Climate Change Data

RBS Holdings N.V.

Climate Impact & Sustainability Data (2021, 2022, 2023, 2024-01 to 2024-06)

Reporting Period: 2021

Environmental Metrics

Renewable Energy Share:97% of total energy use

ESG Focus Areas

  • Climate
  • Enterprise
  • Learning

Environmental Achievements

  • Reduced direct own operations carbon footprint by 46% against a 2019 baseline
  • Increased renewable electricity consumption to 97%
  • 38% of Retail Banking mortgages are at or above EPC C rating
  • £17.5 billion Climate and Sustainable Funding and Financing completed

Social Achievements

  • Launched ‘CareerSense’, a programme for 13 to 24-year-olds to develop skills for work
  • Continued actions related to the commitments of our Banking on Racial Equality report
  • Helped 262,000 customers with mortgage payment holidays
  • £500,348 contributed to the Disasters Emergency Committee’s Coronavirus and Afghanistan Crisis Appeals
  • 470,813 additional customers helped to start saving
  • 6.1 million financial capability interactions delivered

Governance Achievements

  • Continued to strengthen governance structures
  • Variable pay for executive directors reflects progress against ESG priorities
  • Board met the recommendation of the Parker Review and exceeded the recommendation of the FTSE Women Leaders Review

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • 50% of UK mortgage customers’ homes at or above EPC C rating by 2030
  • At least halve the climate impact of our financing activity by 2030
  • Reduce carbon intensity of funds and discretionary portfolios by 50% by 2030
Short-term Goals:
  • Reduce water consumption by 10% by 2025
  • Reduce direct own operations carbon footprint by 50% by 2025 (against a 2019 baseline)

Environmental Challenges

  • COVID-19 pandemic impact on colleagues, customers, and communities
  • Supply chain disruptions
  • Data limitations for ESG reporting
  • Measuring biodiversity and nature impacts of financing
Mitigation Strategies
  • Developed a structured programme for returning to the work environment
  • Enhanced interaction with customers and communities through various options
  • Worked with EcoVadis to measure sustainability performance of suppliers
  • Formalised the ‘Emerging Environmental Issues Working Group’ to identify and track environmental issues
  • Joined collaborative groups including the Taskforce on Nature-Related Financial Disclosures (TNFD)

Supply Chain Management

Supplier Audits: 88% of in-scope 3rd party spend assessed by EcoVadis

Responsible Procurement
  • Supplier Charter

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI, SASB, TCFD, UNGC, UN Principles for Responsible Banking

Certifications: B Corp (Coutts)

Third-party Assurance: Ernst & Young LLP (EY)

UN Sustainable Development Goals

  • 4
  • 5
  • 7
  • 8
  • 10
  • 13
  • 17

Three focus areas (Climate, Enterprise, Learning) aligned to seven SDGs

Sustainable Products & Innovation

  • Green Mortgages
  • Carbon tracking feature in mobile banking app

Awards & Recognition

  • HR Excellence Awards: Best health and wellbeing strategy
  • This Can Happen: Best COVID-19 Company Response – Internal
  • ESG strategy at the European WealthBriefing Awards (Coutts)
  • Multi-Asset Manager of the Year and Multi-Asset Fund of the Year at the Sustainable Finance Awards (Coutts)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:73,927 tCO2e (market-based operational emissions)
Scope 1 Emissions:14,877 tCO2e
Scope 2 Emissions:47,546 tCO2e
Scope 3 Emissions:39,559 tCO2e
Renewable Energy Share:98% (global operations)
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate
  • Enterprise
  • Learning

Environmental Achievements

  • Reduced direct own operations emissions by 46% against a 2019 baseline.
  • Increased renewable electricity consumption to 98% globally.
  • Provided £24.5 billion of climate and sustainable funding and financing in 2022.

Social Achievements

  • Carried out c.0.7 million financial health checks in 2022.
  • Launched NatWest Rooster Money, with c.89,000 new card openings.
  • Launched a collaboration with Meta to offer female business owners training and support.
  • Donated £4 million to provide grants and support through collaboration with organisations including Citizens Advice, The Trussell Trust, Step Change and PayPlan.
  • Supported over 16,000 young people through the CareerSense Programme.
  • Supported 53,000 individuals and businesses through enterprise programmes, with 269,000 customer interventions delivered.

