<p>The group&#0039;s climate change strategy is based first and foremost on carbon reduction, while carbon offsetting plays a secondary role at HBOS. Since 2004, the group has managed to reduce CO2 emissions by 65%, from 163,000 tonnes in 2004 to 57,000 tonnes in 2006. <br /><br />The reduction has been achieved primarily through the implemented green electricity contracts for all its UK operations a number of years ago. <br /><br />In a bid to drive this reduction plan further, HBOS is to implement three new major initiatives in 2007 – green miles, carbon offsetting, and green mortgages.<br /><br />The green mile initiative is a business travel scheme, launched on April 2, 2007. It aims to reduce the rate of business travel growth by half, or over 5.5 million miles, within 12 months.<br /><br />As part of the carbon offsetting initiative, HBOS will purchase a Kyoto-regulated carbon credit to offset its projected 2007 UK emissions. <br /><br />HBOS also plans to launch a green mortgage in the second half of the year, designed to encourage customers reduce or offset the impact of their home on climate change.</p>