Own operational footprint

In 2021, we reduced our direct operational Scope 1, 2 and 3 (business travel, paper, waste, water, commuting and work from home) emissions by 46% against a 2019 baseline. This has been through a number of emission reduction activities as well as impacts from COVID-19.

When announcing our Climate Positive ambition in February 2020, the wide-ranging impacts from COVID-19 could not have been fully anticipated. By procuring a minimum 120,000 tCO2e in carbon credits, in line with our market-based 2019 baseline, while simultaneously reducing emissions from our own operations, we have already achieved our ambition to be Climate Positive in 2021 for our direct own operations. We used 120,000 tCO2e of internationally recognised carbon credits which add environmental, social and community benefits compared to the 2021 residual market-based 66,149 Scope 1, 2 and 3 emissions. We had previously targeted a 25% reduction in emissions from our own operations by 2025 (2019 baseline) but are now increasing this to 50% as we seek to build on the emissions reductions that have already occurred.

Despite the COVID-19 pandemic, a number of key projects were still completed in 2021. Notable highlights include:

Renewable power: NatWest has partnered to develop a solar generation facility in the UK under a corporate power purchase agreement. The facility is due to start generating low-carbon electricity for the bank from 2024 and will bring additional renewable generation capacity online to facilitate the decarbonisation of the UK grid. Once constructed, the facility will generate 40% of NatWest’s electricity demand in the UK.

Branch investments: The high-performance specification implemented for a branch fit-out in Bristol meant that we achieved an energy performance rating of ‘B’ and achieved RICS SKA Silver rating in terms of the design’s broader sustainable design.

Lifts: The first phase of a replacement passenger life system at our office at 250 Bishopsgate in London. This will lead to a 30% reduction in energy use and an A rating for energy performance.

Building Management System investment: in our Coutts Head Office we have invested in ‘out BMS controllers’ which have provided a better environment for our colleagues and enable more efficient energy management from the facilities management team. We have also installed dashboard screens in the customer and colleague areas in both the Coutts head office and 250 Bishopsgate to educate on the energy usage of the buildings.

Reduce: Our waste per FTE reduced by 11% to 3.7 kg/week, which was partially due to reduced building occupancy following COVID-19 lockdown restrictions. Plans to recommence removal of single use plastics from all properties will begin as soon as COVID-19 health and safety guidelines allow. Further, we are involved in cross industry working groups to improve the environmental performance of the UK’s cash cycle noting that we reduced our plastic in Cash Operations by 17% in 2021, which equates to 10.63 tonnes.

Reuse: We work with our supplier Go Green Managed Services to refurbish and refresh our existing furniture for reuse both within our building portfolio, and to supply furniture to our colleagues working from home. Surplus furniture is either donated to a network of our chosen charities or sold on to other businesses and the money raised is used for charitable causes. In both branch and office design, we are aligning with best practice sustainable standards for furniture, finishing’s and fittings, and where possible we repurpose and re-use furniture. In branches, when we do purchase furniture, it must be made of 90% recyclable materials, supported through our relationship with suppliers. During 2021, we have delivered quality-assured fitouts using the Royal Institute of Chartered Surveyors (RICS) SKA ratings, a set of sustainability good practice criteria, in both new and existing office and branch locations. We achieved SKA Gold accreditation for 250 Bishopsgate and 400 The Strand and Belfast DSE Head Office gained SKA Silver accreditation for fit-out works.

Recycle: Our 2025 ambition is to not only send zero waste to landfill in the UK and RoI but also to increase our resource efficiency and the circular economy to ensure resources are valued and nothing is wasted. During 2021, we achieved a 99.9% diversion from landfill rate, diverting all waste where feasible and where there are permitted alternative solutions, with 88% reused and recycled. Our waste by destination breakout is presented below.

Waste by destination chart.

In 2021 we reduced paper consumption by 65% from a 2015 baseline. By offering instant access digital alternatives across all customer accounts to documents such as bank statements, as well as our ePrompt campaign enabling customers to switch to email notifications, we should reduce colleague and customer dependence on paper communications and the associated waste. Paperless preferences have now been incorporated into our Retail Banking branch Financial Health Check process. 

We remain are on track to meet our external commitments with regards to renewable electricity, energy productivity and electric vehicles.

RE100 – Only renewable electricity in our direct global operations by 2025.

