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.
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.
Access other ESG documents along with the Group’s codes, policies and sector statements.
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 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
Our sustainable lending and investment targets
-
Motor
£8 billion financing for EV and plug-in hybrid electric vehicles by 20241
£5.7bn
achieved since January 2022 -
Mortgages
£10 billion of mortgage lending for EPC A and B-rated properties by 20241
£7.5bn
achieved since January 2022 -
Scottish Widows
£20–25 billion discretionary investment in climate-aware strategies and climate solutions1 by 2025
£21.7bn
achieved by FY 2023
Commercial Banking
£15 billion sustainable finance1 for corporate and institutional customers by 2024
£15.8bn
achieved since January 2022
New target
£30bn
sustainable finance from 2024 to 20263
Read more about our approach to environmental and social sustainability.
News and insight
The latest updates and opinions from across the Group
Helping Britain Prosper now and for the future
How the Group is delivering against its strategy, and the importance of a vibrant and resilient banking sector in supporting strong communities and the wider economy.
Why bank accounts are crucial for prison leavers
Philip Robinson, Customer Specialist Support Managing Director, explains the importance of bank accounts for prison leavers and the Group's work with New Futures Network.
More related content
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.
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.