Environmental, social and governance

Strong ESG performance is core to delivering our purpose and strategy. By focusing on our purpose, Helping Britain Prosper, we aim to deliver sustainable growth and returns.

Front cover of 2023 sustainability report, with title: 'Building a sustainable and inclusive future'

Sustainability report 2023

This report provides an update on our progress towards the Group’s sustainability ambitions, on sustainable and inclusive growth opportunities for the Group and activities we are undertaking to understand our ESG-related risks. It also includes our climate transition plan. 

Download the report

 


Access other ESG documents along with the Group’s codes, policies and sector statements.
 

ESG downloads

Our approach to ESG

Our purpose is to Help Britain Prosper. Building a more inclusive and sustainable future for people and businesses is core to our purpose and strategy. This is where we can make the biggest difference, while creating new opportunities for inclusive and sustainable growth for the Group.

We believe that by focusing on our purpose and doing right by our customers, colleagues and communities we can achieve higher, more sustainable profits for shareholders, while meeting the needs of our broader stakeholders.

As part of our purpose-driven strategy, our stakeholder outcomes have been embedded across our business priorities. Also, our remuneration structures include ESG performance measures to drive progress towards our sustainability ambitions.

Our purpose: Helping Britain Prosper Our strategic vision: UK customer-focused digital leader and integrated financial services provider, capitalising on new opportunities, at scale. - Grow: Drive revenue growth and diversification - Focus: Strengthen cost and capital efficiency - Change: Maximise the potential of people, technology and data [Leads to] Higher, more sustainable, returns and capital generation

Read more about our purpose and strategy

Our sustainability objectives

Given our unique position, reach and scale in the UK, we recognise our role in creating a sustainable and inclusive future for all, understanding there are areas where we can have a bigger impact, while creating growth opportunities for the Group.

Our Group strategy focuses on three pillars – grow, focus and change. Our sustainability objectives support the delivery of the Group strategy.

Grow

Drive revenue growth and diversification
 

 

Sustainability objectives

  • Capitalising on inclusive and sustainable financing and investment opportunities.
  • Improving access to quality housing.
  • Increasing access to banking by promoting financial inclusion and resilience.
  • Supporting regional development and productivity.

 

Focus

Strengthen cost and capital efficiency 
 

 

Sustainability objectives

  • Reducing emissions and monitoring our sustainability related risks to manage costs and mitigate against future losses.
  • Strengthening our balance sheet by supporting customers, clients and communities through challenging times.

 

Change

Maximise the potential of people, technology and data

 

Sustainability objectives

  • Embedding sustainability in all that we do.
  • Supporting and engaging our colleagues.
  • Building an inclusive and diverse organisation.

 

Our key sustainability targets and ambitions

Climate

  • Reduce the carbon emissions we finance by >50% by 2030.* 
  • Halve the carbon footprint of our Scottish Widows investments by 2030.*
  • Ten sector emission reduction targets.
  • Achieve net zero in our own operations by 2030.
  • Reduce the emissions from our suppliers by 50% by 2030.*
  • Sustainable finance and investment targets for 2024 - 2026.

*on the path to net zero by 2050, or sooner

Diversity

  • 50% women in senior roles by 2025.
  • 13% Black, Asian and Minority Ethnic colleagues in senior roles by 2025.
  • At least 3% Black Heritage colleagues in senior roles by 2025.
  • Double colleagues with disabilities in senior roles to 12% by 2025.

Our sustainable lending and investment targets

  • Motor

    £8 billion financing for EV and plug-in hybrid electric vehicles by 20241

    £7.6bn
    achieved since January 2022 

    Horizontal bar showing progress point of £7.6 billion lending of £8 billion, the 2024 target.

    1. Includes new lending advances for Black Horse and operating leases for Lex Autolease (gross) and operating leases for Tusker (gross, post acquisition by the Group in February 2023 only); includes cars and vans. 2. Covers the period from January 2022 to June 2024.

  • Mortgages

    £10 billion of mortgage lending for EPC A and B-rated properties by 20241

    £9.1bn
    achieved since January 2022 

    Horizontal bar showing progress point of £9.1 billion lending of £10 billion, the 2024 target.

    1. New mortgage lending on UK (excluding Channel Islands) residential property that meets an Energy Performance Certificate (EPC) rating of B or higher. The target includes re-mortgages but excludes further advances. 2. Covers the period from January 2022 to March 2024.

  • Scottish Widows

    £20–25 billion discretionary investment in climate-aware strategies and climate solutions1 by 2025

    £23.9bn
    achieved by HY 2024 

    Horizontal bar showing progress point of £23.9 billion investment within the 2025 target range of £20-25 billion.

    1. We are working with our strategic fund management partners BlackRock and Schroders to develop and refine a range of funds that have a bias towards investing in companies that are adapting their businesses to be less carbon-intensive and/or developing climate solutions. 2. Invested over target lifetime from January 2020 to June 2024.

Commercial Banking

Sustainable finance1 for Commercial Banking customers 

£21.7bn
achieved since January 20222

Horizontal bar showing progress point of £5.9 billion lending of £30 billion, the new 2024-2026 target.

Original 2022-2024 target 

£15bn
sustainable finance was met at year end 20234

 

1. As defined within the Sustainable Financing Framework which can be found under ESG downloads. 2. £15.8 billion from January 2022 to December 2023 and £5.9 billion from January 2024 to June 2024. 3. Covers the period from January 2024 to June 2024. 4. £15.8 billion delivered in the period from January 2022 to December 2023.

Read more about our approach to environmental and social sustainability.

Environmental sustainability

Social sustainability

News and insight


The latest updates and opinions from across the Group

Pete Glancy
Head of Policy, Pensions & Investments
23 July 2024
5 min read

A challenging couple of decades for pensions

We explore what’s changed in the pensions landscape since the Scottish Widows Retirement Report was first published.

Read Pete's article
Elyn Corfield
CEO, Business & Commercial Banking
11 June 2024
5 min read

Our support for UK entrepreneurs

We support over one million UK businesses with leading digital and relationship banking services – helping them to start up, grow and thrive.

Read Elyn's article

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Corporate governance

We aim to comply with the principles of the Financial Reporting Council’s UK Corporate Governance Code. Read more about our corporate governance framework.

Corporate governance

ESG downloads

Here you can find our latest ESG reports and presentations. The Group’s key codes and policies, as well as sector statements, are also available in this section.

Downloads