Foreword
The weather-related impacts of climate change are reshaping the world we live in, from our natural environment to our communities, our economy, and the financial systems that underpin them.
Here in Scotland, our transition toward a resilient, sustainable, and net zero economy presents significant challenges and opportunities. As an investor, it’s essential that we understand how climate change may affect us and our investees, and embed that understanding across our processes, operations, and decision-making.
Demonstrating consistency
In 2023, the Bank chose to voluntarily align its climate reporting with the Task Force on Climate‑related Financial Disclosures (TCFD) framework, to ensure consistency with other financial institutions and demonstrate our commitment to transparency and robust climate change management.
This is the Bank’s third TCFD aligned disclosure, marking another step forward in embedding climate considerations across our activities. It reflects our responsibility to disclose climate related risks appropriately, and our mission to support Scotland’s transition to a net zero economy.
Within this report, we have continued to strengthen the Bank’s approach to climate risk, sustainability and impact, demonstrate continued progress in how we measure and understand the changing climate risks and opportunities facing our organisation and portfolio.
Engagement
A highlight has been the engagement with our investees. The vast majority now have Carbon Management Plans in place or in development, supported where needed by training, guidance and wider ESG advice from our team. This early, practical engagement is increasing resilience and helping build the foundations for long‑term alignment with Scotland’s transition to net zero.
Together, these insights help build a clearer picture of the path ahead and reinforce our commitment to contributing meaningfully to a more sustainable and resilient future for Scotland.
Craig Love, Director, Impact Assessment and Environment
