Slide 1: NatWest Group Climate Spotlight
NatWest Group Climate Spotlight 30 March 2023 QR Code for NatWest Group plc 2022 Climate-related Disclosures Report (CrDR) Document classification: Public 1
Slide 2: Paul Thwaite, CEO, Commercial & Institutional Banking
Paul Thwaite CEO, Commercial & Institutional Banking 2
Slide 3: We will build on our purpose led strategy, amplifying our approach in three key growth areas
We will build on our purpose led strategy, amplifying our approach in three key growth areas, including sustainability transition, whilst maintaining expense and capital discipline Drive targeted growth across Delivering personalised solutions 1 the Group a across customers’ lifecycles Maintain expe
Slide 4: James Close, Director, Climate Change
James Close Director, Climate Change 4
Slide 5: Ambition to be net zero by 2050 across financed emissions, AuM and operational value chain
We have an ambition to be net zero by 2050 across our financed emissions, AuM and our operational value chain Our 2030 climate ambitions We have an ambition to at least halve the climate We plan to reduce carbon intensity of our in-scope We plan to reduce emissions impact of our financing activity b
Slide 6: Climate progress highlights
Climate progress highlights Supporting customer Helping to end the Powerful partnerships Getting our own house transition to net zero most harmful activities and collaborations in order £32.6bn £0.3bn Engage 79% Cumulative contribution towards £100 Exposure to in-scope coal customers3 We continued t
Slide 7: Initial iteration of our Climate transition plan focuses on a roadmap to 2030
Initial iteration of our Climate transition plan focuses on a roadmap to our 2030 ambitions, on our journey to net zero by 2050 During 2022, we focused on developing sector level emission intensity transition plans. Initial transition plan developed with reference to1: • Supporting our customers’ tr
Slide 8: First major UK bank to have sector level targets validated as science-based by the SBTi
We were the first major UK bank to have sector level targets validated as science-based by the SBTi Overall we have set transition plans for 72% of our lending book as at December 2019. The table includes the following for each sector indicated as at 31 December 2021 (i) estimated absolute emissions
Slide 9: Systems thinking approach to identify key points of leverage for decarbonisation
We plan to adopt a systems thinking approach to identify the key points of leverage to enable systems-wide transformation and decarbonisation Our evolving systems approach will consider how carbon flows between sectors of the economy, opportunities within one sector may be dependent on another secto
Slide 10: Paul Thwaite, CEO, Commercial & Institutional Banking
Paul Thwaite CEO, Commercial & Institutional Banking 10
Slide 11: Supporting customers' sustainability transitions
Supporting customers’ sustainability transitions 19m Support customers Identify opportunities Provide financing Customers across the Group Equipping staff to support • £32.6bn8 cumulative customer transition4 contribution to £100bn 330k customers accessed our CSFF target Leading • 64k colleagues gai
Slide 12: Working to integrate Climate risks and opportunities in our decision making
Working to integrate Climate risks and opportunities in our decision making Strategy & Ambitions Climate is one of our three focus areas of our purpose-led strategy Portfolio Management & System-Driven Thinking Portfolio and sector level application of risk and decisioning strategies impact appetite
Slide 13: Property: UK Government energy consumption reduction target provides opportunities to decarbonise UK properties
Property: UK Government energy consumption reduction target provides potential opportunities to decarbonise UK properties1 Commercial opportunities for value chain of services, Significant retrofit acceleration is needed by 2025 to technologies, and new business models achieve the UK government’s ne
Slide 14: Property: well placed to support decarbonisation of UK properties
Property: we are well placed to support the decarbonisation of UK properties, connecting home owners with skilled energy efficiency solutions suppliers Some challenges1 such as lack of awareness, complex coordination & supply… but also a number of opportunities Upstream value chain Downstream value
Slide 15: Energy: UK Government commitments point to significant renewables financing opportunities
Energy: UK Government commitments point to significant renewables financing opportunities as the Energy system transitions to net-zero An illustrative example: Future view of electricity and Renewables communications infrastructure5 NatWest Group has been a Low-carbon leading lender to the UK power
Slide 16: Our climate ambition: to be a leading bank in the UK helping to address the climate challenge
Our climate ambition: to be a leading bank in the UK helping to address the climate challenge • We were early to address climate, which has been a focus of our Purpose-led strategy since February 2020 • One of the first UK banks to have climate targets validated by SBTi as science based, the plan is
Slide 17: NatWest
NatWest UI
Slide 18: Footnotes
Footnotes Slide 5 1. Measured in financed emissions. See section 5.5 of the 2022 CrDR. 2. Refer to pages 38 to 39 of the Net Zero Asset Managers Initiative’s Initial Target Disclosure Report (May 2022). Slide 6 1. Between 1 July 2021 and the end of 2025. 2. Since launch in Q4 2020. Retail Banking Gr
Slide 19: Appendix
Appendix 19
Slide 20: Climate and sustainable funding and finance
Climate and sustainable funding and finance As part of supporting our customers’ transition to net zero, we have a to be included within its climate and sustainable funding and financing target to provide £100 billion climate and sustainable funding and financing targets. As part of our £100 billion
Slide 21: UK residential mortgages – energy efficiency
UK residential mortgages – energy efficiency Energy efficiency Supporting our UK mortgage customers to increase their residential energy efficiency and incentivising The charts below summarise the energy efficiency of the UK residential mortgage portfolio by EPC rating, purchase of the most energy e
Slide 22: CTP assessments for oil and gas majors and in scope coal customers
CTP assessments for oil and gas majors and in scope coal customers in 2021 - and an update in 2022 Our Credible Transition Plan assessments We identified large corporate customers with an aggregate lending exposure of £1.4 billion at 31 December 2021 (31 December 2020: £1,7 billion) as requiring Cre
Slide 23: Caution about climate-related and other forward-looking statements and metrics
Caution about climate-related and other forward-looking statements and metrics in this presentation. Certain sections in this presentation contain climate-related and other forward-looking statements and metrics, such as aims, ambitions, estimates, forecasts, plans, projections and targets and other
Slide 24: Document classification: Public
This presentation: • has been prepared by NatWest Group plc (together with its subsidiaries the ‘NatWest Group’) for information and reference purposes only; • is intended to provide non-exhaustive, indicative and general information only; • does not purport to be comprehensive; • does not provide a