The GHG emissions that can be attributed to Triodos Bank's loans and investments in 2022 are presented in two graphs and a more detailed table in this chapter.
The first graph shows our portfolio’s emissions in ktonne CO2e. The second graph shows the intensity of Triodos Bank’s GHG emissions per billion euro lent and invested. It provides stakeholders with an indication of the impact of our finance on generated, sequestered and avoided emissions that could be compared across financial institutions.
Climate impact of our loans and investments 2022
Generated emissions |
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Sequestered emissions |
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Avoided emissions |
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Climate impact in
emission intensity 2022
Generated emissions |
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Sequestered emissions |
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Avoided emissions |
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In 2022, approximately 324 ktonne CO2e in emissions were generated by loans and investments in this climate impact measurement (2021: 379 ktonne CO2e). This amount has been netted with 3 ktonne CO2e sequestered emissions from the organic farming sector. The decline in generated emissions compared to last year is mainly due to lower investment volumes in the Impact Equities and Bonds funds (IEB funds). Other sectors also faced a decline in lending and investment volumes, or a lower share in the projects financed. The high emission intensity for the sector environmental other is mainly caused by the lack of good emission factors for recycling companies and other technology projects. We expect the emission intensity to decrease as we collect more activity data from these projects. Changes per sector, both up and downwards, can furthermore be explained by the annual update of the emission factors.
Triodos Bank also finances forestry and nature development projects. This resulted in the sequestration of approximately 10 ktonne CO2e (2021: 15 ktonne CO2e), equal to at least 231,000 mature trees and enough to compensate the emissions from the farming sector. The decline in this sector is mainly due to annual redemptions in some larger projects we finance. Working on the AsOneToZero ambition, Triodos Bank is analysing and implementing opportunities for new natural capital, nature-focused finance and regenerative organic agriculture, sequestering carbon and supporting biodiversity.
The renewable energy and energy saving projects that we finance avoided over 1,048 ktonne of CO2e emissions as compared to fossil-fuel power generation (2021: 851 ktonne CO2e). This is equal to the avoidance of emissions of approximately 7.2 billion kilometres travelled by car.
The number of power-generating projects we finance in Europe and in emerging markets increased by 28 to 522 in 2022. The total electricity production of our financed projects also increased, both due to new investments and due to the operationalisation of existing projects. This resulted in a 23% increase of the total attributed avoided emissions compared to last year.
Overall, the results clearly indicate that financing a sustainable economy for many years has resulted in substantial avoided emissions relative to our generated and sequestered emissions.
The next table provides the GHG emission data of our finance per sector, in both absolute and relative (emission intensity) terms and shows the data quality score for each item.
We will continue to report the climate impact of our own operations and of our loans and investments in the future. We hope to further improve the quality of this data, the methodology that underpins it and, therefore, the accuracy and relevance of our reporting.
Triodos Bank’s Science Based Targets – scope 3 portfolio targets
Triodos has committed itself to the Science Based Targets initiative. Together with SBTi, in 2022 we worked on a validated set of (intermediate) targets. These targets were approved by SBTi on 10 March 2023, and include the following targets for our financed emissions. For our targets related to our own operations as a company, please refer to the Environmental report .
Headline target:
Triodos Bank portfolio targets cover 43% of its total investment and lending by total assets under management as of 2020. As of 2020, required activities made up 38% of Triodos’ total investment and lending while optional activities made up 31% and out of scope activities made up 31%.1
Scope 3 asset class level targets
Electricity generation project finance (Sector Decarbonization Approach (SDA) method): Triodos Bank commits to continue only financing renewable electricity projects through 2030.
Commercial real estate (SDA method): Triodos Bank commits to reduce its scope 3 GHG emissions from commercial real estate within its private debt and equity portfolio 70% per square meter by 2035 from a 2020 base year.
Corporate loans (Portfolio coverage method): Triodos Bank commits to 27% of all other corporate lending, by gross carrying amount, setting SBTi validated targets by 2025, and 82% by 2035.
Listed equity, private equity and corporate bonds (SDA + portfolio coverage method):
Triodos Bank commits to reduce its scope 3 GHG emissions from the pulp & paper sector within its listed equity and corporate bond portfolio 45% per ton paper and board produced by 2035 from a 2020 base year.
Triodos Bank commits to reduce its scope 3 GHG emissions from the transport - vehicle manufacturing (PLDV) sector within its listed equity and corporate bond portfolio 44% per vehicle km by 2035 from a 2020 base year.
