The UK’s Advertising Standards Authority (ASA) has reprimanded Lloyds Banking Group Plc for breaching advertising rules with a misleading LinkedIn post about its low-carbon economy initiatives. The ASA found that the advertisement omitted critical information about Lloyds’ contributions to greenhouse gas emissions, violating the CAP Code governing non-broadcast advertising and promotional marketing.
The regulator stated that the advertisement, which discussed Lloyds’ support for the energy transition, failed to disclose details about the bank’s financed emissions. This omission created an impression that renewable energy constituted a significant portion of Lloyds’ investments, which is inconsistent with its continued financing of high-emission industries.
The ASA has barred the ad from reappearing without revisions to comply with its rules and directed Lloyds to ensure that future environmental claims include significant context. A Lloyds spokesperson clarified that the ruling pertains to a single LinkedIn post, which will not be repeated. The bank reaffirmed its commitment to transparency, public discussion, and reducing its environmental impact, aiming for net zero financed emissions by 2050 or sooner.
The advertisement, first posted in May, claimed that Lloyds was leveraging its financing to support renewable energy. However, the ASA highlighted that Lloyds’ sustainability report from 2022 shows the bank’s total financed emissions exceeded 30 million tons of carbon dioxide equivalent.
While the ASA does not have the authority to impose fines, it publicly reprimands companies that breach its standards. In recent years, scrutiny of corporate sustainability claims has intensified, with ASA enforcement actions targeting greenwashing in sectors such as aviation, automotive, and consumer goods.
In 2022, HSBC Holdings Plc was similarly censured for violating environmental advertising rules. This latest action against Lloyds underscores the increasing oversight of corporate claims regarding net zero commitments.
The investigation followed concerns raised by Adfree Cities, a campaign group monitoring advertising practices, which flagged four Lloyds ads. The ASA found one to be in breach. Veronica Wignall, co-director of Adfree Cities, called for stricter regulations, likening high-carbon advertising to tobacco ads, to curb greenwashing and advance genuine climate action.
