Helping Britain Prosper

Financing a new climate reality

Our approach

We know that climate change is one of the biggest issues facing the UK today – and we want to play our part in finding solutions.

As the UK’s largest financial services group, our size and scale means we can make a real difference in driving ourselves and others to build a net zero future. This will require entirely new ways of living and working, both for our business and our customers. 

Our sustainability strategy, outlined below, adheres to the 2015 Paris Agreement and the UK Government’s Net Zero ambition, which both of which present an urgent need for our economy to shift towards a low-carbon model, and require significant change in all parts of society.

Financing a new climate reality

Given our unique position within the economy, and our commitment to Helping Britain Prosper, we have pledged to support the UK in successfully engaging with the challenges and opportunities created by climate change.

We have already laid out some of our ambitions to support the transition to a low carbon economy through investing in renewable energy projects and providing energy efficient commercial real estate space.

We are also driving the transition through low emission and electric vehicle fleets, becoming a leading UK insurer to improve the resilience of customers’ lives against extreme weather caused by climate change, and driving Greener lending and investment behaviours.

Our Progress

Vehicles: EV1000

The Group has successfully allocated its £1m fund to drive the shift towards zero-emission driving, four months earlier than expected. The business’s flagship EV1000 initiative has provided cashback of £1,000 on 1,000 pure electric vehicle (EV) orders since January 2019 to both business and personal customers.

Business: Hornsea Project One Offshore Wind Farm

The Group has provided funding to support the construction of the Hornsea Project One Offshore Wind Farm.

Hornsea will be the world’s largest offshore wind farm once constructed in 2020 with 174 7MW turbines providing enough energy to power more than 1 million UK homes.

This commitment is included within the £2bn Clean Growth Financing Initiative which aims to support commercial clients with investments which help to reduce environmental impact.

Launch of mobile app to help reduce businesses' carbon footprint

The Group was the first UK financial services to offer customers access to a digital app that allows them to identify and make energy-efficient investments in their buildings.

The app, which was announced by Lloyds Banking Group Chief Executive António Horta-Osório at the Green Finance Summit in London, calculates how various energy-saving initiatives would affect the energy performance certificate (EPC) rating of buildings.

  1. G20

  2. International Energy Agency (IEA), 2014