For all other sectors, Triodos Bank commits to 51% of its listed equity, private equity and corporate bond portfolio by net asset value setting SBTi validated targets by 2025, and 82% by 2035.
Climate impact of our loans and investments
2022 |
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Emission type / Transition theme | Impact sector | Gross amount (million EUR)1 | Attributed emissions | Emission intensity | Data quality score | ||||||
Generated emissions |
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Food | Organic farming | 309 | 9 | 30 | 2.8 | ||||||
Organic food | 157 | 8 | 49 | 4.4 | |||||||
Resources | Sustainable property | 1,084 | 26 | 24 | 3.0 | ||||||
Residential mortgages | 4,450 | 21 | 5 | 3.2 | |||||||
Resources - other | 135 | 5 | 38 | 4.6 | |||||||
Energy | Environmental - other | 206 | 24 | 115 | 5.0 | ||||||
Society | Social housing | 590 | 21 | 35 | 3.9 | ||||||
Society other and municipalities | 233 | 7 | 32 | 4.9 | |||||||
Inclusive finance and development | 946 | 12 | 13 | 5.0 | |||||||
Wellbeing | Care for the elderly | 742 | 14 | 19 | 3.3 | ||||||
Healthcare - other | 471 | 11 | 24 | 4.8 | |||||||
Education | 321 | 9 | 28 | 4.0 | |||||||
Arts and culture | 523 | 18 | 35 | 4.3 | |||||||
Wellbeing- other | 278 | 9 | 31 | 4.9 | |||||||
IEB funds | Corporate equities and bonds | 2,180 | 112 | 51 | 2.0 | ||||||
(Sub-)Sovereign bonds | 449 | 10 | 22 | 3.8 | |||||||
Other | Other loans and investments | 1,872 | 8 | 4 | 4.4 | ||||||
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| 14,946 | 324 | 22 | 3.5 | ||||||
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Sequestered emissions |
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Resources | Nature development and Forestry | 45 | -10 | -229 | 3.0 | ||||||
Net emissions |
| 14,991 | 314 | 21 | 3.5 | ||||||
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Avoided emissions |
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Energy | Renewable energy | 2,429 | 1,048 | 431 | 1.5 | ||||||
| Total2 | 17,420 |
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| 3.2 | ||||||
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20211 |
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Emission type / Transition theme | Impact sector | Gross amount (million EUR)2 | Attributed emissions | Emission intensity | Data quality score | ||||||||
Generated emissions |
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Food | Organic farming | 314 | 11 | 36 | 2.9 | ||||||||
Organic food | 150 | 3 | 19 | 5.0 | |||||||||
Resources | Sustainable property | 1,043 | 29 | 27 | 3.4 | ||||||||
Residential mortgages | 3,620 | 20 | 5 | 3.2 | |||||||||
Resources - other | 116 | 4 | 35 | 5.0 | |||||||||
Energy | Environmental - other | 155 | 15 | 96 | 5.0 | ||||||||
Society | Social housing | 585 | 20 | 35 | 4.0 | ||||||||
Society other and municipalities | 353 | 10 | 29 | 5.0 | |||||||||
Inclusive finance and development | 997 | 13 | 13 | 5.0 | |||||||||
Wellbeing | Care for the elderly | 805 | 20 | 25 | 3.8 | ||||||||
Healthcare - other | 483 | 21 | 43 | 5.0 | |||||||||
Education | 329 | 11 | 34 | 3.8 | |||||||||
Arts and culture | 535 | 35 | 66 | 4.5 | |||||||||
Wellbeing - other | 304 | 19 | 61 | 5.0 | |||||||||
IEB funds | Corporate equities and bonds | 2,422 | 137 | 56 | 2.4 | ||||||||
(Sub-)Sovereign bonds | 494 | 12 | 23 | 3.8 | |||||||||
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| 12,705 | 379 | 30 | 3.6 | ||||||||
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Sequestered emissions |
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Resources | Nature development and Forestry | 53 | -15 | -273 | 2.9 | ||||||||
Net emissions |
| 12,758 | 364 | 29 | 3.6 | ||||||||
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Avoided emissions |
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Energy | Renewable energy | 2,483 | 851 | 343 | 1.5 | ||||||||
| Total3 | 15,241 |
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| 3.2 | ||||||||
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- These targets and coverage % do not include third-party asset management activities. Third-party asset management activities made up 4% of total investment, lending, and asset management activities by total assets under management.