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Frequently Asked Questions
What is our policy on the environment?
We recognise the significant global threat posed by climate change. We take our responsibilities in this area seriously. We are committed to promoting sustainability within our business and raising awareness of environmental issues with customers, employees and suppliers to take appropriate actions.
As a major global provider of financial services, we affect the environment directly through our own operational activities and indirectly through the activities of our customers and suppliers across the world. The environmental challenges facing us all include our use of resources, the creation of pollution, the effects of our activities on climate change, and our impact on species and habitats. It is important that we not only monitor our own behaviour but also encourage others to adopt best practice.
Our aim is to respect the environment over which we have an influence, to make our environmental impact a central consideration in the way we conduct our business, and to continue to raise the level of environmental awareness among our people, customers and suppliers.
Within our direct business operations, our policy is designed to conserve resources, prevent pollution, meet the present and likely future regulatory environmental standards, minimise waste, and promote the efficient use of energy, raw materials, manufactured products and natural resources.
What is our role in the transition to a Low Carbon economy?
We fully support the transition towards a low carbon economy. We use our position as a global financial services company to lead and support our stakeholders in addressing this critical global challenge. We are engaged in meaningful and positive actions to develop and implement the immediate and long-term investments required.
As a global financial services group, we have relationships with several companies across the energy industry. We support these customers as they develop and implement their investment strategies for developing, implementing and expanding the future potential capacity for low carbon energy.
Innovative new products that provide environmental benefits are increasingly offered and supported across our wide range of businesses. We support the government, business and other stakeholders in addressing the climate change challenge through a combination of:
- investment in low carbon energy sources, such as renewable energy, driven by improvements in their technological and commercial viability;
- investment in cleaner technology for fossil fuels;
- greater efficiency of fuel use; and
- wider public support for the mix and location of energy capacity.
We actively support the UK Government's ambitious targets for increasing renewable energy capacity in the most cost-effective way. We are one of the world's leading providers of finance to renewable energy and have maintained this position for several years.
Nevertheless, as recognised by the Stern Report and UK Government's Energy White Paper, fossil fuels remain a key part of the current UK and global energy mix and realistically can't be replaced in the near future. Achieving a successful transition to a low carbon economy will require investment in cleaner technology for fossil fuels, as well as investment in low carbon energy sources such as renewable energy. Cleaner technology is even more important in light of the projected increase in demand for energy among emerging economies.
What is our policy on Human Rights?
We are committed to respecting and upholding human rights in all areas of our operations and within our sphere of influence, as expressed in the Universal Declaration of Human Rights and the United Nations Global Compact.
Within our own operations, we regularly review our policies and procedures to ensure that we operate to best practice in this area. We select our people solely on the basis of merit, and actively recruit from the widest available pool of talent, advertising internally and externally to give us the best possible choice for selection and to avoid the possibility of discrimination.
Beyond our own operations, we have in place a number of initiatives to ensure that we take account of human rights in our broader sphere of influence:
To ensure that we operate to consistent standards globally, we have adopted a number of internationally accepted codes, notably the Equator Principles and the UN Global Compact, which specifically address the management of human rights issues.
Our Group Ethical Code for Suppliers sets out our expectations of the companies that we work with. Based on the UN Global Compact, it specifically addresses human rights. Social and environmental performance is taken into account when selecting key suppliers and we conduct regular reviews against the Ethical Code for suppliers.
We expect that all our customers conduct their business strictly in accordance with the legal and regulatory framework set out by their relevant operational jurisdiction. We assess each lending, investment and services decision on an individual basis through our defined risk and credit committee procedures and take into account relevant social, ethical and environmental issues as a part of that process.
What is our statement on the defence sector?
RBS Group acts in accordance with the strict regulation and licensing arrangements set by the UK government, and by relevant international standards, when engaging with companies involved in the design, manufacture, support and trade of defence equipment. When considering complex and evolving defence-related matters, such as landmines and cluster munitions, we adhere to policy guidance from the UK government and the appropriate international legal standards.
In relation to landmines, the Ottawa Convention bans the production and export of all types of anti-personnel landmines, including non-detectable ones, to all countries. In relation to cluster munitions, the Oslo Convention requires each signatory State to ban the production, use and stockpiling of cluster munitions. RBS will not knowingly support any application for funding or financial services that would directly contravene these standards and will seek to ensure that our client relationships are not in breach of these principles.
