Dutch bank ING has pledged to reduce financing of upstream oil and gas by 19% by 2040 from 2019 levels.
The company plans to align its portfolio with its climate goals by decreasing exposure and by engaging with clients to facilitate their transition to low carbon technologies.
ING says it increased renewable power generation financing by €1.9 billion (£1.7bn) in 2019 while reducing direct exposure to coal-fired power plants by 22%.
In its second climate progress report, the lender also notes a 65% increase of A-C energy efficiency label building in its commercial real estate portfolio.
ING CEO Steven van Rijswijk said: “We work together with our clients to facilitate their transition to low carbon technologies.
“And we’ve been working together with other banks and experts in defining a methodology standard to ultimately help the financial sector make a bigger impact.”