In recent years, more and more banks and financial institutions focus on sustainability as a core component of their operations. This shift towards responsible banking (also known as ethical banking) is mostly a response to the pressing global challenges of climate change, social inequality, and environmental degradation. Despite the slow start, several banks have distinguished themselves as leaders in responsible banking with their unique approach or strategic alliances. Let's explore these institutions, their commitments, and the broader scope of sustainable finance as a whole.
ING: Aligning with Science-Based Targets
Dutch banking giant ING has made significant progress in aligning its operations with the Science-Based Targets initiative (SBTi). In March 2025, ING became the first systemically important global bank to have its climate goals validated as being in line with efforts to limit global warming to 1.5 degrees Celsius. This validation includes targets across various sectors, including fossil fuels, power generation, cement, steel, automotive, aviation, and commercial real estate.
Services and Goals:
- Sustainable Financing: The bank is actively channeling capital into renewable energy projects, low-carbon infrastructure, and breakthrough clean technologies that help decarbonise high-emission sectors. In 2025, ING promises to grow financing of renewable power generation to €7.5 billion annually.
- Sectoral Targets: Implementing specific emission reduction pathways across various industries. These pathways are developed in alignment with the IEA’s Net Zero by 2050 scenario and validated by the Science-Based Targets initiative (SBTi). In March 2025 ING became the first globally systemically important bank (G-SIB) to receive SBTi validation for its 1.5°C-aligned targets across all financed emissions sectors.
- Client Transition Support: Assisting clients in their journey towards sustainable operations with tools to calculate their carbon footprint, offering insights into the emissions generated by their transactions. On the wholesale banking side, ING is deploying ESG rating tools, real-time benchmarking platforms, and advisory support tailored to client sector and geography.
bunq: The Bank of The Free and Climate-Aware
bunq is another Dutch bank, built from the ground up with sustainability and digital interaction in mind. One of the earlier features for responsible banking initiative was real-time CO2 tracking deeply integrated into app’s PFM tool. The aim was to enable users to make educated choices while conducting day-to-day transactions, ensuring that every purchase aligns with their sustainability goals.
Services and Goals:
- Tree planting program: For every €100 spent using a bunq card, the bank plants a tree in partnership with veritree. To date, bunq users have facilitated the planting of over 30 million mangrove trees in Kenya, contributing significantly to global reforestation efforts.
- Freedom of Choice: Users have the unique ability to decide how their deposited funds are invested, ensuring alignment with personal values and promoting transparency in banking operations.
- Sustainable Investment Policy: bunq commits to excluding investments in industries such as fossil fuels, weapons, and tobacco, focusing instead on projects with positive social and environmental impacts.
HSBC: Merging Big Bank Infrastructure with Climate Tech
HSBC may be one of the world’s largest banks, but it’s not standing still when it comes to green tech. In 2024, it partnered with ecolytiq, a fintech focused on carbon footprinting and sustainable banking features. Now, HSBC customers in Europe can see the environmental impact of their purchases directly in-app - powered by transaction-level enrichment and real-time analysis.
Services and Goals:
- Ecolytiq Integration: This tool allows HSBC Kinetic customers to view estimated CO2 emissions associated with their debit card transactions. The user-friendly dashboard offers a breakdown by expense categories and provides suggestions for managing emissions, helping small business owners to make informed, eco-friendly decisions.
- Sustainable Finance Ambition: HSBC has pledged to provide between $750 billion and $1 trillion in sustainable finance and investments by 2030, aiming to support clients in their transition to a low-carbon economy.
- Scope 3 Tracking: HSBC is improving Scope 3 emissions tracking across its retail base. HSBC employs a methodology aligned with the Partnership for Carbon Accounting Financials (PCAF) standards to calculate its financed emissions. This approach involves assessing the emissions of clients and attributing a portion to HSBC based on the extent of its financial involvement.
Tomorrow: Digital-Only, Impact-First Bank
Germany’s Tomorrow Bank was built with climate impact at its core. Unlike traditional banks that fund fossil fuels, Tomorrow invests deposits exclusively in sustainable industries. It’s a mobile-first bank that measures success by different metrics - CO2 saved, renewable energy supported, and social equity financed.
Services and Goals:
- Climate Metrics in Every Transaction: Deposits are exclusively invested in sustainable industries, including renewable energy and social housing projects, ensuring that customers' funds contribute to positive environmental and social outcomes.
- Green Bonds & ESG ETFs: Customers can invest sustainably with full transparency. The bank also offers public portfolio audits, allowing customers to see exactly where their money is invested, reinforcing trust and accountability.
- Carbon Footprinting: In collaboration with ecolytiq, Tomorrow also provides customers with insights into the carbon footprint of their spending, promoting awareness and encouraging more sustainable consumption habits.
