Bank of Ireland has published its 2024 Sustainability Report, which highlights how it has embedded ESG across its business.
Bank of Ireland is on track to achieve its €15bn sustainability-related finance target in early 2025 and predicts it will also smash its €30bn target for 2030.
In its 2024 Sustainability Report, the Bank said it had deployed €14.7bn in sustainability-related finance in 2024, up 32% year-on-year.
“Our purpose in Bank of Ireland is to help our customers, our colleagues, our shareholders and society to thrive”
The Bank revealed that it is supporting change in the financial landscape in Ireland with 28% of corporate lending customers now setting science-based targets (SBTs).
Sustainable purpose
“As the national champion bank, we have a crucial role to play in advancing the sustainability agenda, in line with government actions and ambitions,” said Myles O’Grady, Group CEO of Bank of Ireland.
“We want this role to be positive, tangible and measurable. Sustainability is one of the Group’s three core strategic pillars. This was purposefully chosen because we believe that supporting our customers, colleagues and society, while appropriately allocating capital and investing in capabilities and risk management, will help us seize commercial opportunities and create long-term value for our shareholders. This mindset brings long-term perspectives to our actions.
“The financial system is evolving from the initial step change of commitments made earlier in the decade to a greater focus on our material ESG impacts and opportunities, aligning with science and best practice. We view each of the E, S and G factors as inextricably interlinked, and want to deliver practical sustainability solutions that make a difference for our stakeholders,” O’Grady said.
E for Environment
The Bank says it has has reduced emissions across the organisation by 47% since 2020.
Key initiatives in 2024 included a €5.5m investment in energy-efficient LED lighting and a further €3m investment over three years in energy efficiency improvements across a number of sites.
The Bank said it is driving change in the financial landsape through innovative new loan platforms such as Enviroflex agri-business sustainability loans which are available to 95% of dairy farmers nationwide and are based on environmental performance.
It has also launched the EcoSaver mortgage product for homebuyers which is linked to the energy efficiency of homes.
S for Social
The impact Bank of Ireland is making in Irish society was demonstrated across a number of initiatives, including a €4m investment in financial literacy in 2024. More than 105,000 students took part in its financial literacy programmes during the year and over 28,000 adults were supported with financial education.
As well as helping to make people smarter about money, the Bank is also focused on helping to protect their money and last year invested €50m on customer fraud prevention and protection.
This includes a €15m investment in new fraud prevention technology as well as various high-profile consumer awareness campaigns.
Investment in communities across Ireland was made possible with €500,000 distributed to organisations across the country through the Begin Together Community Investment Fund.
The Bank’s own staff are also helping to make a difference across the world via the Staff Charitable Fund which, during 2024, distributed more than €530,000 to support 26 projects in 15 countries worldwide, helping to transform the lives of in excess of 251,000 beneficiaries.
G for Governance
Bank of Ireland was among the first wave of businesses in the EU reporting under the Corporate Sustainability Reporting Directive (CSRD).
CSRD is an EU law that mandates companies to report on their ESG impacts, with the aim of increasing transparency and improving sustainability reporting.
A key highlight of 2024 was Bank of Ireland’s score of 164 in Sustainalytics, placing it in the low risk category and in the top 16th percentile of banks globally.
“Our focus on impact was evident in 2024,” said Eamonn Hughes, chief Sustainability and Investor Relations officer at Bank of Ireland.
“Sustainability-related lending to households and businesses grew 32% to c.€14.7bn. We will deliver our c.€15bn target for 2025 ahead of schedule and are on track for our c.€30bn target by 2030. We continued to build partnerships across key sectors of the economy to bring innovative solutions to our customers, colleagues and society.
“Of particular note was the expansion of our Enviroflex agri-business loans which, through partnerships, is now available to over 95% of dairy farmers nationwide as well as to the tillage sector. We have also approved €1bn of loans for new Irish housing, contributing to alleviate a critical social challenge.”
Main image at top: Bank of Ireland launching Enviroflex with Irish Distillers last year. Pictured were: Ciara Egan, Sustainability and Responsibility Specialist at Irish Distillers; Eoin Lowry, Head of Agri Sector at Bank of Ireland; Susan Maher, Agri Development Manager at Bank of Ireland; and Graham Caulwell, Head of Sustainability and Compliance at Irish Distillers
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