Vanquis Banking : Sustainability Report 2022

Acting responsibly

and sustainably

Vanquis Banking Group plc Sustainability Report 2022

At a glance

Environmental

Social

Governance

In this year's report...

Vanquis Banking Group is a leading specialist bank providing credit products which offer financial inclusion to the one in five adults in the UK who are not well served by mainstream banks or building societies. The Group currently serves 1.7 million customers by offering credit cards as Vanquis, vehicle finance as Moneybarn and personal loans with our Vanquis Loans product.

This Sustainability Report is designed to provide the reader with a balanced account of how Vanquis Banking Group's Purpose, Mission and Strategic Priorities are aligned to the Group's sustainability strategy, as well as further details of the progress that has been made during 2022 in delivering against this strategy.

The report relates to the non-financial aspects of Vanquis Banking Group plc and its key stakeholders: customers, colleagues, shareholders and debt investors, regulators, communities, suppliers and the environment. It provides information and updates on our sustainability activities, performance and achievements from 1 January to 31 December 2022 unless otherwise stated.

Further information on Vanquis Banking Group can be found in its Annual Report and Financial Statements 2022.

As in previous years, this report has been independently assured by Corporate Citizenship in accordance with the ISAE 3000 Assurance Standard. Corporate Citizenship's assurance statement can be found at: https://www.vanquisbankinggroup.com/sustainability/.

Read Lee's story in our Annual Report and Financial Statements 2022

Moneybarn were just brilliant from the off. They put us at ease, they told us how much we'd be paying out in total. They were very thorough in their approach to make sure everything was affordable for us.

Lee

Customer service manager

To view our past Sustainability

Reports and the Annual Report and

Financial Statements 2022, go to

www.vanquisbankinggroup.com

Vanquis Banking Group plc	1
Sustainability Report 2022

At a glance

1. Our highlights for 2022
2. Group snapshot
3. Group Chief Executive Officer's welcome and review

1. Q&A with our Head of Sustainability

1. Our Purpose, Mission and Strategic Priorities
2. Aligning with the UN Sustainable Development Goals
3. How we have contributed to the SDGs in 2022

Environmental

1. Understanding and disclosing how climate change may impact our business
2. Our approach to environmental and climate risk management

1. Reducing our carbon footprint
2. Our carbon footprint
3. A closer look at scope emissions

1. Carbon offsetting

Social

Customers

1. The customers we serve
2. Serving our customers in a responsible manner

1. Maintaining customer satisfaction rates
2. Handling our customer complaints responsibly
3. Supporting customers in vulnerable situations

1. How we manage arrears
2. Providing money advice support in local communities

Our people

33 Our people

1. Reward and recognition
2. Be Yourself - our inclusion and diversity programme
3. Focus on gender balance
4. Be Well - health, safety and wellbeing
5. Be Well - supporting colleague mental health and wellbeing
6. Colleague turnover
7. Encouraging colleagues to save for their future

Suppliers

42 Our supply chain

Communities

1. Supporting our communities
2. Our plans for the future
3. Our social impact in 2022
4. Unlocking talent in our communities
5. Education case studies

1. Community partners
2. How our community foundation partnerships work
3. Projects supported through our Social Impact Funds

1. Social Impact Fund grant case studies

1. Colleague volunteering and fundraising

Governance

1. Governance and management of the sustainability agenda
2. Our stakeholder engagement strategy

1. Stakeholder engagement: Materiality assessment
2. Engaging investors on sustainability matters
3. What makes us a responsible taxpayer

1. How Vanquis Banking Group is regulated
2. Data table

At a glance

Environmental

Social

Governance

Our highlights for 2022

Here are some key highlights from the Group for 2022. You will find more highlights like these throughout the report, and specifically at the beginning of each chapter.

During 2022, as we took a number of important decisions regarding Vanquis Banking Group's future strategy, we continued to ensure our Purpose is strategically aligned with the approaches we take to operating our business of lending to our customers in a responsible manner, and acting responsibly and sustainably in all our stakeholder relationships. We did this by continuing to focus on creating a fair, inclusive and diverse workplace culture for our colleagues, investing in the communities we serve, taking positive action on climate change, and engaging with our stakeholders on the environmental, social and governance (ESG) agenda.

This ensures that we continue to deliver on our Purpose and provide our customers with the responsible credit products and services that meet their particular needs, as well as playing our role in addressing the key social, environmental and ethical challenges that are relevant to our business activities and stakeholders.

