Lloyds Banking Group

The financial institution assigns decision-making and oversight for the sustainability strategy to the highest governance body, with performance criteria for senior executive remuneration linked to specific sustainability targets. Implementation responsibility for the sustainability strategy is delegated to various functions, teams, or committees. It maintains a gender balance of 40-60% at the senior executive level and conducts third-party assurance for its target reporting.

The institution discloses its membership in trade associations and its positions on sustainability-related lobbying and political engagement. It identifies key sectors, clients, and investees for climate engagement and partners to influence nature-related impacts. It also provides an example of how its products and services support climate adaptation and resilience. The institution monitors its scope 1-2 emissions and some Scope 3 categories and has a transition plan for its operations, supply chain, and portfolio. It also discloses the monetary amount or share of products, services, and capital provided to small and medium-sized enterprises, along with operational details by country, such as employee numbers or revenue. Finally, the financial institution has a publicly available policy statement requiring suppliers to respect ILO core labour rights and commits to human rights.

While the financial institution identifies material topics, further detail on the objective criteria and evidence used for prioritising material impacts is needed. A stewardship policy supporting environmental transitions and social best practices, aligned with its sustainability strategy, is also recommended. Although specific actions regarding lobbying and public policy engagement on sustainability are disclosed, alignment with the sustainability strategy and further details on these actions could be enhanced.

The financial institution has measurable targets for sustainable financing solutions but should specify the share allocated to climate solutions. While it identifies sectors for nature-related impacts, detailing the impact assessment process, as well as including geographic areas, is advised. A strategy covering priority sectors and areas for its nature approach is also recommended.

It is recommended that the financial institution disclose that it has established a transition plan covering its own operations, supply chain, and portfolio and publish the breakdown of clients or beneficiaries by income group. It could also clarify processes to prevent divestment from low-income and lower-middle-income countries due to its sustainability strategies and targets. Additionally, it could strengthen its disclosure by identifying the social risks associated with its financing activities in relation to net zero transition. The financial institution could also provide an example of actions taken in the past three years to address salient human rights issues identified through risk assessments related to the products, services, and capital it offers. Moreover, it has the opportunity to detail its method for determining a living wage in its operational regions.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.