BNG climate report: majority of clients well on their way to achieving their 2025 CO2e reduction target

BNG views combating the consequences of climate change as a joint responsibility. Therefore, reducing our CO₂ footprint is a key priority in BNG’s operations and we have been measuring the CO₂e emissions of our clients in the loan portfolio since 2018. For the client portfolios for which we have been mapping emissions since 2018 – social housing associations, healthcare, education, municipalities, provinces, water boards and drinking water companies - in 2023, our most recent measurement year, absolute Scope 1 and 2 emissions fell by 3% compared to 2022 and by 24% compared to 2018. These sectors are close to achieving the reduction target of 25% set by BNG for 2025. The total emission intensity of our loan portfolio increased by 24% due to the expansion of our emission measurements to include public infrastructure companies.

Emission measurement coverage ratio increased

We made significant progress last year: we are now mapping emissions for almost all our clients. This gives us an increasingly accurate picture of the impact of our financing and allows us to accelerate efforts with clients to achieve the Paris Agreement climate targets: net zero CO₂e emissions by 2050. In addition, we identified the financed CO₂e emissions resulting from our bond and medium term notes portfolio for the first time: in 2023, we succeeded in measuring CO₂e emissions for 48% of this portfolio. We also expanded the emission measurements of our own business operations to include commuting, other business travel and waste.

Making our own business operations more sustainable

After the sustainable demolition of our office building, focusing on the reuse of materials and minimum waste production, this year work began on its sustainable reconstruction, featuring modern installations and improved insulation. As a result, our renovated building will soon have an A++ energy label. In addition, we have updated our mobility policy. Our lease policy now only offers electric cars and rail transport has become the standard for business trips of up to 750 kilometres. 

Situation by client group

In addition to absolute targets for CO₂e emissions resulting from the loan portfolio, BNG has set specific targets for the CO₂e emissions per m² for the different client groups. Social housing associations, which make up more than half of our loan portfolio, achieved an emission reduction of 16% compared to 2022. As a result, this sector complies with the 1.5°C scenario. Municipalities play an important role in achieving Dutch climate targets. The CO₂e emissions per m2 of municipal real estate fell by 12% in 2023 compared to the previous year. Our clients in the healthcare sector have achieved a 17.0% decrease in their CO₂e emissions per m2 since 2018; compared to 2022, the decrease is 5%. With a focus on sustainable construction and energy, our clients in the education sector achieved an impressive 18% reduction in their CO₂e emissions per m2 in 2023. Public infrastructure and energy remains the most emission-intensive client group, underlining the importance of targeted efforts to achieve further CO₂e reductions in this sector.

Financing and support for sustainability and growth 

Although the sustainability challenge in some sectors is complex and cannot be solved overnight, BNG supports green and social frontrunners, as well as clients who are in the middle of the (energy) transition or have just started their sustainable journey. We help our clients become more sustainable with targeted financing and we discuss their progress in this area based on individual ESG ratings, climate plans and reduction targets. In addition, BNG integrates ESG criteria into its loan acceptance and client relationships. As a result, we promote sustainable growth and limit risks.