Page 21 - 82097_CCB - Annual Sustainability Report (v2).indd

20 Annual Sustainability Report 21

GOVERNANCE GOVERNANCE

B Corp

certifi cation
Ethos Managing the Risk Energy Performance Certificates

£20m Supporting customers to transition to a sustainable
The Bank has a well-established corporate The Bank maintains a robust risk management economy is a natural step for us. The most significant

governance structure, and the Board supports investment from BBB framework. As a highly regulated business we have transition risk currently is potential legislation changes
relating to the sale or letting of properties in relation
strong audit and compliance systems and processes.
the principles of good corporate governance We require our employees to undertake training in to their energy performance certificate (EPC) rating.

as set out in the UK Corporate Governance Interim registration areas over and above that required by the regulators, Our EPC related loan product is a first step to helping

Code. We continue to integrate ESG impact with LSB such as on Modern Slavery and ESG. This training reduce this risk for customers as well as reducing our
programme is supported by a learning management

considerations into decision making at the Bank system that monitors the delivery of this training and financed emissions.
as our measurement and understanding of our ensures all training is completed. Number of property units with an
impacts develops. Our Board proactively reviews and assesses their own EPC grade E or better:
effectiveness and we have a suite of performance

indicators to inform this process. Executive (95.5%)
remuneration is linked to a balanced scorecard which 6,509
Our approach to governance is focused on includes ESG performance metrics and targets.
achieving our vision - to enable the growth At an employee-level, we have a cross functional
and success of SMEs whilst making a positive Green Team, established and led by our colleagues, Value of loans with an
difference to our colleagues, customers, and that works to build a sustainability community across

the community, as well as ensuring value the organisation. A key focus is to work towards EPC grade E or better:
for our shareholders and maintaining strong reducing the company’s impact on the environment,
relationships with regulators. use of natural resources and overall carbon footprint. £753,966,630

2023 Highlights In a sustainability context, risks are considered from
two perspectives – physical risks and transition
risks. We continue to have limited exposure to Proportion of loans with an
A standout highlight in 2023 was the physical risks. EPC grade E or better:
B Corp certification, aligning with the

overarching purpose shared by stakeholders, We actively consider physical and transition 95.2 %
including Trinity Hall Cambridge and “ We’re pleased to be announcing this additional risk within our underwriting criteria, seeking to
Cambridgeshire Local Government Pension ENABLE Guarantee facility with Cambridge & ensure we manage our exposure to these risks as
Fund. The mission lock requirement of Counties Bank, which has shown its ability to help we continue to grow. We also then monitor our
B Corp certification saw us make a legal smaller businesses grow and succeed as well as exposure to these risks. Data Loss

commitment to consider the interests of help to reduce regional imbalances across the UK.
all stakeholders, not just shareholders. “ As well as fitting well with the British Business Flood Risk Financial, cyber and data security are essential for

This means that a company must embed Bank’s objective of supporting the UK’s transition the Bank and our stakeholders. There is ongoing
in its legal structure the obligation to to a net zero economy, this will also support We have partnered with Twinn Risk Analytics to get investment in our defences and training in this area

balance profit with purpose, ensuring that tenants at a time when their energy bills are a top greater accuracy on flood risk within our real estate which will continue to be a top priority for us.
decisions benefit workers, communities, priority for them.” loan portfolio. We are pleased to say that we have had no reportable

customers, and the environment, alongside Overall, we have a low appetite for flood risk and data loss incidents and no risk events relating to data

financial returns. This commitment, wholly Reinald de Monchy report to our Board and ESG Steering Committee on during the year.
supported by our shareholders, reflects our Managing Director, Guarantee and Wholesale a quarterly basis.

commitment to being a societal enterprise Solutions, British Business Bank Number of reportable data loss incidents
with a clear purpose. Value of loans with a flood risk score of 5

“ At British Business Investments, our mission is to
Substantial investment activities with the increase the overall supply and diversity of finance 0

British Business Bank, targeted at supporting for smaller businesses across the UK. This £20m £36,642,643
growth in lending to SMEs, further mark Tier 2 facility to Cambridge and Counties Bank
a pivotal aspect of our progress. The supports that mission and will help more smaller Number of material risk events related
continuous utilisation of funds drawn businesses across the UK access the capital they

from these investments underscored our need to grow.” Proportion of loans with a flood risk to data retention/customer
commitment to fostering economic growth. score of 5
Judith Hartley 0
4.11
CEO, British Business Investments %