NatWest Group paves way for climate and sustainable finance
As we continue to look for ways to improve our climate NatWest Group shared their net zero ambitions by 2050.
NatWest Group has become the first UK bank, and one of the largest banks globally to date, to have science-based targets validated with their strategy validated by initiative (SBTi). These targets underpin the initial iteration of NatWest Group’s climate transition plan, which outlines the steps the bank aims to take to at least halve the climate impact of its financing activity by 2030 and achieve its net zero climate ambition by 2050.
Tanvi Gokhale, Head of Strategy at NatWest Group, shares their strategy for the future. “We want to deliver a more sustainable economy and future for the customers and communities we serve, which is why addressing climate change—one of the most critical issues of our time—is a strategic priority for the bank.
“We have set ourselves bold ambitions to be a leader in this space. As well as our net zero and financing activity ambitions, we want to achieve 50% of our residential mortgages at EPC A—C by 2030 to support the decarbonization of the UK’s housing stock, and we’ve pledged £100bn of Climate and Sustainable Funding and Financing by the end of 2025. We’ve lent over £2.9bn against green mortgage completions since our green mortgage launched in 2020 and we’ve seen a 46% reduction in emissions from our own operations since 2019.
“We’ve also had over half a million users of our carbon tracking tool within our mobile banking app, as we continue to educate customers on the carbon footprint of their daily spend. We’re incredibly proud of our achievements in this space and continue to work hard to continue with this progress.
Reverse vending machines
“This year, NatWest launched a pioneering Reverse Vending Machine pilot, offering a secure way to recycle old plastic cards, card readers and bottles.
“Launched in partnership with leading sustainability brand Reborn, they are the world’s first public banking machines designed to ‘eat’ users’ payment plastic items deliberately and recycle plastic cards and card readers in a fraud-secure and sustainable process, reflective of NatWest’s growing focus on the circular economy.
“Integrated blockchain technology makes it possible to track what the plastic from each machine has been made into and the carbon and energy saved as a result. The first machines will be situated at Victoria Place and Canary Wharf Shopping Centres, offering easy access to shoppers and commuters. Two machines will also be placed in Guys and St Thomas’ Hospitals, in partnership with the NHS.
“The pilot launch builds on the recent introduction of NatWest’s environmentally friendly debit and credit cards made of 86% recycled material—a move expected to save over 50 tonnes of PVC plastic.”
“This follows trials last year at NatWest’s Edinburgh and London offices, where over 35,000 cards and 2,000 bottles gathered from testing sites have already been recycled into over 3,000 hats and pairs of socks. These garments were donated to charities supporting homeless and vulnerable communities across the UK.
Greener homes
“Helping our customers transition to greener homes is a key part of our climate ambition which will reduce energy bills, make their homes warmer and protect them from the future financial risk of tightened EPC regulations (all while helping the planet!).
“In 2021 we teamed up with British Gas, Worcester Bosch, Shelter and Citizens Advice (“The Sustainable Homes and Buildings Coalition”) to understand the key barriers to retrofitting and what policy changes are needed to support the transition to net zero housing. The coalition released the ‘Home is Where the Heat Is’ report, which laid out retrofit journeys across six different property types in the UK.
“We’re now bringing those journeys to life through our Greener Homes Retrofit Pilot, taking nine NatWest and British Gas customers through a fully funded, end-to-end retrofit journey. This will give us fantastic insight into the barriers and obstacles facing consumers, and how the bank and industry can address them.
"As a result, our new staff uniform collection, across all brands, has been designed with sustainability in mind. Each polo top saves 12 plastic bottles from landfill, every chino is made using 14 plastic bottles and a meter of our new navy suiting fabric saves 28 bottles going into waste!”
“Meanwhile, our digital tool, Home Energy Plan, also helps customers understand the energy efficiency of their home and steps they can take to improve it.
“Additionally, an upcoming collaboration with Airbnb is an exciting opportunity to support their hosts with the financing on their retrofit journeys and we’ll also be beginning to partner with Chameleon Technology to bring smart meter technology to our customers, supported by green finance to make their retrofit journey a reality. These form part of our current ambition to create a home retrofit ‘one-stop-shop’ to support homeowners across the UK in their end-to-end retrofit journey, working with third parties to make this a reality.
Own operations
“Meanwhile, we’ve looked at where we can reduce our consumption of new materials and feed into the circular economy through our Own Operations climate targets.
Sustainable futures network
“NatWest Group’s own employee-led sustainability network of over 3000 colleagues, the Sustainable Futures Network encourages staff across the group to transition to sustainability in their daily and work lives, by supporting them to reduce their carbon footprint, hosting a wealth of informative sustainability events and training seminars, and inviting them to be ‘institutional activists’ in their own business areas. The network aims to empower colleagues to live more sustainably and inspire change across all levels of the organization.
Setting climate change targets doesn’t have to be daunting—it’s considering all the different elements of the business and looking at where change can have the most impact. We hope to set a standard that other FIs can follow.”