How do we deal with our suppliers with regards to environmental and social issues?
We have a long-standing programme of engagement with key suppliers to manage environmental and social issues. Supplier Capability Assessments (SCA) and Supplier Performance Assessments (SPA) are used to assess performance, and both these processes include social and environmental performance criteria that are taken into account when selecting and retaining suppliers.
To set out the standards that we expect of the suppliers we work with, we issued an Ethical Code for Suppliers in 2004 based on the 10 principles of the UN Global Compact. We conducted 25 supplier reviews against this code in 2006. No fails or significant issues were identified, although we have recommended a number of improvement opportunities to suppliers.
To further incentivise positive social and environmental performance, we established an annual Corporate Responsibility Award for suppliers in 2005. This profiles the company which in our view has done most to address social or environmental issues which relate to our business, such as reducing courier mileage and emissions, or improved disposal of IT equipment. As well as publicity at the awards event, we have communicated the results in newspapers and as case studies in our annual Corporate Responsibility Report.
What is our ethical policy for customer lending and investments?
We recognise that our responsibilities extend outside of our commercial business interests, and that we play an important role in supporting the growth and stability of the economies in which we trade.
We also recognise the importance of ensuring we conduct our business scrupulously according to the laws and regulations laid down by governments and contained within internationally accepted codes and standards. In the UK, we subscribe to the British Bankers' Association's personal and business banking codes, and in countries where there may be competing legal jurisdictions we always seek to act according to the most stringent (usually UK) legal and regulatory standards.
We also embrace external principles and standards when applying our business ethics. In 2003 we were among the first of the leading banks to adopt the Equator Principles, which set internationally agreed standards for socially and environmentally responsible project finance, and we are signatories to the Ten Principles of the UN Global Compact. We believe that, taken together, these standards provide the legal and ethical framework within which we must operate as a responsible business.
Within this framework, our firm commitment is to lend responsibly. It is not in our interest to enter into unsustainable commercial agreements, or to lend to organisations, or individuals, which could damage the Bank's reputation. We therefore have in place at all levels throughout the Group rigorous risk and credit management policies and procedures, regularly reviewed, which take into account the wide range of factors relevant to all aspects of our business
What are we doing to combat money laundering?
We operate strict controls to prevent and detect attempts to launder money. We co-operate closely with the different government and international agencies involved. Specialised teams and sophisticated technologies are in place to ensure that potentially criminal transactions are identified. In addition our employees are trained in the banking industry's "know your customer" procedures. A programme of communication and continuous training is in place to ensure that all our staff are aware of their obligations.
Do we make political donations?
We are strictly non-political in all our activities. We make no contribution to political parties, and we have no political association with any party. As bankers, we have banking relationships at national and local level with most of the established political parties, who are treated in the same way as other customers.
However, we do, as a matter of good business practice, keep in close touch with Government and ensure that, whenever issues arise which may affect the operation of our business and the interests of our customers or shareholders, we discuss these with the authorities concerned.
Furthermore, we do not permit or condone any form of corruption or bribery, and our RBS group Code of Conduct contains guidance to steer staff through potential problem areas, such as inappropriate relationships, conflicts of interest and the giving and receiving of hospitality.
What is our position on lending to the companies involved with animal testing?
As a minimum we seek to ensure that companies and public sector bodies engaged in research involving animals comply fully with all relevant regulatory and licensing requirements, and we support the pharmaceutical sector's move to increase the use of alternatives to the use of animals in research.
What is our position on lending to the defence industry?
Within the UK, the manufacture and export of defence equipment is subject to strict regulation and licensing arrangements laid down by the Government and approved by Parliament, and in accordance with internationally accepted codes and standards. We only fund businesses that comply with these regulations. We do not support any application for funding world-wide that would contravene these standards.
What is our position on lending to the tobacco and alcohol sector?
We provide services to a broad spectrum of industry. This includes companies that are engaged directly or indirectly in the sale, promotion, or production of tobacco and alcohol products. The sale, manufacture and distribution of tobacco and alcohol is a matter for regulation by Government. We will abide, on a world-wide basis, by prevailing rules and restrictions laid down by the appropriate governments.
