UK financial services firms on track to hit net zero
Almost two thirds (59%) of UK financial services firms have set a net zero target, with the majority (77%) currently on track to hit their deadline, according to Lloyds Bank.
A quarter (25%) of firms have not yet committed to net zero, but are considering it, and six per cent have already achieved net zero emissions.
When asked about their biggest barriers to achieving net zero emissions, finding the right information to report and monitor performance (54%) and difficulty reducing scope 3 emissions (47%) were firms’ most popular responses.
The findings are included in Lloyds Bank’s seventh annual Financial Institutions Sentiment Survey, which gathers views from major banks, asset and wealth management firms, insurers and intermediaries across the UK.
Tara Schmidt, head of climate and sustainability strategy at Lloyds Bank, said: “The data and scope 3 emission challenges firms are experiencing are common across all sectors, not just financial services, and will only intensify as new regulation emerges, including more mandatory climate and sustainability reporting.
“But the challenge for firms is much more than just making accurate sustainability disclosures to regulators. To pursue net zero, firms will also need to formulate an actionable, credible transition plan integrated with a robust sustainability strategy. Our survey confirms climate change and sustainability are on the UK financial services sectors’ agenda and firms are working hard to develop comprehensive plans to achieve their goals.”
Climate change high on the agenda
Almost a third (32%) of UK financial institutions say climate change is one of the most significant risks to their business.
Accordingly, climate change and sustainability were cited as strategic priorities by two thirds (63%) of firm.
Jonas Persson, head of sustainability and ESG finance at Lloyds Bank, said: “Efforts to combat climate change and improve environmental sustainability are now as relevant to financial services firms’ strategies as any other business critical consideration.
“Our sector has an opportunity to lead the charge, with many firms also playing a vital role in financing the UK’s transition to a lower carbon economy.”
