual-Report/2021-Annual-Report.htm

ING Group Annual Report 2020
https://www.ing.com/Investor-relations/Financial-performance/Annual-reports.htm

ING Environmental and Social Risk Framework
https://www.ing.com/Sustainability/Sustainable-business/Environmental-and-social-risk-policies.htm

ING’s Environmental Approach
https://www.ing.com/web/file?uuid=5e17fa01-ad5d-403a-9884-e61e18ab53ba&owner=b03bc017-e0db-4b5d-abbf-003b12934429&contentid=33981

ING’s 2022 Climate Report

https://www.ing.com/Newsroom/News/ING-publishes-climate-report.htm

ING’s 2022 Human Rights Review

https://www.ing.com/Newsroom/News/What-human-rights-risks-do-customers-face.htm

ING and the Dakota Access pipeline
https://www.ing.com/ING-in-Society/Sustainability/ING-and-the-Dakota-Access-pipeline-1.htm