A Lloyds Bank ad has been banned by the Advertising Standards Authority (ASA) for misleading customers about the bank’s contribution to climate change.

The advert highlighted Lloyd’s efforts to reduce carbon emissions and halve energy consumption by 2030 but failed to mention that the bank is financing polluting industries such as fossil fuels.

Adfree Cities, which reported the advert, accused the bank of “greenwashing” and claims it provided $1.9 billion in finance to fossil fuels in 2023 and more than $17 billion between 2016-2023 despite being a member of the Net Zero Banking Alliance.

Adfree Cities is a network of voluntary groups across the UK who are challenging corporate outdoor advertising in their cities.

The ASA upheld one out of four issues raised by the network, stating that customers were likely to have an awareness that many companies are in the process of reducing their emissions in response to the climate crisis.

The regulator ruled that Lloyds’ sponsored LinkedIn advert overemphasised the bank’s financing of renewable energy while failing to mention the bank’s “large contribution” to climate-harming emissions.

The watchdog added that the wider claims made by the advert gave the impression that renewable energy formed a “significant proportion” of the bank’s investments but omitted information which risked misleading customers.

In October 2023, consumer champion Which? placed Lloyds into the worst category for the financing of polluting sectors, alongside High Street competitors Barclays, HSBC, Santander, JPMorgan Chase and NatWest.

“While the ASA’s ruling is welcome, advertising regulation is nauseatingly slow and ineffective; we need a tobacco-style ban on high-carbon advertising to stop greenwash and clear the way for meaningful climate action,” said Veronica Wignall, co-director at Adfree Cities. “It’s completely possible and even beneficial for Lloyds to show genuine climate leadership and stop funding fossil fuels altogether, rather than just spending big on greenwash ads.”

FStech has reached out to Lloyds bank for comment.

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