Climate Change Data

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Many UK-based banks have made commitments to become net zero (including in relation to their emissions financed or “scope 3 emissions”) by 2050 or sooner.
• Some UK-based banks are members of the Net Zero Banking Alliance (NZBA).

Climate Goals & Targets

Environmental Challenges

• The more challenging aspect for banking industry participants is the indirect impact of their operations or the emissions they finance. CDP Worldwide estimates that emissions arising from banks’ financing activities are approximately 700 times higher than their direct operational emissions.
• Lack of reliable and objective data that would enable comparisons between counterparties in assessing climate-related risks.

Mitigation Strategies

• Steps are being taken to establish consistent ways of measuring financed emissions (e.g., PCAF standard).
• Banks are developing their own methodologies for measuring financed emissions and identifying carbon-intensive areas.
• Banks are reducing carbon exposure to carbon-intensive industries by measuring their carbon content, reducing the share of coal in the financed energy mix and by setting reduction objectives.
• Banks are offering greener investment opportunities such as green loans or green bonds.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Rising sea levels and increased flood risk
• Increasing forest fires

Transition Risks

• Rapid policy or regulatory changes (e.g., carbon taxes)
• Credit risk in sectors vulnerable to climate change (e.g., aviation, oil and gas)
• Market risk from changes in market conditions
• Increased risk of climate-related litigation

Opportunities

• Green investment strategies
• Sustainable finance products

Reporting Standards

Frameworks Used: TCFD

Environmental Metrics

ESG Focus Areas

• Climate Change

Environmental Achievements

• Many UK-based banks have made commitments to become net zero by 2050 or sooner.
• Some UK-based banks are members of the Net Zero Banking Alliance (NZBA).
• Banks are actively directing their investment strategies to greener products and industries (renewable energy, low-carbon vehicles).

Social Achievements

• Not disclosed

Governance Achievements

• Banks are embedding consideration of climate change risks in their governance arrangements.

Climate Goals & Targets

Environmental Challenges

• Measuring the indirect impact of banks' operations (financed emissions, approximately 700 times higher than direct operational emissions).
• Lack of available data to understand climate risk.
• Transition risks (policy, regulatory, legal changes; technology shifts; changing market demand).
• Physical risks (extreme weather events, sea-level rise, impacting operational continuity, reputational harm, credit losses).
• Connected risks (recessionary pressures, reputational risk from clients contributing to climate change).

Mitigation Strategies

• Establishing consistent ways of measuring financed emissions (PCAF standard).
• Developing own methodologies for measuring financed emissions (e.g., Barclays).
• Reducing exposure to carbon-intensive industries.
• Offering greener investment opportunities (green loans, green bonds).
• Developing counterparty engagement processes to collect data on exposures and transition plans.
• Implementing scenario analysis to inform strategy and risk assessment.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Sea-level rise

Transition Risks

• Policy and regulatory changes
• Credit risk in vulnerable sectors
• Market risk
• Climate-related litigation

Opportunities

• Green investment opportunities

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Green loans
• Green bonds
• Sustainability-linked bonds
• Sustainability-linked loans

Awards & Recognition

• Not disclosed

Environmental Metrics

Climate Goals & Targets

Supply Chain Management

Climate-Related Risks & Opportunities