HBOS PLC
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HBOS and the Environment
We are committed to having a positive influence on the environment. Our primary concern is to reduce emissions and our use of resources. We are committed to achieving carbon neutrality in the UK by the end of 2007.
HBOS impacts on the environment in two ways:
- 1. Directly through the energy and resources we use in our buildings and when we travel.
- 2. Indirectly through the products and services we provide to our personal and commercial customers
With over 2,200 buildings in our UK property estate, over 65,000 employees and a relationship with approximately two out of every five households in the UK, we must manage this impact effectively.
HBOS has reduced its UK carbon emissions by almost two thirds (65%) from 163,000 tonnes in 2004 to 57,000 tonnes in 2006. This is primarily due to purchasing 100% renewable energy. We are currently the only UK bank to do this.
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Carbon Neutrality
HBOS Commits to Carbon Neutrality by the end of 2007 "Committing to carbon neutrality in the UK is a major initiative. Offsetting our residual emissions is just a small part of our strategy. Our primary concern has been and remains to reduce the emissions we make in the first place." Andy Hornby, Chief Executive.
Since 2004, HBOS has reduced CO2 by nearly two thirds (65%), from 163,000 tonnes in 2004 to 57,000 tonnes last year. This reduction is equivalent to the emissions generated by 17,500 homes in a year.
Our Commitment to Carbon Neutrality
- HBOS' UK electricity needs are powered by 100% renewable energy contracts from sources such as wind, hydro and tidal power.
- HBOS will launch a "Green Miles" initiative designed to slow growth in business travel. This programme will incentivise colleagues to travel only when it is essential. A percentage of the travel saving will be donated to the HBOS Foundation's Million £ Challenge charity, currently the British Heart Foundation .
- HBOS will offset its UK emissions through Certified Emissions Reductions delivered in developing countries. This follows the process set out in the Clean Development Mechanism of the Kyoto Protocol
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The Green Miles Initiative
Launched at the beginning of April 2007, Green Miles is designed to reduce the rate of HBOS business travel growth in the UK. The Million £ Challenge could benefit by up to £500,000 from the savings made.
Business travel is the biggest cause of carbon emissions in HBOS. The aim of Green Miles in 2007 is to halve the rate of travel growth – a saving of 5.5 million miles or 225 times around the world. Doing so will reduce the Group's potential carbon emissions. This will be achieved by better use of teleconference facilities across our business.
Green Miles has been piloted within Group Services. The results of this pilot exceeded all expectations. As a result, the Million £ Challenge gained £50,000, matched by the Foundation to a total of £100,000.
Green Miles currently concentrates on journeys made by train and plane. It is planned to include cars from 2008. The miles saved when colleagues choose not to take a business journey all count towards the Green Miles target.
A Carbon Calculator has been created to help colleagues estimate their typical carbon emissions from business travel. Instead of asking colleagues to travel longer by train or driving, Green Miles encourages colleagues to question whether they need to travel at all.
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HBOS Environmental Management
HBOS has a comprehensive Environmental Management System (EMS) with targets for energy use, water use and recycling. Here are some of our current initiatives to help meet these targets:
Paper reduction and recycling:
- We have rolled out improved recycling facilities to call centres and offices with over 200 colleagues.
- We will implement new recycling facilities for all waste paper across our entire branch network by the end of 2007.
- We are working with Greenworks , a not-for-profit partner to improve our recycling of office furniture.
- We will introduce recycled plastic bags for customers in the branch network.
- Around 1 million of our customers have moved to paper-free, electronic statements in a bid to reduce paper use.
- HBOS will continue to work in partnership with suppliers to identify environmental efficiency initiatives in new buildings from the tender process onwards.
Other initiatives:
- HBOS will launch a "Green Mortgage" next year to help its customers reduce their impact on the environment.
- In 2002, HBOS was the first bank to recognise the risks posed by flooding and to offer all its mortgage customers cover against flood risk until 2008.
