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 our financing with the goals and timelines of the Paris Agreement, consistent with limiting the increase in global temperatures to 1.5°C.
We have :
- Set 2030 targets which integrate 1.5°C aligned scenarios for eight high-emitting sectors : Upstream Energy, Power, Cement, Steel, Automotive manufacturing, Aviation, UK Agriculture and UK Commercial Real Estate.
- Have policies to outline our approach to financing certain sensitive sectors and areas, 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 incorporate a 1.5°C scenario for our 2030 targets, for eight high-emitting sectors as well as a convergence point for UK Housing.
Policies
Our Climate Change Statement sets out our positions and approach to sensitive sectors with tightening policy criteria and increasing expectations over time. This includes 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.
Our sensitive sector and area policies are regularly reviewed and updated in light of the rapidly changing external environment, including changing laws and regulations, 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.