Governance Achievements

  • 92.58% of votes cast were in favour of our first Say on Climate resolution.
  • Developed the initial iteration of our Climate transition plan.
  • Completed a successful external audit tender process.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero by 2050 across our financed emissions, assets under management and our operational value chain.
Medium-term Goals:
  • At least halve the climate impact of our financing activity by 2030, against a 2019 baseline.
  • Reduce the carbon intensity of our in-scope AuM by 50%, against a 2019 baseline.
  • Move 70% of in-scope AuM to a net-zero trajectory by 2030.
  • Reduce emissions for our operational value chain by 50%, against a 2019 baseline.
  • Have 50% of our mortgage portfolio has an EPC rating of C or above by 2030.
Short-term Goals:
  • Reduce direct own operations emissions by 50% by 2025, against a 2019 baseline.
  • Use only renewable electricity in our direct own global operations by 2025.
  • Improve energy productivity 40% by 2025 against a 2015 baseline.
  • Provide at least £10 billion in lending for EPC A and B rated residential properties between 1 January 2023 and the end of 2025.
  • Install electric vehicle charging infrastructure in 15% of large office space across our UK portfolio by 2025.

Environmental Challenges

  • Engaging effectively with customers on our climate agenda while many face significant cost pressures.
  • Rising cost of living impacting colleagues.
  • Following COVID-19, charities faced challenges in generating income and meeting increased demand.
  • Economic and political risks created a challenging operating environment.
  • Uncertain and volatile economic conditions.
  • High and sustained levels of inflation and higher-than-anticipated UK interest rates.
  • A sharp slowdown in the UK housing market.
Mitigation Strategies
  • Developed customer climate hub with engaging and educational resources.
  • Provided financial support to colleagues most likely to be impacted by rising cost of living.
  • Implemented a package of support for customers, colleagues and communities to help with the rising cost of living.
  • Targeted customer reviews, scenario analysis, stress tests and review of risk appetite.
  • Enhanced financial planning process to incorporate actions included within the initial iteration of our Climate transition plan.
  • Continued to harness climate-related opportunities including providing climate and sustainable funding and financing and a range of green loan products and services.

Supply Chain Management

Supplier Audits: Over 531 suppliers underwent EcoVadis assessment.

Responsible Procurement
  • Supplier Charter
  • EcoVadis assessments
  • Prompt payment (30 days)

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Transition Risks
  • Regulatory changes
  • Market shifts
Opportunities
  • Providing climate and sustainable funding and financing
  • Developing carbon tracking tools

Reporting Standards

Frameworks Used: SASB, GRI, TCFD, UNGC, UN Principles for Responsible Banking

Certifications: B Corp (Coutts & Co)

Third-party Assurance: Ernst & Young LLP (EY)

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Green Mortgages
  • NatWest Carbon Planner
  • Carbon tracking tools

Awards & Recognition

  • Best Climate-related Reporting Award at the 2022 ESG Reporting Award
  • Accounting for Sustainability Finance for the Future Award
  • Fast Payer Award
  • Best Scheme to Encourage Staff Fundraising at The Better Society Awards
  • Gold for the most effective one-off campaign and Silver for the most innovative collaboration at the 2022 Corporate Engagement Awards
  • Management Today DE&I Leadership Awards 2022 (Champions of Change)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:668,578 tCO2e/year (operational value chain)
Scope 1 Emissions:12,922 tCO2e/year
Scope 2 Emissions:51,829 tCO2e/year (location-based)
Scope 3 Emissions:603,827 tCO2e/year
Renewable Energy Share:100% (electricity)
Total Energy Consumption:275,604,975 kWh/year

ESG Focus Areas

  • Climate Change
  • Financial Wellbeing
  • Enterprise Support
  • Diversity, Equity & Inclusion

Environmental Achievements

  • Reduced Scope 1 and location-based Scope 2 emissions by 54% against a 2019 baseline.
  • Reduced Scope 3 operational value chain emissions by 26% against a 2019 baseline.
  • Provided £29.3 billion in climate and sustainable funding and financing.

Social Achievements

  • Helped 6 million customers with financial wellbeing.
  • Helped 2 million customers save over £100 for the first time.
  • Supported over 1,300 entrepreneurs via the NatWest Accelerator.
  • Delivered 4.3 million financial capability interactions.

Governance Achievements

  • Implemented the Consumer Duty.
  • Completed an independent legal review of customer account closures and implemented recommendations.
  • Maintained a strong CET1 ratio of 13.4%.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050 across financed emissions, assets under management, and operational value chain.
Medium-term Goals:
  • Reduce carbon intensity of Managed Assets by 50% by 2030 against a 2019 baseline.
  • Move 70% of Managed Assets to a net-zero trajectory by 2030.
  • Reduce emissions for operational value chain by 50% by 2030 against a 2019 baseline.
  • Target a CET1 ratio in the range of 13-14%.
Short-term Goals:
  • Reduce direct own operations emissions by 50% by 2025 against a 2019 baseline.
  • Achieve a return on tangible equity of around 12% in 2024.

