Enabling the transition to a low carbon, more sustainable and inclusive future for people and businesses is key to delivering on our purpose.

What we're doing to tackle climate change

We're committed to reducing carbon emissions we finance to net zero by 2050 or sooner. 

And we're aiming to achieve net zero for our own operations by 2030.

We are joining up all parts of our business to accelerate the transition to a lower carbon future, prioritising the following areas:

The energy transition

We are a leading supporter of UK off-shore and renewable energy, and we’re working with clients to halve the carbon intensity of the power we finance by 2030.

Low carbon transport

Over 1 million cars and vans on UK roads are leased or financed through Lex Autolease and Black Horse, including 1 in 10 new electric cars. 

Greening the built environment

We finance 1 in 5 mortgages in the UK and hold nearly 20% of market share of SME lending.

Sustainable farming and natural capital

We’ve been providing farming loans and finance for over 90 years, and we are the UK’s largest lender to the agricultural sector.

And as part of our strategy, by 2024 we will provide:

- £8 billion for EVs and plug-in hybrids
- £10 billion for green mortgages
- £15 billion in sustainable finance.

By 2025 we will also invest £20-25 billion in climate-aware strategies through Scottish Widows.

Why do we play a role in the low carbon transition?

We serve millions of people and communities every day so we’re well placed to help people tackle climate change through the financing we provide to them.  

We believe the changes needed to tackle climate change provide growth opportunities for our business as well as the UK and the businesses we support. 

We want to finance a just transition that is inclusive of everyone and leaves no individual, business or community behind.

We will play our part in creating a future where our planet is cared for, people feel safe and included, and businesses and communities can thrive.

How we'll help to finance and accelerate the low carbon transition

The finance we provide is a key part of the puzzle, but it's not the only way we're contributing.

Prioritising sustainability

We're embedding sustainability into our business priorities, both in terms of our own operations and how we do business with others. We're continually identifying, measuring and disclosing the biggest climate risks and opportunities. 

Supporting our customers

We're committed to giving our customers the right tools, products and services to help them respond to climate change. We will never stop innovating to make sustainable, ethical choices easy and rewarding for customers.

Working with others

As much as we can achieve through our own business, we see the transition to net zero as a joint effort. We believe the right balance of industry collaboration, government policy and financial support can successfully transition the UK economy towards net zero.

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 additon 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 will be on financing the transition to build a more inclusive and sustainable future for us all.

Sustainable finance news and insight

Lloyds Banking Group
14 July 2022
3 min read

The Housebuilding Sustainability Finance Framework

To complement the development of the newly created standards for UK housebuilders, we launched our Sustainability Finance Framework which sets out how the Group will support housebuilders to access finance to build more sustainable homes.

Find out more
Lloyds Banking Group
21 April 2022
2 min read

Lloyds Banking Group appoints Dr Rebecca Heaton as Director of Environmental Sustainability

As Director of Environmental Sustainability, Rebecca will oversee the delivery of Lloyds Banking Group’s plan to achieve net zero. 

Read the press release

Seizing the green growth opportunity

We commissioned Oxford Economics to look at the opportunities and challenges that the green economy presents for the UK, and how this varies across the individual nations and regions.

Seizing the green growth opportunity: the national story

Green growth opportunity across the nations and regions of the UK

Find out more about sustainability at Lloyds Banking Group

Net zero activity update

Since our 2021 Climate Report, we have developed a new net zero ambition for our supply chain and several new or updated financed emissions intensity reduction targets for specific sectors. 

Net zero activity update

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