- Virgin Money Sustainable Business Coach provides an objective assessment of a business’ ESG impacts, with guidance on how to improve
- Free app is available to all UK businesses, not just Virgin Money customers
- App was developed in partnership with fintech Life Moments and not-for-profit Future-Fit Foundation
Virgin Money has launched a free new app designed to help businesses be more sustainable by measuring, tracking and offering guidance on improving their Environmental, Social and Governance (ESG) credentials.
Through its partnership with Future-Fit Foundation, a non-profit organisation, whose mission is to help the transition to a society that is environmentally, socially and economically fair, the Sustainable Business Coach will help UK businesses manage their sustainability goals. Virgin Money is also offering Sustainability-Linked Loans to businesses who meet the eligibility criteria generated by the outputs from the tool.
The tool identifies the high-priority goals a business should consider and provides an objective assessment of the positive and negative ESG impacts of its activities. As well as giving a score and actionable guidance, it has been designed to be completed periodically, encouraging businesses to track their progress over time. With growing requirements for companies to report on their environmental and social impact, this tool, which can be downloaded from the Apple App Store and Google Play Store, is an easy first step to help any business of any size to get started, and track and demonstrate their progress.
Once completed, if eligible, businesses can apply for a Sustainability-Linked Loan, which reduces the cost of finance for companies whose core activities enable consumers and other businesses to operate in a more economically and environmentally sustainable way. Virgin Money is the first bank in Europe to offer such loans in commercial banking using an objective science-based methodology. For customers borrowing at least £250,000, with a sufficiently strong ESG assessment, the lending has no arrangement fee.
Graeme Sands, Interim Head of Business Banking, at Virgin Money, said: “We are committed to working with businesses to help them grow and thrive, and one area where many need support is on their ESG strategy. Businesses recognise the importance of sustainability to their long-term success but many, especially smaller firms, can face challenges getting started, setting targets and making positive progress.
“We designed the Sustainable Business Coach to help businesses with this process, giving them the information and guidance they need to operate more sustainably. It can be completed periodically, so becomes an effective benchmark to track progress over time. We have made the app available to any UK business, not just our customers, as work in the ESG space should be about collaboration and sharing best practice – we must all play our part in becoming more sustainable.”
To help create this app, Virgin Money engaged fintech data expert company, Life Moments, a leading provider of platforms and tools to improve customer experience and generate data insight. Virgin Money and Life Moments have worked together since early 2020, initially developing and launching the Bank’s Home Buying Coach app, which is designed to simplify the home purchase process and help first time buyers on to the property ladder.
Martin Rich, Co-Founder & Executive Director, Future-Fit Foundation, said: “Every business must play its part to create a future in which people and planet can thrive. We are pleased to be partnering with a bank which is using its balance sheet to encourage its customers to start on that journey, and providing practical, tailored guidance in the form of the Virgin Money Sustainable Business Coach.”
Ben Leonard, Co-Founder & CEO of Life Moments, said: “This was an exciting opportunity to apply our platform technology to help businesses embed sustainability into their business models. As a Profit and Purpose firm ourselves, working with Virgin Money and Future-Fit Foundation on this exciting project ticked all the right boxes.”
This support tool comes at a pivotal time as businesses assess their ESG efforts to support net zero goals. Results from a recent United Nations Intergovernmental Panel on Climate Change (IPCC) report highlighted that global emissions need to be halved and targets met in the next decade to stop temperatures rising above critical levels.
Research* by Virgin Money also highlights that becoming more sustainable is important to the majority (85%) of UK SMEs, but less than half (43%) of SMEs are managing to implement clear ESG targets. The Virgin Money Sustainable Business Coach aims to help SMEs overcome this challenge, and the app is available to any UK business, not just customers of Virgin Money.
As part of its ESG strategy, Virgin Money has also committed that 5% of all its business loans will be to firms driving environmental and social change by September 2022, as judged by the tool.
* Survey conducted by Censuswide: SMEs – 1,006 respondents who are senior decision makers in SMEs, survey conducted in Q4 2020.
Read more about how Virgin Money is incentivizing positive action among its business customers. To find out how any bank could take up the challenge and play its part in creating a flourishing future for all, read our case study.