Aib Group Plc · EURONEXT:A5G
Aib — Debt Investor Presentation (November 2024)
32 slides from Aib's debt investor presentation, November 2024
Slide 1: AIB Group plc Green Bond Investor Presentation
For the future you’re after AIB Group plc Green Bond Investor Presentation November 2024 1
Slide 2: Contents
Contents Page # • Sustainability Strategy, Targets & Progress 3 • Journey to Net Zero 6 Own Operations & Financed Emissions (Scope 1, 2 & 3) Climate and Environment Risk ESG Customer Propositions • ESG Ratings 11 • Green Bond Framework & SPO 13 • Allocation and Impact Reporting 18 • Appendix 23 Sect
Slide 3: Backing a Sustainable Future – FY2023
Backing a Sustainable Future – FY2023 Helping to deliver a more sustainable future for all is at the heart of AIB’s agenda As a recognised leader of sustainability in Ireland and through our Pledge to Do More, we are committed to building long-term resilience and sustainability for our business, eco
Slide 4: ESG Progress to year end 2023
ESG Progress to year end 2023 2023 PLEDGE TO DO MORE Impact area Targets Performance at year end 2023 • €5bn Climate Action Fund launched 2023: 10bn Climate Action Fund €11.6bn in Green lending since 20191 in new green & transitional lending 2019 • Green Mortgage (€2bn per year) €3.7bn Green lending
Slide 5: Our Sustainability Strategy 2024-2026
Our Sustainability Strategy 2024-2026 With a new segment dedicated to Climate Capital from 2024, sustainability remains at the very core of AIB Group’s strategy. Our Climate Capital segment, alongside our other segments, will increase our capability, support business growth, and demonstrate our posi
Slide 6: Journey to Net Zero: Scope 1 & 2
Journey to Net Zero: Scope 1 & 2 In 2020, AIB became the first Irish bank to pledge to operate as carbon neutral by 2030, using a net zero approach Transitioning our own operations to net zero by 2030 Operational Emissions Progress virtual Corporate Power – aligned to 1.5°C target Purchase Agreement
Slide 7: Journey to Net Zero: Scope 3
Journey to Net Zero: Scope 3 Supporting customers in the transition to a greener future, we are targeting 70% of new lending to be green or transition, by 2030, and for our entire lending portfolio to be net zero by 2040 (agri by 2050) Supporting our Customers to achieve their net zero ambitions • A
Slide 8: Climate & Environmental Risk Management (1/2)
Climate & Environmental Risk Management (1/2) Significant steps taken to analyse Physical & Transition Risks in 2023 The management of climate risk is integrated into our overall approach to risk management, as set out in our TCFD disclosures in our Annual Financial Report 2023. The below table summ
Slide 9: Climate & Environmental Risk Management (2/2)
Climate & Environmental Risk Management (2/2) Highlights of AIB’s approach to managing Climate Risk Recognising its importance as a key strategic pillar, as well Transition Risk as its potentially significant impact over time on the Group and wider society, the Board Risk Committee reviewed We requi
Slide 10: Market Leading ESG Customer Propositions & Disclosure Transparency
Market Leading ESG Customer Propositions & Disclosure Transparency Propositions Ratings Green Mortgage for energy Widescale lending for projects efficient homes across AIB, in Renewables, Housing, Haven, EBS brands & UK Healthcare, Education 12.7 Sustainalytics Green Personal Loan for Sustainable Le
Slide 11: ESG Ratings
ESG Ratings AIB's Sustainability Performance Assessed by Key Agencies Our performance continues to be recognised by independent ESG rating agencies where we hold leadership positions: On 04 May 2023 AIB received an ESG Risk Rating of 12.7, was assessed by Morningstar Sustainalytics to be at Low Risk
Slide 12: AIB Green Bond Framework
AIB Green Bond Framework For the future November 2024 you’re after 12
Slide 13: Green Bond Framework
Green Bond Framework • To align our funding strategy within our sustainability strategy - funding projects or assets that mitigate climate change Rationale by reducing emissions, protecting ecosystems, or having a positive environmental impact. • Green bond issuances serve as a testament to AIB’s le
Slide 14: Use of Proceeds 2024
Use of Proceeds 2024 Renewable Energy Green Commercial Buildings Green Residential Buildings Clean Transportation Use of Proceeds Use of Proceeds Use of Proceeds Use of Proceeds Financing and/or refinancing the generation, • Green Commercial Buildings in Ireland • Green Residential Buildings • Clean
Slide 15: Process for Project Evaluation and Selection - Overview
Process for Project Evaluation and Selection - Overview Process for Project Evaluation and Selection Compliance with ICMA Green Bond Eligibility Criteria (i.e. Use of Proceeds) » Mitigation of DNSH Alignment with AIB’s sustainability strategy » & MS concerns Compliance with official and internationa
Slide 16: Second Party Opinion
Second Party Opinion • Sustainalytics has issued a positive SPO on AIB’s Green Bond Framework • SPO includes an EU Taxonomy Alignment Assessment Use of Proceeds: The eligible categories for the use of proceeds are aligned with those recognised by the Green Bond Principles 2021. Sustainalytics consid
Slide 17: Management of Proceeds at YE 2023
