Lloyds Bank

Is Lloyds Bank ethical?

Lloyds Bank has been assessed in The Good Shopping Guide’s Ethical Banks & Building Societies Ratings Table and receives a low score.

Although our ethical requirements have not yet been met by this company, we hope that in the future, it will make the necessary adjustments to operate as a more ethical business.

More information on the ethical issues faced by the sector, may be found in The Good Shopping Guide’s article on Ethical Banking. You can also use our Ethical Banks & Building Societies Ratings Table to compare Lloyds Bank to its competitors.

What does Lloyds Bank do?

Lloyds Bank, a British retail and commercial bank, was founded in 1765 under the name Taylors and Lloyds and was eventually renamed to Lloyds Bank Limited in 1889. Today, Lloyds Bank spearheads the Lloyds Banking Group, which operates several subsidiaries, including Bank of Scotland, Halifax and Scottish Widows.

Lloyds Bank is one of the UK’s largest banks and is generally considered one of the ‘Big Four’ along with Barclays, HSBC and NatWest.

For which criteria does Lloyds Bank score poorly? 

Lloyds Bank receives a low score in several of our research categories. Its low rating in the Responsible Investment Policy criterion comes as a result of its investment in numerous unethical industries and businesses. This includes funding or lending to companies with links to North sea oil exploration, coal power, illegal Israeli settlements and nuclear weapons.

Additionally, due to its alleged involvement in unethical business practices, Lloyds also receives a bottom rating for Other Criticisms. The criticisms include accusations of poor employment policies, overpaying its executives and exploiting its customers.

In what areas does Lloyds Bank score well for its ethics?

As Lloyds Bank only donated a small figure in the past three U.S. election cycles, which is below our threshold for penalisation, the company has attained a top rating in the Political Donations category.

How can Lloyds improve its ethical rating?

The ethical rating of a Finance brand is divided into three categories by The Good Shopping Guide: the Environment, People and Other. Find out more about how we rate.

If Lloyds improved its business and investment practices, the company could eventually achieve a better rating in the Other Criticisms and Irresponsible Lending categories. This would lead to an improved overall GSG score and could further Lloyds’ progress towards meeting our ethical benchmark.

If you’re interested in learning more about achieving Ethical Accreditation for your brand, please contact us or complete a Free Initial Assessment form.