Lloyds Banking Group

"The Group is a signatory to The Banking Environment Initiative & Consumer Goods Forum ‘Soft Commodities’ Compact, which supports transformation of the soft commodities supply chain and drives efforts toward zero deforestation by 2020. Our approach applies to all customers involved in the following activities: forestry activities including management, clearance and timber production; raw timber wholesale; pulp and paper manufacture; palm oil and rubber cultivation; and upstream palm oil production units. Lloyds Banking Group will not support businesses directly involved in illegal logging, the purchase of illegally harvested timber or companies that use illegal and/or uncontrolled use of fire for land clearance. "

"In all sectors which may have heightened ESE risk, we aim to work with customers who [...] align their operations with the principles of this framework and with the United Nations Global Compact Framework’s labour, environment and anti-corruption standards".

"During 2018, we reviewed our external sector statements to confirm that they align to our sustainability strategy and consider appropriate climate related risk [...] In 2019, we will review these statements again, and consider developing statements for other sectors and topics. We will review ways to embed sustainability in the Group’s key policies" [...] "In 2020, we will continue to review and enhance our methodologies and framework for reporting Environmental, Social and Governance risks. This review will take into account a range of industry guidelines including TCFD, Principles for Responsible Banking, Sustainability Accounting Standards Board (SASB), the World Economic Forum (WEF) ESG standards, and regulatory reporting requirements with a view to further enhancing our disclosures and responding to the evolving needs of both our shareholders and other stakeholders."

"We regularly review all of our customers that we have a direct banking relationship with. Where they appear to be operating outside of our risk parameters, we will work with our customers to understand how they plan to transition to meet our risk parameters. If the customer does not transition, we will exit the relationship at the earliest opportunity. [...] We have regular meetings / engagements with our customers (where appropriate) that we have a direct banking relationship with, and regularly review their public filings, press reports and analyst presentations. Within Commercial Banking, credit policy requires all credit applications to comment on the sustainability risks and opportunities associate with that customer. "