Environmental Challenges

  • Macroeconomic uncertainty, including high inflation and interest rates.
  • Increased competition for deposits and customers.
  • Reputational risks related to customer account closure decisions.
  • Data limitations in estimating financed emissions.
Mitigation Strategies
  • Provided support to customers and colleagues facing cost of living challenges.
  • Invested in technology and digital capabilities to improve customer service and efficiency.
  • Implemented changes to policies and procedures to improve customer outcomes.
  • Enhanced measurement capabilities and data collection for financed emissions.

Supply Chain Management

Supplier Audits: 528 suppliers participated in EcoVadis assessment.

Responsible Procurement
  • Supplier Charter
  • Supplier Decarbonisation Programme

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events, flooding
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products and services
  • Growth in climate and sustainable funding and financing

Reporting Standards

Frameworks Used: TCFD, GRI, SASB, UN PRB

Certifications: B Corp (Coutts)

Third-party Assurance: Ernst & Young LLP (EY)

UN Sustainable Development Goals

  • SDG 1 (No Poverty)
  • SDG 8 (Decent Work and Economic Growth)
  • SDG 10 (Reduced Inequalities)
  • SDG 7 (Affordable and Clean Energy)
  • SDG 13 (Climate Action)

Initiatives contribute to these goals through financial wellbeing programs, enterprise support, climate action, and diversity and inclusion efforts.

Sustainable Products & Innovation

  • Home Energy Hub
  • Carbon Planner
  • Carbon Footprint Tracker

Awards & Recognition

  • 2023 Finance for the Future Awards for ‘Embedding an Integrated Approach’ and ‘Communicating Integrated Thinking’
  • 2023 Finance for the Future Awards, Climate Leader

Reporting Period: 2024-01 to 2024-06

Environmental Metrics

ESG Focus Areas

  • Climate change
  • Social risk
  • Governance risk

Environmental Achievements

  • NatWest Group (including RBSH N.V. Group) has an ambition to be net zero by 2050 across its financed emissions, assets under management and its operational value chain.
  • Since July 2021, NatWest Group has provided £61.9 billion of climate and sustainable funding and financing (£29.3 billion in 2023), comprising of €17.9 billion(2) (£15.4 billion) from transactions booked by RBSH N.V. Group (€8.9 billion or £7.8 billion in 2023).

Social Achievements

  • In 2023, 528 of NatWest Group’s suppliers participating in the EcoVadis assessments, scoring an average of 57.6% against the Global EcoVadis average of 45.9%.
  • Colleague sentiment, as per Our View survey on diversity and inclusivity conducted at NatWest Group level, remained strong at 93% in 2023, 7% over the Global High Performance Norms and 10% over Global Financial Services Norm.

Governance Achievements

  • NatWest Group’s Financial Crime Programme, applicable to all legal entities including RBSH N.V. Group, covers anti-money laundering and counter terrorist financing, anti-bribery and corruption, anti-tax evasion, sanctions and fraud.

Climate Goals & Targets

Long-term Goals:
  • NatWest Group (including RBSH N.V. Group) has an ambition to be net zero by 2050 across its financed emissions, assets under management and its operational value chain.
Medium-term Goals:
  • NatWest Group has a target to have full gender balance in its CEO-3 and above global roles by 2030.
Short-term Goals:
  • NatWest Group has a target to provide £100 billion climate and sustainable funding and financing between 1 July 2021 and the end of 2025.

Environmental Challenges

  • Data quality and availability for Scope 3 emissions is expected to improve in following submissions.
  • This is currently an industry-wide challenge with no agreed approach on quantification of trading book related emissions.
  • Availability and quality of client specific non-financial data remains a challenge.
  • The quality of the data relied upon for the purposes of climate and sustainability-related reporting is often not yet of the same standard as more traditional financial reporting.
Mitigation Strategies
  • NatWest Group continued to develop its specialist climate data capabilities, including bringing in new data sets to increase the granularity for which climate risks are assessed.
  • NatWest Group (including RBSH N.V. Group) is focussed on developing its underlying capabilities, to effectively manage nature-related risks, with implementation of the expanded framework planned during 2024 and beyond.
  • RBSH N.V. Group intends to implement the identified enhancements in 2024.
  • RBSH N.V. Group will continue integrating non-financial data requirements into its client onboarding and management processes; keep improving the measurement, analysis and assessment of relevant information to add consistency and transparency to it reporting and decision-making process; and to keep working with industry and customers to develop solutions.

Supply Chain Management

Supplier Audits: 528 suppliers participating in EcoVadis assessments in 2023

Responsible Procurement
  • NatWest Group Supplier Charter

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
  • Biodiversity loss
Transition Risks
  • Regulatory changes
  • Market shifts

Reporting Standards

Frameworks Used: TCFD, PCAF, UN PRB, SDGs, UNGCP, 2015 Paris Agreement, SBTi

Sustainable Products & Innovation

  • Green bonds, social bonds, sustainability-linked bonds, green loans, sustainability-linked loans