Supporting the transition to a low carbon economy aligns with our purpose to Help Britain Prosper. Our focus on the transition is core to our strategy as this is an area where we can make a real difference, whilst also creating opportunities for future growth. We recognise the importance of transitioning to net zero by 2050 or sooner and our role in helping to enable and drive that transition in the real economy. As the bank of choice for millions of consumers and businesses across the UK, our commitment to financing the transition to a low-carbon economy seeks to support the significant transformation required across the economy to reach net zero.
Our net zero ambitions and sector targets
We are committed to achieving net zero across the activities we finance by 2050 or sooner. In our banking activity, we have an ambition to work with customers, government and the market to help reduce the emissions we finance by more than 50 per cent by 2030. Through Scottish Widows, we have an ambition to halve the carbon footprint of our investments by 2030. Furthermore, we are aiming for net zero in our own operations by 2030 and have developed a new net zero ambition for our supply chain that we detail further in this update.
In April 2021, we became a founding member of the Net Zero Banking Alliance (NZBA) and committed to develop sector-based 2030 emissions reduction targets for our most carbon intensive sectors that will build on our banking related climate ambitions. Our first round of targets, detailed in this document, is focused on fossil fuel sectors and other sectors where we have high emissions and/or material financial exposure and readily available data. The seven targets that we have now developed cover some of the UK’s hardest to abate and most material sectors including residential buildings, transportation, power and oil and gas.