Climate Change Data

Environmental Metrics

ESG Focus Areas

• Conduct
• Compliance
• Sustainability
• Diversity & Inclusion
• Community Engagement
• Risk Management

Environmental Achievements

• Continued to reduce Greenhouse Gas emissions relative to operating income. Starting in 2014, included Scope 3 emissions arising from air travel in this measure.

Social Achievements

• Invested $60.3 million (1.42% of 2014 operating profit) in community programs focused on health and education.
• Launched an internal campaign encouraging employee volunteering to support the UN Sustainable Development Goals (SDGs). 57% of employees volunteered, contributing 77,900 volunteering days.
• Piloted an employability program in New Delhi, India, helping 34 girls secure paid jobs and 29 pursue further education.
• Implemented D&I Charters and established three Global Employee Networks (Women’s, LGBT, and Disability).

Governance Achievements

• Simplified organizational structure with clearer accountability.
• Refreshed Group Code of Conduct, with 98.5% of employees recommitting.
• Established Board Financial Crime Risk Committee.
• Increased female representation on the Board to 20%.

Climate Goals & Targets

Environmental Challenges

• Challenging macroeconomic conditions, including China's economic slowdown, depressed commodity prices, and emerging market currency weakness.
• Increased loan impairment, particularly in commodities and India.
• High regulatory costs and UK bank levy.
• Need to restructure approximately one-third of Group risk-weighted assets.
• Ongoing regulatory investigations.

Mitigation Strategies

• Strengthened balance sheet through a £3.3 billion rights issue, increasing the CET1 ratio to 12.6%.
• Tightened risk tolerances and reduced risk concentrations.
• Achieved cost efficiencies of $600 million, with plans for $2.3 billion more by 2018.
• Actively managed balance sheet to optimize risk-weighted assets and improve returns.
• Increased investment in control and compliance capabilities.

Supply Chain Management

Responsible Procurement

• Supplier Charter

Climate-Related Risks & Opportunities

Awards & Recognition

• Two Disability Matters Awards

Environmental Metrics

ESG Focus Areas

• Sustainable Finance
• Environmental Risk Management
• Social Risk Management
• Climate Change
• Conduct and Ethics
• Fighting Financial Crime
• Human Rights
• Environmental Footprint
• Community Engagement

Environmental Achievements

• Reduced carbon footprint by 27% year-on-year
• Reduced energy consumption by 15% year-on-year to 183 GWh
• 1.4 bn tonnes of CO2 emissions avoided from operational Sustainable Finance assets

Social Achievements

• 30.7% women holding senior leadership roles
• 80.65% Culture of inclusion score
• $48.7m invested in communities
• More than 66,500 young people reached through employability and entrepreneurship projects
• Over 1,500 employees trained internally to build capability to deliver supplier D&I aims

Governance Achievements

• 99.6% staff recommitted to Code of Conduct
• 99.6% Staff completing e-learnings on financial crime risk
• Established a robust governance structure to support our net zero approach through the Net Zero Steering Group

Climate Goals & Targets

Environmental Challenges

• Water availability remains a growing challenge in many of our markets
• COVID-19 impacted ability to onboard new clients
• Lack of reliable data due to developing measurement technologies and analytical methodologies
• Lack of standardization of data given the lack of international coordination on data and methodology standards
• Future uncertainty due to changing projections relating to technological development and global and regional laws, regulations and policies, and the inability to make use of strong historical data

Mitigation Strategies

• Improved measurement of water portfolio by 10%
• Continued to enhance capabilities through 2022
• Invested significant resources in developing a systematic analysis of our climate impact
• Using the UN PRB impact tool to understand impacts across key markets
• Refining emissions calculations as standards and methodologies evolve and data quality and availability improves

Supply Chain Management

Supplier Audits: 1,333 Clients and transactions reviewed for environmental and social risks

Responsible Procurement

• Supplier Charter

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI Standards, SASB Standards, World Economic Forum Stakeholder Capitalism Metrics, UN Principles for Responsible Banking

Certifications: Null

Third-party Assurance: Independent third-party assurance provider for Scope 1 and Scope 2 emissions, water, and waste consumption; Deloitte for limited assurance of Aspirations; Ernst & Young LLP for Country-by-Country Reporting

UN Sustainable Development Goals

• SDG 7
• SDG 13

Sustainability Aspirations are aligned with UN SDGs

Sustainable Products & Innovation

• Sustainable trade finance proposition
• Sustainable Account

Awards & Recognition

• Supplier Diversity Programme of the Year in the European Diversity Awards