Climate Change Data

Gatehouse Bank plc

Climate Impact & Sustainability Data (2021, 2022, 2023)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:77.89 tCO2e (2020)
Scope 1 Emissions:0 tCO2e (2020)
Scope 2 Emissions:53.61 tCO2e (2020)
Scope 3 Emissions:24.28 tCO2e (2020)
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change
  • Financial Health and Inclusion
  • Fair Treatment of Customers
  • Responsible Use of Funds and Investments
  • Employee Well-being
  • Diversity & Inclusion

Environmental Achievements

  • Achieved carbon neutral certification in 2021 by offsetting operational emissions.
  • Set Net Zero targets for the Bank’s home finance portfolio.
  • Planted over 10,000 trees through the Woodland Saver accounts, sequestering 3,000 tonnes of CO2e emissions.

Social Achievements

  • Launched a colleague well-being programme including financial well-being support, bereavement support and counselling.
  • Improved inclusion performance across all measures from the 2020 Diversity and Inclusion Survey.
  • Deepened partnership with Centrepoint, supporting their MoneyWise Programme with a strategic skills-based volunteering project.

Governance Achievements

  • Formalised ESG Governance with a board-sponsored ESG Steering Group.
  • Incorporated support for achievement of sustainability targets and contribution to ESG activity in executive-level performance reviews.
  • Zero substantiated complaints concerning breaches of customer privacy and losses of customer data were recorded.

Climate Goals & Targets

Long-term Goals:
  • Reduce emissions of home finance portfolio by 72% by 2050 to achieve Net Zero emissions.
Medium-term Goals:
  • Reduce emissions of home finance portfolio from base year by 35% by 2030.
  • Support our customers’ financial health and capacity to absorb financial shocks and reach future goals by 2025.
  • Build customer and community confidence in financial topics by 2025.
Short-term Goals:
  • Reduce operational emissions from the base year 2019 by 20% by 2023.
  • Increase the number of young customers (aged 30 and under) accessing the Bank’s savings products by 10% by the end of 2023.
  • Share financial education information and insight with all customers and 10,000 non-customers by the end of 2023.

Environmental Challenges

  • Achieving the Bank’s sustainability targets will be a significant and ambitious challenge, requiring a legislative and market environment that supports sustainable action.
  • Managing climate-related physical and transition risks associated with the Bank’s business and investments.
  • Improving data availability in sustainability reporting.
Mitigation Strategies
  • Set ambitious targets for reducing operational and financed emissions.
  • Commissioned an independent assessment of the financial risk associated with climate change on its existing home finance portfolio and put a strategy in place to manage the risk.
  • Strengthened the Bank’s sustainable procurement process and embedded the Sustainable Procurement Policy into the onboarding process.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Sustainable Procurement Policy

Climate-Related Risks & Opportunities

Physical Risks
  • Severe weather events
  • Changes in sea levels
Transition Risks
  • Potential loss in value of energy inefficient buildings
  • Increased taxes on carbon
  • Reputational damage
Opportunities
  • Development of energy-efficient products and services

Reporting Standards

Frameworks Used: GRI Standards: Core option, UN Principles for Responsible Banking, Task Force on Climate-related Financial Disclosures (TCFD), PCAF

Certifications: Carbon Neutral Britain™

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • SDG 1
  • SDG 3
  • SDG 5
  • SDG 8
  • SDG 10
  • SDG 12
  • SDG 13
  • SDG 15
  • SDG 16

The Bank’s sustainability strategy and targets align with the UN SDGs most relevant to its business and the financial sector.

Sustainable Products & Innovation

  • Woodland Saver accounts
  • Planned Shariah-compliant green home finance products

Awards & Recognition

  • 2021 Moneyfacts Awards for ‘Innovation in Personal Finance’
  • 2021 MoneyComms Awards for ‘Best Ethical Savings Initiative’

Reporting Period: 2022

Environmental Metrics

Total Carbon Emissions:244.02 tCO2e (Scope 1, 2, and 3)
Scope 1 Emissions:91.45 tCO2e
Scope 2 Emissions:64.95 tCO2e
Scope 3 Emissions:87.62 tCO2e

ESG Focus Areas

  • Climate Change Mitigation
  • Financial Health and Inclusion

Environmental Achievements

  • Remained a carbon neutral business for 2021 and 2022 by offsetting emissions.
  • Launched a range of green home finance products to incentivize energy-efficient homes.
  • Planted over 20,000 trees through Woodland Saver accounts.

Social Achievements

  • Launched a quarterly customer newsletter to engage and educate customers on ESG.
  • Raised over £11,000 for FareShare, redistributing over 41,000 meals.
  • Introduced a volunteering policy, providing one paid day of leave per year for volunteering.

