Atom bank has announced a significant milestone in its sustainability journey, achieving a 22% reduction in its operational carbon emissions over its last financial year.
The bank's latest annual Sustainability Report for the financial year to 31st March 2025 details this achievement and the work behind it, demonstrating that ambitious climate action and business expansion can be mutually supportive goals.
This approach is further exemplified by the bank's three case studies in the UK Finance White Paper on Sustainable Leadership, which demonstrate the commercial viability of integrating environmental responsibility.
Ambitious climate target
Atom bank has been clear on the need for measurement and transparency as the banking sector looks for ways to reduce the impact it has on the planet. The digital bank first published its annual Sustainability Report back in 2021 as part of its commitment to becoming climate positive from 2035, a goal that represents one of the most ambitious climate pledges of any UK bank.
The bank's latest report highlights significant progress towards this objective. Notably, Atom bank has achieved a 22% reduction in total operational emissions since FY24, with emissions per employee decreasing by 27%. These reductions are particularly impressive as they were achieved during a period of substantial growth for the bank, with its customer base expanding by 19%, lending increasing by 29%, and savings deposits rising by 31%.
A focus on transparency and measurement
The Sustainability Report focuses on transparency and meticulous measurement, laying out Atom’s approach across its operations and, crucially, its financed emissions from the homes and businesses it lends money to. The report details the methodology used to calculate and report emissions, providing stakeholders with a clear view of the bank’s impact and progress against its 2035 goal.
As part of its push for better data and more targeted action from the banking sector, Atom recently published the results from a trial in collaboration with Experian which reveals that both Atom and the wider banking industry are likely over-reporting the emissions linked to residential mortgage lending by as much as 50%.
The results call into question the reliability of EPCs to estimate carbon emissions from all banks’ mortgage lending, with meter readings in the study showing both lower emissions and minimal variations in emissions between properties of very different EPC ratings.
This research has important consequences for the design of truly green mortgage products and for the path to net zero for the wider economy. Atom has been calling for the energy and banking sectors to work together more closely to understand the actual level of financed emissions and the best pathway for reducing them, and will continue to lead that debate with Government and the industry.
Key drivers of emissions reduction
The significant reduction in operational emissions is part of a series of environmental initiatives implemented across the business for the staff and customers of the bank:
- Sustainable offices: During the reporting year, Atom’s HQ was located at the Rivergreen Centre, a highly sustainable building designed to reduce carbon emissions. Atom has since relocated to The Pattern Shop in Newcastle, a major restoration and refit of a listed building specifically designed to be an energy-efficient workplace.
- EV Scheme: A continuation of the bank’s electric vehicle (EV) scheme with Octopus EV to support the move to low carbon driving for its people.
- Retrofit Explorer tool: The launch of a customer-facing tool designed to help plan and improve a home’s energy efficiency through retrofitting.
- Supplier due diligence: Integrating ESG considerations into the supplier due diligence process, ensuring the bank’s supply chain aligns with its climate positive goals.
- Poppy’s Wood purchase: Continued partnership and investment in the Poppy’s Wood conservation project in Northumberland to support local biodiversity and carbon sequestration efforts.
Edward Twiddy, Director of ESG and co-founder at Atom bank said:
“The figures from our latest Sustainability Report are evidence that growth does not have to come at the cost of the planet - and that there is no justification for banks or other businesses to move away from this agenda.
“The 22% reduction in our operational emissions since last year is the result of positive initiatives taken by Atom that have seen us grow our lending and our customer numbers whilst driving out more efficiencies and with that further reductions in operational emissions. Beyond our own operations, we continue to push for greater transparency and higher data quality across the sector. The results from our recent Experian trial suggest that the wider industry is likely over-reporting mortgage lending emissions by as much as 50%, which has huge implications for Atom and for wider policy on the path to net zero.
“We want to show everyone that it is possible for banks to support the nation’s net zero goals, while also serving more savers, home and business owners, and we remain dedicated to our goal of becoming climate positive from 2035.”
