FinanceMap scores this financial institution in the following areas. Please navigate to the relevant tab for in-depth analysis
FinanceMap assesses these portfolios for this financial institution. Please navigate to the relevant tab for in-depth analysis.
Lloyds Banking Group's (Lloyds) board has oversight of the group’s overall strategy on environmental issues, including monitoring progress on climate targets and management of climate-related risks. At the management level, Lloyds has a Group Net Zero Committee to oversee the group’s net zero transition strategy, and other management level committees receive updates on sustainability strategy and climate risk.
The organization defines the risks and opportunities it considers relevant to its business over different time horizons. Lloyds has referenced some of the processes used to determine which risks and opportunities could have a material financial impact on the organization, such as climate scenario analysis and a client transition plan assessment.
Lloyds has disclosed where in its business model climate risks and opportunities are concentrated. It has also disclosed some examples of how it will use resource allocation to respond to risks and opportunities, such as through its sustainable financing goal, but lacks details about how it is considering the effects of climate risks and opportunities in its financial planning.
Lloyds has tested the resilience of its business using climate scenarios, conducting analyses of its commercial lending and investments on physical and transition risks against NGFS scenarios. It has also conducted scenario analysis for its UK homes and UK general insurance portfolios. Lloyds discloses some of the implications of this analysis, but has not described how it plans to respond to the effects identified in the scenario analysis.
Lloyds has described its methods for identifying and assessing risks using climate scenario analysis and client transition plan assessments, but lacks details about how it identifies and assesses climate-related opportunities.
It has some processes in place to manage climate-related risks and opportunities, including its risk appetite and sector risk policies. The organization has integrated climate-related risks into its Group's Enterprise Risk Management Framework, and appears to be incorporating its opportunities and client transition plan assessments into risk management and strategy.
The organization discloses key metrics related to climate risks and opportunities, including sustainable financing, the weight of senior management remuneration impacted by climate performance measures, and the percentage of its lending portfolio exposed to increased climate risk. It is also transparent about Scope 1, 2, and some operational Scope 3 emissions data, and has disclosed comprehensive Scope 3 Category 15 emissions in its reporting, disclosing absolute emissions measurements for both financed and facilitated emissions for several sectors, and including client Scope 3 in its measurements for many of the sectors it reports.
Lloyds has set a net zero by 2050 target, along with 2030 interim sector targets. Its initial sector targets announced in 2021 cover the oil and gas and retail motor sectors. In 2022 it set interim emissions targets for the power, automotive original equipment manufacturers (OEMs), aviation, and residential real estate sectors, which appear to apply only to lending activities. In 2023, Lloyds added three new sector targets for agriculture, road passenger transport, and commercial and residential real estate. Only its agriculture and oil and gas sector targets are in absolute emissions metrics.
Lloyds has coal phaseout policy that states that it is phasing out thermal coal mining and power generation by 2030. The organization has stated that it will not finance companies that are planning for expansion of thermal coal mining or power generation capacity, or companies that generate greater than 5% of revenue from thermal coal mining or more than 20% of revenue from thermal coal power generation by the end of 2023.
With regard to oil and gas, the organization has committed to financing no new oil or gas projects, and states it will work with clients on transition plans. Lloyds sector policies also state it will limit financing of certain unconventional oil and gas projects, but it does not appear to have set exclusions or thresholds for companies generating revenue from unconventional oil and gas. The organization has set a 2030 interim target to reduce absolute financed emissions of its oil and gas portfolio by 50%.
Lloyds has set a financing policy for nuclear energy requiring clients to meet international safety standards, but it is unclear how it relates to the organization’s wider position on the energy transition. Additionally, the organization is increasing its financing of renewables with a sustainable finance target of 30 billion pounds between 2024 and 2026 that includes renewable energy technology.
FinanceMap’s Climate Governance and Policies analysis assesses statements financial institutions (FIs) are making on how they are incorporating climate issues into their decision-making and operations using FinanceMap’s matrix methodology. This methodology is adapted from the Task Force on Climate-Related Financial Disclosures (TCFD) recommendations and guidelines, Net-Zero Banking Alliance (NZBA) or equivalent Glasgow Financial Alliance for Net-Zero (GFANZ) initiative reporting, and IPCC and IEA technology statements. The TCFD provide guidance on 11 recommendations across four areas which are reflected in our matrix: Governance, Strategy, Risk Management, and Metrics and Targets. Additional benchmarks have been introduced to strengthen the ambition of scoring criteria in the assessment of targets, which are supplemented by guidance from the NZBA or equivalent GFANZ initiatives.
