Sustainable Leadership Case studies from the financial services sector for a greener economy The role of finance in supporting the transition UK Finance is the collective voice for the financial services industry. Representing over 300 member firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation. Our membership is diverse and representative of a dynamic industry with a global footprint, gathering small and large banks, building societies, international wholesale banks, as well as payment services firms. The financial services sector is playing and will continue to play a critical role in the transition to Net Zero and delivery of wider sustainability commitments. This includes investing in and lending to crucial sectors such as low-carbon energy and greening the housing stock, supporting clients as they transition to low carbon practices, and financing the green economy in line with the UK’s and global environmental objectives. The transition to a low‑carbon economy offers vast opportunities to drive investment, create jobs, and secure long-term growth. As a leading international financial centre, the UK is also well-placed to become a global hub for transition finance which will benefit the UK economy and help unlock private investment for the sectors and regions of highest impact to Net Zero ambitions. The financial services sector is ready to play a leading role in the greatest energy shift of our time through lending and financing. Case studies from the financial services sector for a greener economy This hub compiles case studies from our members, across the banking and finance sector. It offers a sample of the wide variety of activities undertaken by our members to support the transition of the wider economy. Our case studies cover three themes, reflecting the priorities of the sector Supporting communities and customers – At the core of the sector’s mission, climate impact should also deliver benefits for the homeowners, small businesses and communities that lenders serve.Investing in net zero growth – The financial sector plays a crucial role in financing green projects and the transition of highly emitting and hard-to-abate sectors. These are key to delivering domestic and international decarbonisation goals and often require innovative financing models in partnership with the public sector.Building knowledge and capacity for change – Firms use their expertise to bring change both internally and at a system-wide level. The facts are compelling: financial institutions, of all sizes and operating in all areas of the economy, are creating positive impact and delivering commercial returns on climate-focused investments. The need for clear policy Our members, and the economy as a whole, need strong signalling from the top and clear pathways for delivery in order to support domestic and global decarbonisation goals. Positive examples of action and efforts undertaken by the sector and its clients should not detract from the need for clear policy to drive the transition. UK Finance engages with policymakers in the UK and internationally to address systemic failings and propose solutions to policy shortcomings affecting the demand for, and the provision of, sustainable finance. Our recommendations include: Effective de-risking and mobilising of private capital through vehicles such as GB Energy and the National Wealth Fund, as well as multilateral development banks internationally.Within the UK, implementing the upcoming Warm Homes Plan through a full capitalisation of the £13.2 billion allocated. Deploying concessionary finance to enable lower-cost green home lending; and a government-led advisory and information campaign to stimulate demand for retrofitting.Designing and implementing a full strategy for SME support.Aligning all government strategies (including the Industrial Strategy, the Infrastructure Strategy, the Clean Power Plan, etc.) to support green growth in the UK.The UK should continue to use its global leadership to secure ambitious outcomes for negotiations in key international forums (UN Climate Conferences, G20 and G7, etc.). There is a particular opportunity to provide the private sector with the right signals to scale up lending and investment, including by encouraging the use of concessional finance, guarantees and other blended finance tools to de-risk capital flows for emerging and developing economies (EMDEs). We stand ready to back the UK government in pushing for strong outcomes from international negotiations. Supporting communities and customers Our members help customers by developing innovative financing mechanisms to improve lives in communities in the UK and elsewhere. They deliver tools to support smaller businesses to reduce their emissions, and help homeowners improve the warmth, resilience and carbon footprint of their homes. Financing biodiversity: secured lending for habitat banks to unlock housing | Atom bank£110 million Sustainability-Linked Loan (SLL) for university accommodation provider | Deutsche BankWorking with Ecovadis to offer Sustainability Improvement Loans | HSBC UKSupporting UK farmers with their sustainability ambitions | HSBC UKLandmark deal for Brazil’s farmers in climate fight | J.P. MorganFinancing improvements for social housing | Lloyds Banking GroupSupporting farmers to switch to more sustainable farming practices | Lloyds Banking Group0% Green Additional Borrowing | NationwideFinancing the retrofit of existing social housing and building new social housing | NatWest GroupFinancing electric vehicle deployment | NatWest GroupSustainable housing scheme at Dundashill | ParagonInnovative pay-per-use funding model for zero emission taxis | ParagonSupporting sustainability in Milton Keynes | Santander UKNature Finance: The Bahamas debt conversion project for marine conservation | Standard CharteredSupporting members through physical and transition risk | West Bromwich Building SocietyBuilding systemic climate impact and resilience | Wise Investing in net zero growth The financial sector plays a crucial role in financing