Reducing our financed emissions
Our approach
We are seeking to reduce the client emissions we finance, for lending and capital markets activity. In doing so, we are committed to aligning all our financing to the goals and timelines of the Paris Agreement, consistent with limiting the increase in global temperatures to 1.5°C.
To do this, we have focused on the highest-emitting sectors and:
- Set 2030 targets for eight high-emitting sectors in our portfolio: Energy, Power, Cement, Steel, Automotive Manufacturing, Aviation, Agriculture and Commercial Real Estate.
- Introduced policies to curtail or prohibit financing of certain activities in sensitive sectors, including those relating to oil and gas expansion, thermal coal mining and coal-fired power generation, oil sands, hydraulic fracturing ‘fracking’ and projects in the Arctic Circle, Amazon Biome or involving ultra-deep water or extra heavy oil.
Financed emissions targets
Our Financed Emissions Methodology, BlueTrackTM , measures and tracks our targets, which incorporates a 1.5°C scenario for our 2030 targets, for eight high-emitting sectors.
|
Sector |
Target metric |
Baseline year |
Target vs baseline |
|---|---|---|---|
|
Energy |
Absolute emissions |
2020 |
-15% by 2025 -40% by 2030 |
|
Power |
Physical intensity |
2020 |
-30% by 2025 -50% to 69% by 2030 |
|
Cement |
Physical intensity |
2021 |
-20% to -26% by 2030 |
|
Steel |
Physical intensity |
2021 |
-20% to -40% by 2030 |
|
Automative Manufacturing |
Physical intensity |
2022 |
-40% to -64% by 2030 |
|
Aviation |
Physical intensity |
2023 |
-11% to -16% by end of 2030 |
|
UK Commercial Real Estate |
Physical intensity |
2023 |
-51% by end of 2030 |
|
Agriculture |
Absolute emissions |
2023 |
-21% by end of 2030 |
|
UK Housing |
Physical intensity |
2023 |
Portfolio convergence point vs. baseline -40% by end of 2030 |
Policies
Our Climate Change Statement sets out our positions and approach to sensitive sectors with tightening policy criteria and increasing expectations over time.
We have set explicit restrictions to curtail or prohibit financing of certain activities in sensitive sectors, including those relating to thermal coal mining and coal-fired power generation, as well as to upstream oil and gas expansion, and unconventional oil and gas types such as oil sands, hydraulic fracturing ‘fracking’ and projects in the Arctic Circle, Amazon Biome or involving ultra-deep water or extra heavy oil.
Our restrictive policies are regularly reviewed and updated in light of the rapidly changing external environment and are informed by engagement with our stakeholders, including shareholders, clients, subject specialists, and civil society groups.
Please refer to our Climate Change Statement for details on the exact scope and application of, and any relevant exceptions to, these restrictions.
