Read more about how we are protecting and restoring our natural world to contribute to climate change mitigation.
We want to deliver a more sustainable economy and future for the customers and communities we serve, which is why addressing climate change – one of the most critical issues of our time – is a strategic priority for the bank. NatWest Group has become the first UK bank, and one of the largest banks globally to date, to have science-based targets validated by the Science Based Targets initiative (SBTi). These targets underpin the initial iteration of our Climate transition plan, which outlines the steps we aim to take to at least halve the climate impact of our financing activity by 2030 and achieve our net zero climate ambition by 2050.
(1) Refer to section 1.2, 1.3 and 3.3 of the 2022 Climate-related Disclosures Report (PDF 9.7MB) for further detail on our climate ambitions and SBTi targets.
(2) Between 1 July 2021 and the end of 2025.
(3) Since launch in Q4 2020. Retail Banking Green Mortgage products only. Green mortgages are available to all intermediaries for all residential and Buy to Let properties with an energy performance rating of A or B and specific new build developer properties. Available for Purchase, Porting and Re-mortgage applications.
(4) Direct own operations is defined as Scope 1, Scope 2 and Scope 3 (paper, water, waste, business travel, commuting and work from home) emissions. It excludes upstream and downstream emissions from our value chain.
(5) As defined in the Credible Transition Plan (CTP) assessment. Refer to pages 30 – 31 of the NatWest Group plc 2021 Climate-related Disclosures Report (PDF 10MB) for further details on the assessment of CTPs for oil and gas majors and in-scope coal customers. Increases in oil and gas exposure in 2022 are largely attributable to foreign exchange movement.
(6) Retail Banking RBS, NatWest and Ulster Bank Northern Ireland mobile apps.
(7) For further details of Sustainable Development Goals (SDGs), see page 13 of the 2022 ESG Disclosure Report (PDF 9.6MB).
(8) Historic values are updated from values reported in 2021. This is due to updated bills, data provision and extrapolations.
(*) Within scope of EY assurance. See our External Assurance page for details.
NatWest Group has established itself as a leading voice for finance on tackling climate change. In 2022, we worked alongside the UK Government to support the UK Pavilion at COP27, co-hosting several high-profile events with customers and key stakeholders such as the Sustainable Markets Initiative.
Closer to home, through our climate resolution, the Board gave shareholders their ‘Say on Climate’ asking them to support our strategic direction on climate change at the AGM. The resolution was endorsed by the vast majority of our shareholders, indicating strong support for our climate strategy.
Receiving the Sustainable Markets Initiative’s Terra Carta Seal – which recognises organisations that are demonstrating their commitment to, and momentum towards, the creation of sustainable markets – acknowledges the progress we have been making towards our purpose and climate ambitions.
However, we recognise that we still must do more to achieve our climate ambition and alignment with the 2015 Paris Agreement. Support from policy makers as well as collaboration across the private sector will be vital for mobilising the finance necessary to fund the infrastructure of future green economies. Initiatives such as Carbonplace, where we have joined forces with other financial institutions to create a global carbon credit transaction network, or the Sustainable Homes and Buildings Coalition, which NatWest Group launched with British Gas, Worcester Bosch and Shelter, to improve UK building energy efficiency, are great examples of how this cross-industry partnering can have meaningful real-world impact.
We acknowledge as well the evolving and often imperfect nature of climate data currently available. We aim to use the best available methodologies and make our analysis as robust and transparent as possible, now and in the future. As such, this report demonstrates that we remain focused on the task ahead, aware of both our current responsibilities and the opportunity to be part of the climate solution.
While the oil and gas sector continues to play a critical role in UK energy security and the transition to clean energy, NatWest Group recognises the significant climate, environmental and social risks associated with it.
In 2022, we further tightened our oil and gas ESE policy: We announced we would only continue to support upstream oil and gas companies:
From February 2023, we will not provide reserve based lending specifically for the purpose of financing oil and gas exploration, extraction and production for new customers, and, after 31 December 2025, we will not renew, refinance or extend existing reserve based lending specifically for the purpose for financing oil and gas exploration, extraction and production.
We have an ambition to be net zero by 2050 across our financed emissions, assets under management (AuM) and our operational value chain. Our 2030 climate ambitions:
(1) Refer to pages 38 to 39 of the Net Zero Asset Managers Initiative’s Initial Target Disclosure Report (PDF 3MB) (May 2022).
In 2022, we developed the initial iteration of our Climate transition plan. This plan focuses on the delivery of our 2030 decarbonisation ambitions and will inform further work on our journey to net zero by 2050 across our financed emissions, assets under management and our operational value chain.
Our ambition to be net zero by 2050 is aligned with the 1.5°C temperature stabilisation objective of the 2015 Paris Agreement.
Read more about how we are protecting and restoring our natural world to contribute to climate change mitigation.
Read more about how we aim to halve our direct own operations emissions by 2025 from a 2019 baseline.