Lloyds Banking Group

RATING

SECTOR

Banking 

WEBSITE

CONTACT

25 Gresham Street
London EC2V 7HN
United Kingdom

Tel: 0345 602 1997

STOCK EXCHANGE

LISTING

Forbes Lists

  • #177 Global 2000 2021

Other Lists

  • Featured in The Times Top 50 Employers for Women
  • Recognised for the sixth consecutive year as a Top 10 Employer for Working Families
  • 83% Bloomberg Gender-Equality Index
  • A- CDP (formerly Carbon Disclosure Project)
  • #8 Responsibility100 Index (Tortoise)
  • 85% Workforce Disclosure Initiative
  • 23.3 Sustainalytics
  • C ISS-ESG Corporate rating
  • 58 Bloomberg ESG Disclosure

EMPLOYEES

65,000

CHIEF SUSTAINABILITY OFFICER

Jessica T. 

AWARDS

Visit the full list of Awards and Ratings here.

  • Investing in Ethnicity Awards 2020: Outstanding Employer
  • Recognised for leading the way towards an equal and more inclusive workforce
  • Your Best, Lloyds’ Banking Group’s employee career development and performance management approach, has been successful in nine awards so far including the Best Large Organisation for Culture in the Business Culture Awards, the Learning and Development award from Investors in People, and the Best Change Management Initiative from the Personnel Today Awards 
  • Mitie and Lloyds Banking Group jointly won an Institute of Workplace and Facility Management Impact Award for their COVID-19 response: Keeping Good Work Going Award
 

CONTENT SOURCE

FURTHER READING

Report created by Youmna Abdallah 

Lloyds Bank

SECTIONS :  Sustainability Targets    Evaluation  •  Key Points  •  Overview

Company Activity

Lloyds Banking Group Plc is a financial services company, which engages in the provision of a wide range of banking and financial services. It operates through the following segments: Retail; Commercial Banking; and Insurance and Wealth. 

  • The Retail segment offers a broad range of financial service products, including current accounts, savings, mortgages, motor finance and unsecured consumer lending to personal and small business customers.
  • The Commercial Banking segment provides a range of products and services such as lending, transactional banking, working capital management, risk management and debt capital markets services to SMEs, corporates, and financial institutions. 
  • The Insurance and Wealth segment includes insurance, investment, and wealth management products and services. 

The company was founded by George Truett Tate on October 21, 1985, and is headquartered in London, United Kingdom.

Company Sustainability Activity

Environment

  • Lloyds Banking Group understands climate change is a global challenge that requires collaboration across companies and industries to ensure the risks and opportunities can be adequately identified and managed. To support this, the group participates in several industry initiatives and has signed up to key principles that drive action on climate change and sustainability.

Human Rights

  • Lloyds Banking Group believes that a responsible, ethical, inclusive and sustainable approach to doing business is central to their strategy and their purpose to Help Britain Prosper. They believe in the importance of doing business in ways that value and respect human rights – of their colleagues, customers, business partners and everyone that is affected by their business – and have a set of policies and procedures to translate this belief into action.

Labour

 

Highlights

  • Keep Cups: The bank has rolled out reusable Keep Cups to even more colleagues so they can eliminate single-use vending machine cups in all their offices. 
  • Reusable water bottles: Last year Llloyds rolled out an initiative which saw every colleague receive a stainless steel reusable water bottle, allowing colleagues to bring and refill instead of using single-use plastic cups and bottled water.
  • 10.1m average number of homes that could be powered as a result of their support of UK renewable energy projects. 
  • £39.7bn lending committed to help people buy their first home.
  • 37% of senior roles held by women in 2020.
  • 2,787 charities they supported in 2020 as a result of their £100 million commitment to the Group’s independent charitable foundations.
  • 1.8m individuals, SMEs and charities trained in digital skills, including internet banking.
  • £45.6bn growth in assets that they hold on behalf of customers in retirement and investment products .
  • £6bn increased amount of net lending to start-up, SME and Mid Market businesses .
  • 7.7% of senior roles held by Black, Asian and Minority Ethnic colleagues in 2020.

Targets

Operational climate pledges

  • Achieve net zero carbon operations by 2030. They plan to reduce their direct carbon emissions (known as Scope 1 and 2 emissions) by at least 75% (compared to 2018/2019 levels).
  • Reduce their total energy consumption by 50% by 2030 (compared to 2018/2019).
  • Maintain travel emissions below 50% of pre-Covid-19 (2018/2019) levels, embedding for the long term the reduced levels of commuting and business travel emissions seen during the pandemic, and supporting their colleagues to switch to low carbon modes of transport.
  • Reduce their operational waste by 80% by 2025, from a 2014/2015 baseline.
  • Reduce water consumption by 40% by 2030, from a 2009 baseline.

Carbon reduction plan

  • Lloyds Banking Group will continue to purchase 100% renewable electricity across their global operations, and will work towards their goal to increase the percentage of their electricity sourced directly from renewable developments (via Power Purchase Agreements (PPAs)).
  • Lloyds Banking Group will eliminate the use of natural gas in their buildings by 2030, replacing gas boilers with alternative heating systems such as heat pumps. 
  • Lloyds Banking Group will improve their air conditioning systems, switching to more energy efficient models using less harmful refrigerant gases. They expect to have some refrigerant emissions remaining in 2030, and They will offset these using certified carbon removals.

