Climate Change Data

Starling Bank Limited

Climate Impact & Sustainability Data (2023, 2024)

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:161 tCO2e/year (location-based)
Scope 1 Emissions:23 tCO2e/year
Scope 2 Emissions:138 tCO2e/year (location-based), 0 tCO2e/year (market-based)
Renewable Energy Share:100% of total energy use
Total Energy Consumption:839,486 kWh/year
Carbon Intensity:62 kgCO2e/Full-time Employee (location-based)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Sustainable Banking Practices
  • Community Investment
  • Data Privacy
  • Fraud Prevention
  • Supplier Management
  • Human Rights

Environmental Achievements

  • Committed to reaching net zero by 2050 and reducing emissions by one-third by 2030.
  • Announced partnership with Trillion Trees resulting in the planting of 100,000 trees.
  • Entered into a new partnership with the National Trust.
  • Uses renewable energy for its operations.

Social Achievements

  • Voted “Best Bank” by Which? for two successive years.
  • Voted Best Current Account Provider at the British Bank Awards.
  • Consistently tops independent surveys on Retail and SME overall service quality.
  • Employs over 2,700 people.
  • 43% of senior management roles are occupied by women.
  • Strategic partnership with end-of-life admin service Settld.
  • Donated £100,000 to Action for Children and Smart Works.
  • Offers British Sign Language option for identity checks.

Governance Achievements

  • Followed the Wates Corporate Governance Principles for Large Private Companies.
  • Established a Board Committee to focus on sustainable ethical banking.
  • Completed a significant number of key enhancements in its approach to risk management.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050
Medium-term Goals:
  • Reduce emissions by one-third by 2030.

Environmental Challenges

  • Wider uncertainty in the banking sector.
  • Cost of living crisis impacting consumer financial habits.
  • Turbulent mortgage market.
  • Economic uncertainty regarding the residual impact of the cost of living crisis.
  • Increasing information security and cyber risks.
  • Potential for increased credit risk in the mortgage portfolio due to climate change.
  • Government policy changes related to energy efficiency of rental properties.
Mitigation Strategies
  • Maintained a solid and low-risk balance sheet.
  • Released Bills Manager and Fixed Saver account to support customers.
  • Built a diverse and low-risk loan portfolio, predominantly mortgages.
  • Updated economic scenarios and weightings to reflect market conditions.
  • Applied PMAs to ECL models to capture uncertainty.
  • Implemented a strong security posture with continuous security testing.
  • Monitoring exposure to physical and transition climate-related financial risks.
  • Undertaken a gap analysis against the PRA’s Supervisory Statement on climate-related financial risks.

Supply Chain Management

Responsible Procurement
  • Assesses environmental impact of all new partners and suppliers.

Climate-Related Risks & Opportunities

Physical Risks
  • Increased severity and frequency of climate and weather-related events impacting asset values and profitability.
Transition Risks
  • Adjustment towards net-zero emissions impacting asset values, energy prices, and borrower creditworthiness.
Opportunities
  • Working with customers to enhance the energy efficiency of their homes.

Reporting Standards

Frameworks Used: SECR

Third-party Assurance: Orbis Advisory

Sustainable Products & Innovation

  • Virtual cards

Awards & Recognition

  • Banking Brand of the Year (Which?)
  • Best Current Account (British Bank Awards)

Reporting Period: 2024

Environmental Metrics

Total Carbon Emissions:237 tCO2e/year (Scope 1,2 & Business Travel)
Scope 1 Emissions:32 tCO2e/year
Scope 2 Emissions:173 tCO2e/year
Scope 3 Emissions:32 tCO2e/year (Business Travel)
Total Energy Consumption:1,004,196 kWh/year
Carbon Intensity:70 kgCO2e/full-time employee (location-based)

ESG Focus Areas

  • Climate Change
  • Diversity & Inclusion
  • Community Investment
  • Data Privacy
  • Fraud Prevention
  • Supplier Management
  • Anti-slavery and Trafficking

Environmental Achievements

  • Originated £178m of green mortgages through Fleet.
  • Offset all non-finance carbon emissions.
  • Achieved a 1/3 reduction in emissions from our own operations and supply chain by 2030.

Social Achievements

  • Increased percentage of female leaders to 46%.
  • Employee engagement survey score of 8 out of 10.
  • Launched 'hide references' for Faster Payments.
  • Removed the fee from Kite product for children.
  • Supported over 350 women and girls’ football teams.
  • Signed a new three-year agreement to be the principal partner of Southampton FC Women.
  • Invested significantly in proprietary technology for APP fraud detection and ID verification.
  • Introduced a new all-employee benefit of Group Income Protection.
  • Entered a new three-year partnership with the National Trust.

Governance Achievements

  • Continued to develop governance frameworks and risk controls.
  • Embedded the FCA’s new Consumer Duty requirements.
  • Completed ESG training from Morgan Stanley.

Climate Goals & Targets

Long-term Goals:
  • Net zero emissions by 2050.
Medium-term Goals:
  • Achieve a 1/3 reduction in emissions from our own operations and supply chain by 2030.
  • Implement a range of green products.
Short-term Goals:
  • Further improve customer journey and experience.

Environmental Challenges

  • Increased competition in the saving products market.
  • Challenges attracting and retaining sight depositors.
  • Higher interest rates and inflationary environment impacting customers.
  • Increased default rates in the unsecured proportion of SME lending.
  • Transition from start-up to a mature bank.
  • Evolving regulatory environment.
  • Increasing cost pressures from funding and maintenance of legacy technology.
Mitigation Strategies
  • Initiated a £5bn structural hedge programme to reduce sensitivity to interest rate changes.
  • Continued investment in risk management and control environment.
  • Increased investment in financial crime capability.
  • Developed mechanisms to ensure robust governance frameworks and risk controls.
  • Continued collaboration with the British Business Bank.
  • Leveraging proprietary technology for cost advantage.
  • Deepening investment in customer service.

Supply Chain Management

Responsible Procurement
  • Commitment to acting professionally, fairly and with integrity in all business dealings.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events impacting mortgage portfolio.
  • Flood risk.
  • Business disruption for SMEs.
Transition Risks
  • Potential legal requirements for BTL properties to have a minimum EPC rating (risk reduced due to government decision).
Opportunities
  • New green products and initiatives.
  • New technologies for emissions reduction.
  • Increased supply of renewable energy.
  • Improved reputation as a sustainable bank.
  • Customer education on sustainability.
  • Enhanced supply chain management.

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

  • Green mortgages
  • Debit cards made from recycled plastic
  • Virtual cards

Awards & Recognition

  • Banking Brand of the Year 2024
  • Best Business Current Account Provider
  • Best Personal Current Account
  • British Training Awards 2023