Manage our impact responsibly
Table of Contents
Maintain a foundation of trust
Obsessed with your success
Supplemental reporting
Appendices and Glossary
Overview
Management oversight Our Executive team is responsible to progress our strategy, including our approach to sustainability and climate issues, with development and execution supported by the following committees and functions:
ESG Steering Committee
Sustainability team
Our ESG Steering Committee is chaired by our CEO and includes all members of our Executive team. The committee provides oversight of the integration of climate factors into our strategy and operations as part of the development of our approach to sustainability, and approves ESG-related targets, including our 2030 absolute Scope 1 and 2 GHG emissions reduction target.
Reporting to the CFO, our Sustainability team engages with internal and external stakeholders and works closely with the Group Risk Management (GRM) function to establish appropriate cross-functional working groups tasked with the development of various components of our approach to climate change. The team provides regular updates to the ESG Steering Committee and the Board of Directors on our developing approach to climate change, evolving and emerging climate-related trends, and developments in regulatory requirements and reporting frameworks.
Executive Risk Committee
Our Executive Risk Committee is chaired by our Chief Risk Officer (CRO) and includes all members of our Executive team. The committee provides oversight of our developing approach to identify, assess, monitor and report on climate risks.
Group Risk Management team
As the second line of defence, the GRM function provides independent oversight of risk-taking decisions, independent assessment of risk and effective challenge to the business. Under the GRM, our Enterprise Risk Management (ERM) group created a specialized role dedicated to the ongoing enhancement of our climate-related risk management practices. The ERM team also plays a key role in ensuring the Executive Risk Committee and Board Risk Committees are kept informed of the progress on climate-related risk management improvements in accordance with regulatory requirements.
Embedding climate considerations within executive compensation
The ongoing development and execution of our approach to sustainability, including a climate-related strategy and disclosure planning, was included in the performance criteria of the PSUs granted under our executive LTIP since 2020. As our approach to sustainability evolves, we will continue to explore further integration of ESG factors into our compensation programs.
Cross-functional working groups
We have several cross-functional working groups that support the development of specific components of our approach to climate change. In 2023, the working groups primarily focused on the estimation of the Scope 3 emissions within our lending portfolio, development of our Scope 1 and 2 GHG emissions reduction plan and target, and the upcoming implementation of regulatory requirements related to climate change risk management and disclosures. As we move forward, our working groups will support the development of our climate strategy, client engagement strategy, risk management practices, and relevant metrics and targets.
Our Sustainability team reports directly to Matt Rudd, CFO
59 2023 SUSTAINABILITY REPORT AND PUBLIC ACCOUNTABILITY STATEMENT
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