Climate and environment

• We have an ambition to be net zero across our financed emissions, assets under management and operational value chain by 2050.
  • This is aligned with the UK’s legal obligation to be net zero by 2050.
  • While the path to net zero by 2050 is far from clear at this stage, we continue to focus on supporting our customers’ transition and our own ambitions to be net zero.
  • Achieving our climate-related ambitions and targets is dependent on a range of factors, including timely and appropriate government policy, technology developments, and on suppliers, customers and society supporting the transition.

• We have an ambition to reduce emissions for our operational value chain,¹ against a 2019 baseline by: reducing Scope 1 and location-based² Scope 2 emissions by 70% and Scope 3 emissions by 50% reduction in Scope 3 by 2030.
  • In 2025 we achieved a 66% reduction in Scope 1 and 2 emissions against the 2019 baseline and a 47% reduction in Scope 3 emissions.
  • We also continue to consume 100% renewable electricity across our direct own global operations in line with our RE100 commitment.

• And we have retained our ambition to at least halve the climate impact of our financing activity by 2030, against a 2019 baseline³.
  • We have achieved a 39% reduction in financed emissions between 2019 and 2024, primarily through strategic decisions, methodology and data enhancements.
  • We acknowledge that emission reductions are unlikely to be linear and that the UK Parliament will legislate a new legal limit on greenhouse gas emissions as part of the Seventh Carbon Budget by June 2026.

• Please see page 6-9 of the NatWest Group plc 2025 Climate Transition Plan Report.

1) Our operational value chain captures greenhouse gas emissions Scopes 1, 2 and 3 (categories 1-14, excluding categories 8, 10, 14) and does not include Scope 3 category 15 financed emissions, refer to page 12 of the NatWest Group plc 2025 Climate Transition Plan Report.

2) Our ambition is location-based to drive absolute reductions in consumption. Location-based GHG emissions method reflects the grid-average emissions. Market-based emissions reflect purchased electricity sources (e.g. renewables), which have near-zero emissions. Refer to Streamlined Energy and Carbon Reporting (SECR) disclosure, included on page 56 of the NatWest Group plc 2025 Annual Report and Accounts, for further details of the basis of GHG emissions reporting.

3) Scope 3 category 15 financed emissions (customer Scope 1 and 2) from lending and investments, refer to pages 12 and 40 of the NatWest Group plc 2025 Climate Transition Plan Report for further details. Financed emissions are reported as at 31 December 2024. Our financing activity may result in a non-linear emissions profile, both within and across sectors

• When we set our 2030 ambition, climate was a discrete pillar of our strategy; it is now integrated into our overall strategy and financial planning process.
• Financed emissions: a simplified and focused approach.
  • In 2022, we set 16 science-based portfolio-level sector targets for 2030. These targets were validated by the Science Based Targets initiative (SBTi) and covered 79% of our lending book and 57% of debt securities and equity shares, excluding sovereign debt securities as at 31 December 2019. They had a 2019 baseline and underpinned the development of our initial climate transition plan and the opportunities we identified to help our customers transition to a more sustainable economy.
  • We have continued to refine our climate transition plan to focus on the most material activities across a range of sectors, including the metrics and methodologies used to track progress against our plan.
  • As a result we have withdrawn our 16 portfolio-level sector targets and replaced these targets with nine portfolio-level activity-based targets for 2030.
  • Our new targets are science-based, have a 2023 baseline and have been developed using the UN Environment Programme Finance Initiative (UNEP FI) Guidance for Climate Target Setting for Banks, ensuring coverage of carbon-intensive sectors, material sources of emissions and adequate coverage of our balance sheet.
  • They cover 61% of our lending book and 0.02% of debt securities and equity shares, excluding sovereign debt as at 31 December 2023. We have not sought SBTi validation of our new portfolio-level activity-based targets.
  • The scope of our new targets reflect our role as a provider of finance to a range of industries and the activities recognised by the UK CCC as playing a critical role in enabling the UK’s transition to net zero by 2050. This helps us to better understand the transition risks and opportunities that may impact our customers and to better support the UK’s transition to net zero.
• On Managed Assets, in 2025, we reviewed our responsible investing approach, including our climate ambitions to ensure alignment with customer needs and market standards.
  • Following the review, we have withdrawn portfolio alignment from our entity level 2030 ambitions, recognising a lack of market consensus on how to define portfolio alignment within a wealth management context.
  • We have retained our 2030 Weighted Average Carbon Intensity (WACI) ambition, which reflects market best practice and continues to provide a standardised measure through which we can monitor progress towards our net zero by 2050 ambition.
• Operational emissions: while we will maintain a science-based pathway to 2030, we have withdrawn our three science-based targets which were validated by the Science Based Targets initiative (SBTi).

