Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — ESG Presentation (July 2021)
39 slides from Lloyds Banking's sustainability presentation, July 2021
Slide 1: ESG Investor Presentation
ESG Investor Presentation Investor Relations, July 2021 Our Lloyds Banking Group ESG Report 2020 is available on our Group webpage here
Slide 2: Contents
Contents Our ESG priorities and Strategic Review 2021 2 – 10 Environmental matters 11 – 18 Social matters 19 – 28 Governance matters 29 – 33 NEW denotes updated or new information in H1 2021 1
Slide 3: Lloyds Banking Group is a unique integrated UK financial services leader
Lloyds Banking Group is a unique integrated UK financial services leader ▪ Multi-brand, multi-channel proposition with the UK’s largest digital bank and branch network ▪ Comprehensive product range with all financial needs served in one place; banking, insurance and wealth management ▪ Differentiate
Slide 4: Committed to the UK’s success with our purpose of Helping Britain Prosper
Committed to the UK’s success with our purpose of Helping Britain Prosper Strategic Review 2021 Our Purpose ▪ Clear purpose of Helping Britain Prosper ▪ Focus evolving in response to the pandemic ▪ In the near term this will be to Help Britain Recover ▪ Embedded in our business and in the best inter
Slide 5: Our Helping Britain Prosper Plan has underpinned our ESG priorities
Our Helping Britain Prosper Plan has underpinned our ESG priorities Launched Helping Britain Prosper Plan in 2014 Significant achievements over the 2018 - 2020 Plan1 ▪ The first bank to launch such a plan Helping Britain get a home c.£40bn of lending to first-time buyers ▪ Addressing some of the env
Slide 6: Our long-term ESG focus is supported by memberships, awards and ratings
Our long-term ESG focus is supported by memberships, awards and ratings 1985 2008 2018 2020 Independent charitable Adopted the Launched our Launched our Race Foundations established Equator Principles Sustainability strategy Action Plan 2002 2014 2019 2021 Investment in energy savings measures Launc
Slide 7: Significant progress across our ESG ambitions in the past 12 months
Significant progress across our ESG ambitions in the past 12 months ▪ Announced ambitious goals to reach net zero emissions in our lending and investment portfolios by 2050 or sooner, with intermediate goals to - Help reduce carbon emissions we finance by >50% by 2030 - Halve the carbon footprint of
Slide 8: Our purpose has guided our COVID-19 response to Help Britain Recover
Our purpose has guided our COVID-19 response to Help Britain Recover ▪ Nearly 1.3m payment holidays granted to retail customers 3 NEW Supporting customers ▪ Dedicated telephone services for vulnerable customers, over 70s and NHS workers with 2.4m customers supported4 NEW Supporting ▪ >£13bn of appro
Slide 9: Helping Britain Recover is central to our Strategic Review 2021
Helping Britain Recover is central to our Strategic Review 2021 Our strategy – Building the UK’s preferred financial partner Our customer ambitions Our enhanced capabilities Modernised technology architecture Preferred financial partner for personal customers Helping Integrated payments Britain Data
Slide 10: Clear Helping Britain Recover focus areas and commitments for 2021
Clear Helping Britain Recover focus areas and commitments for 2021 Focused where we can make a difference Strong H1 progress vs 2021 targets NEW Expand availability of c.£9bn lent to first-time buyers; almost reaching FY target of £10bn affordable and quality homes >£2bn of social housing sector fun
Slide 11: Case study: Supporting the full value-chain of the UK housing sector
Case study: Supporting the full value-chain of the UK housing sector NEW ▪ Supporting nearly 1 in 4 first-time home buyers to get on the housing ladder ur First-time buyers ▪ Lent £49bn to first-time buyers since 2018; innovative solutions, e.g. Lend a Hand mortgage ▪ Provide £10bn of lending to fir
Slide 12: Environmental matters
Environmental matters HBR Accelerate the transition to a low carbon economy 11
Slide 13: Key environmental achievements
Environmental matters Key environmental achievements Key highlights (since 2018) Strong progress on our own footprint7 NEW ▪ Significant progress since first publishing our sustainability strategy in 2018 >£7.3bn 13% ▪ Published ambitious net zero goals for lending, investments 40% (Scottish Widows)
