Lloyds Banking Group Plc · LSE:LLOY
Lloyds Banking — ESG Presentation (February 2021)
35 slides from Lloyds Banking's sustainability presentation, February 2021
Slide 1: ESG Investor Presentation
ESG Investor Presentation Investor Relations, February 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 2–9 Environmental matters 10 – 15 Social matters 16 – 24 Governance matters 25 – 30 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 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 interest of all stakeholder
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: 2020 highlights show significant progress across our ESG ambitions
2020 highlights show significant progress across our ESG ambitions Ambitious goal to help reduce emissions we finance by >50% by 2030, on path to net zero by 2050 or sooner Environmental Developed three new operational climate pledges including net zero carbon operations by 2030 Calculated ini
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 Around 1.3m payment holidays granted to retail customers3 Supporting Dedicated telephone services for the over 70s and NHS workers with around 880,000 calls taken4 customers Proactively made >750,000 calls to check on the wel
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: We will focus on five priority areas to Help Britain Recover
We will focus on five priority areas to Help Britain Recover Focused on areas where we can make a difference Supporting our enhanced ambitions £ Help rebuild households’ >6,500 colleagues trained to support customers build their financial health and wellbeing financial resilience £10bn lending t
Slide 11: Environmental matters
Environmental matters HBR Accelerate the transition to a low carbon economy 10
Slide 12: Our commitments
Environmental matters Our commitments Helping Britain Recover commitments (2021) HBR Further sustainability 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 20306 Expand th
Slide 13: Helping the transition to a sustainable low carbon economy
Environmental matters Helping the transition to a sustainable low carbon economy HBR Accelerate the transition to a low carbon economy Continued progress against our climate ambitions New climate pledges across our own operations Our ambition is to help reduce the emissions we finance by >50% by
Slide 14: 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 15: 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 principle risk Lending14 to sectors at higher risk from climate change Board approved Risk Appetite Statement for Cli
Slide 16: 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 Further tightened lending appetite for exposure in coal In early 2021 announced our target to halve the ca
Slide 17: 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 16
Slide 18: Our commitments
Social matters Our 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 Bank ‘Me
Slide 19: 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 20: Championing Britain’s diversity – Race Action Plan
Social matters Championing Britain’s diversity – Race Action Plan HBR Build an inclusive society and organisation Announced Race Action Plan to drive cultural change, recruitment and progression across the Group Aim to increase Black representation in senior roles from 0.6% to 3% by 2025, aligning
Slide 21: 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 1.3m Payment holidays granted to retail Priority phone lines set up for NHS workers a
Slide 22: 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 c.£9bn Finance
Slide 23: 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 >265k businesses to start up in 2018 – 2020 >£12bn Lending through Government- Trained >1,200 manufacturing apprentices, graduates and engi
Slide 24: 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 25: 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 26: Governance matters
Governance matters 25
Slide 27: Strong corporate governance
Governance matters Strong corporate governance Co-ordinated leadership succession Chair transition successfully completed, with Robin Nomination & Budenberg the Group Chair from the start of 2021 Governance Committee Further to end of November 2020 announcement, subject to Board regulatory appro
Slide 28: Committed to a diverse Board with a strong skills set
Governance matters Committed to a diverse Board with a strong skills set Board skills matrix22 Board diversity22 (Skills and experience, non-executive directors only) Gender Age Retail/Commercial banking 9 out of 10 A B C Financial markets/wholesale 8 out of 10 A banking B Insurance 8 out of 10 A: M
Slide 29: 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 Areas of focus in 2020 Board member representation23 Plans for Helping Britain Prosper and Recover, and Committee Members Robin Sara Alan 2021 priorities Budenberg Welle
Slide 30: 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 BankingGroup Board Group Board Responsible Business Committee Board structure Board Risk Committee Group Executive Committee Group Risk Committee Group Executive Sustainability Committee
Slide 31: Remuneration update
Governance matters Remuneration update Continuing to pay colleagues full salary no matter how the pandemic affects what they do for the Group COVID-19 and Given financial performance no bonus payments for 2020 remuneration Protected total remuneration for lowest paid colleagues; above inflatio
Slide 32: 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 33: 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 34: Footnotes
Footnotes 13. Total UK emissions in 2018 were: 88 MtCO2e from cars and vans; c.100 MtCO2e from homes, including emissions from both electricity and heating; and 263 MtCO2e from business (excluding emissions from electricity used in residential property). Source: Department for Business, Energy and I
Slide 35: Forward looking statements
Forward looking statements This document contains certain forward 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 of
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