Raiffeisen Group: Uniquely Sustainable in Every Country
Raiffeisen Group has firmly included sustainability and responsible banking practices across its operations in Central and Eastern Europe. In February 2021, it became the first Austrian banking group to sign the United Nations Principles for Responsible Banking (PRB). This framework aligns the banking sector with the UN Sustainable Development Goals (SDGs) and the 2015 Paris Climate Agreement, emphasising the integration of sustainability into all business areas to maximise positive societal impact.
Services and Goals:
- Green Bond Initiatives: In 2021, Raiffeisenbank launched its Green Bond Framework in Czech Republic, which led to the issuance of €350 million in green bonds, with proceeds allocated to projects in categories such as green buildings, clean transportation and sustainable forestry.
- Carbon Footprint Tracking: In collaboration with Tapix, Raiffeisenbank Czech introduced the EcoTrackTM feature in its mobile banking application. This tool provides over 1 million active users with insights into the carbon footprint of their transactions with environmental tips included.
- Community Engagement Strategy: Raiffeisen's sustainability strategy in Albania emphasises being a "responsible banker" with the primary goal of creating long-term added value. This includes financially supporting projects focused on children, young artists, education, gender equality and ecology, while encouraging staff participation in activities that reflect the bank's commitment to social responsibility.
The Role of Customer Engagement in Responsible Banking
- ING gives wholesale clients ESG benchmarking tools.
- bunq lets you plant trees per transaction.
- HSBC uses ecolytiq to educate users on greener alternatives.
- Tomorrow makes every cent traceable to a sustainable initiative.
The Bigger Picture: Global Trends in Responsible Banking
It's evident ethical banking is no longer just about numbers, margins, and quarterly growth. In 2025, it’s about accountability. And increasingly, it's about the hidden power of data to drive real, measurable environmental and social progress.
So, how can global financial institutions call themselves ethical banks?
One key differentiator in 2025 is how banks report and act on Scope 1, 2, and 3 emissions:
- Scope 1: Direct emissions from owned or controlled sources
- Scope 2: Indirect emissions from the generation of purchased energy
- Scope 3: All other indirect emissions - like those from customer transactions, supply chains, and financed emissions
Why is Scope 3 such a big deal? Because for most banks, it represents over 90% of their total emissions footprint. This is where transaction data enrichment comes in. By categorising spending, identifying merchants, and mapping emissions, banks like HSBC, ING, and bunq are turning Scope 3 into a precise data set.
And this precision matters. Under the UN Principles for Responsible Banking (PRB), signatories are obligated to measure their impact and engage clients in adopting more sustainable behaviors.
Integration of ESG Factors and Smart Data
Banks around the world have shifted from simply “checking the ESG box” to anchoring entire business models around environmental, social, and governance criteria. There’s growing evidence that ESG-focused financial institutions outperform over the long haul, especially in risk-adjusted returns. And clients are watching, too. This integration reflects a broader recognition that sustainable practices are linked to long-term profitability and risk management.
Did you know?
The global sustainable finance market hit $5.87 trillion in 2024 and is moving toward an estimated $35.72 trillion by 2034, growing at a projected CAGR of 19.8%.
But this notion requires tools since what matters now is context. Data enrichment transforms thousands of anonymous line items into stories: where the money’s going, which businesses it supports, what industries it touches, and what kind of environmental or social impact it's making.
Transparency and Reporting
To be fair, ESG transparency is a minefield. On the one hand, stakeholders demand clarity. On the other hand, there’s greenhushing - a quieter, more cautious approach to ESG communication. Some banks are now underreporting their efforts, spooked by political pressure and public opinion. According to The Times, greenhushing is on the rise across sectors, especially in the U.S. and parts of Europe.
Did you know?
A survey by EY indicates that 85% of investors view greenwashing as a more significant problem now than five years ago.
The solution? Precise data. Banks using enhanced transaction data can share specific, defensible metrics rather than empty statements. In other words – for truly ethical banking, create your own ESG story, publish metrics that withstand the pressure and report less frequently – but more meaningfully.
Collaborations and Alliances
Recognising that collective action amplifies impact, banks are increasingly participating in global alliances dedicated to sustainability. This movement is data-driven, standards-based, and often powered by shared ESG reporting platforms and open data models.
Did you know?
As of 2024, over 350 banks, covering 54% of global banking assets, had signed on to the UN Principles for Responsible Banking framework.
By endorsing the PRB, these banks commit to aligning their business strategies with the objectives of the Paris Agreement and the United Nations Sustainable Development Goals (SDGs). This leads to integrating sustainability into all facets of their operations, from corporate governance to product offerings. Furthermore, the PRB framework encourages transparency and accountability. Signatory banks are required to conduct impact analyses of their portfolios to identify significant impact areas and set targets accordingly.
While ethical banking can sound complicated, it’s really just about shared goals. The integration of ESG factors, enhanced transparency, and collaborative efforts are driving the industry towards a more sustainable financial future.
For more details on how enrichment solutions can benefit your bank, explore the Tapix offerings.
