ING 2011 RESPONSABILITY SUSTAINABILITY
Business index
ABOUT THIS REPORT
CHAIRMAN'S STATEMENT
4
8
ING BUSINESS PRINCIPLES
THE FUTURE OF ING
12
16
18
OUR CORPORATE RESPONSIBILITY STRATEGY
STAKEHOLDER ENGAGEMENT
CORPORATE RESPONSIBILITY PROGRESS REPORT
24
TIMELINE CORPORATE RESPONSIBILITY
28
36
44
54
this report actualises our commitment to transparency and accountability. it provides an overview of our corporate responsibility strategy and the results we have achieved in 2010. these results are substantiated with data, case studies and comments from a broad range of stakeholders.
ING CORPORATE RESPONCABILITY
ING IN ACTION
1. VALUING CUSTOMER TRUST
60
68
2
2. BEYOND BUSINESS AS USUAL
3. APPETITE FOR SUSTAINABILITY
4. ENGAGING OUR EMPLOYEES
DATA
80
82
5. TOWARDS A SMALLER FOOTPRINT
6. BUILDING STRONGER COMMUNITIES
OVERVIEW
ING'S BALANCE SHEET
84
86
96
97
ASSURANCE REPORT
DATA
GOVERNANCE AND COMPLIANCE
KEY PERFORMANCE INDICATORS
OUR APPROACH TO REPORTING
for a more detailed picture of our corporate responsibility efforts, please visit the 'ing for something better' website. this provides information based on the g3 sustainability reporting guidlines of the global reporting initiative. it also refers to the millennium development goals and the principles of the un global compact. www.ingforsomethingbetter.com/report 2011 Sustainability Report
Bank
Insurance / IIM
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ING AT A GLANCE It is our mission to help our customers manage their financial future. Our role, however, extends beyond economics and includes the impact we have on the communities we serve. We feel a responsibility to invest in a better future for people worldwide. Social, ethical and environmental considerations are therefore an integral part of the way we do business. We also team up with local and global partners to affect lasting, positive change in areas like financial literacy, child education and environmental preservation.
101,000 PEOPLE EMPLOYED BY ING GLOBALY
54,9 MLN TOTAL INCOME
100 % ING IS 100% CARBON NEUTRAL AND HAS BEEN SINCE 2007
14.9 % OF OUR MANAGEMENT COUNCEL CONSISTS OF WOMAN
72/100 SCORE OF DOW JONES SUSTAINABILITY INDEX
2,12 MLN SUSTAINABLE ASSETS UNDER MANAGEMENT
WHERE WE ARE AND WHAT WE DO ING is a global financial institution of Dutch origin that is driven by clear business principles and shared values. In 2011, we separated Banking activities from our Insurance and Investment Management operations. Please find our reports online at www.ing.com
40 NUMBER OF COUNTRIES WIDTH ING OFFICES
125,175 NUMBER OF CHILDREN PROVIDED WITH ACCES TO PRIMERY EDUCATION
Business
They set the 6
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standard 2011 Sustainability Report
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7
inspiring leaders
8
42 26 58 4 years old
years at Citigroup
Eployees
children
Risk Management
9
inspiring leaders
10
42 26 58 4 years old
years at Citigroup
Eployees
children
Risk Management
11
inspiring leaders
52 26 58 4 years old
years at Citigroup
Eployees
children
Risk Management
12
13
inspiring leaders
14
45 98 24 1 YEARS OLD
FOLLOWERS
EXPERIENCE
IDEAL
CLEAN ENERGY PIETER VERSCHUREN 15
CEO statement
Dear stakeholder, Last year marked the beginning of a new era for ING. Adapting to the changed financial landscape required bold steps and culminated in the fundamental decision to separate our banking, insurance and investment management activities. It also made us look at our company’s culture, the values we have in place, and how we interact with our stakeholders. In 2009, we launched the refreshed ING Business Principles and started a corresponding employee awareness campaign. Our Principles clearly prescribe the values we pursue in both banking and insurance, and the responsibilities we have towards society and the environment. We have taken a number of initiatives to be more transparent
