Climate Change Data

Environmental Metrics

ESG Focus Areas

• Employee well-being
• Diversity and Inclusion
• Community Investment
• Climate Change
• Responsible Business

Environmental Achievements

• Acquired new freehold premises designed for agile working practices to reduce carbon footprint
• Reduced environmental intensity indicator (tonnes of carbon dioxide per £1 million Group income) from 4.7 to 3.5 (Note: 2019 figure includes private use of company vehicles, which was not available in 2018. On a like-for-like basis, the 2019 indicator would be 3.5)

Social Achievements

• Established Group Employee Council
• Ranked 29th best large company to work for by Great Place to Work® in 2019
• Made changes to benefits and flexible working to encourage workforce diversity
• Extended matched giving scheme
• Retained Customer Service Excellence standard for the seventh year running
• Achieved Feefo Gold Trusted Service Award for three years running
• Supported 262 charities
• Initiated a pilot mentoring scheme with a local academy
• Delivered employment training via community partners

Governance Achievements

• Changes to the composition of the Board and its Committees
• Commitment to good governance and compliance with best practice
• Implemented a transparent pay and grading framework
• Enhanced family-friendly policies

Climate Goals & Targets

Environmental Challenges

• Political instability and uncertainties associated with the UK’s exit from the EU
• Slowdown in UK economic activity
• Fall in used car values
• Margin pressures from new entrants to the retail finance market
• COVID-19 outbreak significantly impacting the UK and global economy, reducing demand for lending products

Mitigation Strategies

• Strategic repositioning of the business model towards lower-risk lending
• Strong risk management discipline
• Conservative balance sheet management
• Investment in long-term sustainable growth
• Robust risk and operational controls
• Hedging programme to manage interest rate exposures
• Stress testing to assess potential impact of COVID-19
• Plans to mitigate business disruption, protect employee welfare, and support customers and business partners during COVID-19
• Supporting businesses via Coronavirus Business Interruption Loan Scheme lending
• Offering payment holidays and other government initiatives to customers

Supply Chain Management

Responsible Procurement

• Embedded standard controls for all material suppliers to reduce operational impacts

Climate-Related Risks & Opportunities

Awards & Recognition

• Feefo Gold Trusted Service Award
• Customer Service Excellence award
• Best Savings Provider
• Best Fixed Rate Bond Provider
• Best Notice Account Provider from Savings Champion
• Best Notice Account Provider from Moneyfacts
• Feefo Platinum Award

Environmental Metrics

ESG Focus Areas

• Climate Action
• Employee Wellbeing
• Volunteering

Environmental Achievements

• Launched a new employee benefit, a green car scheme, enabling employees to lease brand new electric or plug-in hybrid vehicles.
• Became members of the Partnership for Carbon Accounting Financials (‘PCAF’) to monitor and manage environmental impacts.

Social Achievements

• Colleagues continue to support volunteering programmes and charitable fundraising, raising over £55,000 this year.
• Ranked highly in UK's Best Workplaces™ by Great Place to Work®, 26th out of 105 (large organisation category), 26th out of 100 for Best Workplace for Development™, and 59th out of 100 for Best Workplace for Wellbeing™.
• Most recent pulse survey showed 83% of colleagues say STB is a great place to work.

Governance Achievements

• Welcomed Jim Brown to the Board and appointed him as Chairman.

Climate Goals & Targets

Environmental Challenges

• Increased expected credit losses associated with the Vehicle Finance business due to a pause in collections processes following the FCA’s review of Borrowers in Financial Difficulty (‘BiFD’).
• Subdued economy impacting demand for credit and high cost of borrowing for customers.
• FCA review of discretionary commission arrangements in the motor finance market (deferred to May 2025).

Mitigation Strategies

• Improving collections processes, procedures and policies in Vehicle Finance; offering wider range of forbearance options to customers.
• Remaining agile in managing balance sheet, ensuring good credit discipline and being selective on new business opportunities.
• Tracking developments in the FCA review of discretionary commission arrangements to respond when implications become clearer.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Supplier reviews as part of Project Fusion.

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Changes in Government policy

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Customer Service Excellence Standard (11th year running)
• Retail Finance nominated for Best Consumer Credit Product at the Credit Awards
• Commercial Finance recognised by TheBusinessDesk.com North West Rainmakers Award, and nominated for the ‘Asset-based Lending Team’