Better Health for All

Lloyds Banking Group demonstrates a strong commitment to mental health initiatives, achieving an 'Advanced' rating from the Money and Mental Health Policy Institute in 2023

and 2024, being the first UK business/banks to do so. The company raised over £16 million for Mental Health UK by the end of 2022. Its Mental Health & Money Advice service reached 2.5 million people, helping them to be collectively over £22 million better off, and the Bloom program supported 223,000 young people. Additionally, 2,800 colleagues were trained as Mental Health Advocates. For healthcare education, 700,000 'On the Inside' mental health guides were distributed to university students and GP surgeries, and a Bloom Resource Library was launched for parents and carers. In terms of healthcare data responsibility, the company commits to keeping customer mental health information confidential and uses it only to help the customer, with its Clic platform moderated 24/7 by mental health experts. The company's core financial products and services are generally health-neutral. However, it generates positive health externalities by halting direct financing to new oil and gas developments in 2022 and exiting UK coal power in 2023, contributing to a cleaner environment.

Fair Money & Economic Opportunity

Lloyds Banking Group invested £62 million in March 2024 into a Community Investment Enterprise Fund, supporting Community Development Finance Institutions (CDFIs) that lend to small businesses in deprived areas across England and Wales.

Nearly 50% of this CDFI lending benefits the UK’s most deprived regions, with a focus on women and ethnic minority entrepreneurs. The bank also signed the UK government's 'Fair Payment Code' in December 2024, committing to timely payments for small and medium-sized enterprises (SMEs). Furthermore, Lloyds supports disabled entrepreneurs through the Disability Finance Code and the Lilac Review, and partners with organizations like Foundervine and the Black Business Network to offer educational content and resources to Black entrepreneurs. Its Financial Wellbeing initiatives, including the 'Your Credit Score' tool with over 11 million users and a Benefit Calculator used by 1 million customers, aim to aid credit improvement and savings. No KPIs could be scored due to the absence of specific, quantifiable data points that directly match the rubric's defined thresholds.

Fair Pay & Worker Respect

Lloyds Banking Group is Living Wage Accredited, indicating that 100% of its directly employed staff and regularly contracted staff are paid at or above a locally defined living wage.

The CEO's total compensation to median employee compensation ratio is 80:1. However, the company reported a median gender pay gap of 35.5% in April 2025, meaning women earn 64.5p for every £1 earned by men. In January 2024, a mean ethnicity pay gap of 5.7% and a median ethnicity pay gap of 12.5% were disclosed. In August 2023, an Employment Tribunal ruled unfavorably against Lloyds for the unfair dismissal of an employee, constituting one substantiated labor-law violation. Additionally, in November 2024, Lloyds announced it would no longer recognize trade union membership for senior employees (grades D-G) for negotiations on pay and conditions, transitioning to 'people forums' instead, though 80% of affected staff were not union members.

Fair Trade & Ethical Sourcing

Lloyds Banking Group requires all suppliers to adhere to its Code of Supplier Responsibility, which outlines minimum standards for responsible business conduct, sustainability practices, and ethical behavior.

This code includes provisions prohibiting child labor, forced labor, discrimination, and ensures freedom of movement and association for workers. The organization uses social audits, conducted by its staff and third parties, to monitor for modern slavery risks within its supply chain.

Honest & Fair Business

Lloyds Banking Group faced an ESG controversy in December 2024 when the ASA ruled that an advert was misleading.

The advert emphasized commitment to reducing fossil fuel reliance and supporting renewable energy but omitted significant information about the bank's continued financing of high-emission industries, potentially misleading consumers about its environmental impact. Additionally, a November 2023 report by ShareAction highlighted a 'lack of clarity' in Lloyds' green finance targets, making it difficult to assess its commitment to transitioning from fossil fuels. In February 2025, Lloyds disclosed a financial error where £44.1 billion of customer deposits were misclassified as interest-bearing, affecting official data used by the FCA.

Kind to Animals

Lloyds Banking Group finances over 46,000 farming businesses.

Of these, 550 farmers are funded to participate in the Soil Association Exchange, which reviews animal welfare, representing approximately 1.2% of its financed farming businesses. Lloyds Banking Group's website lists an "Animal Welfare & UNESCO Sites Sector Statements." However, a World Animal Protection UK report indicates that Lloyds lacks a dedicated animal welfare policy and does not incorporate animal welfare in its policies, raising concerns that customer funds may inadvertently support animal cruelty, including animal testing, through its investments.

No War, No Weapons

Lloyds Banking Group has invested £2.7 billion in nuclear weapons manufacturers between January 2021 and August 2023

, including BAE Systems and Lockheed Martin , demonstrating ongoing links to controversial weapons. Their defense sector policy explicitly allows these investments, as it permits involvement in the national nuclear weapons programs of the UK, US, or France . This policy is not comprehensive, as it only covers lending and excludes the Group’s asset management activities . The company has codified ethical red lines, prohibiting support for businesses involved in activities banned by international conventions ratified by the UK, such as cluster munitions, anti-personnel landmines, biological, toxin, chemical, and permanent blinding laser weapons, as well as equipment for capital punishment or torture . However, these red lines include the significant exception for nuclear weapons programs of the UK, US, or France . Regarding sales to embargoed regimes, the bank states it does not provide financial services directly to companies in Israel and the occupied Palestinian territories and expects corporate customers to comply with international sanctions and embargoes . In May 2024, Lloyds Banking Group closed accounts of approximately 300 companies categorized under 'public administration and defense,' some due to ethical concerns regarding associations with weapons manufacturers .

Planet-Friendly Business

Lloyds Banking Group has procured and currently uses 100% renewable electricity since 2019/20.

The company has committed to net-zero carbon operations by 2030 , with a target to reduce direct carbon emissions (Scope 1 and 2) by at least 90% from a 2018/2019 baseline. For its supply chain, the Emerald Standard covers the top 80% of suppliers by spend or emissions, requiring them to report Scope 1, 2, and 3 emissions. The company offers climate justice initiatives such as the Halifax Green Living and Lloyds Eco Home Reward, providing cashbacks up to £1,000 for over 3,500 eligible mortgage customers for home energy efficiency works , and has adopted Zero Bills Homes technology for some rental properties.

Respect for Cultures & Communities

Lloyds Banking Group has established 12 formal partnership agreements with community groups.

These include three joint ventures for the Welborne Garden Village project, four partners for the Community Investment Enterprise Fund (CIEF), and partnerships with the African Caribbean Community Initiative, Projects for Nature, Foundervine, Black Business Network, and the Woodland Trust. There are no reported cultural appropriation incidents.

Safe & Smart Tech

Lloyds Banking Group has established a comprehensive AI ethics program, including a Data and Ethics Risk Committee and an AI Assurance Framework

. The company has launched an AI Centre of Excellence and appointed a Head of Responsible Artificial Intelligence . A Group Director of AI and Advanced Analytics leads a team of over 200 specialists , all focused on ethical AI practices. The company also developed an AI-driven Global Correlation Engine to enhance cybersecurity threat detection . However, in March 2025, a minor data breach occurred due to human error, where sensitive investment data was mistakenly sent to a customer . This incident, which also constitutes an unauthorized data use, was reported to the UK's Information Commissioner's Office , and procedural changes were implemented to prevent recurrence .

Zero Waste & Sustainable Products

Lloyds Banking Group achieved a 74.5% reduction in operational waste by 2024 compared to its 2014/15 baseline.

The company has also committed to an ambitious target of diverting at least 90% of its operational and technology waste from landfill and incineration by 2030, aligning with the Zero Waste International Alliance's standards.