Managing Sustainability Issues

Doing business responsibly in Lloyds Banking Group involves managing risk effectively. We must make the right decisions and do the right things for our shareholders and our colleagues. Lloyds Banking Group recognises the global challenge posed by climate change and other environmental issues; and its responsibility to reduce the environmental and social impacts of its business operations.

We expect our customers to comply with applicable international conventions, sanctions and embargoes, legislation, and licensing requirements. We also expect them to show a clear commitment to robust Ethical, Social and Environmental Risk (ESE Risk) management, including Health & Safety, environmental and social impact, and evidence of a good, track record for transparency in the way they manage these and other risks.

We are committed to managing the ESE risks associated with the financial services we provide across our business. We recognise that the Group’s major environmental and social impacts can arise indirectly through the provision of financial services to our customers.

During 2018, we reviewed our external sector statements to confirm that they align to our sustainability strategy and consider appropriate climate-related risk. The sector positions opposite are the output from the first phase of our work and include the position statement for coal introduced last year. In 2019, we will review these statements again and consider developing statements for other sectors and topics. We will also review ways to embed sustainability in the Group’s key policies.