Lloyds Banking Group has announced its new ambition to accelerate working with customers, government and the market to help reduce the carbon emissions it finances by more than 50% by 2030. This is the estimated equivalent of removing the emissions produced by almost a quarter of UK homes. The bank says this commitment recognises the urgent need to tackle climate change, grow the green economy and promote green finance for the future business prosperity of the UK.
To begin, Lloyds Banking Group will announce products and services in 2020 to support and invest in greener finance for the UK. The bank says it wants to help 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. It will also support businesses by financing their investments in the green economy, as well as helping to improve the energy efficiency of commercial buildings.
There are a number of efforts that the bank has already made in this regard:
The UK’s largest low emission vehicle fleet: Lex Autolease has been at the forefront of electric vehicle technology with the first mainstream plug-in vehicles introduced to customers in 2011. The bank says it has the UK’s largest ultra-low emission vehicle fleet, with more than 21,000 ultra-low emission vehicles.
Energy-efficiency app: The bank is to release a digital app to allow Commercial Banking clients to identify and make energy-efficient investments in their buildings. The app was piloted in 2019 and will be rolling out early in 2020.
Sustainability support for UK business: To support our business customers on their sustainability journey, over 640 Lloyds Bank relationship managers have undertaken training on climate change and sustainability-related risks and opportunities in collaboration with the University of Cambridge Institute for Sustainability Leadership.
Clean growth financing: Lloyds says it continues to support business to invest in tackling climate change through its Clean Growth Finance Initiative. The £2bn scheme offers discounted finance to Commercial Banking clients investing in a lower carbon future. For example, Lloyds Bank and Scottish Widows provided collective funding of £273m for the world’s biggest offshore wind farm, Hornsea Project One.
Green bonds: Over the past five years, the bank has led around £2.8bn of green bonds to UK corporates.
Addressing its own carbon emissions: The bank met its 2030 carbon reduction target in 2019, having reduced emissions by 63% since 2009. It says it will continue to pursue its long term target to reduce emissions by 80% by 2050 and will accelerate this activity in 2020, developing new carbon, energy and travel targets. Lloyds says it is continuing with existing targets to reduce operational waste by 80% by 2025, compared to 2014/15, and water consumption by 40% by 2030, compared to 2009.
“The next decade will be crucial for protecting the planet for future generations, and financial services has a critical role to play,” commented António Horta-Osório, Group Chief Executive of Lloyds Banking Group. “We are fully committed to supporting our customers, clients and colleagues to transition to a low carbon economy, working closely with other organisations and government to create the solutions that will accelerate progress and ultimately help Britain prosper.”
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