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.
ESG scorecard included in the Long Term Incentive Plan (LTIP).
Leadership Team Accountabilities for ESG strategy established.
Board Risk Committee oversight of climate change and wider ESG principles through the principal and emerging risk framework.
ESG targets included in each functional and division balanced scorecard for FY21.
- 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 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.