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Caring for the environment

We take care to identify, manage and minimise our impact on the environment, both in terms of the impact of our lending products and our own operational impact.

Lending sustainably

How customers use the funds we lend them can have an impact on the environment and the financial risks we face. We are enhancing our approach to identify the potential impacts of climate change and developing a system to manage the risks involved.

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Operational impact

As we are mainly engaged in mortgage, consumer and commercial finance, the overall environmental impact of our operations is low. Aside from SFS, who lease refuse vehicles to local authorities across the UK, the main environmental impacts of our operations are limited to universal environmental issues, such as resource use, procurement in offices and business travel.


Renewable energy

proportion of purchased electricity in 2019-20 obtained from sources certified as renewable by OFGEM


Stationery and consumables

proportion of expenditure directed towards green products


Pre-printed stationery

of all pre-printed stationery items are produced from renewable sources certified by FSC

Green Charter

We comply with all applicable laws and regulations relating to the environment. Our environmental commitments are expressed in our Green Charter which is approved by our Chief Executive and kept under regular review. Our Green Charter aims to:

  • ensure all buildings that we occupy are managed efficiently
  • encourage employees to conserve energy
  • promote recycling by negotiating contracts and providing facilities to enable employees to recycle office waste and other used products
  • control business travel by promoting video conferencing between sites when appropriate and provide opportunities for employees to travel to work in various ways; such as providing cycle racks
  • ensure liaison with the local community through our Responsible Business initiatives
  • ensure that redundant equipment is disposed of in accordance with the Waste Electrical and Electronic Equipment Regulations
  • ensure that all fluorescent light tubes are disposed of in a safe manner, compliant with appropriate regulation
  • arrange for paper waste products to be recycled, securely, by third parties
Green charter

Environmental initiatives

Waste to energy

Waste to energy

All of the general waste produced at our principal sites is disposed through an approved waste contractor, using Waste to Energy initiatives, resulting in no general waste being disposed at landfill.

Resource saving technology

Resource saving technology

We recently introduced touchless energy and resource saving technology when undertaking refurbishment work to the washroom facilities at our head office.

Environmental policy and risk management

Our environmental commitment is included in our Health, Safety and Environmental Policy. This is approved by our Chief Executive and our People Director, and it is displayed in our buildings.

Energy data is collated by Group Property, the division responsible for managing Paragon’s premises. Consumption figures for all locations occupied, whether directly owned or tenanted, are actively monitored. This is reported upwards to Board level.

The environmental risk inherent in our operations is managed by the Group Property function and is within the remit of the Chief Operating Officer. It is monitored within our operational risk management framework and is monitored by the second line Operational Risk function and the Operational Risk Committee.

We comply with the Energy Savings and Opportunities Scheme. This is a UK Government initiative, under an EU Directive, and requires us to identify and reduce our energy consumption.

Paragon has not been involved in any prosecutions, accidents or similar non-compliances in respect of environmental matters and has not incurred any fines in respect of such matters.

Specialist Fleet Services (SFS)

SFS leases refuse collection vehicles to local authorities throughout the UK and carries out additional aftersales activities that include servicing, maintenance and breakdown support. This means it has the most significant potential environmental impacts within the Group.

SFS operates from several workshops around the UK and has exposure to several waste streams (oils, vehicle parts etc) that come from its workshop activities. These are effectively managed under an environmental management system that is certificated to an International Standard – ISO14001:2015. A dedicated health and safety manager has direct responsibility for environmental issues at all SFS sites.

Supply chain and procurement

We are committed to identifying, targeting and addressing inefficiencies in our supply chain and our procurement function works with key suppliers to identify solutions to continue to reduce the environmental impacts of our business activities whether direct or indirectly.

Our main suppliers are our outsourced savings administrator, legal and professional services providers, building lessors and IT service providers, who are exposed to similar operational environmental risks as us.

Supply chain

Performance indicators

Our environmental key performance indicators, highlight our success in reducing greenhouse gas emissions, power usage and waste.

These key performance indicators have been determined having regard to the Reporting Guidelines published by the Department of Business, Energy and Industrial Strategy and the Department for Environment, Food and Rural Affairs in March 2019. They measure performance for the 12 months to 30 September. Further details can be found here in section A6 of the 2020 Annual Report and Accounts.

The reduction in key performance indicators during 2020 is principally driven by lower office occupancy as a result of the Covid-19 pandemic.

Greenhouse gas emissions

2020 Tonnes CO2 2019 Tonnes CO2
Total 1,982 2,861
tonnes CO2 per £m
of income
6.7 9.6

Power usage

2020 MWh 2019 MWh
Total 7,388.7 9808.6
Normalised MWh
per £m of income
24.9 33.0


2020 Tonnes 2019 Tonnes
Total 221 309
Normalised tonnes
per £m of income
0.75 1.04


Our water usage is limited to the consumption of piped water in the UK and no water is extracted directly. Water usage in 12 months to 30 September 2020 was 11,950m3 (2019: 13,010 m3), based upon consumption recorded on purchase invoices, a normalised amount of 40.5m3 per £m income (2019: 43.7m3 per £m income). A water saving initiative is in place which is intended to reduce year on year water usage across the sites where we have full responsibility for the premises occupied.