André Saade (ING): Making ESG operational, not optional
André Saade, Head of Transaction Services at ING Luxembourg, explains how ESG goals can be integrated into treasury strategy without compromising key financial priorities.
How can treasurers move from ESG theory to practical implementation?
Before answering the “how” element of the question, I would like to start by addressing “why” ESG is a key topic for treasurers and how it gained traction over the years. In summary, the debate around ESG in the corporate world started in the 1960s to address social and environmental concerns and over the years, it has matured through standards such as the GRI (Global Reporting Initiative) and the UN Global Compact. Today, the challenge lies in moving beyond a compliance-driven approach to an approach the embeds the ESG goals while not compromising treasury KPIs. A recommendation is to approach the topic with a phased method, focusing first on the most sensitive KPIs: liquidity, cost, and security for example and then from there, identifying the right ESG triggers and third-party partners becomes essential, along with preparing fallback scenarios, having a third or fourth option in case the first two no longer align. This framework ensures flexibility and mitigates extra costs. ESG must not disrupt operational efficiency. Solid data is crucial. Every flow from ESG related booking needs to be traceable, auditable, and verifiable. Platforms, dashboards, and systems form the backbone of this transparency. The goal is a unified view combining liquidity, balances, suppliers, and ESG cost allocation. This simplifies decision-making. Simplification is not cosmetic; the cost gap between ESG gnd traditional products often stems from administrative complexity. Automating traceability and audit-proof generation significantly lowers this overhead even if some platforms remain costly to implement.
What concrete financial products support ESG alignment in treasury operations?
At ING, we strive to sit ESG at the core of the strategy. On the markets side, we offer green bonds, ESG-linked notes and Commercial Papers, and other short to mid-term instruments. For lending, we provide sustainable credit facilities. And most relevant for treasurers: we are preparing a Green Referenced Account. It aims to work as a standard current account, but the balance supports a portfolio of green assets financed by ING. Liquidity remains available, while the client’s cash contributes to sustainable goals. A detailed reporting package is included, which supports internal KPIs and external audits. Adoption of this solution is still nascent, particularly among corporates and financial institutions, but interest continues to grow. Beyond products, governance must remain pragmatic. Rules should avoid blanket exclusions and encourage case-by-case decisions. This flexibility allows ESG principles and treasury requirements to coexist. Treasury teams are asking for tangible, standardised, and verifiable solutions and products that reduce paperwork and ease portfolio management. That’s where co-creation plays a role. Treasurers and banks will evolve into true partners, designing tailor-made strategies together. The future lies in off-the-shelf, certified ESG solutions that simplify integration, not complicate it.
"The goal is a single view gathering liquidity, balances, suppliers and ESG cost allocation in one place."
How is ESG transforming the corporate bank relationship in the long term?
Banks no longer rely on isolated ESG experts. Today, entire advisory teams support clients with strategic integration. (Banks and corporates are now partners and they shape the relationship around ESG topics specifically tailored to the needs of treasury and the capabilities of the bank.) This shift opens the door for more collaborative models. ESG forces the conversation away from short-term returns and towards long-term accountability. From my perspective, the demand will increasingly target pre-labelled and pre-verified products. These will simplify adoption, reduce administrative effort, and make impact reporting seamless. The broader debate includes the evolution of financial reporting frameworks. Treasury teams already anticipate the merging of financial and non-financial disclosures, especially with IFRS reporting incorporating ESG data. However, European firms face a real risk: stricter ESG expectations on this side of the Atlantic compared to the U.S. This imbalance may create competitive disadvantages unless managed carefully. Treasurers now seek clarity, interoperability, and standards that facilitate ESG without added burden. Two persistent blind spots must be addressed: data quality and greenwashing. Naming the latter openly reinforces the need for rigorous proof. Another common barrier is the absence of internal alignment: successful ESG initiatives need a strong internal sponsor. And ESG must not be reduced to the “E”: social and governance aspects must integrate into daily operations, without becoming a parallel compliance universe.
Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on ing.com/climate.