16
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and open for feedback about the way we operate. For example, we have started a series of dialogue sessions on ING’s role in society. My colleagues and I actively engaged in dialogue with customers, social partners, non-governmental organisations, media, policy makers, academia and investors. Together we set the foundation for culture change within ING and we will continue to build on this in 2010 and beyond. Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on
the right track. A clear example of this is our Defence Policy. In 2008, we began evaluating the policy to meet the changing demands in society with regard to financial institutions’ finance and investment decisions on controversial weapons. This led to an extension of the scope of our Defence Policy in 2009. Environmental protection also remains one of our priority areas going forward. To focus greater attention on the financing of, and investment in, sustainable energy, we are evaluating our portfolio
2011 Sustainability Report
Balance sheet
CASH AND BALANCES WITH CENTRAL BANKS OUR CASH BALANCES AND AMOUNTS HELD AT CENTRAL BANKS
ASSETS HOW WE INVEST OUR MONEY
AMOUNTS DUE FROM BANKS LOANS TO AND DEPOSITS WITH OTHER BANKS
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS INVESTMENTS IN BONDS AND EQUITIES AND DERIVATIVES THAT HELP US MANAGE FINENCIAL RISKS
100
INVESTMENTS INVESTMENTS IN BONDS AND EQUITIES, AMONG OTHERS USED TO COVER OUR TO INSURANCE POLICY HOLDERS
LOANS AND ADVANCES TO COSTUMERS LOANS WE PROVIDE TO OUR CUSTOMERS. FOR EXAMPLE RESIDENTIAL MORTGAGES, BUT ALSO CREDIT FACILITIES FOR GOVERNMENTS AND BUSSINESSES
OTHER ASSETS THIS INCLUDES AMONG OTHERS, INTEREST AND TAXES TO BE RECEIVED
18
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P24
P44
Balance sheet
CASH AND BALANCES WITH CENTRAL BANKS OUR CASH BALANCES AND AMOUNTS HELD AT CENTRAL BANKS
AMOUNTS DUE FROM BANKS
EQUITY
LOANS TO AND DEPOSITS WITH OTHER BANKS
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS INVESTMENTS IN BONDS AND EQUITIES AND DERIVATIVES THAT HELP US MANAGE FINENCIAL RISKS
CASH AND BALANCES WITH CENTRAL BANKS OUR CASH BALANCES AND AMOUNTS HELD AT CENTRAL BANKS
AMOUNTS DUE FROM BANKS LOANS TO AND DEPOSITS WITH OTHER BANKS
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT AND LOSS INVESTMENTS IN BONDS AND EQUITIES AND DERIVATIVES THAT HELP US MANAGE FINENCIAL RISKS
INVESTMENTS INVESTMENTS IN BONDS AND EQUITIES, AMONG OTHERS USED TO COVER OUR TO INSURANCE POLICY HOLDERS
LIABILLITIES MONEY ENTRUSTED TO US
LOANS AND ADVANCES TO COSTUMERS LOANS WE PROVIDE TO OUR CUSTOMERS. FOR EXAMPLE RESIDENTIAL MORTGAGES, BUT ALSO CREDIT FACILITIES FOR GOVERNMENTS AND BUSSINESSES
OTHER ASSETS THIS INCLUDES AMONG OTHERS, INTEREST AND TAXES TO BE RECEIVED
AMOUNTS DUE FROM BANKS
100
INVESTMENTS IN BONDS AND EQUITIES, AMONG OTHERS USED TO COVER OUR TO INSURANCE POLICY HOLDERS
2011 Sustainability Report
Bank Insurance / IIM
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08
Business
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22
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Measuring our business impact Detailed break down •
A s part of our efforts in the community, I am proud to say that the 2009 ‘Global Challenge’, an annual initiative
•
Featuring employee volunteering and fundraising initiatives for our ING Chances for Children programme, was again a
•
Resounding success. Our employees collected funds for children and educationrelated projects and we saw a record
•
Participation of 16% of our global workforce.
