Environmental standard

Environmental and climate consciousness are aligned to our mutual purpose of Banking – but fairer, more rewarding and for the good of society, and we are committed to a net-zero future. It is our ambition to support the UK in achieving its target to be net-zero by 2050.

This ambition is a core part of our strategy, embedded in our strategic driver Beacon for mutual good; and supported by our Mutual Good Commitment; we aim to build a more sustainable world by supporting progress towards a greener society.

This compels us to take meaningful action by limiting the environmental impact of our business operations, helping customers to green their homes (so that they are warmer, healthier, more comfortable places to live, and more cost effective to heat in the long term), and better managing the impacts of a more unpredictable climate. In doing so, we can demonstrate our mutual difference, that extends beyond our own customers, and positively impacts our communities as well as wider society.

Some of the ways we demonstrate this ambition are below:

• We have set 5 Mutual Good Commitments, which articulate our environmental, social and governance (ESG) strategy, in support of our Beacon for mutual good strategic driver. We have aligned our Mutual Good Commitment – we aim to build a more sustainable world by supporting progress towards a greener society – with our ambition to support the UK in achieving net-zero by 2050. Our Mutual Good Commitment metrics reflect our intermediate (by 2030) science-based targets for our scope 1, 2, and 3 emissions.
• We report our scope 1,2 and 3 emissions annually in our Climate-related Financial Disclosures, alongside progress against our intermediate (by 2030) science-based targets.
• We have published our inaugural Intermediate (by 2030) net-zero-aligned Transition Plan 2023, detailing the actions, and potential actions, both within and outside of our control, needed for us to progress towards our targets.
• Our Sustainability Report explains our ESG ambitions, and details the 5 Mutual Good Commitments articulating our ESG strategy, set in areas we believe we can make the most significant, positive impacts for our members and customers, our communities and society as a whole.
• We intend to make our business operations gas free, through initiatives such as removing gas from our branch network, replacing with electrical solutions powered by 100% renewable electricity. Through our property sustainability strategy, we are exploring the removal of gas from our branches, data centres and admin sites.
• We continue to reduce the emissions of our business operations, through initiatives such as reducing the waste we send to landfill, installing solar panels at our head office, and sourcing 100% of our electricity from renewable sources.
• In 2016, we formed the Property Risk Hub in partnership with Airbus and JBA, providing a better understanding of the environmental credentials of the properties on which we lend.
• We aspire to increase and enhance the biodiversity across our property estate, through a long-term property sustainability strategy supported by a 5-year management action plan, including an ambition to work towards the Wildlife Trust Biodiversity Benchmark at our head office in Swindon.
• We are participants of the United Nations (UN) Global Compact and signatories of the UN Environment Programme Finance Initiative Principles for Responsible Banking. These reinforce our commitment to a net-zero future and support our intent to align to the UN Sustainable Development Goals.
• We are embedding climate into our culture by enhancing our voluntary climate change learning pathways which are available to all colleagues, as well as providing information on why it matters to Nationwide, our intermediate (by 2030) science-based targets and Transition Plan.

Find out more information about our climate change strategy, our net-zero ambitions, and our approach to sustainability, in the following disclosures:

• Climate-related Financial Disclosures 2024
• Intermediate (by 2030) net-zero-aligned Transition Plan 2023 – PDF, 757KB (opens in a new window)
• Intermediate Net-Zero Ambitions 2022 – Basis of Preparation – PDF, 7.9MB (opens in a new window)
• Sustainability Report
• Responsible Investment Statement

Nationwide’s climate change strategy is detailed within its Climate-related Financial Disclosures 2024. Our strategy articulates how climate change impacts our stakeholders. We have 5 pillars to our climate change strategy, which describe how we engage with stakeholders on climate change.

1. Supporting our customers and communities to go green
   • Supporting progress towards a greener society by aiming to reduce our financed emissions and working cross-industry to make a positive difference to climate change.
   • Helping customers reduce their carbon emissions through green finance propositions and engagement.
2. Advocating for a net-zero future
   • Influencing policy makers and government on the need for a comprehensive national retrofit strategy and net-zero plan.
   • Forming partnerships with key organisations to grow knowledge and effect real change.
3. Greening our business operations and supply chain
   • Aiming to reduce our emissions, and understand the impact of nature, associated with our business operations and supply chain, in line with a net-zero pathway.
   • Leveraging our scale and influence to promote green practices within our supply chain.
4. Embedding climate into our culture
   • Training colleagues on climate change and encouraging engagement with green issues.
   • Helping colleagues reduce their carbon footprint whilst at work and home.
5. Enhancing our climate risk capabilities
   • Building our capability to manage risks from climate change, to deliver our regulatory commitments.
   • Demonstrating to our investors that Nationwide is managing the risks and opportunities presented by climate change.

Because of its far-reaching implications, climate change has been embedded as a cause to Nationwide’s principal risks and is considered across our entire Enterprise Risk Management Framework. Consideration as a cause ensures appropriate identification, monitoring, management, and reporting across all existing risk categories, along with full traceability.

The Board has ultimate accountability for all climate-related risk matters at Nationwide and sets strategic direction for climate change ambitions, supported by a well-established governance model. Our Environmental Standard is reviewed annually by our Climate Change Risk Committee and approved by the Director of Strategy, Performance & Sustainability.

Last updated: May 2024