In 2021 we achieved our interim target of 90% renewable electricity coverage, consuming 97% renewable electricity across our global operations. This was achieved through a combination of:

100% of our UK and RoI electricity from renewable sources using green tariffs and purchasing Renewable Energy Certificates (RECs) for our landlord-supplied properties in India, Europe and the UK, where we are currently unable to specify a requirement for renewable electricity.

Going forward, and in order to reach our target of 100% global renewable electricity by 2025, we will work with our principal landlords to advocate for renewable electricity provision for all properties, where possible.

EP100 – Improve Energy Productivity 40% by 2025 against a 2015 baseline.

We have increased energy productivity (FTE per GWh) by 36% since 2015 and are therefore on track for our EP100 target. Our aim is to maintain the improvements following a safe return to office.

This target is supported by a decrease in energy consumption. Across our global portfolio, electricity consumption decreased by 11% and natural gas consumption increased by 12% when compared to 2020. Our natural gas has increased as COVID safety measures in place in our portfolio require 24/7 fresh air flow, therefore requiring further heating during cooler periods.

EV100 – Install electric vehicle charging infrastructure and upgrade our electric vehicle fleet.

The first part of our commitment is the installation of electric vehicle charging infrastructure in 15% of spaces across our UK portfolio by 2030, all of which will be using renewable electricity. We have expanded our commitment beyond our large offices to ensure benefits can be felt by more colleagues, as well as increasing our charger network coverage to further enable the electrification of our fleet. During 2021, project work was carried out to install charge point connections across our locations bringing the total number of managed service connections to 289 by the end of the year.

The second part of our commitment is to upgrade our job need car fleet of around 300 combustion engine cars to fully electric models by 2025 (these vehicles are provided to colleagues who drive more than 10,000 miles per annum on business). During 2021, we reviewed eligibility for our job need car users. In addition, four Electric Vehicles have been ordered as part of a pilot that includes the installation of home charging equipment. Learning from the pilot process, the scheme will open to all job need car drivers upon lease expiry.

Carbon Credit Development:

During 2021, we conducted a review of medium- and long-term requirements for carbon removal credits. We’re forming partnerships with organisations who demonstrate excellent capability in producing high integrity carbon removal offsets, offer a long-term source of income for local communities, while rescuing and restoring nature. There has been no impact on our use of carbon credits for 2021.

Mobile Banks

Our fleet of diesel mobile banks operates on 41 routes providing an important face-to-face service for our customers in over 600 communities across the UK. Working with industry experts we are exploring the feasibility and approach needed to deliver the electrification of a pilot fleet of mobile banks in 2022. Further, seven of our mobile banks are now fitted with solar panels, generating up to 53% of the power required to operate the equipment on board.

Sustainable Branch Hubs: In 2021, Retail Banking fitted out two Sustainable Branch Hubs, one in Bristol and one in Cambridge. These increased the EPC rating of these branches to B & C respectively.

Physical Flood Risk:

We have undertaken extensive research into the physical climate risks to our estate. We use this information to inform our portfolio strategy to mitigate future risks of our own operations being disrupted or damaged from the impacts of future climate change. Based on findings, 8.9% of our portfolio as at 30 December 2021 is in an area of high [or very high] flood risk; this does not include sites where we do not know the flood risk.

Support New Start-Ups

We founded the Innovation Gateway Programme in 2015, an alliance of leading UK organisations to reduce the environmental impact of operations and also have an ambition to reserve 25% of places in our Entrepreneur accelerator for businesses supporting environmental activities.

Through a range of partnerships, we have trialled innovations such as a prototype WashR cup washing machine in one of our buildings to reduce SUPs and have given input to the entrepreneurs to help them design the final product with enhancements that will make it manufacture ready. 

Wild Carbon Fund

During 2021, we began work with the Wild Carbon Fund, who monitor sites dedicated to rewilding, to support the scientific community to better understand changes in ecological and biogeochemical processes; and offer a detailed assessment of carbon sequestration. For further detail on our approach to biodiversity, please see our Biodiversity and Nature statement.

Suppliers

We are working with a third-party to assess our supply chain partners to understand our wider impact and to identify where improvements can be made, and risks mitigated. Of those suppliers who have been assessed, the average supply chain score is 54.0% against a benchmark of 43.9%. We plan to use the quantification of our upstream Scope 3 emissions to undertake hotspot analysis to identify and target our high impact suppliers by spend.