Management of Proceeds at YE 2023 AIB intends to be fully allocated at issuance for new green bonds, as well as having an over- collateralised green portfolio Aggregated portfolio approach used to manage proceeds Additional eligible green projects are added to the eligible green loan portfolio to th
Slide 18: Green Bond Portfolio & Impacts FY2023
Green Bond Portfolio & Impacts FY2023 AIB Eligible Green Loan Portfolio FY23 Impact Reporting FY23 Total Portfolio Size €5,406m # € % Total Est. Avoided Emissions (tCO2e/year) 1,600,855 Total Est. Avoided Energy Consumption (MWh/year) 137,872 Renewable Energy 189 2,405m c. 44% Est. Avoided Emissions
Slide 19: Case Study - Oweninny
Case Study - Oweninny Renewable Energy Generation – Wind The Irish Government’s Climate Action Plan (2019) sets out the roadmap for achieving the country’s carbon emissions reduction target by 2030, setting Ireland on a trajectory to reach at least 80% renewable power by 2030 and achieve net zero by
Slide 20: SPO – EU Taxonomy Assessment
SPO – EU Taxonomy Assessment Performed by Renewable Energy Eligible Green Buildings Circular Economy (Energy Generation, Storage & Clean Transportation Category (Residential & Commercial) Waste Management Transmission) Ireland & UK Other (EEA & US) Geography Ireland, UK and EEA Ireland and EU Irelan
Slide 21: External Review: Independent Limited Assurance
External Review: Independent Limited Assurance Independent Limited Assurance Report to AIB Work Performed AIB engaged Mazars, a leading international audit, tax, advisory and Mazars was required to plan and perform work in order to consider the risk consulting firm, to perform a review to facilitate
Slide 22: Appendix
Appendix For the future you’re after 22
Slide 23: Journey to Net Zero: Sector Transition Pathways (1/2)
SBTi Journey to Net Zero: Sector Transition Pathways (1/2) validated In 2022, we set financed emissions targets for three sectors using a Sector Decarbonisation Approach (SDA), and a fourth Corporate Portfolio Coverage Target all of which have been validated by SBTi. Residential Mortgages In 2021, w
Slide 24: Journey to Net Zero: Sector Transition Pathways (2/2)
SBTi Journey to Net Zero: Sector Transition Pathways (2/2) validated Electricity Generation In 2021, we set a baseline maintenance target of 21 gCO2e/kWh, vs Global 2023 463.7 gCO2e/kWh. Our Electricity Generation portfolio comprised 3% of total lending at €1.6bn in 2021. In 2023, the portfolio incr
Slide 25: Journey to Net Zero: Agriculture
Journey to Net Zero: Agriculture In line with the Irish Government’s targets, AIB strive to meet net zero for the Agricultural sector by 2050. A focus on Agri Collaboration Farm Zero C Project Dedicated Agri Advisors In July 2023, AIB became the exclusive financial institution partner with the Farm
Slide 26: Biodiversity: Protecting and Safeguarding Nature
Biodiversity: Protecting and Safeguarding Nature Although at the early stages of the biodiversity journey, the financial sector has a key role to play in providing responsible finance and investment to support nature-positive funding, while reducing financial flows that harm nature. Our Approach Was
Slide 27: ESG Governance at AIB
ESG Governance at AIB Our strong governance structures and frameworks are key to delivering our strategy. AIB’s Board of Directors has established a number of Board and Board Advisory Committees to assist in the discharge of its duties, including in overseeing and challenging the Group’s sustainabil
Slide 28: Commitments, Memberships & Partnerships
Commitments, Memberships & Partnerships Key voluntary commitments made by AIB, relevant to our Sustainability Strategy and Reporting: Funding Date of Applicable Governance Beyond Strategic Commencement Stakeholders countries Website Association Position Active Membership Alignment 30% Club N Y N Y C
Slide 29: Our Policies and Frameworks
Our Policies and Frameworks Name of Statement Name of Statement Code/Policy/Framework Name Link to website if publicly available Code/Policy/Framework Name Link to website if publicly available provided publicly provided publicly Anti-Bullying & Harassment Policy https://aib.ie/sustainability Group
Slide 30: Contact Details
Contact Details Mark Whelan Head of Funding and Liquidity Mark.A.Whelan@aib.ie +353 1 772 4027 Eoin Moore Head of Term Funding Eoin.P.Moore@aib.ie +353 1 772 4027 Maddison Hampson Treasury Manager, ESG Term Funding Maddison.P.Hampson@aib.ie +353 1 772 4027 Grace Loring Treasury Manager, ESG Term Fun
Slide 31: Disclaimer (1/2)
Disclaimer (1/2) THIS DOCUMENT IS INTENDED TO PROVIDE NON-EXHAUSTIVE, GENERAL INFORMATION. THIS DOCUMENT MAY CONTAIN OR INCORPORATE BY REFERENCE PUBLIC INFORMATION NOT SEPARATELY REVIEWED, APPROVED OR ENDORSED BY AIB AND ACCORDINGLY, NO REPRESENTATION, WARRANTY OR UNDERTAKING, EXPRESS OR IMPLIED, IS
Slide 32: Disclaimer (2/2)
Disclaimer (2/2) THIS DOCUMENT REPRESENTS CURRENT AIB POLICY AND INTENT AS AT THE DATE OF THIS DOCUMENT AND IS SUBJECT TO CHANGE WITHOUT NOTICE AND IS NOT INTENDED NOR CAN BE RELIED ON, TO CREATE LEGAL RELATIONS, RIGHTS OR OBLIGATIONS. ANY DECISION TO PURCHASE ANY AIB GREEN BONDS SHOULD BE MADE SOLE
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