Climate Change Data

Environmental Metrics

ESG Focus Areas

• Supporting Home Ownership
• Sustainable Communities
• Inclusion and Diversity
• Climate and Environment
• Trust and Transparency

Environmental Achievements

• Reduced Scope 1 and 2 location-based emissions by 39%
• Maintained carbon neutrality for Scope 1 and 2 market-based emissions and selected Scope 3 emissions
• Launched pilots for a range of ‘green’ mortgages
• Improved affordability for mortgages on the most energy efficient new homes
• Worked with the Energy Saving Trust to launch an online energy efficiency tool for members

Social Achievements

• Supported 55,700 first-time buyers
• Improved mortgage broker satisfaction scores to +62 (Net Promoter Score)
• Maintained high member satisfaction scores of over 90%
• Donated £2.5 million to charities and communities
• Achieved 39% female representation in leadership roles
• Achieved 8.5% ethnic minority representation in leadership roles
• Maintained strong colleague engagement score placing in the top 25% of the UK financial services sector

Governance Achievements

• Gained the Good Business Charter accreditation
• Received awards and recognition for excellent and trustworthy customer service
• Maintained a strong Sustainalytics ESG Risk Rating of 16.1 (top 15% of banks)
• Re-accredited with the Fair Tax Mark for the sixth year in a row

Climate Goals & Targets

Environmental Challenges

• Lack of housing supply and soaring house prices leading to a home ownership crisis
• Rising energy bills and household costs impacting members' ability to manage mortgages
• Difficulty in reducing absolute Scope 1 and 2 market-based emissions and Scope 3 emissions
• Barriers to progress and gaps in government policy hindering net-zero transition

Mitigation Strategies

• Developed innovative products like Experian Boost, Home Deposit Saver, Reach Mortgages, and the First Home Helper tool to support first-time buyers
• Signed up to the government’s Mortgage Charter and launched a simple digital application process for borrowers seeking assistance
• Provided in-depth training for colleagues to support customers in financial difficulty
• Exploring extending the restriction of new lending on residential second homes to holiday lets
• Collaborating with other organizations to achieve net-zero ambitions (e.g., Energy Saving Trust, Keepmoat)
• Setting ambitious targets and plans to be net zero in own operations and significantly reduce energy consumption by 2030
• Refurbishing branch network to remove gas from all buildings and improve energy efficiency
• Engaging with suppliers to understand their emissions and targets
• Embedding climate factors into decision-making and onboarding for new suppliers

Supply Chain Management

Supplier Audits: 82/year

Responsible Procurement

• Supplier Code of Conduct

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards 2021

Certifications: CarbonNeutral®, Gold Standard by Inclusive Employers, Living Wage Employer, Fair Tax Mark

Sustainable Products & Innovation

• Green mortgages
• Home Energy Saving tool

Awards & Recognition

• Leading with Purpose award at the 2023 Business Culture Awards
• Gold Standard by Inclusive Employers