Our Group net zero ambitions

We will work with customers, government and the market to help reduce the carbon emissions we finance by more than

50%

by 2030 on the path to net zero by 2050 or sooner

and

halve

the carbon footprint of our investments

by

2030

Reduce our supply chain emissions by 50% by 2030 on the path to net zero by 2050 or sooner

Achieve net zero operations by 2030 and reduce our direct carbon emissions by at least 90%

Building a more sustainable and inclusive future

We support practically every sector of the UK economy, and we serve millions of people and businesses every day. Our lending, investments, products and services are powerful drivers of creating a sustainable and inclusive future, and is key to how we will grow our business profitably. 

 

We will help drive environmental sustainability where we live, in how we move, how we farm, and through the energy we use.

'Building a sustainable and inclusive future' report cover.

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

 



Working towards net zero

While our overarching net zero commitments are longer term, it's the way we embed sustainability in our day-to-day operations that will move us towards meeting these targets. 

In addition to the actions outlined above, we are founding members of the Net Zero Banking Alliance and we play an active role in the Financial Services Taskforce. And beyond our own sector we have a strong network of like-minded partners, all working to accelerate transition.

We know time is critical and the next few years will be decisive in tackling climate change. We have a key role to play in transitioning the UK economy towards net zero, and our focus is on financing the transition to build a more sustainable and inclusive future for people and business, shaping finance as a force for good.
 

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 

    Horizontal bar showing progress point of £5.7 billion and beyond this the 2024 target of £8 billion.

    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 December 2023.

  • Mortgages

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

    £7.5bn
    achieved since January 2022 

    Horizontal bar showing progress point of £7.5 billion and beyond this the 2024 target of £10 billion.

    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 September 2023.

  • Scottish Widows

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

    £21.7bn
    achieved by FY 2023 

    Horizontal bar showing 2023 progress point of £21.7 billion 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 December 2023.

Commercial Banking

£15 billion sustainable finance1 for corporate and institutional customers by 2024 

£15.8bn
achieved since January 2022 

Horizontal bar showing progress point of £15.8 billion just beyond the 2024 target of £15 billion.

New target 

£30bn
sustainable finance from 2024 to 20263 

 

1. As defined within the Sustainable Financing Framework which can be found under ESG downloads. 2. Covers the period from January 2022 to December 2023. 3. New target relates to both corporate and institutional customers and small and medium businesses and is from January 2024 to end of 2026, and will take the cumulative target within the division to £45 billion by 2026.

Sustainable finance news and insight

Rebecca Heaton
Director of Environmental Sustainability
19 September 2023
4 min read

Decarbonising the UK's housing stock

Our new research focuses on the key barriers to decarbonisation, the incentives needed to drive progress and contains insight from people who have retrofitted their homes.

Read Rebecca's article
Katie Leach
Head of Nature at Lloyds Banking Group
24 May 2023
4 min read

What it means to be Head of Nature at Lloyds Banking Group

Katie Leach, Head of Nature at Lloyds Banking Group, explains the importance of nature protection.

Read Katie's article

Find out more about sustainability at Lloyds Banking Group

What it means to be Head of Nature at LLoyds Banking Group

Katie Leach, Head of Nature at Lloyds Banking Group, explains the importance of nature protection.

Read Katie's article

Our operational emissions

Reducing the carbon footprint of our own operations is a key part of our sustainability strategy and we’re working towards an ambitious set of commitments.

Operational emissions

Our partnership with the Woodland Trust

At the beginning of 2020, we started working with the Woodland Trust to plant 10 million trees across the UK by 2030.

Woodland Trust partnership