green projects and the transition of highly emitting and hard-to-abate sectors. These are key to delivering domestic and international decarbonisation goals, and often require innovative financing models in partnership with the public sector. Transition update | BarclaysSupporting early-stage climate technology businesses to break new ground | HSBC Innovation BankingFinancing innovative UK carbon capture and storage (CCS) projects | Lloyds Banking GroupFinancing Inch Cape Offshore Wind Farm | MUFGSupporting the real economy’s transition | NatWest GroupSupporting the financing of UK’s largest battery storage project | SMBCTransition Finance: Scrap Steel | Standard CharteredAdaptation Finance: scaling finance for resilient solar technology | Standard Chartered Building knowledge and capacity for change Firms use their expertise to bring change both internally and at a system-wide level. Championing good practice, improving the availability of data, and advancing innovative solutions to reduce emissions in their portfolios and their operations can have a positive trickle-down effect. EPC flaws and net zero ambitions: call for better data | Atom bankDirect Investment in Natural Capital: Offsetting a Decade of Operational Carbon | Atom bankHelping customer understand their sustainability progress | HSBC UKSmart climate action platform to unlock transition financing in supply chains | NatWest GroupBacking retrofit skills programme shows strong demand and impact | NatWest GroupThermal detectives | TSBSustainable Business Coach | Virgin MoneyReducing operational emissions with electric vehicles | West Bromwich Building SocietySupporting a sustainable supply chain | West Bromwich Building Society Access to the case studies Read now Our policy asks and recommendations can be found in our reports Greening Homes, Creating Growth The financial services sector has built up nearly two decades of experience supporting homeowners to finance green home improvements. But uptake remains low and will not scale until demand ramps up. Read more UK Finance’s Plan for Growth Financial services are integral to the domestic economy, and the UK is the largest net exporter of financial services globally. Read more Unlocking the SME Net Zero Transition Our recommendations respond to three sets of barriers that Small and Medium-sized Enterprises (SMEs) told us prevent them from taking greater sustainability action. Read more Keeping the pace on green growth First steps for a new government, from the UK financial services sector. Read more Mobilising Capital for a Net Zero transition UK Finance publishes paper on key policy asks of the banking and finance sector to support the transition to a Net Zero economy. Read more Net Zero Homes: Time for a Reset Heating the UK’s 28 million households accounts for 14 per cent of our total carbon emissions; buildings are the country’s second-largest source of emissions. We must address this if we are to meet our Net Zero goals. Read more TopBuilt with Shorthand
Sustainable Leadership Case studies from the financial services sector for a greener economy The role of finance in supporting the transition UK Finance is the collective voice for the financial services industry. Representing over 300 member firms across the industry, we act to enhance competitiveness, support customers and facilitate innovation. Our membership is diverse and representative of a dynamic industry with a global footprint, gathering small and large banks, building societies, international wholesale banks, as well as payment services firms. The financial services sector is playing and will continue to play a critical role in the transition to Net Zero and delivery of wider sustainability commitments. This includes investing in and lending to crucial sectors such as low-carbon energy and greening the housing stock, supporting clients as they transition to low carbon practices, and financing the green economy in line with the UK’s and global environmental objectives. The transition to a low‑carbon economy offers vast opportunities to drive investment, create jobs, and secure long-term growth. As a leading international financial centre, the UK is also well-placed to become a global hub for transition finance which will benefit the UK economy and help unlock private investment for the sectors and regions of highest impact to Net Zero ambitions. The financial services sector is ready to play a leading role in the greatest energy shift of our time through lending and financing. Case studies from the financial services sector for a greener economy This hub compiles case studies from our members, across the banking and finance sector. It offers a sample of the wide variety of activities undertaken by our members to support the transition of the wider economy. Our case studies cover three themes, reflecting the priorities of the sector Supporting communities and customers – At the core of the sector’s mission, climate impact should also deliver benefits for the homeowners, small businesses and communities that lenders serve.Investing in net zero growth – The financial sector plays a crucial role in financing green projects and the transition of highly emitting and hard-to-abate sectors. These are key to delivering domestic and international decarbonisation goals and often require innovative financing models in partnership with the public sector.Building knowledge and capacity for change – Firms use their expertise to bring change both internally and at a system-wide level. The facts are compelling: financial institutions, of all sizes and operating in all areas of the economy, are creating positive impact and delivering commercial returns on climate-focused investments. The need for clear policy Our members, and the economy as a whole, need strong signalling from the top and clear pathways for delivery in order to support domestic and global decarbonisation goals. Positive examples of action and efforts undertaken by the sector and its clients should not detract from the need for clear policy to drive the