1,014 29 18%

hours volunteered by colleagues during	average hours of L&D per colleague	reduction in our scope 1 and 2
work hours		(and associated scope 3) emissions
139% (2021: 425)	21% (2021: 24)	64% (2021: 11%)
Read more on pages 69 and 75	Read more on page 36	Read more on page 18

£1.4m 26% £10,228

invested in the community	of directors are female	donated to colleague fundraising efforts
2% (2021: £1.4m)	24% (2021: 21%)	3% (2021: £9,938)

Vanquis Banking Group plc	2
Sustainability Report 2022

Read more on page 46

Read more on page 37

Read more on page 64

At a glance	Environmental	Social	Governance	Vanquis Banking Group plc	3
				Sustainability Report 2022

Group snapshot

Vanquis Banking Group's Purpose is to help put people on a path to a better everyday life. We do this by providing customers with opportunities to borrow in a transparent, responsible and sustainable way, so they can live their lives with access to finance.

On this page you will find some key information about Vanquis Banking Group and how we meet the needs of our customers by offering credit cards as Vanquis, vehicle finance as Moneybarn, and through our growing personal loans business with our Vanquis loans product.

£2.5bn	1.7m	2,005
credit issued to customers	customers served from all across the UK	colleagues in the UK
4% (2021: £2.4bn)	6% (2021: £1.6m)	21% (2021: 2,535)

To read more about the Group's businesses, see our Annual Report and Financial Statements 2022

Our Mission is to become the first-choice bank for the UK population who are excluded from accessing financial services from traditional lenders

Credit cards

Vanquis offers credit card products across a broad range of price points.

1.54m	£150-	39.9%
£4,000
Customers*	Credit	Representative
	card limits	APR

Vehicle finance

Moneybarn offers secured motor finance on a range of asset classes, including cars, motorbikes and light commercial vehicles.

100,000	£4,000-	3-5	14.9-
£25,000	years	48.9%
Customers*	Loan	Loan	Representative
	range	terms	APR

Personal loans

We offer personal loan products through our

Vanquis Loans brand.

34,000	£1,000-	1-4	34.9%
£5,000	years
Customers*	Loan	Loan	Representative
	range	terms	APR

Funded through:

Retail deposits (fixed-term deposits)

Securitisation

* Customer numbers as at 2021 year end.

At a glance

Environmental

Social

Governance

Group Chief Executive Officer's welcome and review

Vanquis Banking Group plc	4
Sustainability Report 2022

Welcome to our 2022 Sustainability Report

Taken together, our Purpose, Mission, Strategic Priorities and Values bring clarity to why Vanquis Banking Group exists and the role we play in the lives of our customers. They also underline our commitment to responding to the needs of our key stakeholders and managing and reporting our environmental, social and governance performance.

Malcolm Le May

Chief Executive Officer

2022 was another important year for the Group as we built on the work we started in 2021 and delivered a number of significant and transformative projects which have, amongst other things, seen our Company's name change to Vanquis Banking Group to reflect how our business has evolved into a bank that will focus on the mid-cost and near-prime credit market. We also continued

to make changes to the way that the Group is governed and managed so that, in delivering responsible products and services to our valued customers, we operate in a more collaborative and efficient manner. By looking forward in this way and making these key changes, we will strengthen our brand position and secure our place as the first-choice bank for people excluded from accessing financial services from traditional lenders. During this year of change, I would like

to thank every Group colleague for their ongoing commitment and for never losing sight of our Purpose of helping to put people on a path to

a better everyday life.

Having such a clear and strong Purpose is key to the long-term success of our business; it guides our decision making processes and ensures that our customers get the great services and good value products which are designed to meet their needs. It also underlines our commitment to working with our partner community organisations to improve financial inclusion, which supports social mobility.

An example of how our Purpose has guided us to take decisive action over the past 12 months is how our colleagues responded to the tragic war in Ukraine.

From the very beginning, we responded quickly as a business and made donations to the Ukrainian Humanitarian Appeal. We donated much needed IT equipment to Ukrainian families who had relocated to the UK so that they could stay in touch with family members and friends, and apply for visas and other forms of support. We also gave funding to a Ukrainian national who is resident in Odessa so that she could provide a translation service to families seeking refuge in the UK as part of the UK Government's 'Homes for Ukraine' scheme.

But it has been the personal responses to the crisis from our colleagues that have been truly humbling. From the many colleagues who have taken families into their homes or who have given generously to schemes in their local communities, to those in our vehicle finance business who have cycled a route which was equivalent to the distance between the UK and Ukraine to raise money, or who travelled to Ukraine, not once, but twice, to deliver donations of food, clothing and medical supplies to support orphans affected by the war, their dedication and commitment have been an inspiration.

Given the importance of our Purpose, and to ensure that we all continue to play a role in helping to put people, whether they are our customers, colleagues or communities, on a path to a better everyday life, we have, during the course of 2022, redefined our Mission and Strategic Priorities. We have also initiated work that will see us create a common set of Values that will help to further shape our culture and represent the colleagues who collectively make up our business.