Working with their supply chain

  • Ensure that tackling climate change is embedded within the strategy and governance of the organisation including measuring their organisation’s environmental impact with plans in place to reduce these impacts.
  • Collaborate with us to help us reduce their environmental impacts.
  • Understand and mitigate the risks that climate change poses to their business.
  • Understand the ethical and sustainability-related practices of their supply chain in order to either collaborate on best practice or offer support on improvements where appropriate.

Progress

In 2020, Lloyds Banking Group has: 

  • Continued to purchase 100% renewable electricity across their global operations:
  • In August 2020, the Climate Group confirmed that they had met their RE100 goal of 100% renewable electricity, the first UK bank to do so.
  • They are focussed on their further RE100 commitment to increase the proportion of electricity sourced via renewables projects, via Power Purchase Agreements or onsite generation, to at least 60% by 2025 
  • Expanded the measurement of their carbon footprint and are now disclosing more of their Scope 3 emissions, including the emissions associated with: managing the waste from their buildings; their colleagues commuting to work (in addition to all elements of business travel already included); and their colleagues working from home.
  • Helped colleagues make more sustainable choices at home by launching a new collection of Sustainable Living colleague offers. These deals included special deals on renewable electricity tariffs and smart heating thermostats, to help colleagues reduce their household carbon emissions. 
  • Remained Carbon Trust Standard certification holders for carbon reduction for the eleventh year. The Carbon Trust Standard recognises organisations that follow best practice in measuring, managing, and reducing their environmental impact.

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

SDG 3: Good Health and Well-Being

  • Lloyds Banking Group remains committed to supporting their customers to become financially resilient and to plan and save for the future.
  • The Group provides practical support, and flexibility where possible, to help their customers facing financial difficulty to get back on track and help as many customers as they can to stay in their own home.

SDG 4: Quality Education

  • Lloyds Banking Group aims to be by the side of businesses as they recover, supporting UK business to adapt and grow, and create quality jobs across the regions of the UK.
  • Develop appropriate recovery plans for their customers, supported by 1,100 business specialists in communities across Britain. 
  • Support at least 75,000 UK businesses to start up in 2021. 
  • Help at least 185,000 small businesses boost their digital capability through their regional academies, partnerships and digital mentoring.

SDG 8: Decent Work and Economic Growth

  • In 2021 they will have over 6,500 colleagues trained to support customers to build their financial resilience.
  • Maintain their commitment to supporting mental health, and become accredited as Mental Health Accessible for Halifax and Bank of Scotland, in addition to the existing Lloyds Bank accreditation. 

SDG 10: Reduced Inequalities

  • In 2021 they will partner with independent debt advice organisations to ensure customers have access to practical support.
  • They are committed to broadening access to home ownership and exploring opportunities to increase their support to the UK rental sector.
  • As the UK recovers from the pandemic, they aspire to a UK in which all households have access to stable, affordable and safe homes in places they want to live.

SDG 11: Sustainable Cities and Communities

  • Provide £10 billion of lending to help people to buy their first home in 2021, and lead a national conversation on how more households can access the housing market.
  • Provide £1.5 billion of new funding support, including £500 million in ESG-linked funding, in support of the social housing sector.

SDG 13: Climate Action

  • Support the creation of national sustainability standards for house-building finance and assess the energy retrofit requirements of over 200,000 homes in the social housing sector.

Evaluation

Lloyds Banking Group is paving the way towards sustainable financing through the implementation of numerous sustainable development strategies in most areas it operates, and the publishing of a comprehensive report on their targets and progress.

Considered as one of their most notable achievements, the Group confirmed in August 2020 that they had met their RE100 goal of 100% renewable electricity, the first UK bank to do so. They are now focussed on their further RE100 commitment to increase the proportion of electricity sourced via renewables projects, via Power Purchase Agreements or onsite generation, to at least 60% by 2025. 

The various global initiatives they commit to, such as the Task Force on Nature-related Financial Disclosures (TNFD), and the United Nations Environment Programme Finance Initiative (UNEP FI), as well as their awards and certificates are noteworthy.  

Lloyds Banking Group complies with the UN Sustainable Development Goals, basing a priority for SDG 1, 3, 4, 8, 10, 11 and 13. Their efforts towards sustainability are noteworthy.

Despite its sustainability initiatives and progress, Lloyds Banking Group has invested $11.979 B in the fossil fuel industry since the adoption of the Paris Agreement. Furthermore, the bank has increased its investment from 2019 to 2020. Its involvement in the industry negatively impacts the rating Lloyds Bank can receive.

Lloyds Banking Group has been rated a C.

Analyst Outlook: Positive

Lloyds Banking Group’s efforts towards sustainability are noteworthy and the Group could benefit from earning more certificates and awards that validate its progress. 

Key Points

  • Ensure that tackling climate change is embedded within the strategy and governance of the organisation including measuring their organisation’s environmental impact with plans in place to reduce these impacts.
  • Remained Carbon Trust Standard certification holders for carbon reduction for the eleventh year. The Carbon Trust Standard recognises organisations that follow best practice in measuring, managing, and reducing their environmental impact.
  • 37% of senior roles held by women in 2020.
  • 2,787 Number of charities they supported in 2020 as a result of their £100 million commitment to the Group’s independent charitable foundations.
  • 1.8m Number of individuals, SMEs and charities trained in digital skills, including internet banking.

Commitment to Global Initiatives

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