NWB Bank has insight into the climate impact of 94.5% of its loan portfolio

In 2019 we committed to the Cabinet’s climate targets, along with virtually the entire financial sector. Part of this agreement is a commitment to report on the climate impact of our financing from 2020 onwards. I​​​​mmediately afterwards the bank set to work on this. We have now charted the climate impact of 94.5% of our loan portfolio. In 2019 NWB Bank had charted the CO2(eq) emisisons of 93% of its loan portfolio.

The research institute Telos/Het PON, which is affiliated with Tilburg University, has helped us chart the climate impact and apply the PCAF methodology. PCAF (Partnership for Carbon Accounting Financials) offers a framework and harmonised methodology that increases the transparency and awareness of carbon emissions and reporting. We hereby publish our 2020 report (including methodology). A public-friendly version is included for readability.

We have now charted the climate impact of 94.5% of our loan portfolio. Our loan portfolio had total emissions of 1,594,836 tonnes of CO2 equivalent at year-end 2019. This is 135,284 tonnes less than the total at year-end 2018. This is an excellent development, because the total loan portfolio on which the calculation was made increased by €1.4 billion in the reporting period in question. The emissions intensity (tonnes of COeq / million EUR) decreased from 38.2 to 34.1 tonnes per million euros. The water authorities, local authorities and housing associations were responsible for the largest decrease in emissions intensity. Among other things, the water authorities invested in renewable energy projects in the Netherlands, while the housing associations improved the energy labels of their rental properties.

Charting your climate impact is one thing, but reducing it is another. Part of our commitment to the Climate Agreement is to have action plans in place by 2022 that help reduce carbon emissions. Last year, we started setting targets that are in line with or even more ambitious than those of the Climate Agreement. We use the Science-Based Targets methodology for this purpose. Emissions reduction will ultimately have to be achieved by our clients.