Climate Change Data

Environmental Metrics

Governance Achievements

• Appointed Nigel Sidebottom as a non-executive director.
• Appointed Andrew Crowe as an alternate director to John Greenhalgh.
• Extended the remit of the audit committee to encompass risk.
• Appointed BDO LLP as auditors.
• Appointed Moore Stephens as internal auditor.

Climate Goals & Targets

Environmental Challenges

• Lack of legal case determinations in Therium, resulting in absence of performance fees.
• Need to increase the volume of funds under management.
• Relatively small scale of leasing and professions funding businesses resulting in losses.
• Lack of distributable reserves, preventing final dividend payment.
• Economic weakness and difficult fundraising conditions.

Mitigation Strategies

• Exploring options for expansion, including a new banking license or accessing peer-to-peer lending.
• Discussions with BIS concerning a larger second phase of funding (£60m).
• Divestment of listed investments to fund the business.
• Exploring other capital raising possibilities.
• Applying for permission to reduce the share premium account to enable future dividends.
• Implementing a Disaster Recovery Plan (DRP).

Supply Chain Management

Climate-Related Risks & Opportunities

Environmental Metrics

ESG Focus Areas

• Environment
• Health and Safety

Environmental Achievements

• Reduced greenhouse gas emissions from 21.37 tonnes of CO2e in 2014 to 11.07 tonnes of CO2e in 2015.

Social Achievements

• Maintained a safe working environment for all employees.
• Cost savings of 55% in central overheads achieved

Governance Achievements

• Intention to appoint an independent non-executive director and a Chairman on transferring to AIM.

Climate Goals & Targets

Environmental Challenges

• Lack of growth capital
• Non-compliance with the UK code on corporate governance
• Risk that key management in the platforms are poached or leave the business
• Increased competition in sourcing and making investments
• Risk that the platforms do not develop as planned and require further working capital funding from COLG
• Risk of non-repayment of loans outstanding and direct legal investments
• Inability to dispose of the share portfolio at the assumed prices
• CAML/PFL does not obtain the planned £15m of additional debt funding
• Equity capital raise does not proceed as planned

Mitigation Strategies

• Completed the issue of £5m of 7% preference shares in Credit Asset Management Limited to COLG’s principal creditor.
• Announced a conditional equity placing to raise £3m-£6m for COLG and the Board’s decision to seek the transfer of COLG to AIM.
• Strengthening of senior management in TFPL
• Specialist expertise that can be provided by the trade finance business and by increased sales and marketing activity
• Speed of credit decisions and the quality of operations is a key differentiator
• Considerable headroom in its funding facilities to provide working capital
• Disposal of the remaining share portfolio at a 20% discount to current prices and repayment of 80% of the remaining loans plus interest
• Legal case investments held by the company of £232k are assumed to be repaid at book value during the year
• Further working capital and growth capital requirements in the period are met out of the proposed new equity capital
• CAML/PFL receive the planned £20m funding in the period which should make the business profitable
• Management are incentivised with equity and bonuses comparable with the market

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Not disclosed

Climate-Related Risks & Opportunities

Physical Risks

• Not disclosed

Transition Risks

• Not disclosed

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: ISO 14001

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

• Not disclosed

Not disclosed

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Not disclosed

Environmental Metrics

ESG Focus Areas

• Climate change
• Diversity & Inclusion

Environmental Achievements

• Reduced energy consumption at Head Office following move to smaller premises; Intends to set targets to reduce energy consumption.

Social Achievements

• Launched a new Diversity and Inclusion strategy with key targets; Joined the Women in Banking & Finance network; Improved employee engagement through a bespoke platform.

Governance Achievements

• Streamlined governance arrangements between City of London Group and Recognise Bank; Appointed Jean Murphy as CEO of Recognise Bank.

Climate Goals & Targets

Environmental Challenges

• Uncertain economic outlook due to the war in Ukraine, rising energy costs, inflation, and interest rates; Challenges for SMEs in day-to-day operations and future investment plans.

Mitigation Strategies

• Accelerated Recognise Bank’s digital capability with the creation of an Innovation Hub; Recognise Bank’s experienced management and workforce are well-placed to navigate challenges; Close monitoring of the effect of the war in Ukraine and UK economic pressures on SME customers; Additional capital invested in Recognise Bank to support development.

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks

• Flooding

Transition Risks

• Impact of transition to a low-carbon economy on borrowers’ ability to meet obligations

Awards & Recognition

• Fintech Finance ‘Wow! We can build a bank!’ award (2021); SME News Finance Awards ‘Best SME Bank 2021’; Highly Commended in the ‘Best New Savings Provider’ category of the 2022 Moneynet Awards; Shortlisted for ‘Best Service from a Commercial Mortgage Provider’ in the Business Moneyfacts Awards, and ‘Best Newcomer in the Mortgage Space’ at the Money Age Mortgage Awards 2022.