A key element of our sustainability strategy relates to acting on climate change and reducing the direct and indirect impacts that the Group has on the environment. We have set ourselves an ambitious goal – to achieve net zero carbon emissions by 2040.

We recognise that taking action on climate change is for the whole of society, so we are committed to playing our part. This means not only doing all we can to reduce the greenhouse gas emissions that arise from our direct business activities, but also working collaboratively with others, including our suppliers, to do the same.

Our Climate Change Strategy

Our strategy is aligned with the Paris Agreement and keeping global warming to no more than 1.5°C above the temperature set before the beginning of the Industrial Revolution. This means transitioning to a low carbon economy by reducing the greenhouse gas emissions of our operations and supply chain. It also is about ensuring that any climate-related risks are integrated into our business strategy and decision-making in areas such as operational resilience, customer service, and supply chain management, and where appropriate capital allocation.

Endorser-Logo_solid_blue_RGB.jpgSince 2021, Vanquis Banking Group has proudly been a participant in the UN Global Compact responsibility initiative, demonstrating our commitment to sustainable and ethical business practices. As part of this initiative, we adhere to its Ten Principles, which focus on key areas such as human rights, labour standards, environmental sustainability, and anti-corruption. By integrating these principles into our operations, we aim to foster a fairer and more sustainable global economy. Read more here.

Understanding and Managing Climate Risks and Opportunities

Climate change considerations are integrated within the Group’s Risk Management Framework which enables us to identify, analyse and report material climate change-related risks and opportunities and their financial impact on the Group. Climate Risk sits under Strategic Performance Principal Risk 12 as a sub-category (12.3). This is because the Group’s long-term success is dependent on the sustainability of its operations and business models, and the resilience of its supply chain.

We have published a report in our Annual Report and Financial Statements 2023 that is fully consistent with the recommendations and recommended disclosures of the Taskforce on Climate-related Financial Disclosures (TCFD). In doing so, we comply with the FCA’s Listing Rule 9.8.6R(8), the Companies (Directors’ Report) and meet the requirements of the Companies (Strategic Report) (Climate-related Financial Disclosure) Regulations 2022.

Our science-based targets

In January 2024 our carbon reduction targets were validated and approved by the Science Based Target Initiative (SBTi). These targets meet the following three criteria: They have a clearly-defined emissions reduction pathway; they have a defined baseline amount and year, as well as target goal date; they are set in line with the latest climate science necessary to meet the goals of the Paris agreement (i.e., to limit global warming to well-below 2°C above pre-industrial levels and pursuing efforts to limit warming to 1.5°C). These targets are to:

  • Reduce our scope 1 and 2 GHG emissions by 39.9% by 2028. This target is an absolute target which has been set using the SBTi’s target setting tool. The scope 1 and 2 science-based targets is set to be achieved by 2028 in a linear reduction by 5.2% per year. The baseline year for this target  is 2021.
  • Engage with our top 78% of suppliers by spend (i.e., 18 suppliers) which account for 72% of scope 3, category 1 GHG emissions to reduce their own carbon emissions by 2027.

We are committed to publicly reporting our progress.

Managing and Reporting our Environmental Performance

A key tool that helps us to manage and reduce our impact on the environment is our environmental management system (EMS), which we have had in place for 20 years. Our EMS helps us to identify, assess and reduce key environmental risks and impacts; set and deliver against environmental targets; and ensure our legal compliance. This EMS is independently audited each year against the requirements of the international management standard ISO 14001:2015. Following the third-party audits carried out in 2023, all our main premises in Bradford, London, Chatham in Kent and Petersfield in Hampshire continued to be certified to ISO 14001:2015. Provident Financial Group - ISO 14001 Logo (002).png

We measure and report on our GHG emissions in accordance with the UK Government’s Streamlined Energy and Carbon Reporting (SECR) policy that has been implemented through the Companies (Directors’ Report) and Limited Liability Partnership (Energy and Carbon Report) Regulations 2018.

Details of our scope 1 and 2 GHG emissions in tonnes of CO2e, along with a relevant intensity ratio (i.e., kilogrammes of CO2e per customer) and information on underlying energy use for 2023, can be found in our Annual Report and Financial Statements 2023. We also measure and report on a range of other environmental metrics, including those that relate to the waste we generate and recycle, the water we use and paper used across our business. This information is set out in our ESG datapack.

Reducing our carbon footprint

Set out below are key reductions in our carbon footprint which occurred throughout 2023, when compared to the same period in 2022. 


reduction in total waste arising


reduction in our total paper usage


reduction in total scope 1 and 2 (and associated scope 3) emissions


reduction in our reported waste sent to landfill

Offsetting Carbon Emissions

The Group is committed to reaching its net zero goal by 2040. To do this, we continue to offset our greenhouse gas emissions through the purchase of carbon credits in renewable energy projects. In doing so, we are mindful that some approaches to carbon offsetting have been criticised for being used to superficially bolster a company’s environmental credentials without addressing the root causes of climate change. This is why our carbon offsetting strategy focuses on investing in nature-based projects such as tree-planting and habitat restoration. By doing this, our approach to offsetting supports the removal of carbon from the atmosphere. In 2024, we offset 8,000 tonnes of CO2e in the following two nature-based carbon capture projects:

  • Planting Biodiverse Forests in Panama (5,000 tonnes of CO2e). This project, initially developed by Forest Finance and recently extended by the partner Sustainable Timber and Isla Cebaco, is based on a model that combines sustainable, high quality timber production with biodiversity protection and ecosystem restoration. By also planting a mix of cacao and native tree species in some areas, the project also enables sustainable cacao production.
  • BaumInvest Mixed Reforestation in Costa Rica (5,000 tonnes of CO2e). The reforestation project of BaumInvest in Costa Rica combines premium quality standards of a recognised forest carbon offset project with multiple ecological and socio-economic benefits for local communities and the environment.