transition. UK Finance engages with policymakers in the UK and internationally to address systemic failings and propose solutions to policy shortcomings affecting the demand for, and the provision of, sustainable finance. Our recommendations include: Effective de-risking and mobilising of private capital through vehicles such as GB Energy and the National Wealth Fund, as well as multilateral development banks internationally.Within the UK, implementing the upcoming Warm Homes Plan through a full capitalisation of the £13.2 billion allocated. Deploying concessionary finance to enable lower-cost green home lending; and a government-led advisory and information campaign to stimulate demand for retrofitting.Designing and implementing a full strategy for SME support.Aligning all government strategies (including the Industrial Strategy, the Infrastructure Strategy, the Clean Power Plan, etc.) to support green growth in the UK.The UK should continue to use its global leadership to secure ambitious outcomes for negotiations in key international forums (UN Climate Conferences, G20 and G7, etc.). There is a particular opportunity to provide the private sector with the right signals to scale up lending and investment, including by encouraging the use of concessional finance, guarantees and other blended finance tools to de-risk capital flows for emerging and developing economies (EMDEs). We stand ready to back the UK government in pushing for strong outcomes from international negotiations. Supporting communities and customers Our members help customers by developing innovative financing mechanisms to improve lives in communities in the UK and elsewhere. They deliver tools to support smaller businesses to reduce their emissions, and help homeowners improve the warmth, resilience and carbon footprint of their homes. Financing biodiversity: secured lending for habitat banks to unlock housing | Atom bank£110 million Sustainability-Linked Loan (SLL) for university accommodation provider | Deutsche BankWorking with Ecovadis to offer Sustainability Improvement Loans | HSBC UKSupporting UK farmers with their sustainability ambitions | HSBC UKLandmark deal for Brazil’s farmers in climate fight | J.P. MorganFinancing improvements for social housing | Lloyds Banking GroupSupporting farmers to switch to more sustainable farming practices | Lloyds Banking Group0% Green Additional Borrowing | NationwideFinancing the retrofit of existing social housing and building new social housing | NatWest GroupFinancing electric vehicle deployment | NatWest GroupSustainable housing scheme at Dundashill | ParagonInnovative pay-per-use funding model for zero emission taxis | ParagonSupporting sustainability in Milton Keynes | Santander UKNature Finance: The Bahamas debt conversion project for marine conservation | Standard CharteredSupporting members through physical and transition risk | West Bromwich Building SocietyBuilding systemic climate impact and resilience | Wise Investing in net zero growth The financial sector plays a crucial role in financing green projects and the transition of highly emitting and hard-to-abate sectors. These are key to delivering domestic and international decarbonisation goals, and often require innovative financing models in partnership with the public sector. Transition update | BarclaysSupporting early-stage climate technology businesses to break new ground | HSBC Innovation BankingFinancing innovative UK carbon capture and storage (CCS) projects | Lloyds Banking GroupFinancing Inch Cape Offshore Wind Farm | MUFGSupporting the real economy’s transition | NatWest GroupSupporting the financing of UK’s largest battery storage project | SMBCTransition Finance: Scrap Steel | Standard CharteredAdaptation Finance: scaling finance for resilient solar technology | Standard Chartered Building knowledge and capacity for change Firms use their expertise to bring change both internally and at a system-wide level. Championing good practice, improving the availability of data, and advancing innovative solutions to reduce emissions in their portfolios and their operations can have a positive trickle-down effect. EPC flaws and net zero ambitions: call for better data | Atom bankDirect Investment in Natural Capital: Offsetting a Decade of Operational Carbon | Atom bankHelping customer understand their sustainability progress | HSBC UKSmart climate action platform to unlock transition financing in supply chains | NatWest GroupBacking retrofit skills programme shows strong demand and impact | NatWest GroupThermal detectives | TSBSustainable Business Coach | Virgin MoneyReducing operational emissions with electric vehicles | West Bromwich Building SocietySupporting a sustainable supply chain | West Bromwich Building Society Access to the case studies Read now Our policy asks and recommendations can be found in our reports Greening Homes, Creating Growth The financial services sector has built up nearly two decades of experience supporting homeowners to finance green home improvements. But uptake remains low and will not scale until demand ramps up. Read more UK Finance’s Plan for Growth Financial services are integral to the domestic economy, and the UK is the largest net exporter of financial services globally. Read more Unlocking the SME Net Zero Transition Our recommendations respond to three sets of barriers that Small and Medium-sized Enterprises (SMEs) told us prevent them from taking greater sustainability action. Read more Keeping the pace on green growth First steps for a new government, from the UK financial services sector. Read more Mobilising Capital for a Net Zero transition UK Finance publishes paper on key policy asks of the banking and finance sector to support the transition to a Net Zero economy. Read more Net Zero Homes: Time for a Reset Heating the UK’s 28 million households accounts for 14 per cent of our total carbon emissions; buildings are the country’s second-largest source of emissions. We must address this if we are to meet our Net Zero goals. Read more TopBuilt with Shorthand
