Advanced Payment Solutions Limited
Climate Impact & Sustainability Data (2022, 2023)
Reporting Period: 2022
Environmental Metrics
Total Carbon Emissions:26,626 kg CO2 (Scope 2)
Scope 2 Emissions:26,626 kg CO2
Renewable Energy Share:100%
Total Energy Consumption:125.4 MWh
Carbon Intensity:144.7 kg CO2 per FTE (2022)
ESG Focus Areas
- Diversity and Inclusion
- Net Zero Economy Transition
Environmental Achievements
- Switched energy supply to 100% renewable energy
- Working with landlord to improve heating efficiency and reduce power usage through lighting improvements
Social Achievements
- Introduced a progressive flexible working policy
- Undertakes regular employee surveys to guide HR and colleague policy making
- Introduced reward schemes
- Advanced diversity and inclusion strategy, including mandatory unconscious bias training and gender pay analysis
- Audits key supplier commitments to Modern Slavery policies and diversity and inclusion policies
Governance Achievements
- Enhanced governance structure with the addition of a Data Governance Committee and a Road Map Council
- Strengthened supplier management framework and policies
- Frequent engagement with regulators on capital, liquidity, policies, risk, and compliance
- All colleagues undertake mandatory conduct risk training
Climate Goals & Targets
Long-term Goals:
- Transition to a net zero economy by 2050
Short-term Goals:
- Launch of Real Time Gross Settlement (RTGS) solution in 2022
Environmental Challenges
- Global conflict (Ukraine invasion) increasing cyber attack risk and internet connectivity disruption
- COVID-19 impact on revenue
- Macroeconomic environment (inflation, stagflation risk, cost of living increase)
- Resource attrition and talent attraction headwinds
- Climate change risk (physical and transition risks)
Mitigation Strategies
- Established a dedicated working group to assess risks from the Ukraine invasion and implemented enhancements to controls
- Good business continuity planning and hybrid working policy
- Recalibrating affordability assessment calculation to account for increased cost of living
- Interest rate rises conserve capital for hiring and spending
- Board approved allocation of Senior Management Function responsibility for climate change financial risks, incorporated into ERMF, and long-term scenario assessment exercise
Supply Chain Management
Responsible Procurement
- Supplier management framework and policies assessing data security, bribery, corruption, and modern slavery
Climate-Related Risks & Opportunities
Reporting Period: 2023
Environmental Metrics
Total Carbon Emissions:22,487 kg CO2 (Scope 2, London HQ)
Scope 2 Emissions:17,166 kg CO2 (31 Mar 2023)
Renewable Energy Share:100% (Liverpool HQ)
Total Energy Consumption:116.3 MWh (London HQ)
ESG Focus Areas
- Supplier Sustainability
- Customer Fairness
- Employee Well-being
- Climate Change Risk Management
- Environmental Impact
Environmental Achievements
- Reduced Scope 2 emissions by 15.5% and 23.3% per FTE year-on-year.
- Moved Northwest Operations to The Spine in Liverpool, a WELL Core Platinum-level building with renewable energy.
Social Achievements
- Launched Business CreditBuilder product.
- Implemented Hybrid Working Policy.
- Conducted mandatory unconscious bias training and gender pay analysis.
- Regularly seeks customer feedback through surveys and acts on it.
- Maintains open dialogue with investors and suppliers.
Governance Achievements
- Strengthened and diversified the Board.
- Implemented a comprehensive Enterprise-wide Risk Management Framework (ERMF).
- Established a three lines of defence model for risk management.
Climate Goals & Targets
Long-term Goals:
- Supporting UK's transition to net-zero carbon economy.
Environmental Challenges
- Macroeconomic uncertainty (inflation, cost of living, war in Ukraine).
- Impact of higher interest rates on business performance and customer affordability.
- Future regulatory changes (Basel 3.1, Operational Resilience).
- Competitive recruitment market.
- Increasing economic crime risks (social engineering, APP fraud, money laundering).
Mitigation Strategies
- Diversified income streams.
- Prudent credit growth strategy.
- Strong liquidity position.
- Monitoring depositor base and funding costs.
- Preparing for Basel 3.1 and Operational Resilience regulations.
- Flexible working approaches and third-party resource support.
- Established an Economic Crime Unit.
Supply Chain Management
Responsible Procurement
- Supplier management framework and policies
- Regular meetings and supplier assurance reviews
Climate-Related Risks & Opportunities
Physical Risks
- Severe weather events
Transition Risks
- Regulatory changes, market shifts
Sustainable Products & Innovation
- Recyclable cards