Bank of Ireland discloses criteria for classifying sustainable finance and investment
- Sustainable Finance Framework provides greater transparency and will help the Bank report on progress and identify potential new products
- Bank of Ireland’s sustainable finance rose 35% to €11.1bn in 2023, led by green mortgages
29 April 2024 – Bank of Ireland has today disclosed its criteria for classifying sustainable finance in order to track and report on its progress and identify potential new sustainability-focused products. The Bank also given details of its €11 billion sustainable finance portfolio.
In its first Sustainable Finance Framework, the Bank sets out detailed criteria under which lending can qualify as green finance, social finance or sustainability-linked finance across the Group. The areas covered include residential and commercial buildings, sustainable food and agriculture, energy efficiency, renewable energy, pollution prevention and control, sustainable water management, clean transportation, affordable housing, and access to healthcare.
The Bank has already launched a number of innovative sustainable finance offerings such as its Enviroflex loan, designed to encourage sustainable farming practices, and a green capex loan for corporate customers. And in a first for the Irish market, the Bank’s new ‘EcoSaver Mortgage’ has transformed its pricing of fixed-rate mortgages to align with Building Energy Ratings (BER), offering discounted fixed rates for all properties rated from A to G.
Today the Bank also published a detailed breakdown of its sustainable finance portfolio which grew to €11.1 billion at the end of 2023, led by an increase in green mortgage lending. In 2023 the Bank increased its sustainable financing targets to c.€15 billion by 2025 and c.€30 billion by 2030.
Eamonn Hughes, Chief Sustainability and Investor Relations Officer at Bank of Ireland said: “It’s important that we give our stakeholders – whether they are investors, customers or colleagues – the greatest possible transparency on our approach to sustainable financing. This comprehensive framework and the composition of our sustainable finance portfolio are publicly available for everyone to see and they serve as the foundation for Bank of Ireland to achieve our ambitious sustainability targets in the coming years.”
Composition of Bank of Ireland’s sustainable finance portfolio:
| Sustainable Finance | 2023 (€bn) | 2022 (€bn) | Increase % * |
|---|---|---|---|
| Customer lending | 11.1 | 8.2 | 35% |
| Of which: | |||
| ROI green mortgages | 6.5 | 4.0 | 59% |
| Green commercial real estate | 1.7 | 1.7 | 2% |
| UK green mortgages | 1.3 | 1.1 | 21% |
| Sustainability-linked loans | 1.2 | 1.1 | 10% |
| Renewables project finance | 0.3 | 0.2 | 46% |
| Electric vehicles | 0.1 | 0.1 | 73% |
*Percentages presented are calculated from the underlying unrounded amounts.
The Sustainable Finance Framework is available here.
The Sustainability Report 2023 is available here.
Note to Editors:
Bank of Ireland has drawn on industry guidelines and principles in developing this Framework in collaboration with Morningstar Sustainalytics to ensure it reflects current market practice. Morningstar Sustainalytics is a leading ESG research, ratings and data firm that supports investors around the world with the development and implementation of responsible investment strategies.