- HBOS has installed long life, low energy light bulbs across over 80% of our estate. The remaining light fittings are currently unsuitable for low energy bulbs and will be upgraded over the next 5 years as part of our building refurbishment programme.
- HBOS is a key sponsor of the WWF's One Million Sustainable Homes Initiative .
- HBOS has adopted the Equator Principles for project finance. The Principles require a commitment to fund only projects which can be developed in a socially and environmentally responsible manner.
- Insight Investment , our asset management division, manages the Evergreen Fund that has a 20% weighting towards investment in companies that develop environmentally beneficial products.
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The Group's Environmental Policy
The Group recognises that it has a responsibility to the environment and we will take positive steps to address the environmental impacts of our business operations. These impacts are both direct and indirect, and include our operational impacts and the impacts associated with our business activities, such as investment and lending. We will seek to minimise our adverse impacts through good management, aiming for continuous improvement in our environmental performance.
The Group is committed to the prevention of environmental pollution, and we regard compliance with the relevant environmental laws in the countries in which we operate, as a minimum standard. Furthermore, we will seek to implement good practice wherever practicable.
Responsibilities for environmental management are delegated to the Divisional Chief Executives and Heads of Group Functions.
Recognising our responsibilities and commitment to the environment, the HBOS Group undertakes to:
- Understand and address the direct and indirect environmental impacts of our operations.
- Continue to measure our most significant environmental impacts, set realistic targets for improvement, and monitor progress, using formal auditing procedures where appropriate.
- Support the integration of environmental considerations and objectives into our business decisions.
- Make efficient use of natural resources and adopt effective waste management procedures.
- Ensure that our employees have an awareness of environmental issues, and that those with particular environmental responsibilities are provided with appropriate training.
- Continue to ensure that environmental considerations are included in our risk assessment procedures for commercial and retail customers.
- Demonstrate to customers through our business decisions, our attitudes to risk, and day-to-day operations in our markets, that we support sound environmental principles.
- Integrate environmental considerations into our procurement of goods and services.
- Regularly review this policy and make it available to all our stakeholders.
- Publish information about our environmental performance for the benefit of our stakeholders.
The Group supports the principles of sustainable development. We will manage risks effectively and seek to realise the opportunities arising from proactive management of our environmental, economic, and social responsibilities, to create long-term shareholder value.
Corporate Environmental Objectives
To ensure that the Group meets the commitments set out in this environmental policy, we have set out a number of long term objectives for the environment programme over the next five years. They are reviewed annually, and published on the Group website, www.hbosplc.com/community and internally in a range of media. The Group Corporate Objectives are to:
- Maintain a comprehensive environmental management system (EMS) throughout the organisation.
- Review the direct environmental impacts of our business to identify and, where practicable, measure adverse impacts, setting appropriate environmental improvement targets and monitoring progress
- Use energy and water efficiently and optimise our use of natural resources.
- Minimise the volume of waste deposited to landfill by re-using and recycling materials wherever possible, or by identifying the best practicable environmental options for disposal.
- Ensure that our colleagues are aware of relevant environmental issues, and of their own roles and responsibilities in delivering the overall programme, providing training for those with particular responsibilities.
- Continue to consider environmental factors and risks in our commercial and retail lending decisions, alert our customers to the importance of these issues, and direct them to specialist sources of advice. These are set out in a Lenders' Guide.
- Encourage the development of products and services, e.g. through the development of new socially responsible investment products, that will help our customers to adopt sound environmental principles and practices.
- Ensure that our key suppliers and contractors are aware of our policy, and that wherever possible, they operate to similar standards, as a minimum.
- Continue to provide support for sustainability initiatives that contribute towards the preservation or enhancement of the quality of life in the communities in which we operate.
- Review and monitor our environmental programme on an annual basis, including the relevance of our policy and objectives, and identify examples of best practice that may be shared throughout the Group.
- Collate and publish relevant information about our environmental performance on an annual basis, in print and web-based formats.
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Corporate Responsibility Agenda
Environmental Section of the 2005 HBOS Corporate Responsibility Agenda