Governance Achievements

  • Established an ESG Steering Group chaired by the CEO to oversee ESG initiatives.
  • Implemented mandatory e-learning modules on anti-bribery, anti-money laundering, and diversity & inclusion.
  • Achieved 100% completion rate for mandatory financial crime training.

Climate Goals & Targets

Long-term Goals:
  • Achieve Net Zero emissions by 2050 for home finance portfolio.
Medium-term Goals:
  • Reduce emissions of home finance portfolio by 35% by 2030 and 90% by 2050.
  • Increase percentage of young customers (18-30) with a healthy savings habit to 10% by 2025.
  • Increase percentage of young customers (18-30) with a savings fund to 10% by 2025.
Short-term Goals:
  • Reduce business travel emissions by 20% by 2023 (from 2019 baseline).
  • Improve EPC ratings of financed properties.
  • Increase percentage of young savings customers (18-30) to 10% by end of 2023.

Environmental Challenges

  • Data availability and quality for comprehensive ESG reporting.
  • Engaging customers to drive sustainability initiatives, particularly during the cost-of-living crisis.
  • Achieving Net Zero targets in home finance while considering consumer behavior change.
Mitigation Strategies
  • Reviewed internal sustainability policy and supplier onboarding form to improve data collection.
  • Used customer newsletters and surveys to educate and engage customers on energy saving and EPC ratings.
  • Planned to develop Shariah-compliant additional finance for energy efficiency improvements in homes.

Supply Chain Management

Responsible Procurement
  • Sustainable procurement policy implemented in 2021.

Climate-Related Risks & Opportunities

Physical Risks
  • Flooding
Transition Risks
  • Regulatory changes to energy efficiency standards.
Opportunities
  • Development of energy-efficient products and services.

Reporting Standards

Frameworks Used: GRI Standards: Core option

Certifications: Carbon Neutral Britain

Third-party Assurance: FBRH Consultants Ltd

UN Sustainable Development Goals

  • SDG 1
  • SDG 2
  • SDG 3
  • SDG 8
  • SDG 10
  • SDG 13
  • SDG 15
  • SDG 16

Initiatives align with various SDGs through responsible finance, community investment, environmental protection, and ethical business practices.

Sustainable Products & Innovation

  • Green home finance products
  • Woodland Saver accounts

Awards & Recognition

  • Islamic Finance News Award Winner 2022 - Most Innovative Bank in the United Kingdom

Reporting Period: 2023

Environmental Metrics

Total Carbon Emissions:539.08 tCO2e/year
Scope 1 Emissions:142.38 tCO2e/year
Scope 2 Emissions:102.27 tCO2e/year
Scope 3 Emissions:294.44 tCO2e/year
Carbon Intensity:8.0 tonnes of carbon dioxide per £1m gross income (2023)

ESG Focus Areas

  • Climate change
  • Financial health and inclusion

Environmental Achievements

  • Certified as operationally carbon neutral for the third consecutive year
  • Planted 40,000 trees through Woodland Saver accounts
  • Extended green home finance product range to UK expats and international residents

Social Achievements

  • Launched the UK’s first Shariah-compliant Regular Saver account
  • Doubled paid volunteer days for colleagues (two days per year)
  • Launched a new initiative to support local sports teams (Hyderi Sports Association)

Governance Achievements

  • All Board Members, Executive Committee and colleagues completed mandatory Anti-Bribery and Anti-Money Laundering training in 2023
  • Re-established Diversity, Equity and Inclusion Forum
  • Introduced two mandatory e-learning modules on Equality & Diversity and Menopause Awareness

Climate Goals & Targets

Long-term Goals:
  • Reduce emissions of home finance portfolio from base year by 90% by 2050
Short-term Goals:
  • Move 100 properties in portfolio from E to D ratings and above by end of 2025
  • By end of 2025, all financed properties will have an EPC rating
  • Increase the percentage of new young savings customers (aged 18-30) from 3% in 2021 to 10% by the end of 2025

Environmental Challenges

  • Incomplete Scope 3 emissions data in 2022
  • Unavoidable increase in international business travel in 2023
  • Rising living costs, inflation, interest rates, and economic uncertainty
Mitigation Strategies
  • Worked with Carbon Neutral Britain to offset operational emissions
  • Set targets to mitigate operational and financed emissions
  • Developed an emissions reduction strategy with Greengage
  • Enhanced green home finance product offering
  • Developed a financial education program to help community groups boost their financial resilience

Supply Chain Management

Responsible Procurement
  • Sustainable procurement policy

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UN PRB

Third-party Assurance: FBRH Consultants Ltd

Sustainable Products & Innovation

  • Green home finance products
  • UK’s first Shariah-compliant Regular Saver account