Lloyds Bank advert banned over ‘misleading’ low carbon claims

Lloyds Bank misled consumers by advertising its steps to reduce its carbon footprint while failing to mention its “significant” ongoing financing of fossil fuel companies, a watchdog has ruled.

The bank’s LinkedIn post in May stated: “What are we doing to help accelerate the transition to a low carbon economy?

It then stated that the bank was “committed to supporting the energy transition” by “continuing to reduce our reliance on fossil fuels” and “putting the weight of our finance into clean and renewable energy”.

Campaign group Adfree Cities complained that the ad, and three others for the bank which were cleared, misled customers by omitting significant information about Lloyds’ contribution to carbon dioxide and greenhouse gas (GHG) emissions.

Lloyds said the ad’s claims were “factually accurate and substantiable” and included balancing information that acknowledged its involvement with carbon intensive industries, adding that it was “continuing to reduce” its reliance on fossil fuels.

The bank provided the Advertising Standards Authority (ASA) with a copy of its 2023 Sustainability Report, which showed the group had financed emissions amounting to 33 million tonnes of carbon dioxide equivalent the year previously.

The ASA noted that the ad specifically claimed that Lloyds was putting the “weight of our finance” into renewable energy.

The watchdog said: “We understood Lloyds was taking steps towards net zero and promoting sustainability to its customers.

“However, according to Lloyds’ 2023 Sustainability Report, their financed emissions in 2022 stood at to 32.8 million tonnes of carbon dioxide equivalent, which represented a large contribution to greenhouse gas emissions.

“Investment in and financing of areas of climate risk comprised a notable amount of the company’s activities and would continue to do so in the near future.

“We considered that meant, despite the impression given in the ad, Lloyds was continuing to significantly finance businesses and industries that emitted notable levels of carbon dioxide and other greenhouse gases.

“That was material information that was likely to affect consumers’ understanding of the ad’s overall message, and so should have been made clear.

“We therefore concluded the ad omitted material information and was likely to mislead.”

A Lloyds Banking Group spokeswoman said: “We remain committed to supporting transparent public discussion of this important issue.

“The ASA Council outcome relates to a single LinkedIn post for a sustainability awareness day, which will not be repeated.

“Reducing the environmental impact of our business remains a fundamental part of our strategy and we will continue to work alongside customers, the Government, and the market to reach net zero by 2050 or sooner.”

Adfree Cities co-director Veronica Wignall said: “Lloyds isn’t a climate leader, despite its eco adverts.

“Lloyds is trying to sell a green story, while it continues to pour money into unethical polluting companies. It’s completely possible and even beneficial for Lloyds to show genuine climate leadership and stop funding fossil fuels altogether, rather than just spending big on greenwash ads.

“While the ASA’s ruling is welcome, advertising regulation is nauseatingly slow and ineffective. We need a tobacco-style ban on high-carbon advertising to stop greenwash and clear the way for meaningful climate action.”