Slide 14: Our environmental commitments
Environmental matters Our environmental commitments Helping Britain Recover commitments (2021) HBR Further environmental commitments ▪ Help reduce the emissions we finance by >50% by 2030 on ▪ Reduce power sector portfolio emission intensity to path to net zero by 2050 or sooner <75gCO2e/kWh by 2030
Slide 15: Significant progress in first six months of 2021 towards our climate goals
Environmental matters Significant progress in first six months of 2021 towards our climate goals HBR Accelerate the transition to a low carbon economy Progress towards net zero in lending and investments NEW Progress towards net zero in own operations NEW Ensure our own operations are net zero by 20
Slide 16: Several green propositions supporting our climate and business ambitions
Environmental matters Several green propositions supporting our climate and business ambitions HBR Accelerate the transition to a low carbon economy ▪ Clean Growth Finance Initiative providing discounted lending for green purpose financing Business ▪ Green Buildings Tool helping businesses identify
Slide 17: ESG considerations integrated into our lending and investment activities
Environmental matters ESG considerations integrated into our lending and investment activities HBR Accelerate the transition to a low carbon economy Lending activities Investment activities (Scottish Widows) ▪ In Commercial Banking, sustainability risk must be considered ▪ Responsible Investment Fra
Slide 18: Climate risk further integrated into the Group’s risk management framework
Environmental matters Climate risk further integrated into the Group’s risk management framework HBR Accelerate the transition to a low carbon economy Climate risk established as a principal risk Lending16 to sectors at higher risk from climate change ▪ Board approved Risk Appetite Statement for Cli
Slide 19: Building scenario analysis capabilities through Bank of England’s CBES
Environmental matters Building scenario analysis capabilities through Bank of England’s CBES NEW HBR Accelerate the transition to a low carbon economy BoE’s Climate Biennial Exploratory Scenario (CBES) Our progress ▪ Designed to test the resilience of banks’ and insurers’ business ▪ Continuing to de
Slide 20: Social matters
Social matters HBR Help rebuild households’ financial health and wellbeing HBR Support businesses to recover, adapt and grow HBR Expand availability of affordable and quality homes HBR Build an inclusive society and organisation 19
Slide 21: Key social achievements
Social matters Key social achievements Examples of social impact Key highlights Senior roles held by Black, Senior roles held by ▪ First FTSE 100 company to set Asian and Minority Ethnic 37% women YE2020, up from 7.7% colleagues YE 2020, up from public goals for gender (2014) and 28% in 2014 ethnic
Slide 22: Our social commitments
Social matters Our social commitments Helping Britain Recover commitments (2021) HBR ▪ >6,500 colleagues trained to support customers build ▪ Provide £10bn of lending to first-time buyers and lead a financial resilience national conversation on access to the housing market ▪ Expand existing Lloyds B
Slide 23: Championing Britain’s diversity
Social matters Championing Britain’s diversity HBR Build an inclusive society and organisation The first FTSE 100 company to set targets to increase gender and ethnic diversity at senior levels Our Inclusion and Diversity data YE2020 (vs when target was set) ▪ Announced our Race Action Plan in July
Slide 24: Race Action Plan is driving cultural change, recruitment and progression
Social matters Race Action Plan is driving cultural change, recruitment and progression HBR Build an inclusive society and organisation Significant action since launch in July 2020 Examples of next steps NEW ▪ Set up a new race advisory panel made up of 23 Black, Asian & ▪ Review diversity at every
Slide 25: Assisting our customers
Social matters Assisting our customers HBR Help rebuild households’ financial health and wellbeing Supporting our customers in challenging times ▪ Launched financial, digital and mental health support initiatives c.1.3m NEW Payment holidays granted to retail ▪ Priority phone lines set up for NHS wor
Slide 26: Helping Britain get a home
