Embedding ESG in everything we do
We take the same approach to ESG as we do to banking; it should be straight-up, heartfelt and relevant. Our approach is to make sure our principles are transparent, easy to understand, and are used to guide and inform how we do business every day.
ESG is firmly embedded in our decision-making frameworks, governance, targets and in the strategic and financial planning schedule. We believe ESG, just like Purpose, is central to everyone’s role and responsibility and that this approach will make us truly sustainable over the long term by empowering colleagues and enhancing our Purpose-led culture. ESG targets are included in each divisional scorecard and good progress has been made, with 93% of measures tracking as ‘Green’ at year end.
The Board plays an instrumental role in leading our ESG strategy, with individual members of the Leadership Team sponsoring our ESG goals. Through deep dive sessions, supported by external experts, Directors have been building their understanding of the financial risks and opportunities of climate change throughout the year.
We are committed to developing our disclosures in line with Taskforce on Climate-related Financial Disclosures recommendations and improving access to and transparency of our ESG principles. You can access our ESG Resource Hub for more information on our strategy, policies and statements.
- ESG Resource hub introduced to improve transparency of our ESG related activities.
- TCFD report published.
- ESG Scorecard included in LTIP.
- Enhanced ESG governance through introduction of Group Environment Committee.
- ESG training delivered to all staff.
Variable remuneration linked to ESG progress.
Short > Medium Term Targets
Long-term incentives appropriately aligned to expanded ESG scorecard by 2022.
Financial risk from climate change determined and disclosed for physical and transitional risk sectors by 2022.
Governance and Reporting
United Nations’ Principles for Responsible Banking (UN PRB)
As a signatory to the UN PRB, we are committed to aligning our business with the Sustainable Development Goals (SDGs) and the Paris Agreement on Climate Change. We are taking steps to enable us to continually improve our impact and contribution to society, and have reported on our progress:Being a force for good - United Nations’ Principles for Responsible Banking.
Task Force on Climate-related Financial Disclosures (TCFD)
We have produced our first TCFD report which details the work we have been doing as we strive to a more sustainable future.