Climate Change Data

Environmental Metrics

ESG Focus Areas

• Community
• Environment
• Workplace
• Marketplace

Environmental Achievements

• Improved score in the Business in the Environment index from 84% in 2003 to 90% in 2004
• Exceeded target of using renewable energy sources for all supplies from environmentally active suppliers
• Reduced electricity consumption by 6,894,107 kWh in head office, resulting in £3,576 savings (2001-2004)
• Reduced gas consumption by 2,672,339 kWh, resulting in £3,907 savings in head office (2001-2004)
• Reduced company car fleet by 17%

Social Achievements

• Donations and sponsorships increased by 32%
• Improved performance in the Business in the Community CR index, increasing score from 74% in 2003 to 81% in 2004
• 93% customer satisfaction rating for home credit
• 80% of customers very or quite satisfied with agent sympathy when facing payment difficulties
• Implemented a manager development program for first-line managers

Governance Achievements

• Inclusion in the Dow Jones Sustainability index for the first time
• Inclusion in the FTSE4Good index for the third year running
• Named one of the 'Top 100 Companies that Count' by the Sunday Times

Climate Goals & Targets

Environmental Challenges

• High employee turnover (23% vs. UK average of 16%)
• Under-representation of women in senior management (15.9%)
• Under-representation of minority ethnic groups in the workforce
• Increased energy consumption (11.7%) due to business growth and a long winter
• Failure to meet water consumption reduction target due to a major leak

Mitigation Strategies

• Collecting data on employee turnover and diversity to identify areas for improvement
• Implementing diversity policy and including managing diversity in manager objectives
• Implementing energy-saving initiatives such as using more efficient computers and networked printers
• Introducing water-saving appliances
• Developing a green travel plan to reduce reliance on car travel

Supply Chain Management

Responsible Procurement

• Environmental supply chain policy
• Training for high-risk suppliers on environmental management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Third-party Assurance: SEQM Ltd, Casella Stanger, The Corporate Citizenship Company, Peter Wilkinson Associates

Awards & Recognition

• Arts, Business and Employees Award from Arts and Business Yorkshire
• 'Big Tick' award from Business in the Community

Environmental Metrics

ESG Focus Areas

• Financial Inclusion
• Responsible Lending
• Colleague Wellbeing
• Climate Change
• Social Impact
• Ethics and Compliance

Environmental Achievements

• 67% reduction in carbon footprint against a 2015 baseline (scope 1, 2 and associated scope 3s)
• 4,507 tonnes of CO2e offset

Social Achievements

• 72% 2020 colleague engagement score
• £1.2m invested in the community
• Improved customer satisfaction rates across all divisions
• Launched 'Be Yourself' inclusion and diversity program
• Rolled out Thrive app and new Employee Assistance Programme for colleague mental health

Governance Achievements

• Established a Climate Risk Committee to meet TCFD recommendations
• Established a Company-wide inclusion community with four affinity groups
• Signed up to the Women in Finance Charter

Climate Goals & Targets

Environmental Challenges

• Rising customer complaints within the Consumer Credit Division (CCD)
• Impact of Covid-19 pandemic on operations and customer behavior
• Heightened Claims Management Company (CMC) activity
• FCA enforcement investigation into CCD lending and claims handling practices

Mitigation Strategies

• Proposed a Scheme of Arrangement to address potential redress claims from CCD customers
• Adapted operating models to comply with Covid-19 restrictions
• Implemented remote lending solutions
• Offered payment holidays to customers facing financial difficulties
• Continued engagement and collaboration with the FCA

Supply Chain Management

Responsible Procurement

• Compliance with Modern Slavery Act 2015
• Adherence to Prompt Payment Code

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Increased operational costs
• Reduced colleague productivity
• Reputational damage

Reporting Standards

Frameworks Used: TCFD, UN SDGs

Certifications: ISO 14001:2015

Third-party Assurance: Corporate Citizenship

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities

Contribution through responsible lending, community investment, and colleague wellbeing initiatives

Awards & Recognition

• Non-Prime Lender of the Year at the Motor Finance Europe Awards 2020
• Feefo’s Platinum Trusted Service Award 2020
• Best Brand at the Lending Awards 2020

Environmental Metrics

ESG Focus Areas

• Climate Change
• Financial Inclusion
• Community Investment
• Diversity & Inclusion
• Responsible Lending
• Governance

Environmental Achievements

• 18% reduction in scope 1 and 2 (and associated scope 3) emissions
• 90% of waste recycled or sent for energy recovery
• 29% reduction in total gas usage
• 92% reduction in miles colleagues drive own cars for business
• 7% reduction in suppliers’ emissions
• 29% reduction in paper usage
• 16% reduction in waste sent to landfill

Social Achievements

• £1.4m invested in the community
• 1,014 hours volunteered by colleagues
• Launched free school uniform scheme providing uniforms to over 1,000 students
• Launched new online platform providing customers with digital access to one-to-one expert advice to help maximize their income
• Improved colleague engagement scores and reduced colleague turnover rates
• One-off payment of £750 to lower-level colleagues to assist with cost of living crisis
• 33% female representation in senior management

Governance Achievements

• 26% of directors are female
• Significant reduction in complaints referred to the Financial Ombudsman Service (FOS)
• Continued improvement in TCFD disclosures
• Established a Group Climate Risk Committee

Climate Goals & Targets

Environmental Challenges

• Rising cost of living impacting customers, colleagues, and communities
• Supply chain disruptions (implied)
• Growing gap in credit supply to non-prime customers

Mitigation Strategies

• Developed range of support tools for customers (cost of living calculator, online resource with IncomeMax)
• One-off salary payment to colleagues impacted by rising costs
• Provided access to guidance and support from external sources (Government’s ‘Help for Households’ initiative, EAP)
• Repurposed funding for community partners to address immediate needs linked to cost of living
• Engaged with customers to understand their experiences and concerns about the cost of living
• Advocated for practical actions to counter the growing gap in credit supply to non-prime customers

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement

• Prompt Payment Code signatory
• Updated due diligence process to include climate risk questions
• Use of COUPA procurement system

Climate-Related Risks & Opportunities

Physical Risks

• Severe weather events (implied)

Transition Risks

• Regulatory changes, market shifts (implied)

Opportunities

• Not disclosed

Reporting Standards

Frameworks Used: TCFD, UN Global Compact, UN Sustainable Development Goals

Certifications: ISO 14001:2015

Third-party Assurance: Corporate Citizenship

UN Sustainable Development Goals

• Goal 1: No Poverty
• Goal 4: Quality Education
• Goal 5: Gender Equality
• Goal 8: Decent Work and Economic Growth
• Goal 10: Reduced Inequalities
• Goal 13: Climate Action

Initiatives described throughout the report contribute to these goals

Sustainable Products & Innovation

• Not disclosed

Awards & Recognition

• Changing Lives in the Community at The Card & Payments Awards