AIB is aiming to tackle its impact on climate change by lowering its financed emissions, which are the emissions linked to its own lending decisions.
The bank has set itself a target of becoming net zero on its financed emissions by 2040 (excluding agriculture) and by 2050 when agriculture is included.
AIB Group has reduced the carbon emissions from its own operations by 49% since 2019 including a 17% reduction in 2023, paving the way for the bank to meet its target of being net zero in its own operations by 2030.
This was detailed in AIB’s 2023 sustainability report launched today (Monday, March 11).
The reduction was achieved due to a strong focus on investing in energy management systems, LED lighting, metering and building upgrades, moving to new energy efficient office locations, working from home policies and occupying less overall office space.
AIB expects to make substantial further progress on reducing its own carbon emissions this year as it is now purchasing renewable energy from a purpose-built solar farm constructed in Gorey, Co. Wexford which became operational last month, with a second solar farm in Enniscorthy due to come on stream in the coming months.
The annual energy generated from these two solar farms will create additional solar capacity for the national grid and ensure that up to 80% of AIB’s estimated electricity needs will be certified to a fully traceable renewable solar energy source.
The bank has provided a total of €11.6 billion in new green lending to customers since 2019 including €3.7 billion in 2023 with green lending amounting to 30% of all of new lending in 2023.
Last November, AIB tripled its climate action fund to €30 billion as it seeks to target that 70% of new lending will be green or transition by 2030.
AIB chief strategy and sustainability officer Mary Whitelaw said: “The threat of climate change has become a reality. In 2023, the planet experienced its hottest day on record, while heatwaves, flooding, wildfires and storms affected livelihoods and industries around the world.
“Ireland experienced its wettest July, its hottest June and its warmest year on record overall.
“Recognising that climate change and sustainability factors will impact global business models, there is opportunity for forward thinking businesses to create a new source of competitive advantage.
“At AIB, we are supporting our 3.3 million customers in the transition to a low carbon future not only through a range of green lending and investment products, but also with information, education and advice,” Whitelaw added.
Given that the transition to sustainable business models will become a source of competitive advantage,
The report details how AIB seeks to help businesses and farmers to transition to sustainable business models which will become a source of competitive advantage by providing them with information, education and advice.
AIB also has an in-house team dedicated to sustainability research and provides a range of advisory services, webinars, sector focused sustainability reports and customer roundtables.