Position statement Extractive industries

We remain committed to promoting sustainable practices in these sectors, while supporting economic growth and prosperity.

While the Group voluntarily adheres to these non-legally binding position statements, they reflect our aspiration to apply these principles consistently and to conduct our business with the highest standard of ethics and integrity. All staff are required to adhere to the position statements and endeavour to achieve these goals in line with our Group Code of Conduct and to live up to our brand promise of Here for good.

Applicable to

This position statement reflects the sector-specific criteria we assess our clients against when considering the provision of financial services to the extractives industries sector.

For the purposes of this position statement:

Oil and gas refers to clients engaged in the exploration and production, transportation (including pipelines and tankers), processing of oil and gas resources and storage of gas and petroleum products, and decommissioning; and

Mining and metals refers to clients engaged in exploration, mine construction, minerals and construction materials extraction and mine operation, all metal and minerals processing activities, and mine closure and rehabilitation

Our commitment

As a key part of our mission to be Here for good, we only provide financial services to clients who manage their environmental and social impacts responsibly. The sector-specific criteria in this position statement, along with those in the cross-sector requirements set out the standards we assess our clients against. 

We regularly engage with our clients to confirm that they’re aligned with our environmental and social requirements, and consult with industry experts to ensure these stay relevant and effective.

Oil and gas

We will not provide financial services to new projects or developments which:

  • Involve the extraction of tar sands or construction of associated export facilities;
  • Involve the exploration or production of oil and gas in the Arctic region;
  • Involve the exploration or production of oil and gas in the Amazon Basin;

We will only provide financial services to clients who:

  • Have implemented or are in the process of implementing an asset HSE case, or equivalent, for all new and existing onshore and offshore production facilities, arrangements for examination of well design, construction and well control safety critical equipment by a competent authority;
  • Implement and test oil spill preparedness and response plans, or have access to reputable oil spill response and well control resources;
  • Implement the requirements of the IEA Golden Rules on unconventional gas activities, applicable to hydraulic fracturing operations performed in the exploration and production phases from shale resources;
  • Target zero-routine production flaring for new assets, and have a time-bound plan to implement economically viable solutions to eliminate legacy flaring for existing assets;
  • Operate offshore service vessels or tankers compliant with IMO requirements;
  • Where applicable, have established appropriate decommissioning plans for oil & gas activities (including rehabilitation of the natural environment);
  • Have established, where required, processes to align with the UN Voluntary Principles on Security and Human Rights.

Mining and metals

We will not provide financial services directly towards:

  • Asbestos mines
  • New standalone non-captive thermal coal mining projects
  • Mines that conduct direct marine or riverine tailings disposal
  • Mines that conduct Appalachian Mountaintop Removal

We will only provide financial services to clients who:

  • By 2021, are less than 100% dependent on thermal coal (based on % EBITDA at group level);
  • By 2025, are less than 60% dependent on thermal coal (based on % EBITDA at group level);
  • By 2027, are less than 40% dependent on thermal coal (based on % EBITDA at group level);
  • By 2030, are less than 5% dependent on thermal coal (based on % EBITDA at group level).

In addition, effective immediately, all coal companies in our portfolio will be subject to enhanced due diligence by our Environmental and Social Risk Management, Climate Risk and Reputational and Sustainability Risk teams.

  • Have a mine closure plan
  • Follow the Kimberley Process (applicable to clients that mine and/or trade diamonds)
  • Are signatories to the International Cyanide Management Code, or have established a time bound plan to demonstrate alignment with this certification (applicable to clients that mine gold)
  • Operate in countries that are signatories to the Non-Proliferation Treaty and/or which submit to International Atomic Energy Agency and World Nuclear Association’s Principles regulations and inspections (applicable to clients that mine and/or process uranium)
  • Have established controls to ensure end use is for peaceful purposes (applicable to clients that mine and/or process uranium)
  • Can demonstrate their business is diversified to also include other activities other than thermal coal mining (applicable to new clients)
  • Comply with the International Seabed Authority’s Mining Code

We expect clients to:

  • Demonstrate alignment with the principles of the OECD Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas1 (applicable to operations involved in the mining, trading and processing of Casserite (Tin), Wolframite (Tungsten), Coltan (Tantalum), or Gold).

We encourage clients to:

  • Support the implementation of the Extractive Industries Transparency Initiative (EITI).
  • Align to the principles and guidance material of the International Council on Mining and Metals (ICMM).
  • Align to the Responsible Jewellery Council (RJC) codes of practice and certification process.

1 Conflict-affected and high-risk areas are identified by the presence of armed conflict, widespread violence or other risks of harm to people. Armed conflict may take a variety of forms, such as a conflict of international or non-international character, which may involve two or more states, or may consist of wars of liberation, or insurgencies, civil wars, etc. High-risk areas may include areas of political instability or repression, institutional weakness, insecurity, collapse of civil infrastructure and widespread violence. Such areas are often characterised by widespread human rights abuses and violations of national or international law.

How we work with clients in sensitive sectors

View our other sector specific position statements, which we use to assess whether to provide financial services