We have an ambition to be net zero across our financed emissions, assets under management and our operational value chain by 2050, aligned with the UK’s legal commitment to be net zero by 2050.
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(1) NatWest Group’s ability to achieve its strategy, including its climate ambitions and targets, entails significant risks and will significantly depend on many factors and uncertainties beyond NatWest Group’s control. The most important of these uncertainties and factors, which could cause actual results and outcomes to differ materially from those expressed or implied in forward-looking statements, are summarised in the Risk factors included on pages 408 to 426 of the NatWest Group plc 2024 Annual Report and Accounts (with special regard to the risk factors in relation to climate and sustainability-related risks that describe several particular uncertainties, climate and sustainability-related risks to which NatWest Group is exposed and which may be amended from time to time). For more information, refer to pages 92 to 97 of this report (Cautionary Statements).
(2) Our operational value chain captures greenhouse gas emissions Scopes 1, 2 and 3 (Categories 1-14, excluding Categories 8, 10, 14).
(3) Our net zero by 2050 AUM ambition encompasses total AUM, including Managed Assets, Bespoke and Advisory – refer to page 65 for details. We consider Managed Assets (those assets we invest on our customers’ behalf, which represented 83% of AUM as at 31 December 2024) to be in-scope for our interim 2030 portfolio alignment target and weighted average carbon intensity (WACI) ambition. For details, refer to pages 38 to 39 of the Net Zero Asset Managers Initiative’s Initial Target Disclosure Report (May 2022).
(4) Relates to thermal and lignite coal (coal that is typically used as a fuel for steam-electric power) coal production, coal-related infrastructure or transport. Data challenges, particularly the lack of granular customer information, create challenges in identifying customers with ‘coal related infrastructure’ and other customers with coal-related operations within NatWest Group’s large and diversified customer portfolios As such, the scope excludes companies who generate less than 5% of their revenues via coal activity (in line with Net-Zero Banking Alliance (NZBA) guidelines for climate target setting for banks), companies with a turnover of <£50 million and commodity traders. Metallurgical coal Is excluded from scope as it is currently essential to the steel industry. We will continue to review our policies in line with our EWRMF which considers a range of factors in the external economic, political, and regulatory environment.
(1) NatWest Group defines direct own operational emissions as Scope 1, location-based Scope 2 and Scope 3 (paper, water, waste, business travel, commuting and work from home) emissions.
(2) Based on 2023 emissions, reflecting sectors for which convergence pathways have been developed with reference to external scenarios. Refer to pages 23-26 for further details.
(3) We consider Managed Assets (those assets we invest on our customers’ behalf, which represented 83% of AUM as at 31 December 2024) to be in-scope for our interim 2030 portfolio alignment target and our weighted average carbon intensity (WACI) ambition. Refer to page 75 for details of WACI.
(4) Climate and sustainable funding and financing, as defined in our climate and sustainable funding and financing inclusion (CSFFI) criteria, represents only a relatively small proportion of our overall funding and financing. Refer to page 20 for further details.
(5) Relates to thermal and lignite coal (coal that is typically used as a fuel for steam-electric power) coal production, coal-related infrastructure or transport. Data challenges, particularly the lack of granular customer information, create challenges in identifying customers with ‘coal related infrastructure’ and other customers with coal-related operations within NatWest Group’s large and diversified customer portfolios As such, the scope excludes companies who generate less than 5% of their revenues via coal activity (in line with Net-Zero Banking Alliance (NZBA) guidelines for climate target setting for banks), companies with a turnover of <£50 million and commodity traders. Metallurgical coal Is excluded from scope as it is currently essential to the steel industry. We will continue to review our policies in line with our EWRMF which considers a range of factors in the external economic, political, and regulatory environment.
(1) Future Fit Survey sampled 1,000 UK businesses operating across 10 sectors. Refer here for details.
(2) EV Planner is also available to non-customers.
(3) While some financial wellbeing digital tools are available to both customers and non-customers (e.g. Know Your Credit Score), others are available only to customers in our mobile app.
(4) Includes our Device-as-a-Service and Circular Technology proposition, available to CMM and corporate customers. See page 18 of the 2024 Sustainability Report.
(1) As methodologies and data used to estimate customer Scope 3 emissions within financed emissions continue to develop, the percentages included in the chart above and the financed emissions estimates included in the table on pages 23 are based on customer Scope 1 and Scope 2 absolute emissions. Other sectors represents estimated financed emissions on 27% of our in-scope loans and investments (23% estimated financed emissions) as at 31 December 2023, primarily relating to collective estimation approach where a common methodology has been applied to sectors and subsectors not individually analysed in the chart. 3.1 MtCO2e collective estimates includes: 0.7 MtCO2e for utilities and natural resources-related activities, 0.6 MtCO2e for mobility and logistics related-activities, 0.4 MtCO2e for other consumer related-activities. In addition, other includes emissions for: cement (0.03 MtCO2e), shipping (0.05 MtCO2e), water (0.08 MtCO2e), housing associations (0.05 MtCO2e), and iron and steel (0.1 MtCO2e). Estimates of sovereign financed emissions excluded from this chart and the table on page 23, are 4.0 MtCO2eat 31 December 2023. Refer to pages 41 to 42 for further details of emissions from lending and investments and to page 43 for data limitations associated with customer Scope 3 data. Figures presented are reflective of emissions from lending and investment as at 31 December 2023.
(2) Refer to page 45 for our details of estimates of facilitated emissions from bond underwriting and syndicated lending, not included in the chart above.
(3) Refer to page 75 for further details of emissions from assets under management (financed emissions and other metrics) and related Climate transition plan. Figures presented reflect estimated emissions from equity, corporate fixed income and government bond values as at 31 July 2024. Carbon emissions have been taken from 31 December 2023.
(4) Refer to pages 47 to 50 for further details of our own operational emissions and related Climate transition plan. Figures presented reflect the reporting year of 1 October 2023 to 30 September 2024 and are shown gross of purchased renewable electricity.
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.
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Read more about our ambition to halve our direct own operations emissions by 2025 from a 2019 baseline, and our underlying progress.
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Read more about our recognition of issues relating to natural capital and our journey towards reducing negative impacts.
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