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Staff at Lloyds Banking Group have had to cut back on taxis and business-class flights as part of the British lender’s efforts to control costs.
The bank, which is undergoing a £4bn strategic overhaul, is making “a number of adjustments” to its travel policy in a bid to reduce spending and carbon footprint, according to a memo sent to Lloyds corporate and institutional banking staff earlier this month and seen by the Financial Times.
Business class flights are now restricted to international travel of more than six hours, while domestic flights should be avoided, according to a memo sent by Nick Laird, Lloyds’ chief operating officer.
He stated that taxis should only be ordered when “no other feasible or safe method of transportation is available”.
“As our business grows and expands . . . it is important for us to maintain tight control over costs — especially when our personal choices have a significant impact,” Laird’s memo said. “The most obvious example of this is our travel, which has both financial and environmental costs.”
The changes outlined in the memo will apply to all 60,000 Lloyds employees, according to a person familiar with the policy.
Lloyds’ total market-based carbon emissions rose 5 per cent in the 2022-23 financial year compared with the previous 12 months, which the bank attributed to “increased carbon emissions associated with business travel and commuting.”
Other new guidelines include restrictions on first-class train tickets for journeys of more than three hours, or when they are the cheapest available. Lloyds said its corporate and institutional banking staff had taken more than 330 flights between London and Edinburgh this year.
Lloyds’ tightening of its budget follows a similar move by HSBC, in a move first reported by Bloomberg. HSBC is also looking to reduce travel costs as part of a broader cost-cutting effort.
A Lloyds spokesperson said: ‘We look for every opportunity to maintain our industry-leading cost management and strategic focus, alongside supporting the Group’s net zero ambitions, as we work hard every day to enable our customers to realise their financial ambitions.’
Lloyds has been undertaking a two-year, £4bn strategic overhaul to diversify its revenues away from mortgages and towards revenue streams that are less dependent on changes in interest rates, including wealth management and insurance.
The group, led by chief executive Charlie Nunn, has reviewed thousands of middle management positions as part of its digitisation plans.
Lloyds announced plans this year to overhaul its risk function and cut jobs in risk management after an internal review found it was a “drag on our strategic transformation”.
