Based on this new impact calculation methodology, Triodos Bank’s financing activities in wind energy, solar energy, battery storage, and sustainable and biobased mortgages have collectively avoided substantial greenhouse gas emissions, air pollution, and water pollution in 2024, quantified to:
For the calculations in the report, Triodos Bank collaborated with Impact Institute, using the Impact Weighted Accounts Framework. Impact is monetised based on the costs to society to reverse or remedy negative impacts.
New standards in sustainability reporting
While our commitment to sustainable practices has led to the avoidance of millions of euros in negative environmental impacts, we want to do better. That is why it is not our ambition to measure impact, but to manage it. Using a pioneering methodology, Triodos Bank's blueprint for impact measurement helps us and others to transparently quantify both avoided negative externalities and positive outcomes per euro invested, setting new standards in sustainability reporting and feeding strategic decision making.
Relative performance in financing the energy transition
Since 1987, Triodos Bank has been financing solar, wind and battery storage projects, totaling to EUR 1.9 billion in outstanding loans and investments in 2024. The renewable sources we finance drastically reduce contributions to climate change and air pollution compared to fossil fuel-dependent systems. By investing in battery storage, we not only enhance the efficiency of renewable energy but also reduce the need for gas peaking plants, further minimising environmental degradation.
However, these financing decisions also have a negative environmental impact. For instance, CO2 is emitted during the construction of solar panels, wind turbines and batteries. This is why in the report we introduce a relative impact return on our energy transition portfolio. In 2024 our financing of solar, wind and batteries generated a 14% relative impact return compared to the energy grid mix, or in case of batteries compared to gas peaking plants. This is calculated as the total avoided negative environmental impact generated (€263 million) divided by the €1.9 billion outstanding in loans and investments. This means that for every euro of financing 14 cents worth of negative environmental impact was avoided.
These insights support our understanding of the energy transition. Accelerating the transition by choosing to finance new battery storage but also reinforce the continued support for solar and wind energy generation.
Each Triodos Bank mortgage delivers tangible environmental benefits
With a long-term focus on high energy labels and sustainable housing solutions, we already knew that our strategy ensures that the environmental footprint of our financed properties is significantly reduced compared to conventional mortgage portfolios. In the report this comparison has been quantified for the first time, further proving that sustainable home financing delivers tangible environmental benefits.
“Our biggest impact is in frontrunner projects, financing the next stages of the sustainability transition”
In 2024 our mortgage portfolio, focused on energy-efficient and bio-based homes, has led to the avoidance of 60 kilotonnes of greenhouse gas emissions. Furthermore, we achieved EUR 3 million in reduced air pollution and EUR 400 thousand in lower water pollution, outperforming standard mortgage portfolios by 30%. Each mortgage financed by Triodos Bank avoids about EUR 706 in negative environmental impact per year.
The promise of biobased mortgages
Recognising the promise of biobased mortgages, we have been rewarding customers with an extra discount on mortgage interest for choosing to live in a home built with renewable building materials, instead of materials that emit a lot of CO2 during the production phase, such as concrete, steel and rock wool. We knew this would take us one step closer to our goal of making the housing market more sustainable, but we did not know to what extent. With this report that impact has become visible. We found that the construction and energy consumption of a biobased home has 42% less environmental impact than a conventional home. This means a Triodos Bank biobased mortgage avoids about EUR 4,100 annually in negative environmental impact. Over a 30-year period, this totals to EUR 123,000 of relative positive impact.
These insights help us understand that changing the mindset regarding what buildings are constructed from has potential to make the world more sustainable.
Download the report 'Pioneering impact finance in energy and housing'