Our approach to climate change

(1) For details on dependencies applicable to and reliance on our climate and sustainability-related ambitions, targets and commitments, refer to ‘Climate and sustainability-related risks’, ‘Additional cautionary statement regarding climate and sustainability-related data, metrics and forward looking statements’, and ‘Cautionary statements in relation to the climate and sustainability related disclosures in this report’ on pages 420 to 422, 429 and 430 of our 2025 Annual Report and Accounts.

(2) Climate and sustainable funding and financing (as defined in our climate and sustainable funding and financing inclusion criteria) and climate and transition finance, (as defined in our climate and transition finance framework) represent only a relatively small proportion of our overall funding, financing and facilitation activities.

(3) Our operational emissions comprise greenhouse gas emissions Scopes 1, 2 and 3 (categories 1–14, excluding categories 8, 10 and 14) and does not include Scope 3 category 15 financed emissions. The reporting year runs from 1 October to 30 September.

(4) Our WACI ambition includes listed equity and corporate fixed income asset classes. We consider Managed Assets (those assets we invest on our customers’ behalf, which represented 81% of AUM as at 31 December 2025) to be in-scope for our WACI ambition. Due to improved data sourcing, current WACI measurement includes additional data for government bond asset classes and Bespoke portfolios. Our WACI ambition applies to equity and corporate fixed income assets only.

(5) Scope 3 category 15 financed emissions (customer Scope 1 and 2) from lending and investments, refer to page 54 of our 2025 Annual Report and Accounts. Estimated 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.

(6) Based on 2024 emissions, reflecting the nine portfolio-level activity-based targets for which convergence pathways have been developed with reference to external scenarios. A 2023 comparative is not provided as these are new targets. In general, year-on-year fluctuations in convergence status are expected as the availability of customer emissions data improves and methodologies are refined.

(7) The phase-out of coal refers to the exit of the customer relationship by NatWest Group. This relates to all grades of thermal coal (e.g. bituminous, sub-bituminous, and lignite) typically used as a fuel for coal-fired generation. 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 (i) companies who generate less than 5% of their revenues via coal related activity (in line with the UN Environment Programme Finance Initiative (UNEP FI) Guidance for Climate Target Setting for Banks) (ii) companies with a turnover of <£50 million, and (iii) commodity traders. Metallurgical coal is excluded from scope.

(LA) Metric subject to independent Limited Assurance by EY.

(RA) Metric subject to independent Reasonable Assurance by EY. Refer to page 71 of our 2025 Annual Report and Accounts. 

(1) Climate and sustainable funding and financing as defined in the climate and sustainable funding and financing inclusion criteria. For the reporting periods ended 31 December 2024 and 30 June 2025, the NatWest Group CSFFI criteria published in March 2024 were used to determine eligible assets, activities, targets and companies for inclusion. For previous reporting periods and CSFFI criteria used, refer to page 20 of NatWest Group’s 2024 Sustainability Report. Details of all CSFFI criteria used can be found under Environment and climate. NatWest Group’s own Green, Social and Sustainability bond issuances are not included towards the target.

(2) Lending amounts represent total commitment and include any undrawn portion of committed credit limits.

(3) Refer to page 42 of our 2025 Climate Transition Plan report for data availability and limitations related to EPC data.

(4) Sustainability-linked loans, bonds and private placements aligned with the LMA’s sustainability-linked loan principles (SLLPs) and ICMA’s sustainability-linked bond principles (SLBPs) where deal targets include specific carbon, climate or environmental-related performance indicators.

(5) Underwriting of specific use of proceeds debt capital market issuance for project expenditures, sovereign and EU green bond auctions which meet the CSFFI criteria. Amounts represent the NatWest Group share (total underwriting amount lead managed or placed by NatWest Group) of the notional deal amount and the allocated auction bond volumes.

(6) In addition to transactions based on use of proceeds for climate and sustainable purposes, our eligibility criteria also included certain general purpose loans and wider financing (including, but not limited to, bonds and private placements) to customers who met specific counterparty requirements. Refer to page 4 of our CSFFI criteria for details.

(1) NatWest Group’s own Green, Social and Sustainability bond issuances are not included towards our CTF target.

(2) Lending amounts represent total commitment and include any undrawn portion of committed credit limits. Includes any vanilla and structured repurchase agreements and securitised products which meet our CTF framework.

(3) This includes dedicated purpose (i) lending meeting criteria in CTF framework Section 3a, and (ii) market-labelled lending meeting criteria in CTF framework Section 3b.

(4) Refer to page 42 of our 2025 Climate Transition Plan report for data availability and EPC data limitations.

(5) Our CTF framework eligibility includes general purpose climate and transition financing and facilitations to eligible counterparties meeting the criteria in CTF framework Section 3c (and Section 4 as applicable). General purpose financing and facilitation may be delivered through a range of financial instruments, including transactions which meet the LMA’s, Loan Syndications and Trading Association’s (LSTA) or Asia Pacific Loan Market Association’s (APLMA) SLLPs or ICMA’s SLBPs where a specific climate, nature or greenhouse gas reduction metric is not included.

(6) Sustainability-linked loans, and underwriting of bonds, loans and private placements aligned with LMA’s, LSTA or APLMA SLLPs and ICMA SLBPs where deal targets include climate, nature or greenhouse gas reduction metrics.

(7) Underwriting amounts represent the NatWest Group share (total underwriting amount lead managed or placed by NatWest Group, including co-manager roles) of the notional deal amount and the allocated auction bond volumes. This section also includes any loans where we acted as an active best efforts arranger, where amounts represent the notional amount placed by NatWest Group.

(8) Includes underwriting of dedicated purpose (i) debt capital market issuance for project expenditures, sovereign and bond auctions meeting criteria in CTF framework Section 3a and, (ii) market-labelled debt capital market issuance meeting criteria in CTF framework Section 3b (iii) loans meeting the criteria in CTF framework Section 3a and (iv) market-labelled loans meeting criteria in CTF Section 3b.