Since joining the Future-Fit Development Council in 2020, Virgin Money has been working with our team to develop a Q&A-based tool that helps any SME understand and improve its environmental and social impacts. To incentivise businesses to take action, not only is Virgin Money making this tool free-to-use, but the bank will be offering sustainability-linked loans for companies deemed eligible through the use of Future-Fit’s methodology.
Through this approach, Virgin Money is using its market position to catalyze positive system change. What’s more, it is inviting other banks to do the same by making the co-created methodology freely available.
Graeme Sands, Corporate & Mid-Market Director at Virgin Money, said: “Like many organisations, Virgin Money is in the early stages of its journey to become a truly sustainable business. And, as a provider of finance, we recognise that our potential to drive change extends well beyond our own four walls.
That’s why in November 2019 we committed to ensure that, by October 2022 5% of all our business loans would be made to firms leading environmental and social change and whose activities enable others to transition to more sustainable business models.”
The Virgin Money Sustainability Benchmarking Tool, itself distilled from Future-Fit Business Benchmark, will provide the bank with an initial view of whether its corporate customers are taking credible action on, and providing solutions to, the systemic challenges that society is facing.
Graeme Sands continues, “The tool enables us to identify and incentivize those businesses whose core activities create a fairer and more equitable society and we firmly believe that doing this allows us to better undertake our economically pivotal role of directing capital responsibly.”
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.