Climate pledge

Rose links NatWest bonuses to bank’s green targets

RBS and Alison Rose

Alison Rose: ‘we need to show customers what we are doing’

NatWest (RBS) boss Alison Rose has told her executive team that bonuses will in future depend on the bank hitting its environmental targets.

In one of the first responses to the Chancellor’s new demand that Britain’s biggest firms set out their green transition plans, Ms Rose said she had made “climate transition and our targets a key part of our executive remuneration.”

The bank’s CEO said this would enable the bank to “:show our customers and our shareholders what we are doing and how we are doing it”.

The message also represents a major transition for the bank which was at centre of the global financial crash more than a decade ago in which bankers were accused of operating a self-rewarding culture.

Ms Rose’s commitment follows similar pledges by Lloyds Bank and ITV and it will turn the focus on other big City companies on how they fit the green agenda into their overall strategies.

Last month, former Bank of England government Mark Carney said banks should link executive pay to climate risk management as part of efforts to align the finance industry with Paris climate goals.

Speaking at the UN Environment Programme Finance Initiative roundtable he said lenders should – at the very least – be transparent over whether or not pay is being tied to climate targets.

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