•
Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on the right track. A clear
•
Example of this is our Defence Policy. In 2008, we began evaluating the policy to meet the changing
Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on the right track. A clear example of this is our Defence Policy. In 2008, we began evaluating the policy to meet the changing
2011 Sustainability Report
Bank Insurance / IIM
23
Business
Equator principles It also made us look at our company’s culture, the values we have in place, and how we interact with our stakeholders. In 2009, we launched the refreshed ING Business Principles and started a corresponding employee awareness campaign. Our Principles clearly prescribe the values we pursue in both banking and insurance, and the responsibilities we have towards society and the environment. We have taken a number of initiatives to be more transparent
24
Bank Insurance / IIM
and open for feedback about the way we operate. For example, we have started a series of dialogue sessions on ING’s role in society. My colleagues and I actively engaged in dialogue with customers, social partners, non-governmental organisations, media, policy makers, academia and investors. Together we set the foundation for culture change within ING and we will continue to build on this in 2010 and beyond. Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on
the right track. A clear example of this is our Defence Policy. In 2008, we began evaluating the policy to meet the changing demands in society with regard to financial institutions’ finance and investment decisions on controversial weapons. This led to an extension of the scope of our Defence Policy in 2009. Environmental protection also remains one of our priority areas going forward. To focus greater attention on the financing of, and investment in, sustainable energy, we are evaluating our portfolio
Business
It also made us look at our company’s culture, the values we have in place, and how we interact with our stakeholders. In 2009, we launched the refreshed ING Business Principles and started a corresponding employee awareness campaign. Our Principles clearly prescribe the values we pursue in both banking and insurance, and the responsibilities we have towards society and the environment. We have taken a number of initiatives to be more transparent
2011 Sustainability Report
and open for feedback about the way we operate. For example, we have started a series of dialogue sessions on ING’s role in society. My colleagues and I actively engaged in dialogue with customers, social partners, non-governmental organisations, media, policy makers, academia and investors. Together we set the foundation for culture change within ING and we will continue to build on this in 2010 and beyond. Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on
the right track. A clear example of this is our Defence Policy. In 2008, we began evaluating the policy to meet the changing demands in society with regard to financial institutions’ finance and investment decisions on controversial weapons. This led to an extension of the scope of our Defence Policy in 2009. Environmental protection also remains one of our priority areas going forward. To focus greater attention on the financing of, and investment in, sustainable energy, we are evaluating our portfolio
Bank Insurance / IIM
25
Business
Equator principles
2011 2011
25
%
36 MLN
68
%
It also made us look at our company’s culture, the values we have in place, and how we interact with our stakeholders. In 2009, we launched the refreshed ING Business Principles and started a corresponding employee awareness campaign. Our Principles clearly prescribe the values we pursue in both banking and insurance, and the responsibilities we have towards society and the environment. We have taken a number of initiatives to be more transparent
and open for feedback about the way we operate. For example, we have started a series of dialogue sessions on ING’s role in society. My colleagues and I actively engaged in dialogue with customers, social partners, non-governmental organisations, media, policy makers, academia and investors. Together we set the foundation for culture change within ING and we will continue to build on this in 2010 and beyond.
2010 2010
72 MLN 2009 2009
47 MLN
2008 2008
Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on 2007 2007
2006 2006
26
Bank Insurance / IIM
59
%
47
%
251 MLN
32
%
84 MLN
38
%
14 MLN
Business
It also made us look at our company’s culture, the values we have in place, and how we interact with our stakeholders. In 2009, we launched the refreshed ING Business Principles and started a corresponding employee awareness campaign. Our Principles clearly prescribe the values we pursue in both banking and insurance, and the responsibilities we have towards society and the environment. We have taken a number of initiatives to be more transparent
2011 Sustainability Report
and open for feedback about the way we operate. For example, we have started a series of dialogue sessions on ING’s role in society. My colleagues and I actively engaged in dialogue with customers, social partners, non-governmental organisations, media, policy makers, academia and investors. Together we set the foundation for culture change within ING and we will continue to build on this in 2010 and beyond. Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on
the right track. A clear example of this is our Defence Policy. In 2008, we began evaluating the policy to meet the changing demands in society with regard to financial institutions’ finance and investment decisions on controversial weapons. This led to an extension of the scope of our Defence Policy in 2009. Environmental protection also remains one of our priority areas going forward. To focus greater attention on the financing of, and investment in, sustainable energy, we are evaluating our portfolio
Bank Insurance / IIM
27
Business
Equator principles It also made us look at our company’s culture, the values we have in place, and how we interact with our stakeholders. In 2009, we launched the refreshed ING Business Principles and started a corresponding employee awareness campaign. Our Principles clearly prescribe the values we pursue in both banking and insurance, and the responsibilities we have towards society and the environment. We have taken a number of initiatives to be more transparent
28
Bank Insurance / IIM
and open for feedback about the way we operate. For example, we have started a series of dialogue sessions on ING’s role in society. My colleagues and I actively engaged in dialogue with customers, social partners, non-governmental organisations, media, policy makers, academia and investors. Together we set the foundation for culture change within ING and we will continue to build on this in 2010 and beyond.
