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Reducing our operational impact

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.

Minimising our footprint

We operate in mortgage, consumer and commercial finance markets and therefore the overall environmental impact of our operations is low. However, we are committed to identifying, measuring and managing how our actions affect the environment and finding ways to reduce their negative impacts.


Reduction in market-based emissions compared to the 2019 baseline


Electricity from renewable sources


Waste diverted from landfill

Environmental initiatives

Waste to energy

Waste to energy

Since 2020, all general waste produced across our sites has either been recycled or disposed of through energy from waste initiatives, reducing the amount of waste being sent to landfill.

New premises

New premises

In 2022, our SME lending team in Southampton relocated to a new, climate-friendly office with a B-rated energy performance certificate, four electric car charging points and cycle stores.

Future goals

In 2024, we’ll continue upgrading and re-assessing our buildings and management systems to further improve our EPC ratings.

Environmental policy and risk management

We comply with all applicable laws and regulations relating to the environment and include these within our legal compliance framework. Our environmental commitment is included in our Health, Safety and Environmental Policy, which is approved by our Chief Executive and our Chief People Officer.

Our environmental commitments are approved by our Chief Executive and kept under regular review.

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 by the second line Operational Risk function and the Operational Risk Committee.

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.

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

Measuring progress

We are continually looking at ways to improve the environmental performance of our UK sites. This includes reducing our carbon emissions through the efficient use of energy and water, minimising consumption and waste while recycling where possible, and encouraging responsible behaviour among our colleagues. See our Responsible Business Report for more information.

Market-based method CO2 emissions (tCO2e)

market based method co2 emissions graph

Electricity (MWh)

Electricity graph

Waste (tonnes)

Waste graph

Water usage (m3)

Water usage graph

Our carbon emissions are grouped into three categories

Scope 1

Emissions produced directly from our operations, which include emissions from our fleet of company cars and the heating and cooling of our offices.

Scope 2

Emissions associated with the generation of our purchased electricity.

Scope 3

Emissions generated by expensed employee travel, our water usage and waste processing.