Climate Change Data

Nottingham Building Society

Climate Impact & Sustainability Data (2022, 2023)

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:44,099 tCO2e
Scope 1 Emissions:311 tCO2e
Scope 2 Emissions:277 tCO2e
Scope 3 Emissions:43,788 tCO2e

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced carbon emissions by 18% (target was >10%)

Social Achievements

  • Made two cost of living payments to support colleagues
  • 841 hours volunteered to community projects and charities
  • £150,000 donated to the Samuel Fox Foundation

Governance Achievements

  • Completed a strategic review process
  • Developed a new strategic blueprint and purpose
  • Entered key strategic partnership with Generation Home

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero emissions by 2050
Medium-term Goals:
  • Expand lending within current risk appetite, generating higher returns
Short-term Goals:
  • Reduce Scope 1 and 2 emissions by 10% in 2023
  • Set a target for Net Carbon Zero status for Scope 1 and 2

Environmental Challenges

  • Branch closures due to declining transactions and economic unsustainability
  • Rising interest rates impacting mortgage affordability and credit losses
  • Economic uncertainties, inflation, cost of living crisis, and recessionary pressures
  • Fierce competition in the mortgage market
  • Navigating a competitive recruitment market
Mitigation Strategies
  • Provided enhanced redundancy packages and redeployment opportunities for affected colleagues
  • Increased provisions for expected credit losses
  • Implemented cost-of-living support payments for colleagues
  • Strategic review and development of a new purpose-led strategy
  • Investment in systems, data analytics, and strategic partnerships
  • Investment in recruitment technology and performance management processes

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Transition Risks
  • Changes in policy and regulation (e.g., EPC ratings)

Reporting Standards

Frameworks Used: TCFD

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:47,741 tCO2e
Scope 1 Emissions:102 tCO2e (Other Fuels) + 11 tCO2e (Travel)
Scope 2 Emissions:254 tCO2e
Scope 3 Emissions:47,374 tCO2e

ESG Focus Areas

  • Community Investment
  • Homelessness
  • Climate Change
  • Carbon Neutrality
  • Net Zero

Environmental Achievements

  • Reduced Scope 1 and 2 emissions by 14.8% (excluding impact of other fuels)
  • Completed rollout of LED lighting across the estate
  • Achieved 8.3% reduction in electricity consumption

Social Achievements

  • Increased colleague volunteering hours to 2,462 (2022: 841)
  • Focused charitable giving on tackling homelessness
  • Launched Community Saver product donating a percentage of savings interest to charity partners
  • Improved Trustpilot rating to 4.9 out of 5 (2022: 3.8)

Governance Achievements

  • Formalized ESG policy and strategy
  • Implemented Consumer Duty regulations
  • Signed up to the Government’s Mortgage Charter

Climate Goals & Targets

Long-term Goals:
  • Net Zero by 2050
Short-term Goals:
  • Reduce Scope 1 and 2 emissions by 16%
  • Physical measures taken to reduce emissions

Environmental Challenges

  • Continued economic uncertainty
  • Higher base rates and inflation
  • Cost-of-living challenges for mortgage customers
  • Competitive pressures in mortgage and savings markets
  • Potential house price reductions
  • Increased mortgage defaults and repossessions
  • Cyber security risk
  • Climate change risks (physical and transitional)
  • Regulatory changes
Mitigation Strategies
  • Prudent approach to financial management
  • Attractive savings propositions for members
  • Support for mortgage customers facing payment difficulties (Mortgage Charter)
  • Investment in IT infrastructure and data analytics
  • Enhanced cyber security measures
  • ESG policy and strategy
  • Active monitoring of economic forecasts and risk assessments
  • Implementation of Consumer Duty and Mortgage Charter
  • Strengthened relationship with utilities partner for carbon strategy

Supply Chain Management

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Transition Risks
  • Changes in policy and regulation (EPC ratings)

Reporting Standards

Frameworks Used: TCFD

Sustainable Products & Innovation

  • Community Saver Account