and open for feedback about the way we operate. For example, we have started a series of dialogue sessions on ING’s role in society. My colleagues and I actively engaged in dialogue with customers, social partners, non-governmental organisations, media, policy makers, academia and investors. Together we set the foundation for culture change within ING and we will continue to build on this in 2010 and beyond.
Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on
Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on
Business
It also made us look at our company’s culture, the values we have in place, and how we interact with our stakeholders. In 2009, we launched the refreshed ING Business Principles and started a corresponding employee awareness campaign. Our Principles clearly prescribe the values we pursue in both banking and insurance, and the responsibilities we have towards society and the environment. We have taken a number of initiatives to be more transparent
2011 Sustainability Report
and open for feedback about the way we operate. For example, we have started a series of dialogue sessions on ING’s role in society. My colleagues and I actively engaged in dialogue with customers, social partners, non-governmental organisations, media, policy makers, academia and investors. Together we set the foundation for culture change within ING and we will continue to build on this in 2010 and beyond. Taking our stakeholders’ views into consideration enables us to constantly evaluate if we are on
Bank Insurance / IIM
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Business
30
Bank Insurance / IIM
Business
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2011 Sustainability Report
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Business
This progress made a significant difference
Shawn D. Miller Managing Director Environmental and Social Risk Management at Citigroup
Business
We believe they have indeed made a difference. Internally within Citi they helped raise awareness on climate issues generally, and prompted us to integrate climate risk assessment into our lending decisions within the power sector. Environmental protection also remains one of our priority areas going forward. To focus greater attention on the financing of, and investment in, sustainable energy, we are evaluating our portfolio and assessing opportunities. One of our ambitions for 2010 is to stimulate sustainable
2011 Sustainability Report
entrepreneurship and further increase our portfolio of green products and services. As part of our efforts in the community, I am proud to say that the 2009 ‘Global Challenge’, an annual initiative featuring employee volunteering and fundraising initiatives for our ING Chances for Children programme, was again a resounding success. Our employees collected funds for children and education-related projects and we saw a record participation of 16% of our global workforce.
Bank Insurance / IIM
33
infographic
Appetite for Sustainability We believe they have indeed made a difference. Internally within Citi they helped raise awareness on climate issues generally, and prompted us to integrate climate risk assessment into our lending decisions within the power sector. Environmental protection also remains one of our priority areas going forward. To focus greater attention on the financing of, and investment in, sustainable energy, we are evaluating our portfolio and assessing opportunities. One of our ambitions for 2010 is to stimulate sustainable
34
Bank Insurance / IIM
entrepreneurship and further increase our portfolio of green products and services. As part of our efforts in the community, I am proud to say that the 2009 ‘Global Challenge’, an annual initiative featuring employee volunteering and fundraising initiatives for our ING Chances for Children programme, was again a resounding success.
