Lloyds Banking Group Faces Ban Over Misleading Climate Advert
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The Advertising Standards Authority (ASA) has banned a climate-focused advert by Lloyds Banking Group for misleading the public about its green efforts.
The advert, created by the agency adam&eveDDB, portrayed Lloyds as an environmentally friendly bank but failed to reveal its ongoing financing of fossil fuel industries. The watchdog’s decision followed a complaint by Adfree Cities in May this year.
The watchdog revealed that Lloyds provided $1.9 billion in fossil fuel financing in 2023, and over $17 billion between 2016 and 2023. Additionally, Lloyds supported the world’s largest oil and gas companies with $5.9 billion between 2016 and 2021, without policies to prevent financing companies from expanding oil and gas production.
The ASA Barns Lloyds For Not Sharing The Full Truth About Its Risky Actions
The ASA stated that Lloyds’ advert emphasized its renewable energy financing and green image. However, the company left out key details about its continued funding of industries harmful to the environment.
Lloyds is a member of the Net Zero Banking Alliance, but its continued funding of fossil fuels goes against global climate goals. Experts shared that Lloyds Bank’s choices are the opposite of the goals set at COP28 to reduce the use of fossil fuels. They also said the bank’s actions go against the Paris Agreement’s plans to fight climate change.
A group called Adfree Cities said Lloyds Bank is not telling the truth about helping the environment. It explained that the bank acts like it is eco-friendly but still gives money to companies that hurt the planet.
Veronica Wignall, a leader of the group, said there should be strong rules, like the ones for tobacco ads, to stop polluters and banks from advertising.
The ASA explained that Lloyds helped projects in 2022 that caused 33 million tonnes of carbon dioxide pollution. People said banks like Lloyds should follow clear rules to avoid supporting industries that harm the environment and to protect the planet.
Experts Warn of Legal Risks for Banks Funding Fossil Fuels
Experts in law, including Megan Clay from ClientEarth, warned that giving money to fossil fuel projects could go against international human rights laws. Clay said Lloyds is not doing what it claims about helping with cleaner energy. She added that these kinds of ads could bring legal trouble for the bank.
Andrew Simms, Co-director of the New Weather Institute, said the advert industry must stop promoting harmful business models. He compared this to the way tobacco ads once tricked the public. He said there should be a ban on ads that hide the truth about harm to the environment.
The ASA ruled that Lloyds must ensure future adverts include information about its financing of fossil fuels to avoid misleading consumers. The bank’s activities have drawn criticism, with activists disrupting its 2024 Annual General Meeting over fossil fuel financing.
Jeanne Martin, Head of the Banking Programme at ShareAction, said Lloyds’ current policies are not enough to turn it to be a climate leader. She called on the bank to focus on reducing financing for companies expanding oil and gas operations.