Additionally, Science-Based Policy (SBP) benchmarks are used to measure alignment of an FIs technology positions with the science of climate change. These benchmarks are applied to an FIs internal policies on technologies including coal, oil, gas, nuclear, and renewables and also assesses its engagement with broader climate and energy policy issues such as advocacy on the role and importance of different strategy types in the future energy mix.
For each TCFD recommendation and technology, FIs statements are applied to a five point scoring scale ranging from +2 to -2, measuring alignment with the relevant benchmarks. The detailed scores for this FI are displayed below within each matrix cell.
The following table outlines the key queries and data sources, which FinanceMap uses to assess financial institutions climate governance, targets and policies. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
Fossil fuel companies are those whose primary sector falls within coal mining and services, or up-, mid-, and downstream oil and gas sectors. Green companies are defined as companies having over 75% revenue deriving from Substantial Contribution to Mitigation activities under the EU Taxonomy.
Portion of AUM Assessed: $5.46B
| Holding Name | Contribution to Sector Production |
|---|---|
| NRG Energy Inc | 18.6% |
| Entergy Corp | 12.4% |
| SSE PLC | 10.9% |
| Duke Energy Corp | 9.1% |
| Companhia Paranaense de Energia | 5.3% |
| National Grid PLC | 4.7% |
| Dominion Energy Inc | 4.1% |
| Iberdrola SA | 3.8% |
| Drax Group PLC | 3.5% |
| Southern Co | 3.3% |
| Holding Name | Contribution to Sector Production |
|---|---|
| Bayerische Motoren Werke AG | 59.2% |
| Hyundai Motor Co | 6.0% |
| Geely Automobile Holdings Ltd | 5.1% |
| Ford Motor Co | 5.0% |
| Toyota Motor Corp | 4.3% |
| Kia Corp | 4.2% |
| Tesla Inc | 3.5% |
| Mercedes-Benz Group AG | 2.8% |
| Maruti Suzuki India Ltd | 2.6% |
| General Motors Co | 1.9% |
| Holding Name | Contribution to Sector Production |
|---|---|
| China Coal Energy Co Ltd | 37.9% |
| Coal India Ltd | 23.8% |
| Yankuang Energy Group Co Ltd | 17.2% |
| Alamtri Resources Indonesia Tbk PT | 6.6% |
| Whitehaven Coal Ltd | 5.1% |
| United Tractors Tbk PT | 4.3% |
| Mongolian Mining Corp | 1.6% |
| China Shenhua Energy Co Ltd | 1.4% |
| Adani Enterprises Ltd | 0.6% |
| Inner Mongolia Yitai Coal Co Ltd | 0.5% |
| Holding Name | Contribution to Sector Production |
|---|---|
| BP PLC | 42.1% |
| Shell PLC | 35.6% |
| TotalEnergies SE | 8.1% |
| PetroChina Co Ltd | 3.1% |
| Energean PLC | 2.3% |
| Harbour Energy PLC | 1.7% |
| Surgutneftegaz PAO | 1.4% |
| Exxon Mobil Corp | 1.2% |
| Tullow Oil PLC | 0.7% |
| Chevron Corp | 0.7% |
Climate Lobbying Overview: Lloyds Banking Group (Lloyds) and subsidiary Scottish Widows appear to have had somewhat active engagement on climate-related policy, with broadly supportive positions on the UK Green Taxonomy and real economy climate policy.
Top-line Messaging on Climate-Related Financial Policy: Lloyds Banking Group CEO Charlie Nunn supported urgent action to tackle climate change in a 2023 Climate Webinar, and the group supported a role for finance in meeting the UK’s Net Zero by 2050 target in its 2023 Sustainability Reporting Framework Index and its Net Zero Activity Update. In response to the UK Treasury in 2022, Lloyds supported the proposal to update principles for financial regulators on sustainable growth. Scottish Widows supported systemic reform of the financial sector and a role for the sector in tackling climate change in a March 2025 op-ed. It also broadly supported the need for climate-related financial regulation in its 2023 Investment & Stewardship Report.
