Page 18 - CCB_Annual Report_2022

18 Strategic Report 19

Carbon Neutral Plus

status for the third

Environmental, Social year running The table below sets out our emissions in We have defined our intensity ratio as
and Governance respect of Scope 1, 2 and 3. Scope 1 covers scope 1, 2 and 3 emissions in tonnes
direct emissions from owned or controlled of CO e per £m of income as this is a
2
sources, of which the Bank has none. common business metric across the
Introduction Scope 2 covers indirect emissions from the banking sector. For completeness, we have
generation of purchased electricity, steam, also provided the ratio of scope 1, 2 and 3
The environmental, social and governance a property in a high flood risk area. Work is heating and cooling. Scope 3 includes all emissions in tonnes of CO e per employee.
(ESG) agenda is a key focus for the now underway to understand the potential other indirect emissions that occur in the 2
Board, with regular debate and reports impact of that risk and how it might Bank’s value chain. The Bank has qualified for the
received from the Executive relating to materialise. Properties financed by the Carbon Neutral Plus status for the third
environmental, community, and wider Bank have a range of EPC gradings, with Total emissions in 2022 were 67.9 tonnes year due to offsetting 100 tonnes of CO
2
industry issues. The Bank’s governance 94% having an EPC rating at E or above. of CO e, a decrease of 14.8% since the emissions through the UK Tree Planting
2
policies and processes are set out in detail The Bank is now contacting customers prior year (2021). In comparison to our project, buddied with the VCS verified
on pages 42 – 73. with property EPC grades of F and G to baseline year (2019), our Scope 1 and Reduced Deforestation (REDD) project
understand their proposals for the property. 2 emissions have reduced by 41.8%. around the world. The Bank has in total
The Board recognises the importance of As we have improved at capturing our offset 400 tonnes of CO e emissions over
culture to the Bank’s health and creates the The Board is proud of the engagement and scope 3 emissions, these have shown the past 4 years. The carbon credits were
2
tone from the top so that the Board delivers commitment of our people in reducing the an increase of 47.5% over the same supplied by Carbon Footprint Ltd from the
on its responsibilities to all its various Bank’s environmental impact and achieving period. Employee-owned grey fleet travel VSC 981 project. Details of this project with
stakeholders, especially our customers. carbon neutrality. Core to our colleague
engagement is the active “Green Team”, contributed the largest element of the full project documentation is available on
Reducing our environmental impact which is a cross-function team of Bank Bank’s emissions with 47.6% of the total Verra’s website
employees who volunteer to internally in the year. Home-workers emissions https://registry.verra.org/app/
Climate change is a significant challenge promote the green agenda facilitating decreased in the year as a result of projectDetail/VCS/981.
facing society, with a growing focus for numerous communications, initiatives and improved data collection processes.
all stakeholders, and the Bank continues activities focusing on upcycling, recycling,
to maintain a proactive approach to its and health and wellness, to help protect the
environmental responsibilities.
wider ecosystem. Scope Activity 2019 tCO e 1 2020 tCO e 2021 tCO e 2022 tCO e
2
2
2
2
In 2022, the Bank returned to a hybrid
working pattern, supporting remote Environmental information Scope 1 No operations – – – –
working for up to 50% of the working week. The Bank is committed to being a Scope 2 Leicester – electricity 14.52 8.83 7.34 8.45
This has led to new considerations of the responsible user of resources and generation and
impact upon the environment of a hybrid continues to consider ways in which it transmission
working pattern and how to mitigate the can reduce its environmental impact. & distribution 2
environmental impact of both maintaining This section reflects the Bank’s emissions
an office environment on a full-time as required by the UK Streamlined Energy Scope 2 Sub Total 14.52 8.83 7.34 8.45
basis and supporting remote working. and Carbon Reporting (SECR) Regulations Scope 3 Home-workers n/a 44.05 44.36 15.75
We have begun work to understand for a ‘large unquoted organisation’.
the environmental impact of remote Grey Fleet 31.21 3.18 16.67 32.33
working, changes to travel patterns of In calculating our emissions, we have Sheffield site n/a 2.77 10.97 9.07
employees and more limited use of office followed the latest Department for
space. The Bank achieved its plans to be Environment, Food and Rural Affairs Bristol site n/a 0.94 0.31 1.99
carbon neutral across its head office site (DEFRA) guidance released in 2013 Water (and wastewater) n/a n/a n/a 0.29
in Leicester in 2019, and from 2020 has and the 2019 Department for Business,
maintained its Carbon Neutral Plus status. Environment & Industrial Strategy Scope 3 Sub Total 31.21 50.94 72.31 59.43
(BEIS) UK Government environmental
The Bank is currently focusing on reporting guidance. We have calculated Total emissions as tonnes of CO e 45.73 59.77 79.64 67.88
2
understanding the potential impact on our emissions using the most up to date Tonnes of CO e per employee 3 0.28 0.32 0.40 0.32
its loan security values and customers’ 2022 emission factors developed by 2
investments from increased flooding, as DEFRA and BEIS. Tonnes of CO e per £m 1.07 1.58 1.61 0.89
2
well as potential new legislation relating to Carbon Offsetting
minimum Energy Performance Certificate In relation to our organisational boundary,
(EPC) gradings. Through 2022, the Bank has we have used the financial control Verified Carbon Offsets (100) (100) (100) (100)
continued its analysis on properties subject approach. In relation to operational scope, 1 Tonnes of carbon dioxide equivalent.
to a high flood risk and has identified 143 we have measured our scope 1, 2 and 2 This includes a small amount of Scope 3 emissions from transmission and distribution.
properties out of a total of over 2,972 certain scope 3 emissions. 3 Based on employee headcount as at the end of each financial year.
properties where the Bank has exposure to