Read more about our ambition to become net zero by 2050, our approach and progress highlights.
At NatWest Group we view climate change, natural resource scarcity, biodiversity loss, and their associated impacts, as significant dangers to the livelihoods of our customers and society at large, both now and in the years to come.
The United Nations Biodiversity Conference (COP15) was chaired by China and hosted by Canada in December 2022. COP15 concluded with the adoption of the Kunming-Montreal Global Biodiversity Framework (GBF), which aims to address biodiversity loss, restore ecosystems and protect indigenous rights. The GBF also includes 23 targets to achieve before 2030, including mobilising public and private funding and requiring companies and financial institutions to monitor, assess, and transparently disclose their risks, dependencies and impacts on biodiversity. As a purpose-led organisation, we know we need to play our part.
Supporting customer transition to net zero:
Helping to end the most harmful activities:
Building powerful partnerships and collaborations:
Getting our own house in order:
As well as this, in 2022, NatWest Group was proud to be awarded The Sustainable Markets Initiative’s 2022 Terra Carta Seal(2), recognising our work on, and momentum towards, the creation of sustainable markets. As we continue to increase our understanding of nature-related risks and opportunities, we recognise that collaboration with expert partners can deliver insight both for NatWest Group and the wider community.
(1) Refer to ‘Financing nature-positive transition in the agriculture sector’ (PDF 4090KB).
In April 2022 NatWest Group collaborated with the University of Cambridge Institute for Sustainability Leadership and Banking Environment Initiative to publish a nature-related financial risk use case focused on land degradation and UK farmers. As one of the UK’s largest lenders to the agricultural sector, we wanted to understand the potential financial risks to arable farming producers.
The use case indicated that some arable businesses on highly degraded land could suffer as much as a 40% reduction in crop yields following an extreme weather event such as a heatwave, while average declines would be approximately 5%. A second scenario examined the vulnerability of degraded land to a spike in fertiliser prices – a timely analysis given that UK farmers have seen Nature and Biodiversity Statement Forestry, Fisheries and Agribusiness Risk Acceptance Criteria Learn more about our approach to responsible lending and financing Soft Commodities Compact Reporting Climate and Sustainable Funding and Financing Inclusion Criteria fertiliser costs increase nearly three-fold in 2022 compared to 2021. While results showed that such a rise in prices would be largely mitigated by a commensurate increase in food prices, the second scenario highlighted benefits of positive land management practices.
While further research is required, future exploration can be integrated into the development of NatWest Group’s Global Farm Metric. This common framework of sustainability metrics and accompanying assessment tool will, once developed, enable farmers to measure their environmental and social impact.
For more details, please see our full 2022 Environmental, Social and Governance (ESG) Disclosures Report (PDF 9.6MB).
Read more about our ambition to become net zero by 2050, our approach and progress highlights.
Read more about our ambition to play a leading role in championing climate solutions by supporting its customers’ transition towards a net-zero through Climate and Sustainable Funding and Financing.
Read more about our ambition to halve our direct own operations emissions by 2025 from a 2019 baseline, and our underlying progress.