AIB to categorise its lending activities based on sustainability

The move comes on foot of new guidelines from the European Banking Authority which require banks to be more transparent about the climate impact of their business activities.

AIB said the new measures, being rolled out over two years, would categorise its lending activities as either ‘green’ or ‘transition’ – relating to activities that contribute to the transition to a net-zero carbon economy by 2050 – for internal tracking and external disclosure purposes.

The bank said the move would ensure that lending is targeted towards activities that help reduce carbon emissions and would help it achieve a target of having 70% of lending as either green or transition by 2030.

The bank has also introduced an environmental, social and governance (ESG) questionnaire to help assess ESG risk for large borrowers in some sectors.