Embedding ESG in everything we do
We take the same approach to ESG as we do to banking; it should be straight-up, heartfelt and relevant. Our approach is to make sure our principles are transparent, easy to understand, and are used to guide and inform how we do business every day.
ESG is firmly embedded in our decision-making frameworks, governance, targets and in the strategic and financial planning schedule. We believe ESG, just like Purpose, is central to everyone’s role and responsibility and that this approach will make us truly sustainable over the long term by empowering colleagues and enhancing our Purpose-led culture. We have enhanced the climate-related measures, and the ESG scorecard contributes a 15% weighting to the overall FY22 LTIP, achieving our 2030 aspiration of linking variable remuneration to ESG progress.
The Board plays an instrumental role in leading our ESG strategy, with individual members of the Leadership Team sponsoring our ESG goals. Through deep dive sessions, supported by external experts, Directors have been building their understanding of the financial risks and opportunities of climate change throughout the year.
We are committed to developing our disclosures in line with Taskforce on Climate-related Financial Disclosures recommendations and improving access to and transparency of our ESG principles. You can access our ESG Resource Hub for more information on our strategy, policies and statements.
- ESG Resource hub has improved the transparency of our ESG related activities
- We are compliant with the TCFD recommendations.*
- Refreshed ESG targets within Leadership Team Performance Scorecards for FY23.
- ESG Ratings upgrade from Sustainalytics to 18.1 (from 25.7), moving Virgin Money to ‘Low Risk’ (from ‘Medium Risk’), and MSCI upgrading our score to ‘AA’ from ‘A’, which now places us in the ‘Leader’ category.
- ESG training delivered to all staff.
* consistent with the TCFD’s 2017 Recommendations and Recommended Disclosures across all four TCFD pillars and the UK Listing Rule 9.8.6R(8) requirements
Governance and Reporting
United Nations’ Principles for Responsible Banking (UN PRB)
As a signatory to the UN PRB, we are committed to aligning our business with the Sustainable Development Goals (SDGs) and the Paris Agreement on Climate Change. We are taking steps to enable us to continually improve our impact and contribution to society, and have reported on our progress:Being a force for good - United Nations’ Principles for Responsible Banking.
Task Force on Climate-related Financial Disclosures (TCFD)
We’ve been busy progressing our climate strategy and we’re proud to present our second TCFD report which outlines the results of the hard work we’ve been doing to support transition to a more sustainable future.