Cash Converters International Ltd
Climate Impact & Sustainability Data (FY 2022, Q1 FY25)
Reporting Period: FY 2022
Environmental Metrics
ESG Focus Areas
- Circular Economy
- Responsible Lending
- Data Privacy and Security
Environmental Achievements
- Facilitating circular economy through second-hand retail, purchasing 1.4m items.
Social Achievements
- Serving as an essential and responsible financial resource for underserved customers.
- Improving access to financial services through neighborhood-based stores and digital channels.
Governance Achievements
- Maintaining a culture of zero tolerance for compliance risk, monitored by the Board.
- Board of eight directors with four independents.
Climate Goals & Targets
Environmental Challenges
- COVID-19 impact on trading conditions and store closures.
- Uncertainty in trading conditions.
Mitigation Strategies
- Prudent risk management implemented.
- Proactive and integrated Collections activity to serve a diverse customer base.
- Ongoing optimisation of data analysis function to leverage machine learning in product strategy.
Supply Chain Management
Responsible Procurement
- Each store serves as its own supply chain; no reliance on mass supply, distribution, or warehouse facilities.
Climate-Related Risks & Opportunities
Reporting Period: Q1 FY25
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Strategic transition of loan book away from SACC (small amount credit contracts) and vehicle finance products.
- Severe economic deterioration driving bad debts or prolonged increase in funding costs
- New loans not accelerating to offset SACC and GLA roll-off
- Regulatory or legal matters
Mitigation Strategies
- Transitioning the loan book to higher-quality, lower-cost options for customers, such as the Line-of-Credit product.