The challenge
- UK subsidiary of a foreign bank wanted to better understand what climate actions are realistic and proportionate for its UK portfolio and the UK expectations;
- The Group on the other hand had a significant and direct exposure to carbon-intensive assets, but these were located outside the UK;
- Senior management in the UK had ticked off the regulatory compliance boxes
- Climate materiality assessment was deemed completed
- Its Scope 1-2 operational emissions were being looked at with some decarbonisation activities proposed;
How we helped
- Discussed the situation with the senior leadership team (C-suite);
- Conducted a workshop for the Board that recognised the local v global portfolio ;
- Explored different points of view on the urgency as well as reality of the energy transition in the markets the bank operates in;
- Zoomed in on climate actions where the Board felt the management had levers to effect greatest change;
- Rationalised on what the Board thought would be an achievable mix of strategic actions;
The impact
- Board reached consensus on the scope and limits of its near-term climate action;
- There were clear next steps for the UK firm;
- The UK firm felt comfortable that its leadership position within the Group was still secure;
- Board also agreed to obtain more granular data on its climate hotspots (e.g. on financed emissions) before setting more aggressive net-zero targets.