We recognise that climate change is one of the biggest issues facing society.
How we'll help finance a green future together
We want to help our customers make the lifestyle changes required in their homes, vehicles and investments by creating green products and services that make it easier for them to invest in tackling climate change.
We will also support businesses by financing their investments in the green economy, as well as helping to improve the energy efficiency of their buildings, vehicles and assets.
Support our clients to transition to sustainable business models and operations and to pursue new clean growth opportunities.
Be a leading UK provider of customer support on energy efficient, sustainable homes.
Pensions & investments
Offer customers sustainable investment choices and challenge companies we invest in to behave sustainably and responsibly.
Be a leading UK provider of low emission/green vehicle fleets.
Provide insurance to improve the resilience of customers’ lives against extreme weather caused by climate change.
We are taking action through an accelerated target to reduce our financed carbon emissions and further our purpose of Helping Britain Prosper.
We have set a target of achieving net zero carbon operations by 2030: reducing our own environmental footprint and collaborating with suppliers to ensure our consumption of resources, goods and services is sustainable.
We will maintain travel carbon emissions below 50% of pre COVID-19 levels, embedding for the long-term the reduced levels of commuting and business travel seen during the pandemic and supporting colleagues to switch to low carbon transport.
Our progress so far
We’ve made a good start, but there is more we can do.
In 2020, we more than doubled the number of electric vehicles financed through our Motor Finance and Leasing subsidiaries, Lex Autolease and Black Horse.
We launched a digital insight tool – The Green Buildings Tool – exclusively to the UK, which enables commercial real estate clients to assess the energy efficiency of their buildings, with the equivalent of around 2,100 football pitches of space already analysed.
To support our business customers on their sustainability journey, over 823 Lloyds Bank colleagues have undertaken training on climate change and sustainability-related risks and opportunities in collaboration with the University of Cambridge Institute for Sustainability Leadership. We are putting sustainability at the heart of our relationship teams’ support for businesses.
As part of our partnership with the Woodland Trust, we are helping farmers and landowners transition to a low carbon future by offering preferential funding when planting more than 0.5ha of new woodland.
In 2020, we provided over £2.3 billion of green finance in Commercial Banking through our Clean Growth Finance Initiative, Commercial Real Estate Green Lending Initiative, Renewable Energy Financing and Green Bond facilitation. This increased our total green finance to over £7.3 billion since 2016. In addition, we have supported clients with over £1.8 billion of Sustainability Linked Loans since 2017.
Since the launch of this ambition in 2016, we have maintained our role as a leader for our UK corporate clients between 2016 and 2020, raising around £2.9 billion.
We will ensure our own operations are net zero by 2030.
Offering customers more sustainable investment choices is a central part of our strategy, so we have invested £2 billion of Scottish Widows’ pension portfolios into the new ACS Climate Transition World Equity Fund, designed to help the global economy transition to a low carbon future. Our work with BlackRock to design this fund will help to engender positive change in the industry; incorporating environmental, social and governance risks into a portfolio can have a meaningful financial impact on performance.
Scottish Widows is to divest at least £440 million from companies that have failed to meet its environmental, social and governance standards. As one of the biggest pension providers in the UK, Scottish Widows’ new exclusions policy will benefit nearly 6 million UK savers.
In conjunction with the Energy Savings Trust we have launched a free online Home Energy Savings Tool accessed via the Halifax Green Living Hub. The tool is designed to help customers understand how they can improve the energy efficiency of their homes, what improvements and approximate costs and savings. The easy to use tool provides a tailored action plan for retrofit home improvements – with one created every 30 minutes and with an average potential saving of £264 per household.
News and insight
Find out more about sustainability at Lloyds Banking Group
2021 climate report
This report details progress on our climate strategy and our reporting against the recommendations of the Task Force on Climate-related Financial Disclosures.
Our operational climate pledges
Our ambition is to reduce our own environmental footprint and collaborate with suppliers to ensure our own consumption of resources, goods and services is sustainable.