"Time is running out. Global CO2 emissions are still increasing. The goal of limiting global warming to 1.5 degrees celsius is becoming increasingly difficult to achieve. The time for talking is over; urgent action is now needed to limit further climate damage. The proposed measures are a step in the right direction. That is why Triodos Bank supports the Climate Agreement."
Triodos Bank was closely involved in the drafting of the agreement. The sustainable bank will continue its efforts to make it a success. Peter Blom: “Our commitment was, and remains, that everyone should be able to participate in the transition to a low carbon society. We believe that the burden of the transition should be shared fairly and that the financial sector must take its responsibility to rapidly make its balance sheets and investments more sustainable by phasing out all fossil assets."
1.5 degree Celsius
The aim of the Climate Agreement is to reduce CO2 emissions to 49 percent in 2030, in line with efforts to keep an increase in temperature from pre-industrial levels to under 1.5 degrees, the safe upper limit defined by the IPCC. “We would like to see in the final agreement that we are aiming for a reduction of 55 percent in 2030. Global warming must certainly not exceed 1.5 degrees," says Peter Blom.
Commitment financial sector
The financial sector is committed to contribute to the Climate Agreement. It will impose strict climate requirements on all relevant financing and investments in order to reduce CO2 emissions on balance sheets. Triodos Bank has advocated this, just like Gerard van Olphen (CEO of APG).
The commitment reflects the importance to society of the financial sector. Unfortunately, the commitment still leaves room for only a limited reduction in fossil assets, but Triodos Bank sees it as a major gain that financial institutions are now setting concrete goals. Triodos Bank will continue to strive for a complete divestment of all fossil assets by banks, asset managers, insurers and pension funds.
Triodos Bank also contributed to climate action in building-related financing. With this form of financing, mortgage lenders link a sustainability loan to the property instead of the person. This makes it possible for everyone to make homes more sustainable. In addition, an agreement has been reached to make sustainability measures financially available for the 1.2 million people who depend on their owners’ association.
Triodos Bank and the Climate Agreement
Triodos Bank’s mission is to let its clients' money work for positive social, environmental and cultural change. Since its foundation, therefore, Triodos Bank has financed sustainable energy projects. In its 2018 annual report, Triodos Bank reports for the first time on the CO2 impact its loans and investments. And, because of its mission, Triodos Bank was closely involved in drafting the Climate Agreement: Jeroen Pels (Head of Mortgages) at the Built Environment sector table in the role of chair of the working group on financing private homes; Itske Lulof (Climate and Energy Director) in the task group that examined the financing of the plans; and Kees Vendrik (Chief Economist) as Chair of the electricity sector table.