Press release
Major UK bank penalised for "trying to have their ake and eat it too" on climate crisis
18 December 2024
In response to today’s ruling from the Advertising Standards Authority (ASA) against Lloyd’s Bank’s misleading “low carbon” advert, ClientEarth lawyer Megan Clay said:
“Once again, a major UK high-street bank has been penalised for trying to have their cake and eat it too when it comes to the climate crisis. [1]
“Lloyds is claiming to be a financial force for good when it comes to the energy transition, but in reality they have funnelled $6.45 billion into new fossil fuel infrastructure since the landmark Paris Agreement was signed in 2015. [2]
“So it should come to no surprise to both Lloyds and other major banks that claiming to be part of the climate solution has to mean something.
“As a bare minimum, banks making claims like the one the ASA has ruled on today must rule out financing oil and gas expanders and fossil fuel companies that refuse to veer away from business-as-usual.
“Setting out clear financing red lines will also reduce the growing legal risks for banks like Lloyds – as UN human rights experts warned last year that indiscriminately bankrolling fossil fuel expanding companies may breach human rights law.” [3]
This ASA ruling also comes almost six months after the UK’s financial regulator – the Financial Conduct Authority – introduced its anti-greenwashing rule that aims to make sure sustainability claims are ‘fair, clear and not misleading.’ [4]
ClientEarth lawyer Megan Clay added:
“Unfortunately, this now banned Lloyd's advert is just the tip of the iceberg when it comes to greenwashing in the UK banking sector.
“The FCA must act on its anti-greenwashing rule and investigate what are quite obvious gaps between what High Street banks are telling the public and the activities they are actually financing.”
ENDS
Notes to editors:
The ruling is the result of a complaint filed by AdFree Cities. The ruling in full and the press release from the ASA can be found here.
[1] In October 2022, the ASA banned two adverts from HSBC that it found to be misleading. The full ruling is available here.
[2] Financing statistics taken from the Banking on Climate Chaos report pp. 56-57
[3] In August 2023, UN human rights experts responded to a complaint filed by ClientEarth concerning Saudi Aramco and its financial backers and warned them of their role in driving climate-fuelled human rights violations. The full press release is available here.
About ClientEarth
ClientEarth is a non-profit organisation that uses the law to create systemic change that protects the Earth for – and with – its inhabitants. We are tackling climate change, protecting nature and stopping pollution, with partners and citizens around the globe. We hold industry and governments to account, and defend everyone’s right to a healthy world. From our offices in Europe, Asia and the USA we shape, implement and enforce the law, to build a future for our planet in which people and nature can thrive together.