Build a Brighter Future
Deliver products and services that help our customers make a positive impact on society and the environment.
Supporting society for the long term
We want to empower our customers to take control of their money, providing innovative tools, products and services that help them make sustainable long-term decisions. As part of this, we are aspiring to at least halve the carbon emissions across everything we finance by 2030 and do what is needed to align with the 2015 Paris Agreement.
Our starting position is strong with low levels of lending to carbon-intensive sectors but there remains work to do to fully understand how we will get there. We envisage our approach will incorporate green products and funding, and targeted lending growth as well as addressing residual carbon.
We have begun engaging with customers, colleagues and industry forums to accelerate our thinking and build our plans.
£150M in renewables lending (hydro-electric power, power generation, wind farms and other renewable energy.
Greening your home content. Developed for our first-time buyers to be made available through our Home Buying Coach App.
Aligning lending to ESG goals through a developed sensitive sector policy statement.
100 businesses have taken part in our Sustainability Benchmarking Tool pilot.
- At least halving our carbon emissions across everything we finance.
Short > Medium Term Targets
- 5% of business loan book comprised of sustainable leaders by FY22.
- (Baseline: c.2.8% of business lending to sustainable leaders based on pilot of beta Sustainability Benchmarking tool).
- Short to medium term targets for our mortgage book are under development.
Partnership for Carbon Accounting Financial (PCAF)
Future Fit Development Council
We were the first bank members of the Future-Fit Development Council and have been working with Future-Fit to build a benchmarking tool for businesses to measure their progress against meeting the UN SDGs. The tool will evolve to provide support with tangible improvement actions. We have already piloted the tool with 100 customers to ensure we calibrate it in a way that means only businesses which are deemed to be at the forefront of sustainability can benefit from reduced cost of capital and increased access to finance.
Following the pilot, we estimate that 2.8% of our business loans are currently provided to firms whose core activities materially enhance progress against the UN SDGs. This is measured using the beta version of our Virgin Money Sustainability Benchmarking Tool. During the year we will enhance coverage of our commercial loan book and capture and extend the use of the data generated by the tool to measure progress in ESG in our customer base.
Business Banking Renewables
Our Renewable Energy team manages a book of over £100m* and our plans envisage growth in this portfolio to £320m by FY25, projected to be materially in excess of overall loan book growth. Our lending to carbon-intensive sectors is relatively low, and this year we have increased transparency to our stakeholders by publishing our Sensitive Sectors Policy Statement.
*Renewable borrowing covering a diverse range of renewable energy generation, excluding the £50m of lending within the Agriculture loan book advanced specifically to fund renewable energy projects.