ING integrates sustainability into executive pay

Chief executive says ING wants to stimulate sustainable entrepreneurship and increase its portfolio of green products and services.

Dutch banking and insurance giant ING says that “social, ethical and environmental objectives” will form a part of top management pay.
“To ensure that corporate responsibility is an integral part of our corporate strategy, our social, ethical and environmental objectives will be quantified and used as a measure of performance in the remuneration policy of the Executive Board’s variable pay programme,” ING said. And there will be a programme for senior managers to working on real-life cases at NGOs in developing countries.
ING also said that it wants the growth of sustainable assets under management to outpace the growth of AUM generally.
Sustainable assets under management have increased by 10% compared to 2008, with new products such as the ING Green Focus Fund. In 2009, its sustainable AUM were €2.5bn, up from 2008’s €2.3bn. That compares to total assets of €1.16trn (2008: €1.33trn).
ING aims to ensure that all consumer deposits andsavings in the Netherlands are “reinvested in such a way that they will have no negative social or environmental impact”.
The group will not finance companies that are involved in the production, maintenance or trade of anti-personnel landmines, cluster munitions, depleted uranium ammunition, biological or chemical weapons.
It said: “ING will not invest its proprietary assets in controversial weapons companies and will, with the exception of discretionary mandates and trackers (ETFs), and wherever legally possible and independently enforceable by ING, ensure customer funds are not placed in such companies through ING managed funds.”
ING has created a “Restrictive List” of companies considered to be the worst offenders in all sensitive areas. These companies are excluded from all ING services.
Chief executive Jan Hommen says ING wants to stimulate sustainable entrepreneurship and increase its portfolio of green products and services.