The Science Based Targets initiative (SBTi) has validated Triodos Bank’s near-term emission reduction targets to achieve net-zero in 2035 as being science-based.
Today, Triodos Bank publishes its validated science-based targets.
The emission reduction targets apply to a large part of Triodos Bank’s portfolio of loans and investments and Triodos Bank’s own operations. Triodos Bank has opted for the most ambitious target to bring all emissions related to its own operations in line with the scenario limiting global warming to 1.5°C by no later than 2030. For emissions related to Triodos Bank’s loans and investments the target year is 2035.
Science-based pathway
Science-based targets provide a clearly defined pathway for companies to reduce greenhouse gas (GHG) emissions, helping prevent the worst impacts of climate change and future-proof business growth. Targets are considered science-based if they are in line with what the latest climate science deems necessary to meet the goals of the Paris Agreement: limiting global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C.
Jacco Minnaar, Chief Commercial Officer of Triodos Bank: “At a time when climate scientists are giving a final warning to prevent a climate catastrophe, it is crucial that the financial sector aligns its portfolio with the latest scientific insights into limiting global warming to 1.5°C. For Triodos Bank, the validation of our emission reduction targets as science-based is an important step in our journey towards net-zero and a confirmation that our approach to reduce greenhouse gas emissions is in line with the Paris Agreement.”
Broader net-zero ambition
The validated science-based near-term targets are part of Triodos Bank’s broader ambition to be net-zero as early as possible, at the latest by 2035. To reach this goal, the greenhouse gas emissions of all Triodos Bank's loans and investments will be greatly reduced. The remaining emissions will be balanced or ‘inset’ by investing considerably in nature projects that remove greenhouse gases from the air.
Holistic approach
Triodos Bank has adopted a holistic emissions reduction approach and wants to reduce emissions, whilst also considering for instance broader ecosystem health and social inclusion of all people. This is reflected in the four components underlying Triodos Bank’s validated emission reduction target:
• Triodos Bank aims for a significant reduction in emissions from its business lending, primarily property-based emissions. Triodos Bank will do this via engagement with its customers, possibly using incentives, while providing tools and our network. In addition, it promotes the use of bio-based materials in new construction and renovation.
• Triodos Bank maximises its contribution to the energy transition of the built environment and lower carbon intensity of its portfolio. With a long history of supporting clean energy, Triodos Bank will finance new green energy infrastructure - generation, storage, green jobs and a path to a fully sustainable renewable energy sector.
• Triodos Bank aims for all its investments (listed and private debt and equity) to reduce in carbon intensity. It will collaborate with others and will stimulate private-public cooperation.
• A substantial amount of Triodos Bank’s future portfolio will consist of new natural capital, nature-focused finance and regenerative organic agriculture, sequestering carbon and supporting biodiversity.