Austria's Erste joins Net-Zero Banking Alliance

Austria-based Erste Group Bank AG joined the Net-Zero Banking Alliance initiative, committing itself to align its lending and investment portfolio with net-zero emissions by 2050 at the latest.

Launched in April, the United Nations-convened alliance includes members from more than 30 countries, such as Italian banks UniCredit SpA and Intesa Sanpaolo SpA, as well as U.K.-based HSBC Holdings PLC, Denmark's Danske Bank A/S and United Arab Emirates-based First Abu Dhabi Bank PJSC.

In addition to the Net-Zero Banking Alliance, Erste Group Bank said it was also joining the Financial Initiative of the UN Environmental Program and signing the UN Principles for Responsible Banking. The Austrian bank also noted in its Nov. 2 filing it plans to become climate-neutral in its own operations in 2023.

Erste Group Bank added it has a low exposure of just over 1% of its total loan portfolio toward such emission-intensive industries as coal-based power generation, steam production, cement production, livestock farming or waste management.

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