Reporting – ING Bank N.V. (2019)

Adoption Date:23 June 2003
Country of Headquarters:The Netherlands
Region of Headquarters:Europe
Institutional Reporting Hyperlink:ING Group Annual Report 2019
Current EPFI Reporting Year/Period:2019
EPFI Reporting in Compliance:Yes

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 above.

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: 23

Totals4127
Totals4127
SectorCategory ACategory BCategory C
Mining2
Infrastructure11
Oil & Gas1
Power2106
Others
RegionCategory ACategory BCategory C
Americas1
Europe, Middle East & Africa24
Asia Pacific187
Country DesignationCategory ACategory BCategory C
Designated11127
Non-Designated3
Independent ReviewCategory ACategory BCategory C
Yes4103
No24

1Designated 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. For the list of Designated Countries, go to: https://www.equator-principles.com/index.php/ep3/designated-countries

PROJECT NAME REPORTING FOR PROJECT FINANCE TRANSACTIONS

No.Project NameSectorHost Country Name/ Project LocationYear of Financial Close
1BILBAO OFFSHORE HOLDING LIMITEDPowerUK (United Kingdom)2019
2COMPAÑÍA MINERA TECK QUEBRADA BLANCA SAMiningChile2019
3MARPANI SOLAR 9PowerSpain2019
4Yunlin Offshore WindPowerTaiwan2019
5HitachiOmiyaPowerJapan2019
6HES Hartel Tank Terminal B.V.Oil & GasNetherlands2019
7Project WavePowerPortugal2019
8Guinea Alumina Corporation SAMiningGuinea2019
9Formosa 2 Offshore WindPowerTaiwan2019
10Project SunInfrastructureSpain2019

13 projects were not disclosed as per the disclosure conditions specified in Annex B of the Equator Principles

PROJECT-RELATED CORPORATE LOANS

Total number that reached financial close in the reporting period: 3

Totals120
Totals120
SectorCategory ACategory BCategory C
Mining
Infrastructure
Oil & Gas11
Power1
Others
RegionCategory ACategory BCategory C
Americas
Europe, Middle East & Africa12
Asia Pacific
Country DesignationCategory ACategory BCategory C
Designated1
Non-Designated12
Independent ReviewCategory ACategory BCategory C
Yes12
No

1Designated 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. For the list of Designated Countries, go to: https://www.equator-principles.com/index.php/ep3/designated-countries

IMPLEMENTATION OF THE EQUATOR PRINCIPLES

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 2019
https://www.ing.com/web/file?uuid=233b1556-54d9-4fb7-9385-c1a4e3f083f1&owner=b03bc017-e0db-4b5d-abbf-003b12934429&contentid=49335

ING Group Annual Report 2018
https://www.ing.com/web/file?uuid=cd92e960-46e7-4f48-a2ae-8fb590d30714&owner=b03bc017-e0db-4b5d-abbf-003b12934429&contentid=46311

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