Climate Change Data

Amigo Holdings PLC

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:148.19 tCO2e/year
Scope 1 Emissions:52.44 tCO2e/year
Scope 2 Emissions:89.96 tCO2e/year
Scope 3 Emissions:5.78 tCO2e/year
Total Energy Consumption:391,353 kWh/year

ESG Focus Areas

  • Financial Inclusion
  • Customer Well-being
  • Responsible Lending
  • Employee Well-being
  • Community Investment
  • Environmental Sustainability

Environmental Achievements

  • Reduced greenhouse gas emissions to 148.19 tonnes of CO2e (from 190.3 tonnes in 2020) due to office closures and remote working during the pandemic.

Social Achievements

  • Provided Covid-19 related payment holidays to over 66,000 customers.
  • Donated £41.1k to local charities.
  • Delivered over 37,000 hours of employee training.
  • Implemented Lean Six Sigma training to improve efficiency and customer experience.

Governance Achievements

  • Appointed a new Board and executive team with expertise in transforming business performance and regulatory compliance.
  • Implemented enhanced affordability assessments and eligibility criteria.
  • Embedded FCA’s conduct rules into company values and ways of working.

Climate Goals & Targets

Long-term Goals:
  • Maintain a leading position in the mid-cost credit market.
  • Contribute to financial inclusion and positive societal impact.
Medium-term Goals:
  • Achieve sustainable growth and profitability.
  • Further enhance customer experience and responsible lending practices.
Short-term Goals:
  • Secure and implement a new Scheme of Arrangement.
  • Return to lending with Amigo 2.0.

Environmental Challenges

  • High volume of customer complaints relating to historical lending practices.
  • FCA investigation into creditworthiness processes and complaints handling.
  • Covid-19 pandemic and its impact on customer finances and operations.
  • High Court rejection of initial Scheme of Arrangement proposal.
Mitigation Strategies
  • Initiated a Scheme of Arrangement to provide equitable redress to customers with valid complaints.
  • Developed Amigo 2.0, a new lending proposition with enhanced affordability assessments and customer-centric features.
  • Implemented cost-saving measures and preserved cash.
  • Continued to engage with the FCA and customers to find a resolution.

Supply Chain Management

Climate-Related Risks & Opportunities

Sustainable Products & Innovation

  • Amigo 2.0: new unsecured personal loan product with adaptive pricing and customer-centric features.

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:65.45 tCO2e/year
Scope 1 Emissions:0.02 tCO2e/year
Scope 2 Emissions:65.43 tCO2e/year
Scope 3 Emissions:16.76 tCO2e/year
Total Energy Consumption:308,185 kWh/year
Carbon Intensity:0.27 tonnes of CO2e per employee

ESG Focus Areas

  • Financial Inclusion
  • Customer Wellbeing
  • Employee Wellbeing
  • Climate Action

Environmental Achievements

  • Total CO2e emissions reduced significantly year-on-year from 142.40 tonnes in 2021 to 65.45 tonnes in 2022. Energy consumption also reduced significantly.
  • Switched energy provider, increasing renewable energy share in supply.

Social Achievements

  • Established an employee-led Responsible Business Council to advise the Board on ESG matters.
  • Increased employee engagement score from 7.3 in March 2021 to 8.0 by the end of the financial year.
  • Halved the median gender pay gap from 10% to 5%.
  • Launched apprenticeship program in Marketing and IT.
  • Provided ongoing support to vulnerable customers, including forbearance and access to specialized debt support.

Governance Achievements

  • Implemented robust new policies and procedures to prevent recurrence of past issues.
  • Undertook a thorough root cause analysis of past problems and shared learnings with all employees.
  • Established a new culture framework to measure, monitor, and improve internal culture.
  • Improved Scheme of Arrangement to address customer complaints.

Climate Goals & Targets

Long-term Goals:
  • Achieve net zero emissions (timeline not specified).
Medium-term Goals:
  • Complete a 19:1 capital raise within twelve months of Scheme effective date (May 26, 2022).
Short-term Goals:
  • Resume lending within nine months of Scheme effective date (May 26, 2022).

Environmental Challenges

  • Material uncertainty over going concern due to dependence on FCA approval to resume lending, successful equity raise, and resolution of FCA investigations.
  • Increasing inflation and cost of living impacting borrowers' ability to repay loans.
  • Ongoing FCA investigations into complaints handling and affordability processes.
  • Significant dilution for existing shareholders due to the 19:1 capital raise requirement.
Mitigation Strategies
  • Developed a new lending proposition (RewardRate) with enhanced affordability checks and open banking technology.
  • Implemented a Scheme of Arrangement to provide redress to customers with valid claims.
  • Increased cash contribution to the Scheme from £35m to £97m.
  • Continued strong focus on controlling costs.
  • Offered a range of forbearance measures to customers facing financial difficulty.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting customers and supply chains
Transition Risks
  • Regulatory changes

Reporting Standards

Frameworks Used: TCFD

UN Sustainable Development Goals

  • Goal 13 (Climate Action)

Reducing carbon emissions and developing ESG strategy.

Sustainable Products & Innovation

  • RewardRate loan product

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:26.57 tCO2e (market-based)
Scope 1 Emissions:0.51 tCO2e
Scope 2 Emissions:108.38 tCO2e (location-based), 26.06 tCO2e (market-based)
Renewable Energy Share:75%
Total Energy Consumption:562,546 kWh
Carbon Intensity:0.13 tCO2e/per FTE (market-based)

ESG Focus Areas

  • Customers
  • People
  • Environment

Environmental Achievements

  • Increased renewable energy share to 75% of total electricity usage.
  • Reduced waste through removal of single-use cutlery and reduced use of takeaway boxes.

Social Achievements

  • Maintained employee engagement score of 7.9 despite challenging circumstances.
  • Implemented hybrid working policy.
  • Provided outplacement services to support employees during redundancy.
  • Raised just under £7,000 for charities through employee fundraising.

Governance Achievements

  • Concluded FCA Enforcement action with no financial penalty.
  • Implemented improved risk management tools and systems.
  • Addressed historic control gaps and introduced new policies and procedures.

Climate Goals & Targets

Environmental Challenges

  • Inability to raise sufficient capital to meet Scheme of Arrangement requirements.
  • Deteriorating economic backdrop impacting customer affordability and loan repayments.
  • Increased complaints provision due to higher final number of claims and higher expected uphold rate.
  • Increased costs due to RewardRate development and restructuring.
Mitigation Strategies
  • Implemented orderly solvent wind down of the business.
  • Took cash conservation measures, including terminating non-critical supplier contracts and moving to smaller premises.
  • Repaid senior secured notes in full to save interest payments.
  • Completed management buy-out of Irish business to eliminate costs.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Operational disruptions due to extreme weather events
Transition Risks
  • Decreased access to capital due to increased focus on ESG investment.
Opportunities
  • Further decrease in GHG emissions.
  • Development of green products.

Reporting Standards

Frameworks Used: TCFD (partially)

Sustainable Products & Innovation

  • RewardRate products