Climate and Sustainable Funding and Financing

Central to achieving sustainable growth is our ability to support our customers in their transition towards net zero. As part of supporting our customers’ transition to net zero, we have a target to provide £100 billion climate and sustainable funding and financing between July 2021 and the end of 2025. 

NatWest Group uses its Climate and Sustainable Funding and Financing Inclusion Criteria (CSFFI criteria) (PDF 284KB)(1) to determine the assets, activities and companies that are eligible to be included within its climate and sustainable funding and financing targets. 

Our Climate and Sustainable Funding and Financing target

In the 18 months since the £100 billion target began NatWest Group has provided £32.6 billion(*) of climate and sustainable funding and financing (£24.5 billion during 2022(*)).

This consisted of £27.2 billion (£20.3 billion in 2022) in Commercial & Institutional (including NatWest Markets £15.5 billion (£12.2 billion in 2022), and RBS International £2.3 billion (£1.3 billion in 2022)), £5.1 billion in Retail Banking (£4.0 billion in 2022) and £0.2 billion in Private Banking (£0.2 billion in 2022).

As part of our £100 billion target, we are also aiming to provide at least £10 billion of lending for EPC A and B residential properties between 1 January 2023 and the end of 2025.

Current and previous CSFFI criteria can be found in the Downloads page under 'Policies - sector ESE, procurement, and more'.  

Supporting sustainable agriculture

Reducing costs and emissions while unlocking growth

We’re proud to be playing a leading role in the UK’s transition to net zero. Our target to provide £100 billion of climate and sustainable funding and financing between 1 July 2021 and the end of 2025 will enable our customers to implement green solutions and help businesses become more energy efficient, sustainable and resilient.

As part of the initial iteration of our Climate transition plan, we are prioritising sectors with high emissions. With agriculture representing 1.1% of NatWest Group’s gross lending as at year end 2022 and a high rate of emissions (see section 5.5 of the 2022 Climate-related Disclosures Report (PDF 9.7MB)), we’re committed to helping our farming customers reduce their collective carbon footprint.

Our relationship managers and frontline teams are working closely with our agriculture customers to understand the challenges they face, supporting them to adopt new technologies and sustainable farming practices to build their resilience in the face of a changing climate and unprecedented increases in operating costs.

In 2022, we supported agriculture company Newhay Feeds Ltd to apply for Green Asset Finance, a new product that offers financing with no arrangement fee for projects investing in eligible clean buildings, energy, transport and agriculture. Green Asset Finance(1), along with our Green Loan proposition also launched in February 2022, contribute to our climate and sustainable funding and financing target.

Based in Yorkshire, Newhay grows, harvests, dries and packages hay for pet food. With Green Asset Finance, the company invested in a new, state-of-the-art hay dryer. The equipment enables Newhay to use labour and machinery more effectively. Crucially, during the harvest period, daily output has now risen from 30 tonnes to 50 tonnes for half the fuel costs, resulting in lower carbon emissions for the business.

We have been helping the agriculture sector thrive for more than 200 years. Through our climate and sustainable funding and financing, we are continuing to support our customers’ transition to a net-zero, climate-resilient and sustainable economy.

For full details, please see our 2022 Climate-related Disclosures Report (PDF 9.7MB)

Related content

Read more about our ambition to become net zero by 2050, our approach and progress highlights.

Read more about our ambition to halve our direct own operations emissions by 2025 from a 2019 baseline, and our underlying progress. 

Read more about our recognition of issues relating to natural capital and our journey towards reducing negative impacts.