In the last 2 years ING increased its investments to 100% sustainable
28
36 MLN
41 MLN
%
2011
Solar Thermal
25
Solar PV
Offshore Wind
Hydro
Wind
We believe they have indeed made a difference. Internally within Citi they helped raise awareness on climate issues generally
Gas
Coal
Business
46
%
%
67 MLN
68
%
2010
32
%
34 MLN
72 MLN
59
%
2009
18
%
14 MLN
47 MLN
49
47
260 MLN
251 MLN
%
2008
%
68
%
2007
23
%
19 MLN
4
%
18 MLN
32
%
84 MLN
183 MLN
62
%
2006
23 MLN
2011 Sustainability Report
38
%
14 MLN
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Timeline
1992
1997
Launch of the Global Challenge
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
environment community people business
ING extends the scope of the Defence Policy to include all business activities
1998 1996
1991 1993
Commitment to have more women in senior management positions
Launch of the Global Challenge
ING extends the scope of the Defence Policy to include all business activities
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
1994
Bank Insurance / IIM
Commitm women in
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
In the Ne and the electricity
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
2
1995 Commitment to have more women in senior management positions
Launch of the Global Challenge
36
ING signs talent to the top charter commitment to have more women in senior management positions
1999
1978
ING extends the scope of the Defence Policy to include all business activities
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
2
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
ING sign charter co more w manag
In the Ne and the electricity
timeline
2002
2007
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
ING signs talent to the top charter commitment to have more women in senior management positions
2001
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
2003 2006
ment to have more n senior management positions
etherlands, Belgium e US, 100% of all y purchased is green
2000
ns talent to the top ommitment to have women in senior gement positions
etherlands, Belgium e US, 100% of all y purchased is green
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
2004 Commitment to have more women in senior management positions
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
2011 Sustainability Report
Commitment to have more women in senior management positions
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
2005
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
2008
2011 Sustainability is integrated into the personal accountability and performance objectives of our senior management
ING raises EUR 3.7 million for UNICEF in 2010
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
A sustainable paper policy is developed which calls on all Business Units to engage in paper consumption reduction measures, sustainable paper procurement and / or paper recycling initiatives
2009
2010
Commitment to have more women in senior management positions
ING signs talent to the top charter commitment to have more women in senior management positions
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
In the Netherlands, Belgium and the US, 100% of all electricity purchased is green
Bank Insurance / IIM
37
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mus. Donec quam felis, ultricies nec, pellentesque
adipiscing elit. Aenean commodo ligula
eu, pretium quis, sem. Nulla consequat massa quis
eget dolor. Aenean massa. Cum sociis
enim. Donec pede justo, fringilla vel, aliquet nec,
natoque penatibus et magnis dis parturi-
vulputate eget, arcu. In enim justo, rhoncus ut,
ent montes, nascetur ridiculus mus. Donec
imperdiet a, venenatis vitae, justo. Nullam dictum
quam felis, ultricies nec, pellentesque eu,
felis eu pede mollis pretium. Integer tincidunt. Cras dapibus. Vivamus elementum semper nisi. Aenean vulputate eleifend tellus. Aenean leo ligula, portti-
23 19 38
%
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tor eu, consequat vitae, eleifend ac, enim. Aliquam
adipiscing elit. Aenean commodo ligula
lorem ante, dapibus in, viverra quis, feugiat a,
eget dolor. Aenean massa. Cum sociis
tellus. Phasellus viverra nulla ut metus varius
natoque penatibus et magnis dis parturi-
laoreet. Quisque rutrum. Aenean imperdiet. Etiam
ent montes, nascetur ridiculus mus. Donec
ultricies nisi vel augue. Curabitur ullamcorper
quam felis, ultricies nec, pellentesque eu,
ultricies nisi. Nam eget dui.
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%
Bank Insurance / IIM
adipiscing elit. Aenean commodo ligula eget dolor. Aenean massa. Cum sociis natoque penatibus et magnis dis parturient montes, nascetur ridiculus mus. Donec quam felis, ultricies nec, pellentesque eu,
Data
SUSTAINABLE ASSETS UNDER MANAGEMENT Amounts in â‚Ź million
2010
2009
ING Groenbank
ING Duurzaam Aandelen Fonds INI Duurzaam Rendement Fonds ING (L) Invest Sustainable Growth ING (B) Invest Solidarity Mixed/Child Focus EUR ING (L) Renta Sustainable Fixed Income Europe Sustainable Mandate Enhanced Core Socially Responsible Equity Common Trust
SUSTAINABLE GLOBAL EQUITY FUNDS MANAGED BY ING INVESTMENT MANAGEMENT
Sustainable global equity funds managed by ING Private Banking Sustainable Portfolios ING Liric SRI Top 50
total excluding sustainable assets externally managed
ING (L) Climate Focus ING Thai Global Water Fund ING Green Focus Fund
THEMATIC FUNDS
total thematic funds
total The sustainable assets under management showed an increase of 5%. More information is available on page 82.
2011 Sustainability Report
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