Lloyds Banking Group plc · LSE:LLOY
Lloyds Banking — ESG Presentation (March 2023)
15 slides from Lloyds Banking's sustainability presentation, Mar 22, 2023
Slide 1: Lloyds Banking Group
Classification: Public Lloyds Banking Group 22 March 2023
Slide 2: Building a purpose-driven business; supporting the transition to net zero
Classification: Public Building a purpose-driven business; supporting the transition to net zero Purpose Climate objectives aligned to strategy Supporting the transition to net zero Helping Grow Drive revenue growth and diversification Reduce financed emissions by >50% by Britain → Capitalise on tra
Slide 3: Supporting the transition is core to our strategy and purpose
Classification: Public Supporting the transition is core to our strategy and purpose • Focusing on areas where we can make the biggest difference Financing and investment targets • Ambitious 2030 and 2050 emission reduction targets £15bn sustainable finance in Commercial Banking by 2024 • Green fina
Slide 4: Clear oversight and ownership of sustainability strategy and management of climate risks
Classification: Public Clear oversight and ownership of sustainability strategy and management of climate risks Board oversight across 3 committees with shared Lloyds Banking Group Board Board level membership: • Responsible Business Committee – net zero strategy Responsible Audit Committee Board Ri
Slide 5: Continued progress towards our climate ambitions
Classification: Public Continued progress towards our climate ambitions Breakdown of Group’s emissions Examples of progress in 2022 (MtCo2e) New NZBA1 2030 sector targets set Scottish Widows climate action plan published Committed to no direct finance of new Enhanced exclusion policy (tobacco and 23
Slide 6: Sector based approach to transition our banking portfolio
Classification: Public Sector based approach to transition our banking portfolio Sector Target for 20301 UK residential mortgages 41% reduction in emissions intensity • Limited exposure to high fossil fuel sectors (coal, oil & gas) Retail motor >50% reduction in emissions intensity • Emissions profi
Slide 7: Group climate transition plan now published; a roadmap of activity out to 2030
Classification: Public Group climate transition plan now published; a roadmap of activity out to 2030 towards our net zero ambitions Included in the plan Further developments Our key next steps Sector target pathways Expect to iterate plan regularly Set agriculture and commercial real estate targets
Slide 8: Good progress on embedding climate risk into our overall risk management approach
Classification: Public Good progress on embedding climate risk into our overall risk management approach As our understanding of impacts of climate risks has evolved, we have adopted a ‘Double Materiality’ approach • Inbound: consideration of impacts of climate change or transition Consistent framew
Slide 9: Increasing integration of climate considerations into credit processes
Classification: Public Increasing integration of climate considerations into credit processes • Good progress in embedding ESG and climate risk considerations into credit processes • Will continue to evolve and differ in approach by division/business • Priority areas of focus: ESG credit risk framew
Slide 10: Evolving scenario analysis capabilities to assist in managing climate risks
Classification: Public Evolving scenario analysis capabilities to assist in managing climate risks Consumer example - UK mortgage portfolio • Expanding our understanding of physical hazards to Current activity mortgage portfolio under different climate scenarios % of the Group’s UK mortgage portfoli
Slide 11: Focus: Supporting businesses to transition
Classification: Public Focus: Supporting businesses to transition >£8bn of green & sustainable financing in 2022 Committed to help our Dedicated 25+ person team with deep expertise in sustainable financing, ESG consultancy, climate strategy, policy and law clients navigate and sustainability team su
Slide 12: Focus: Greening homes
Classification: Public Focus: Greening homes >£3.5bn of green mortgage lending in 2022 Growth opportunity in Build awareness & >18k registrations for Green Living Reward – sixfold increase vs initial launch in 2020 incentivise customers to supporting the act more sustainably Functionality to capture
Slide 13: Q&A
Classification: Public Q&A 13
Slide 14: Thank you
Classification: Public Thank you Today’s participants: Charlie Nunn, Group Chief Executive Dr. Rebecca Heaton, Group Environmental Sustainability Director Roselyne Renel, Chief Credit Officer Scott Barton, Managing Director, Corporate & Institutional Coverage Andrew Asaam, Homes Director, Consumer L
Slide 15: Disclaimer
Classification: Public Disclaimer Important notice The information, statements, views and opinions contained in this document and accompanying discussion (“this Presentation”) are for informational and reference purposes only. This Presentation has been provided by the Group (defined below). This Pr