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March 25, 2012



Lloyds Banking Group

Climate Change and Environment

We believe climate change represents a huge global challenge. It brings with it significant risks as well as an opportunity to lead the way. In recent years, both Lloyds TSB and HBOS have made a great deal of progress in managing their environmental impacts

Lloyds Banking Group’s Climate and Environment Report 2010

Our Climate and Environment Report sets out the Group’s environmental strategy – our approach, performance and our future agenda.

Transparency and emissions

  • Both Lloyds TSB and HBOS were leaders in the 2008 Carbon Disclosure Project, the world’s largest provider of corporate climate change information to investors, governments and other stakeholders.
  • By the end of 2008, Lloyds TSB had cut emissions by 31% on its 2002 figure, exceeding the target it set itself in 2007, four years ahead of schedule.
  • In 2007, HBOS launched a new climate change strategy for reducing its carbon emissions and giving customers clearer information on its performance. This included buying renewable energy for its whole property estate and displaying energy performance certificates in every one of its buildings.
  • Find out more about Lloyds Banking Group’s Environmental Policy.


Truett Tate, Group Executive Director for Wholesale, is a member of the Prince of Wales’s Corporate Leaders Group on Climate Change. Susan Rice, Managing Director for Lloyds Banking Group is Scotland is a member of the 2020 Climate Group. We have a Sustainability Network of 700 ‘environment champions’ across the Group who run initiatives to reduce the use of energy, reduce waste and paper consumption and find innovative ways to avoid unnecessary business travel. During 2009 we are also developing a Sustainability Business Partner training programme, which will equip colleagues with the knowledge and information required to identify new sustainable business opportunities. Lloyds TSB and Bank of Scotland are among the leading lenders in renewable energy finance, supporting over 6,000MW of renewable energy generation.


Our customers operate in many different industries and locations around the world, and risks come from the impact of their activities on the environment, as well as the environment’s own impact on their businesses. We make it our business to identify the key risks that might impact our customers business and, in turn, ours. Our aim is to create lasting business value by becoming a trusted advisor on the business impacts of environmental issues. Lloyds TSB and HBOS both adopted the Equator Principles. Supported by 67 financial institutions around the world, these principles set a recognised benchmark to promote socially responsible conduct and sound environmental practices for project finance transactions

Equator Principles: Managing Social and Environmental Issues in Project Finance

Lloyds Banking Group is a signatory to the Equator Principles. The Equator Principles are voluntary guidelines for the financial industry to manage social and environmental issues in project financing. The principles apply to all new Project Finance transactions above US$10m.

During 2009 we implemented a harmonised groupwide approach to monitoring and reporting Equator Principles transactions, and training colleagues on the Equator Principles. An Equator Principles Review Group has been formed, comprising experts from both Risk and Project Finance teams, and supported by external environmental consultants. This Group is responsible for reviewing all new Equator Principle transactions, to ensure that each transaction is compliant and is consistent with the Group Environmental Risk Policy, prior to being sanctioned.

All Equator Principles projects are reviewed as part of an annual review process. In 2009, 20 Projects were reviewed. Of these, 14 were completed with a total value of over £500 million. Nine of the projects took place in Europe, four in the US and one in the Middle East.