Please see page 6-9, 13-16, 19-20, 23-25, 59-67 of the NatWest Group plc 2025 Climate Transition Plan Report.

• We reviewed our climate ambitions, targets and wider environmental and social policies, refining our climate transition plan to focus on the areas where we can deliver the greatest influence. This reflected our progress to date and aligns with the evolving policy landscape, including the advice issued in the UK Climate Change Committee’s Seventh Carbon Budget report.
• The path to achieving net zero by 2050 is far from clear at this stage but we continue to focus on supporting our customers’ transition and reducing our emissions.
• Having completed our review, we are focusing our targets on the most material activities across a range of sectors and have retained our ambition to at least halve the climate impact of our financing activity by 2030 - against a 2019 baseline - as we work towards our long-term 2050 net-zero ambition.
• Please see page 4-9 and 23-42 of the NatWest Group plc 2025 Climate Transition Plan Report.

• Our 9 portfolio-level activity-based targets focus on the physical emissions intensity of specific activities rather than sectors.
  • In particular, we have portfolio-level activity targets for Electricity generation, Oil and Gas production, Residential mortgages, Secured commercial real estate, Agriculture – primary farming, Manufacture of automobiles, Aircraft operators and lessors, Freight Road vehicle operation and leasing, Passenger Road vehicle operation and leasing.
• Our targets are designed to align with net zero pathways by 2050, with a published 2030 target that reflects our expected trajectory toward that convergence. The convergence points indicate the level of physical intensity reduction NatWest Group plc should achieve each year to remain on track for the 2030 target.
• This approach ensures our targets are aligned with a 2050 net zero pathway and supports the transition to a net zero economy, and this is applied consistently across all target activities. This approach ensures our targets are aligned with a 2050 net-zero pathway and supports the transition to a net-zero economy. This approach is applied consistently across all target activities.
• Our new targets, have been developed using the UN Environmental Programme Finance Initiative (UNEP FI) Guidance for Climate Target Setting for Banks, ensuring coverage of carbon-intensive sectors, material sources of emissions and adequate coverage of our balance sheet.
• They cover 61% of our lending book and 0.02% of debt securities and equity shares, excluding sovereign debt as at 31 December 2023 (our previous 2030 portfolio-level sector targets covered 79% of our lending book and 57% of debt securities and equity shares, excluding sovereign debt securities as at 31 December 2019).  
• The scope of our new targets reflects our role as a provider of finance to a range of industries and the activities recognised by the UK CCC as playing a critical role in enabling the UK’s transition to net zero by 2050. This helps us to better understand the transition risks and opportunities that may impact our customers and to better support the UK’s transition to net zero.
• Please see page 6 and 24 of the NatWest Group plc 2025 Climate Transition Plan Report.

• The baseline year for our new portfolio‑level activity‑based targets is 2023.
• This reflects that these are new targets, designed using a different methodology and scope from our previous portfolio-level sector targets.
• Establishing a 2023 baseline provides an up‑to‑date position from which to track future progress.
• The 2019 baseline used for our 2030 ambition to at least halve the climate impact of our financing activity remains unchanged.
• As at 31 December 2024 six out of nine portfolio-level activity-based targets were aligned to decarbonisation convergence pathways.
  • In general, year-on-year fluctuations in convergence status are expected as the availability of customer emissions data improves and methodologies are refined.
• Please see page 6 and 24 of the NatWest Group plc 2025 Climate Transition Plan Report.