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
in ktonne CO2e

Generated emissions

 

Sequestered emissions

 

Avoided emissions

 

Climate impact in
emission intensity 2022
ktonne CO2e/billion EUR financed

Generated emissions

 

Sequestered emissions

 

Avoided emissions

 

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

 

 

 

 

 

Emission type / Transition theme

Impact sector

Gross amount (million EUR)1

Attributed emissions
(ktonne CO2e)

Emission intensity
(ktonne CO2e / billion EUR)

Data quality score
high quality = 1
low quality = 5

Generated emissions

 

 

 

 

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

 

 

14,946

324

22

3.5

 

 

 

 

 

 

Sequestered emissions

 

 

 

 

Resources

Nature development and Forestry

45

-10

-229

3.0

Net emissions

 

14,991

314

21

3.5

 

 

 

 

 

 

Avoided emissions

 

 

 

 

Energy

Renewable energy

2,429

1,048

431

1.5

 

Total2

17,420

 

 

3.2

1

Assets managed for third parties, such as our private banking customers, are not included.

2

Avoided emissions should not be summarised because their absolute emission is zero.

20211

 

 

 

 

 

Emission type / Transition theme

Impact sector

Gross amount (million EUR)2

Attributed emissions
(ktonne CO2e)

Emission intensity
(ktonne CO2e / billion EUR)

Data quality score
high quality = 1
low quality = 5

Generated emissions

 

 

 

 

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

 

 

12,705

379

30

3.6

 

 

 

 

 

 

Sequestered emissions

 

 

 

 

Resources

Nature development and Forestry

53

-15

-273

2.9

Net emissions

 

12,758

364

29

3.6

 

 

 

 

 

 

Avoided emissions

 

 

 

 

Energy

Renewable energy

2,483

851

343

1.5

 

Total3

15,241

 

 

3.2

1

The 2021 figures for residential mortgages and IEB funds have been restated to correct for calculation differences, improved PCAF data and applying the PCAF NL approach for residential mortgages. Also, the 2021 format has been updated to match with the transition themes.

2

Assets managed for third parties, such as our private banking customers, are not included.

3

Avoided emissions should not be summarised because their absolute emission is zero.

  1. 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.