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Ž The effectiveness of the Bank’s The Bank is committed
Operational Resilience and increased to being a responsible
focus on third and fourth‑party
reliance following the impact on user of resources.
the Finance industry following the
CrowdStrike outage.
Ž The changes in competition and market
demand, driven by the emergence of of management information at senior
new entrants, as well as the changing governance committees. The Bank’s Modern
customer preferences and expectations, Slavery Statement (which is available on
which required us to innovate and our website) sets out the policies we apply
differentiate our products and services, and actions we take to ensure that our
and enhance our digital capabilities.
employees and customers are treated with
Ž The increased focus on climate dignity and respect. This includes raising
change risk, which required us to align awareness of issues that could put the
our business strategy and practices people the Bank encounters at risk such as
with the environmental and social vulnerability and exploitation. The statement
goals, and measure and disclose our also explains how we ensure that the Bank’s
climate‑related risks and opportunities, values are applied within our supply chain
in line with the regulatory and including the due diligence we carry out on
stakeholder expectations. our suppliers.
The number of newly launched niche
specialist banks, together with an increase
in the non‑banking participation in the Environmental, Social
asset finance market, has over the past few and Governance
years also had a significant effect on lending
margins. This has inevitably put pressure
on our gross lending margins. We continue Introduction
to ensure that our customers interest rates
compare well with those that are on offer in The Environmental, Social and Governance
the market. Margin compression is expected (ESG) agenda remains a key focus for the
to continue, although we remain confident Board, with regular debate and reports
that following the expansion of our received from the Executive relating to
geographic footprint across the country, and environmental, community, and wider
investing in our relationships with our broker industry issues. The Bank’s governance
introducers, we can continue to meet our policies and processes are set out in detail
growth appetite at margins commensurate on pages 42 to 67.
with the Board’s Credit Risk Appetite. The Board also recognises the
importance of culture to the Bank’s health
and creates the tone from the top so that
Other non-financial disclosures
the Board delivers on its responsibilities
The Bank has a moral, legal, and regulatory to all its various stakeholders, especially
duty to prevent, detect and deter financial our customers.
crime and maintains a Financial Crime The Bank achieved B Corp certification
Framework. This framework is supported in 2023, joining a global movement
and reinforced by the Bank’s systems and of businesses that use their power for
behaviours which put the customer at good. B Corp certification is a rigorous
the heart of every interaction. The Bank assessment of a company’s social and
promotes an environment that protects its environmental performance, transparency,
customers, employees, and communities and accountability. By becoming a B Corp,
from financial crime, and continues to the Bank demonstrated its commitment to
invest in its Anti‑Money Laundering (AML) creating positive impact for its stakeholders,
and Know Your Customer (KYC) financial including its customers, employees,
control system enhancements. The suppliers, community, and the environment
Bank’s compliance with the requirements along with shareholders. Cambridge &
of the Financial Crime Framework is Counties Bank is one of 1,500 UK businesses
monitored through ongoing control testing, that have earned this prestigious recognition
assurance, internal audit, and the provision and one of the few in the financial sector.