AIB Group has set carbon reduction targets for around €43.5bn of its customer loans, representing 75pc of its lending portfolio.
The bank said that by setting these targets, it is aligning with global banking best practice and the “most ambitious Paris Agreement target” – to limit the global average temperature increase to 1.5C above pre-industrial levels.
AIB’s 2022 Sustainability Report shows AIB plans to significantly reduce carbon emissions on its residential mortgages, commercial real estate and corporate loan books by 2030.
For example, the bank is aiming for a reduction in emissions intensity of 58pc per square metre on homes funded by €29.4bn of residential mortgages and 67pc per square metre on commercial real estate funded by €5.6bn of loans.
Speaking at the launch of the AIB Sustainability Report, AIB chief sustainability and corporate affairs officer Mary Whitelaw said: “AIB’s new green lending grew by 65pc to €3.3bn in 2022, accounting for 26pc of all new lending, while our green mortgage products represented 28pc of new mortgage lending.”
“We are now further aligning ourselves with the global sustainability agenda.”
AIB also said its electricity generation portfolio primarily comprises renewable energy assets such as offshore wind.
AIB itself has entered into a Corporate Power Purchase Agreement (CPPA) with NTR plc to source energy from two dedicated solar farms under construction in Co Wexford. This will provide up to 80pc of AIB’s own electricity.