Straight-up ESG


Align our strategic goals to ESG and embed them in all areas of the business with robust targets, tracking and disclosures

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.

We have made good progress in embedding ESG into our decision-making frameworks. 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.

Over time, as our ESG strategy evolves, so too will the measures included in our ESG scorecard, ensuring we continue to set stretching targets that drive this agenda at pace and achieve the longer-term aspirations we have set out.

Fast Facts.

2030 Aspirations

  • 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

“The Board plays an instrumental role in leading our ESG strategy, and this year we have set out a strengthened framework that facilitates dedicated discussions each quarter and embeds ESG into all relevant Board and sub-Board charters. ESG regularly features on the Leadership Team’s agenda, and individual members of our Leadership Team sponsor our ESG goals.

We have established a Sustainability working group to act as custodians of our ESG strategy and to drive delivery of all related activities and targets. Working closely with our established Purpose Council, this will ensure our ESG strategy and our Purpose are fully integrated and mutually supportive.

Next year’s focus will be on embedding the new ESG operating model and reporting such that our stakeholders can clearly understand how ESG informs our decision making in everything we do.

The Group has low levels of lending to carbon related assets at 0.1% (2019: 0.1%) of the Group’s customer lending assets.

We are working to enhance both the way ESG is reflected in credit risk policies and our disclosure of financial risks from climate change.

We aim to provide affordability and transparency in everything we do, while safeguarding customers’ data with advanced cyber security and data protection measures.

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 here: Being a force for good - United Nations’ Principles for Responsible Banking.

Task Force on Climate-related Financial Disclosures (TCFD)

We understand the need to more effectively disclose climate-related risks and opportunities through our existing reporting processes and remain committed to developing our disclosures in line with the TCFD recommendations.