Virgin Money UK PLC
Climate Impact & Sustainability Data (2019, 2023)
Reporting Period: 2019
Environmental Metrics
Total Carbon Emissions:21,617 tCO2e/year
Scope 1 Emissions:4,055 tCO2e/year
Scope 2 Emissions:11,285 tCO2e/year
Scope 3 Emissions:6,277 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:141,538 GJ/year
Water Consumption:73,560 m3/year
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed
ESG Focus Areas
- Financial inclusion and well-being
- Removing barriers to business and community success
- Protecting and nurturing the environment
- Climate change
Environmental Achievements
- Zero waste to landfill
- Removed single-use plastic cups from offices, saving two tonnes of carbon a year
- All 2016-19 environmental targets met
- Lent £31m to the renewables sector
Social Achievements
- 30,362 young people improved their financial well-being and entrepreneurial skills through Make £5 Grow
- £53m lent through Salary Finance, helping people to avoid expensive debt
- Supported customers in financial difficulty through partnerships with StepChange, Citizens Advice Bureau, and Money Advice Trust
- Provided 325,000 people with basic bank accounts
- £107m donated to charities through Virgin Money Giving and 12,500 charities supported
- VMF awarded grants of £2m in 2019
- On track to provide a minimum of £6bn of lending to SMEs over three years
Governance Achievements
- Refreshed FY20-FY22 Strategic Plan and updated medium-term strategic and financial targets announced
- Improved DJSI score by 15 points
Climate Goals & Targets
Long-term Goals:
- Not disclosed
Medium-term Goals:
- Net zero carbon emissions by 2030
- 33% female Directors on the Board by 2020
- 40% women in senior management roles by 2020
Short-term Goals:
- Not disclosed
Environmental Challenges
- Unexpected surge in PPI complaint volumes
- Challenging operating environment
- Brexit uncertainty
- Competition within the financial services sector
- Evolving regulatory landscape
- Climate change
Mitigation Strategies
- Developed innovative technology solutions to deal with customer complaints
- Refreshed strategy designed to mitigate muted economic outlook and industry pressures
- Focus on self-help opportunities (reducing costs, digitization)
- Investing in business to ensure compliance with evolving regulatory landscape
- Developed a plan to fully consider the impacts of climate change
- Developed a demanding benchmark for appraising businesses actively engaged in environmental sustainability
Supply Chain Management
Supplier Audits: Not disclosed
Responsible Procurement
- Supplier Spotlight sessions
- Annual Supplier Awards
- Due diligence on key suppliers
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Regulatory changes, market shifts
Opportunities
- Supporting green businesses
Reporting Standards
Frameworks Used: Null
Certifications: Null
Third-party Assurance: KPMG LLP
UN Sustainable Development Goals
- Not disclosed
Mapped against UN Sustainable Development Goals
Sustainable Products & Innovation
- Not disclosed
Awards & Recognition
- Customers at the Heart of Everything – Initiative Silver Award
- Bank or Lender of the Year 2019 at the Health Investor Awards
- Commercial Bank of the Year 2019 at the Yorkshire Financial Awards
- Corporate Ally award at the Proud Scotland Awards
- Employer Recognition Scheme Gold Award
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:8,679 tCO2e/year (Scope 1 & 2 location based)
Scope 1 Emissions:2,677 tCO2e/year
Scope 2 Emissions:6,002 tCO2e/year
Scope 3 Emissions:Data for Scope 3 emissions is available in the report but not easily quantifiable in a single number.
Renewable Energy Share:100% (where available)
Total Energy Consumption:42,001 kWh/year
Water Consumption:35,900 m3/year
Waste Generated:0 tons/year
Carbon Intensity:Not disclosed
ESG Focus Areas
- Climate Change
- Financial Inclusion
- Diversity & Inclusion
Environmental Achievements
- 100% of electricity generated from renewable sources (where available and where Virgin Money are responsible for the supply)
- 16% reduction of scope 1 and 2 emissions YoY
- Zero waste to landfill since 2014
- £317m energy and environment lending
- 11% reduction in financed emissions
Social Achievements
- £1.5m three-year fundraising total for Macmillan charity partnership
- >£4.5m additional benefits confirmed or uplifted through Turn2Us benefits calculator
- >32k Customers supported by a call from our care team
- 31k pupils participating in our Make £5 Grow scheme
- Launched BRAVER allyship framework
Governance Achievements
- ESG embedded into all relevant Board and sub-Board committees
- Quarterly updates on ESG Goals and Climate strategy
- ESG scorecard contributes a 15% weighting to the overall FY23 LTIP
Climate Goals & Targets
Long-term Goals:
- Achieve net zero emissions across all scopes by 2050
- Eradicate poverty premium for customers
Medium-term Goals:
- Achieve net zero operational emissions by 2030
- Reduce cost:income ratio below 50%
- Achieve double-digit statutory returns
Short-term Goals:
- Reduce Scope 1 and 2 emissions by 50% by 2025
- Reduce location-based energy consumption by 50% in FY25
- Improve Group Smile score
Environmental Challenges
- Higher inflation and interest rates impacting cost of living
- Muted housing market impacting mortgage demand
- Increased instances of fraud and financial crime
- Evolving regulatory landscape
- Challenges in achieving diversity and inclusion targets
Mitigation Strategies
- Tightened affordability criteria and increased provision coverage
- Proactive support for customers facing financial hardship
- £130m investment in financial crime prevention and cyber defence over 3 years
- Full implementation of Consumer Duty regulations
- Launch of BRAVER allyship framework and targeted mentoring programs
Supply Chain Management
Supplier Audits: 178 suppliers in CDP Supplier Engagement Programme (87% response rate)
Responsible Procurement
- Supplier Code of Conduct
- Embedding climate considerations in procurement
Climate-Related Risks & Opportunities
Physical Risks
- Not disclosed
Transition Risks
- Regulatory changes
- Market shifts
Opportunities
- Green lending
- Energy efficiency initiatives
Reporting Standards
Frameworks Used: TCFD, NZBA, UN PRB
Certifications: Null
Third-party Assurance: Ernst & Young LLP (EY)
UN Sustainable Development Goals
- Goal 7 (Affordable and Clean Energy)
- Goal 13 (Climate Action)
- Goal 1 (No Poverty)
- Goal 5 (Gender Equality)
- Goal 8 (Decent Work and Economic Growth)
- Goal 10 (Reduced Inequalities)
Initiatives aligned with SDGs are described throughout the report.
Sustainable Products & Innovation
- Green mortgages
- Sustainable Business Coach
- Virgin Money Investments
Awards & Recognition
- Gold Award from Stonewall
- Best Current Account Provider from Moneyfacts