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 aspiration to support the UK in achieving its ambition to be net-zero by 2050.

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

We aim to take meaningful action by limiting the environmental impact of our business operations, helping customers to green their homes and businesses, 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 set five Mutual Good Commitments that define our environmental, social and governance (ESG) strategy and support of our Beacon for mutual good strategic driver. Our commitment to build a more sustainable world by supporting progress towards a greener society aligns with our aspiration to support the UK’s net-zero ambition by 2050 and is supported by our targets for our scope 1, 2, and 3 emissions.
• We monitor our scope 1, 2 and 3 emissions and report annually in our Climate-related Financial Disclosures, alongside progress against our targets. Our Climate-related Financial Disclosures also describes how we manage climate and nature-related risk.
• We 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. We plan to revise our approach to our targets in our future Transition Plan.
• Our ESG Disclosures explain our ambition and details our ESG strategy through our five Mutual Good Commitments, which are 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 continue to reduce the emissions of our business operations, by removing gas from our branch network and data centres, reducing waste to landfill and sourcing 100% of our electricity from renewable sources. We also aspire to improve the biodiversity around our sites, as articulated within our Biodiversity Standard, and in 2025 we were the first British bank or building society to achieve The Wildlife Trust Biodiversity Benchmark for our Head Office in Swindon.
• We are delivering low-carbon, gas free properties through our Oakfield development of 239 EPC A-rated homes built on a brownfield site in Swindon. All homes are fitted with air source heat pumps and solar panels; aiming to be a blueprint for other responsible organisations.
• For the properties on which we lend, we continue to leverage third party geospatial mapping data to provide a better understanding of the environmental performance and climate-related risks.
• We also aim to mitigate climate-related risks within our business lending portfolio as set out in our sensitive sector statement, which is used to support our credit policy, and by providing complimentary digital tools (such as Sustainable Business Coach) for our larger business customers to help understand their approach to sustainability and offer ways for them to manage it.
• 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 continue to embed climate into our culture by offering training to colleagues on the impacts of climate change and nature.

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 2026 - PDF, 903KB (opens in a new window)
• Intermediate (by 2030) net-zero-aligned Transition Plan 2023 – PDF, 757KB (opens in a new window)
• ESG Disclosures 2025 – PDF, 1.2MB (opens in a new window)
• Responsible Investment Statement
• Biodiversity Standard

Our customers and wider stakeholders are at the heart of our purpose-led climate change strategy, and the six pillars of our strategy highlight how we engage with them on climate change. Full details of our climate change strategy can be found within our Climate-related Financial Disclosures 2026.

1. Supporting the greening of UK homes
   • Aiming to reduce emissions associated with our mortgage lending by helping customers make energy efficient home improvements through green finance propositions and engagement.
2. Enabling businesses to transition towards net-zero
   • Supporting our business customers in their transition to a low-carbon, more sustainable future, through finance and engagement.
3. Advocating for a net-zero future
   • Influencing policy makers and government on the need for comprehensive green policies to support homes; and a cross-sector transition to a low-carbon economy.
   • Forming partnerships with key organisations to grow knowledge and effect real change.
4. Greening our business operations and supply chain
   • Aiming to reduce our emissions, and understand our impact on nature through 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.
5. Embedding climate into our culture
   • Encouraging engagement on green issues and highlighting ways for colleagues to reduce their carbon footprint whilst at work and home.
   • Training colleagues on the impacts of climate change and nature.
6. Enhancing our climate risk capabilities
   • Building our capability to manage risk from climate change and nature across short, medium and long-term time horizons, to deliver our regulatory commitments.
   • Demonstrating to our investors that we are managing the risks and opportunities presented by climate change.

Our 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 Group Climate Change Risk Committee and approved by the Director of Strategy, Performance & Sustainability.

Last updated: May 2026