Our approach to climate change

(1) NatWest Group defines direct own operational emissions as Scope 1, location-based Scope 2 and Scope 3 (paper, water, waste, business travel, commuting and work from home) emissions.

(2) Based on 2023 emissions, reflecting sectors for which convergence pathways have been developed with reference to external scenarios. Refer to pages 23-26 for further details.

(3) We consider Managed Assets (those assets we invest on our customers’ behalf, which represented 83% of AUM as at 31 December 2024) to be in-scope for our interim 2030 portfolio alignment target and our weighted average carbon intensity (WACI) ambition. Refer to page 75 for details of WACI.

(4) Climate and sustainable funding and financing, as defined in our now retired Climate and Sustainable Finance Inclusion Criteria (CSFFI criteria) (PDF 284 KB), represents only a relatively small proportion of our overall funding and financing. Refer to page 20 for further details. 

(5) Relates to thermal and lignite coal (coal that is typically used as a fuel for steam-electric power) coal production, coal-related infrastructure or transport. Data challenges, particularly the lack of granular customer information, create challenges in identifying customers with ‘coal related infrastructure’ and other customers with coal-related operations within NatWest Group’s large and diversified customer portfolios As such, the scope excludes companies who generate less than 5% of their revenues via coal activity (in line with Net-Zero Banking Alliance (NZBA) guidelines for climate target setting for banks), companies with a turnover of <£50 million and commodity traders. Metallurgical coal Is excluded from scope as it is currently essential to the steel industry. We will continue to review our policies in line with our EWRMF which considers a range of factors in the external economic, political, and regulatory environment.

(1) Future Fit Survey sampled 1,000 UK businesses operating across 10 sectors. Refer here for details.

(2) EV Planner is also available to non-customers.

(3) While some financial wellbeing digital tools are available to both customers and non-customers (e.g. Know Your Credit Score), others are available only to customers in our mobile app.

(4) Includes our Device-as-a-Service and Circular Technology proposition, available to CMM and corporate customers. See page 18 of the 2024 Sustainability Report. 

(1) As methodologies and data used to estimate customer Scope 3 emissions within financed emissions continue to develop, the percentages included in the chart above and the financed emissions estimates included in the table on pages 23 are based on customer Scope 1 and Scope 2 absolute emissions. Other sectors represents estimated financed emissions on 27% of our in-scope loans and investments (23% estimated financed emissions) as at 31 December 2023, primarily relating to collective estimation approach where a common methodology has been applied to sectors and subsectors not individually analysed in the chart. 3.1 MtCO2e collective estimates includes: 0.7 MtCO2e for utilities and natural resources-related activities, 0.6 MtCO2e for mobility and logistics related-activities, 0.4 MtCO2e for other consumer related-activities. In addition, other includes emissions for: cement (0.03 MtCO2e), shipping (0.05 MtCO2e), water (0.08 MtCO2e), housing associations (0.05 MtCO2e), and iron and steel (0.1 MtCO2e). Estimates of sovereign financed emissions excluded from this chart and the table on page 23, are 4.0 MtCO2eat 31 December 2023. Refer to pages 41 to 42 for further details of emissions from lending and investments and to page 43 for data limitations associated with customer Scope 3 data. Figures presented are reflective of emissions from lending and investment as at 31 December 2023. 

(2) Refer to page 45 for our details of estimates of facilitated emissions from bond underwriting and syndicated lending, not included in the chart above. 

(3) Refer to page 75 for further details of emissions from assets under management (financed emissions and other metrics) and related Climate transition plan. Figures presented reflect estimated emissions from equity, corporate fixed income and government bond values as at 31 July 2024. Carbon emissions have been taken from 31 December 2023. 

(4) Refer to pages 47 to 50 for further details of our own operational emissions and related Climate transition plan. Figures presented reflect the reporting year of 1 October 2023 to 30 September 2024 and are shown gross of purchased renewable electricity.