Lloyds Banking has set its net-zero targets at 2050 and is committed to reducing its carbon emissions. The company aims to achieve this goal steadily by following a climate transition plan. The Group's climate transition plan delineates the measures to be undertaken to achieve net-zero emissions across its operations, supply chain, and the emissions financed by the Bank. Informed by guidance from the Glasgow Financial Alliance for Net Zero (GFANZ) and Transition Plan Taskforce (TPT), as well as the Task Force on Climate-related Financial Disclosures (TCFD), the climate transition plan reflects a comprehensive and strategic approach to address climate-related challenges in alignment with established industry guidelines.

The company has outlined various emission reduction ambitions and targets throughout its Group as part of its commitment to decarbonize its business in alignment with the goal of limiting global warming to 1.5°C. These initiatives include reducing the carbon emissions financed by the company by more than 50% by 2030, halving the carbon footprint of its investments by 2030, and achieving a 50% reduction in carbon emissions generated through the supply chain by 2030. Additionally, the company aims to achieve net-zero carbon operations by 2030, with a commitment to reducing direct carbon emissions by a minimum of 75% in its own operations. This involves a 50% reduction in energy consumption across its operations and limiting travel-related carbon emissions by 50% compared to a pre-COVID-19 baseline of 2018/19. These comprehensive goals underscore the company's dedication to sustainable practices and environmental responsibility.

Lloyds Banking has implemented a transition plan and governance structure to manage its emissions. The Group has outlined its progress in the year 2022 and outlined objectives for both its short-term plan in 2023 and long-term plan extending beyond 2024 in its ESG 2022 report. Notably, in 2022, the operational carbon emissions (Scope 1 and 2, measured using the market-based method) experienced a significant reduction of 13.9% compared to the previous year, resulting in an overall decrease of 36% from the baseline of 2018/19. Looking ahead, the Group has set ambitious goals for beyond 2024, aiming to eliminate the use of natural gas in its buildings by 2030. Furthermore, the commitment to purchasing 100% renewable electricity will persist, with a strategic focus on increasing the share of electricity directly sourced from renewable projects or generated on-site to at least 60% by 2025.

In conclusion, Lloyds Banking has demonstrated unwavering commitment to achieving net-zero carbon emissions by 2050. Guided by a comprehensive climate transition plan, the company's ambitious emission reduction goals highlights its proactive stance on sustainability and environmental responsibility.

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