Good things are happening in British business
Find out how some of our customers have evolved their businesses in innovative ways.
Supporting UK businesses to grow sustainably and transition to a low carbon economy.
Find out how they’ve used an export guarantee to support their global growth ambitions as well as bolstering their core values of sustainability, diversity and inclusion.
Find out how they’re investing in renewable energy initiatives on their journey to Net Zero, positioning themselves as a leading off-shore energy base.
Our Green Buildings Tool enables you to identify, evaluate and understand your property to make it more sustainable and energy efficient.
Following an in-depth survey of over 1,000 UK businesses, 96% of which were SMEs, we launched a new report in partnership with the British Chambers of Commerce. It reveals the challenges facing SMEs on their journey to Net Zero and outlines recommendations for key stakeholders that have a role to play in supporting SMEs.
To deepen our understanding of how we can best support you on your journey to Net Zero, in 2021, we surveyed more than 1,000 businesses and experts from across the UK, alongside our ongoing conversations with clients.
In 2022, we did a further survey of 1,000 SMEs to monitor where they are on their sustainability journey today, identify the benefits of reaching the Net Zero target and understand how to overcome the barriers.
We understand that sustainability goals can vary across the size and sector of a business. We combine tailored products and services together with specialist insight to support you in your journey.
Sustainability refers to the ability of something to maintain or ‘sustain’ itself over time. For a business, limits to sustainability are determined by physical and natural resources, environmental degradation, and social resources. The concept of sustainability is composed of three pillars: economic, environmental, and social — also known informally as profits, planet, and people.
More recently this has developed into ESG:
There's no global standard definition, though it is generally understood that Net Zero is a state in which an organisation or country's activities result in no net impact on the climate from greenhouse gas emissions.
This is achieved by reducing greenhouse gas emissions - typically the six gases listed in the Kyoto Protocol: carbon dioxide (CO2); methane (CH4); nitrous oxide (N2O); hydrofluorocarbons (HFCs); perfluorocarbons (PFCs); and sulphur hexafluoride (SF6); and by balancing the impact of any remaining 'hard to decarbonise' greenhouse emissions with an appropriate amount of carbon removals.
Climate change refers to our planet getting warmer. Since before the industrial revolution (1850-1900) the earth’s average temperature has risen by 1.1°C. The last five to ten years have seen the greatest increase since records began.1
Now, our attention has shifted to the impact this could have. Scientists believe that an increase in greenhouse gases are the primary cause for climate change. And if the temperature rises by another 1.5°C it would be devastating to life on earth.
1Source: World Meteorological Organization
A decade ago, Corporate Social Responsibility (CSR) was the most commonly used term to encapsulate an organisation’s efforts to maximise the positive impact it has on society and the environment.
CSR typically refers to a collection of charitable and philanthropic works performed by profit-driven companies in order to ‘give something back’ to the community and environment from which they have benefitted. However, a limitation of CSR is that for many businesses it operated as an add-on to their main purpose. At worst, it has been seen as a marketing tool for firms to promote their positive activities without having to back up their claims or talk about problem areas.
ESG policies, in contrast, are criteria led and require that they be embedded in the core of a business' strategy, rather than side lined. The power of ESG and in particular the ‘G’ lies in its integration into a business.
The momentum behind ESG is being driven by investors, asset managers, consumers, and employees demanding transparent, purpose-led business practices that align with their own values.
There is currently no single, agreed definition of what constitutes sustainable finance in the market. The ICMA has recently defined sustainable finance as incorporating climate, green and social finance while also adding wider considerations concerning the longer-term economic sustainability of the organisations that are being funded, as well as the role and stability of the overall financial system in which they operate. This definition draws on the G20 and EU definitions of sustainable finance.
Green financing is a loan or investment that supports environmentally-friendly activity, such as purchasing environmentally-friendly goods and services or building environmentally-friendly infrastructure. We offer this at Lloyds Bank primarily through our Clean Growth Financing Initiative, but we also offer green bonds and other green products.
*All lending is subject to status