Social matters Helping Britain get a home HBR Expand availability of affordable and quality homes Delivering affordable homes for everyone ▪ Partnering with initiatives such as The Housing Growth Partnership, which provides financial and mentoring to small and mid-sized housebuilders £2.1bn NEW Fina
Slide 27: Supporting businesses and SMEs
Social matters Supporting businesses and SMEs HBR Support businesses to recover, adapt and grow Supporting businesses during the crisis and beyond ▪ Supported >300k businesses to start up since 2018 NEW >£13bn Approved lending through NEW ▪ Trained >1,500 manufacturing apprentices, graduates and eng
Slide 28: Building financial resilience
Social matters Building financial resilience HBR Help rebuild households’ financial health and wellbeing Improving financial wellbeing for customers and communities ▪ Building digital skills through provision of training through the Lloyds Bank Academy >12.5k IT devices delivered to customers ▪ Buil
Slide 29: Supporting our communities
Social matters Supporting our communities HBR Build an inclusive society and organisation Our Foundations are instrumental to our support in communities ▪ As one of the UK’s largest corporate donors we use our scale to help tackle social c.2,800 Charities supported in 2020 disadvantage in communitie
Slide 30: Governance matters
Governance matters 29
Slide 31: Strong corporate governance
Governance matters Strong corporate governance Recent board focus areas NEW ▪ Customers Nomination & ▪ Colleagues and culture Governance Committee ▪ Strategy ▪ Purpose and Helping Britain Recover Board Audit ▪ Digital, data, technology of Committee ▪ External operating environment Directors ▪ Cloud
Slide 32: Committed to a diverse Board with a strong skills set
Governance matters Committed to a diverse Board with a strong skills set Board skills matrix NEW Board diversity NEW (Skills and experience, non-executive directors only) Gender Age Retail/Commercial banking 7 out of 8 A B C Financial markets/wholesale banking 7 out of 8 A B Insurance 7 out of 8 A:
Slide 33: Responsible Business Committee oversees the Group’s ESG priorities
Governance matters Responsible Business Committee oversees the Group’s ESG priorities Overview of Responsible Business Committee (RBC) Areas of focus NEW Board member representation NEW ▪ Helping Britain Recover and 2021 commitments Committee Members Robin Amanda Alan Budenberg Mackenzie Dickinson G
Slide 34: Clear oversight and ownership of climate change risks and opportunities
Governance matters Clear oversight and ownership of climate change risks and opportunities Lloyds Banking Lloyds Banking Group Board Group Board Responsible Business Committee Board structure Board Risk Committee Group Executive Committee Group Risk Committee Group Executive Sustainability Committee
Slide 35: ESG investor engagement calendar
ESG investor engagement calendar NEW Recent ESG roadshows and conferences HSBC Virtual Financials ESG Conference – June 2021 BNY Mellon Future First ESG Investor Conference – June 2021 Credit Suisse ESG Roadshow – May 2021 Deutsche Bank ESG Engagement Series – March 2021 Morgan Stanley European ESG
Slide 36: For further information
For further information Investor Relations Douglas Radcliffe Nora Thoden Group Investor Relations Director Director of Investor Relations - ESG 020 7356 1571 020 7356 2334 douglas.radcliffe@lloydsbanking.com nora.thoden@lloydsbanking.com Corporate Affairs Grant Ringshaw Matt Smith External Relations
Slide 37: Footnotes
Footnotes 1. Impacts achieved against our 7 priority performance areas of the 2018 – 2020 Plan; the metrics are cumulative impact for 2018 – 2020 except the charities supported metric which is for 2020 and the diversity metrics which are as of year end 2020. 2. Excluding Insurance & Wealth. 3. Cumul
Slide 38: Footnotes
Footnotes 14. Includes 99% of Commercial Banking business loans, based on drawn lending. The PCAF sector-based approach has been used for the majority of the business loans baseline, using Office of National Statistics (ONS) UK emissions. The business loans method has been applied to project finance
Slide 39: Forward looking statements
Forward looking statements This document contains certain f orward looking statements within the meaning of Section 21E of the US Securities Exchange Act of 1934, as amended, and section 27A of the US Securities Act of 1933, as amended, with respect to the business, strategy , plans and/or results o