AIB : aims for green lending to account for 70 per cent of new customer lending by 2030

2 November 2020

AIB aims for green lending to account for 70 per cent of new customer lending by 2030

•  Updates on key green achievements at its 4th Sustainability Conference taking place today

  •  Sets deadline for achieving net zero carbon emissions in its own operations by 2030

To mark its Fourth Sustainability Conference, AIB today highlighted a range of measures the bank has taken over the last year to help steer Ireland towards a more sustainable economy and set out its ambition to increase its momentum for change.

Recognising that the majority of AIB's carbon footprint comes from lending to support our customers, AIB also announced that green lending should account for 70 per cent of its new customer lending by 2030. This means financing activities that will help decarbonise the economy and supporting customers to transition to a low carbon economy.

During 2020, AIB delivered on its commitment to put sustainability at the heart of its strategy by raising €1 billion in the first Green Bond issuance by an Irish Bank, launching a €300 million Social Housing Fund to deliver 2,000 sustainable A-rated homes and lending €245 million in green mortgages at discounted rates to help customers buy energy efficient homes and a zero percent finance offer on Electric Vehicles for the Nissan Leaf.

Speaking at the launch of Climate Action Week Ireland, sponsored by AIB, Chief Executive Officer Colin Hunt said that, as the world faces an environmental and climate emergency, it is critical that banks like AIB use their financial strength to lend to and invest in sustainable businesses.

"Managing climate change is the most important challenge facing this generation and the role of finance in supporting the transition to a low carbon economy is pivotal. When I became Chief Executive last year, I put sustainability at the heart of AIB's strategy. As a bank we are focussed on ensuring AIB is leading the Irish financial market in climate change action by creating a virtuous green circle, where sustainable lending practices in turn attract the capital that supports further lending for the benefit not only of our customers and the wider economy, but also the fragile planet which sustains us all. For the fourth year we have sourced pioneering thinkers and doers from across the globe to address our annual Sustainability Conference and share their inspirational ideas on tackling climate change.''

Also today, AIB became the first Irish bank to pledge to operate as carbon neutral by 2030, using a "net zero'' approach. That means cutting greenhouse gas emissions to as close to zero as possible - through elimination of carbon rather than offsetting it.

The bank has already made significant progress, reducing its direct emissions by 40% since 2014 including additional initiatives such as reductions in the use of water, waste and paper; transition tothe use of renewable energy; and the removal of all single use plastics starting with our head office locations.

To help AIB reach its net zero commitment, additional implementation of longer term measures will include, but are not limited to: investment in energy efficiency measures across the bank's network; a reduction in business travel; and the introduction of a new Responsible Supplier Code across our 4,000 supplier base.

AIB continues to lend in to the Irish economy through its €5 billion Climate Action Fund, launched last year, which supports renewable energy projects, low carbon offices and the construction of energy efficient homes. In other initiatives, AIB has also:

• o Established a Socially Responsible Investment (SRI) Bond Framework & related SRI Bond Portfolio

• o Become the only Irish bank to be a Founding Signatory of the United Nations Environment Programme Finance Initiative (UNEP FI ) Principles for Responsible Banking

Notes to Editors

1. Updates on progress

AIB will update on progress towards meeting its ambitions and targets as part of its reporting cycle.

2.

AIB's 4th Sustainability Conference - Keynote Speakers

•  Paul Polman, Co-founder and Chair of IMAGINE

•  Christiana Figueres, the former Executive Secretary of the United Nations Framework Convention on Climate Change; and

•  Dame Ellen MacArthur, Founder of the Ellen Mac Arthur Foundation The Circular Economy

See alsowww.climatefinanceweek.ie

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