Lloyds Banking Group: Building the UK’s Low-Carbon Economy

Lloyds Banking Group is the UK’s largest financial services provider, serving 28 million customers annually across the country.

Its vision is to Help Britain Prosper by delivering profitable solutions for a more inclusive and sustainable future in the UK.

The company has released its 2025 Sustainability Report, detailing its plans and progress on advancing sustainability in the financial sector.

What is Lloyds’s sustainability strategy?

Lloyds focuses on embedding sustainability into all of its operations, such as improving access to housing, supporting community development and building UK infrastructure.

Its sustainability strategy aims to grow revenue and diversification, strengthen cost and capital efficiency and maximise the potential of people, technology and data.

It offers a comprehensive range of financial products and services to its customers, ensuring that each customer has access to the right solutions while enabling sustainable growth.

Andrew Walton, Chief Sustainability Officer and Chief Corporate Affairs Officer at Lloyds Banking Group, writes on LinkedIn: “This is a great moment to pause, look at the progress we’ve made and be genuinely excited about the momentum Lloyds Banking Group is carrying into the year ahead.

“We’ve continued to act where it matters most: from helping farmers build long-term resilience to supporting people to get access to quality, affordable homes.

“A huge thank you to everyone across the Group who’s played a part in this over the past year. Your hard work and expertise sit behind every number in this report and behind the support we provide to the customers, communities and environment we serve.”

Building sustainable communities

One pillar of Lloyds’s sustainability strategy is increasing access to quality and affordable housing across the UK.

The Group is one of the largest financiers and supporters of the UK housing sector, with an aim to expand the availability of safe and sustainable housing.

In 2025, it achieved £3.2bn (US$4.3bn) of new finance supporting the social housing sector, reaching more than £22.7bn (US$30.5bn) overall since 2018.

It has achieved this milestone through collaborations with more than 320 housing associations nationwide.

This ensures that the Group reaches customers across the entire country, leveraging its expertise to provide tailored funding solutions to clients.

Charlie Nunn, Group Chief Executive at Lloyds, says: “We are proud to play a leading role in the UK’s housing market, working with communities, developers and local partners to accelerate the delivery of quality, affordable homes for the people who need them most.

“The Group has a long-standing commitment to support the social housing sector and our financing is helping more people access secure, affordable homes, while strengthening lending growth.

“Through our market-leading role in the UK’s housing sector, we are successfully growing our business, while helping more people move into quality homes and build their futures.”

All sustainability, net zero and sustainable supply chain leaders should attend:

• Sustainability LIVE: The Net Zero Summit - QEII Centre, London, March 4-5
• Sustainability LIVE: The US Summit - Navy Pier, Chicago, April 21-22

Co-located with Procurement & Supply Chain LIVE, these events brings together CSOs, ESG leaders and senior decision-makers at a moment when sustainability, supply chains and commercial performance are increasingly interconnected.

Tickets can be booked online today for The Net Zero Summit and The US Summit. Group discounts available.

Supporting the UK’s transition

As well as having a positive impact on communities, Lloyds is working on benefitting the environment.

Its sustainability plan sets out how the company is supporting the transition to a low-carbon economy.

In 2025, one in eight electric vehicles on UK roads were financed by Lloyds Banking Group.

This is helping to contribute to national decarbonisation goals, aiming to support energy security and resilience in the UK.

Lloyds’s transition plan includes its target to achieve net zero carbon operations by 2030 and to work with its suppliers to reduce Scope 3 emissions by 50% by 2030.

This sets the company on the path to achieve net zero by 2050 or sooner, through its partnerships, engagement strategy and sustainability frameworks.

Charlie says: “We continue to strengthen the resilience of our balance sheet and investment portfolios by deploying capital to support the UK’s transition.

“We are structuring new forms of finance that link institutional capital to critical national infrastructure. One example is our support for the first corporate issuance of a blue bond in sterling, co-coordinating £250m (US$336.2m) for London’s Thames Tideway Tunnel.

“Once complete, the tunnel will reduce pollution and support the capital’s long-term water resilience. It showcases how innovation in sustainable finance can drive positive societal impact and robust financial outcomes.”