Position on Regulated Corporate Climate Disclosure: In a 2023 Climate Webinar, Lloyds supported the UK Transition Plan Taskforce (TPT) in implementing standards for transition plan disclosure, while expressing support for the TPT’s sector-specific guidance in its 2023 Sustainability Report. It supported the role of the International Sustainability Standards Board (ISSB) standards in its 2023 Sustainability Report, a change from a 2022 comment letter where it offered support with some exceptions, including concerns about Scope 3 disclosure requirements which it suggested should align with the SEC’s ‘safe harbor’ provisions for Scope 3 disclosures.
Position on Taxonomies: Lloyds supported the proposed UK Green Taxonomy in a 2025 consultation response, advocating for a science-based framework and supporting the use of a ‘Do No Significant Harm’ principle. This followed support for the taxonomy stated in its 2024 consultation response to the UK Transition Finance Market Review. In this response it also supported the development of a transition taxonomy and a clear distinction between ‘green’ and ‘transition’ activities, however did not clearly support a regulatory approach to this.
Position on Climate Labels and Incorporating Climate Factors into Investor Duties: Lloyds did not express a clear position on investor-facing disclosures under UK Sustainability Disclosure Regulation (SDR) or climate labels in its 2023 Sustainability Report. However, Scottish Widows broadly supported the UK SDR proposals on product- and entity-level disclosures in its 2022 Stewardship Report, with minor concerns around the extension of disclosure requirements to all funds.
Position on Real Economy Climate Regulation: Lloyds Banking Group has given broad support to improving the energy efficiency of the housing stock, including supporting regulatory action in its 2022 Net Zero Activity Update, and advocating for a policy plan in its 2023 Report. Scottish Widows also supported energy efficiency standards for the housing sector in its 2023 Responsible Investment & Stewardship Report. Lloyds generally supported the introduction of an energy-adjusted Stamp Duty Land Tax linked to the UK Environmental Performance Certificate (EPC) rating system in its 2023 CDP Response.
Position on Energy, Industry, and Land Transition: Lloyds has broadly supported the need to decarbonize the economy, with specific focus on the transport and energy sector in its 2023 Sustainability Report. Scottish Widows similarly supported regulatory measures to decarbonize transport in its 2023 Annual Responsible Investment & Stewardship Report. Lloyds supported the introduction of the Zero Emissions Vehicle (ZEV) mandate to phase-out ICE-powered heavy-duty vehicles in its 2022 and 2023 CDP reports.
Industry Association Governance: Lloyds has disclosed a list of its industry association memberships on its website. Details of policy engagement by industry associations are not disclosed, and Lloyds has not published a review of its industry association memberships and climate policy engagement.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q3 2025.
InfluenceMap’s methodology for assessing lobbying on climate finance policy closely follows InfluenceMap’s established methodology on climate policy engagement, which is used extensively by investors, including via the Climate Action 100+ investor engagement process. Our full methodology can be found here.
Under our lobbying assessment, InfluenceMap considers engagement on all financial policies which intersect with climate issues, as well as “real economy” climate change policies.
The analysis takes into account both the engagement of the financial institution and the activities of industry associations they hold membership of. InfluenceMap’s methodology covers seven publicly available data sources, searching for evidence of engagement and corporate positioning since 2017. To determine the policy issues within the scope of the analysis, InfluenceMap breaks down policy engagement into a series of subcategories, or 'queries'. These are designed to cover high-level issues relating to the importance of sustainable finance, as well as more specific areas of sustainable finance policymaking. InfluenceMap’s research process searches for evidence of an organization's engagement with each policy issue, across each of the data sources.
The following table outlines the key queries and data sources, which InfluenceMap uses to assess financial institutions' policy engagement. Every evidence piece is assessed on a five-point scale of -2,-1,0,1,2 or NA (not applicable)/NS (not scored). All queries, data sources, and evidence pieces are weighted against one another in a matrix system to arrive at a final top-level score. Clicking on specific cells will load the underlying evidence and information on how it has been assessed.
In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party.
In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.
