Working towards our sustainable future
Our purpose as an organisation is to accelerate progress in society towards a fair and sustainable future for all. It is important, therefore, that our responsibilities to the environment and natural world are at the forefront of how CAF operates
and supports the communities we serve.
We are committed to becoming a more sustainable organisation and achieving net zero across our UK operations by 2050. This includes those within our wholly owned subsidiary, CAF Bank. However,
we recognise that this commitment is just a starting point for the focused and continuous work we need to do as an organisation to achieve it.
Our progress towards greater sustainability
Since 2023, as part of our work to develop a sustainability roadmap for CAF, we have focused on improving our data capture capabilities and understanding. Informed by a review of our Scope 1 and 2 emissions, we are now rolling out our next phase of actions
to reduce CAF’s carbon footprint.
For example, we are currently reviewing our long-term property plan in the UK, with a focus on long-term sustainability. Our London office already runs on 100% renewable energy. While at CAF’s
Kings Hill office, we are set to transition from 60% to 100% renewable energy sources by October 2025. Plans are also underway to install a solar energy system at this site, which will reduce our emissions even further.
Other measures include a commitment to:
- Continually review and improve our environmental performance, embedding an environmental management system across our organisation and environmental management best practice within our operations.
- Integrate sustainable and circular procurement and sourcing into our processes, using our buying power to select solutions that meet our sustainability criteria. For example, we have worked with our employee pension provider to make sure that our
Default Fund (the default fund that employees’ pension contributions go into) is now 98% ESG-aligned.
- Raise colleagues’ awareness of environmental issues through training and communications, encouraging environmentally responsible behaviour.
- Expand our measurement approach in the future to include Scope 3 emissions.
CAF’s operations in the UK qualify for the Energy Savings Opportunity Scheme (ESOS), which is a mandatory energy assessment scheme. Following compliance with our phase-three obligations, we are now finalising our phase-four measures. Further information
about ESOS compliance is available via www.gov.uk.
CAF Bank
CAF’s wholly owned UK subsidiary CAF Bank provides transactional banking services and lending to charities and social purpose enterprises.
CAF Bank only lends money to charities and social purpose enterprises. It, therefore, does
not provide any financing to companies whose operations involve fossil fuel extraction, processing or sale, and/or traditional petrol or diesel vehicle manufacturing. CAF Bank reviews its lending criteria and policies on a regular basis to ensure
these standards are upheld.
Since 2023, CAF Bank has also been providing Green Loans, aligned to the Loan Market Association Green Loan Principles, providing our borrowers with green finance specifically designed to help them achieve their
sustainability goals.
Internally, CAF Bank recognises the risks and opportunities that environmental change and the transition to a lower carbon economy present to its organisation, as well as the charities and social purpose organisations
it serves. In response, CAF Bank has developed a comprehensive environment and climate risk register and integrated the physical and transition risks associated with climate change into its Enterprise Risk Management Framework.
CAF Bank's approach to investments
CAF Bank maintains a conservative portfolio of treasury investments that is governed by the Bank’s internal Treasury Policy. This policy details what it will and will not invest in, as well as the ESG considerations that apply when making investment
decisions.
CAF Bank does not hold any treasury investments in energy producers, military arms producers, alcohol, or tobacco manufacturers, and as a point of policy has no appetite for making treasury investments in companies whose
primary business involves fossil fuel extraction, processing or sale, or traditional petrol or diesel vehicle manufacturing.
CAF Bank’s treasury portfolio is subject to screening through the publicly available Sustainalytics
ESG risk-rating tool. CAF Bank’s Head of Sustainability updates this on a quarterly basis. It is also subject to governance review.
