Lloyds Banking Group pledges to halve carbon financing by 2030
Lloyds Banking Group has pledged to cut its financing of carbon emissions by more than 50 per cent over the next ten years in recognition of the “urgent need” to fight climate change.
The Bank of Scotland owner has announced it will accelerate plans to help promote green finance, with the aim of slashing carbon output by the equivalent of that produced by UK homes in an area 21 times the size of Edinburgh.
The lender acknowledged that the transition to greener finance will be “challenging” and it does not “have all the answers today”.
It said: “Significant reductions of carbon emissions will require entirely new ways of living and working for our customers and clients, and changes in how we operate.”
This includes rolling out products and services to specifically support greener finance options, with the aim of helping its business and personal banking customers to adapt their lifestyles and invest in projects to tackle global heating.
The group also unveiled a partnership with the Woodland Trust to plant ten million trees over the next decade in an effort to expand the UK’s carbon sink – an area that absorbs more carbon than it releases as carbon dioxide.
The additional trees could absorb up to 2.5 million tonnes of carbon dioxide during their lifecycle.
'All businesses must do their part'
Philip Grant, Lloyds Banking Group ambassador for Scotland, said: “We know that the next ten years will prove to be vital in tackling climate change.
“All businesses must do their part, especially the financial services sector which has an essential role to play in driving forward products and investments that support a low carbon economy.
“We will announce products and services in 2020 to support and invest in a greener future. We will help our clients, customers and colleagues in Scotland make the transition needed in their homes, vehicles and investments.”
The lender has previously announced its £2 billion Clean Growth Finance initiative, which offers discounted finance to commercial banking clients investing in low-carbon projects.
For example, Lloyds Bank and Scottish Widows provided collective funding of £273 million for the world’s biggest offshore wind farm, Hornsea Project One in the North Sea.
Lloyds is poised to roll out an app to help its business customers to make energy efficient investments in their buildings and has also provided 640 relationship managers with training on climate change and sustainability-related risks and opportunities.
The group has reduced its own carbon emissions by 63 per cent since 2009, achieving its initial 2030 target 11 years ahead of schedule.