Good Egg awarded December 2024
About Unity Trust Bank
Unity Trust Bank offers ethical banking services for businesses including current accounts, savings accounts and loans.
Summary of findings
The Good Egg criteria is divided into industry/ customer impact, environmental, social and internal. Unity Trust Bank was rated as having a “Medium Positive Impact” overall.
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Read the full reporthere.
Industry/ Customer impact main findings
In 2023, Unity committed £263.8 million to 162 organisations across the UK. As the bank’s total loan book surpassed a record £1.03 billion, more than 1,300 organisations continue to be supported through its responsible lending across a range of sectors delivering positive outcomes to communities.
In 2023, £15 million of lending was committed to onward social investors and Community Development Finance Institutions (CDFIs) and enabled £18 million of investment to reach community organisations, social enterprises, SMEs and charities delivering inclusive growth.
A third of Unity’s loans go directly to organisations solely or majority serving disadvantaged people, or those facing discrimination.
Unity states that it has a strong commitment to its relationship-based banking model, its customer-driven proposition, and to delivering a positive banking experience.
Environmental main findings
Unity does not fund industries that have a significant measured impact towards climate change, such as coal-fired power stations, mining industries, or organisations that burn toxic waste. It assesses all lending to ensure that there is no intentional or high risk of unintentional negative impact to society and the environment.
Unity first achieved carbon neutral status in 2019, and presented its Streamlined Energy and Carbon Report (SECR) for the first time in 2022. Its most recent figures (2023) show that it is achieving carbon neutral status for Scope 1 (Direct Emissions), Scope 2 (Indirect Emissions) and Scope 3 (business travel and home working emissions).
Unity became the first financial institution to support the ‘Retrofit Credits’ programme with the Housing Associations’ Charitable Trust (HACT) and Arctica in 2022. In 2023, the bank announced the launch of its Housing Association Decarbonisation Initiative (HADI), which aims to help housing associations to retrofit their properties and contribute to the UK’s transition to a greener future.
Social main findings
In 2023, 45.3 per cent of new commitments went to organisations delivering services in high deprivation areas across the UK.
Examples of Unity customer case studies, focused on housing and care home provision, include:
Action Housing & Support: A charity that was created 43 years ago to rehabilitate ex-offenders has grown into a successful social landlord currently providing 465 bed spaces across South Yorkshire and East Midlands, thanks to a £1.2 million loan from Unity.
Y&M Care: Unity has provided six-figure care home financing from which allowed a couple who took over a failing care facility in Surrey to add a second property to their portfolio. More than 100 staff are now employed across both homes, with Old Wall Cottage providing 36 bed spaces for dementia patients and Wescott accommodating 60 residents in need of nursing care.
Internal (Staff/policies/offices) main findings
Unity has a Remuneration Policy which commits to paying its employees a fair salary compared with the external market. Unity’s Remuneration Committee observe guidance from the High Pay Centre on fair pay ratios, ensuring that the highest paid employee does not earn more than twenty times the mid-point of the lowest quartile.
Unity was the first bank in the UK to become an accredited Real Living Wage employer in 2012.
Unity Trust Bank Good Egg Final Report
Comment from Unity Trust Bank:
“We’re delighted to be awarded the Good Egg mark, which reflects Unity’s 40-year heritage of delivering positive impact – not only for our customers, staff and stakeholders, but for wider benefits to society and the environment.
“Delivering positive outcomes for people and planet is a core part of our ‘double bottom line’ of achieving sustainable returns and delivering benefits to society. Customers who bank with us can have confidence that their deposits are helping to deliver social good.” – Joshua Meek, Chief Impact Officer,
Panellist comments:
“A long-standing bank with ethical principles. Whilst only a third of loans are specifically targeted toward disadvantaged groups, this is very significant. There’s little information on the large proportion that ‘avoid harm’. Nevertheless, having a relatively substantive impact report that focuses on the loans is unusual and I have no hesitation in supporting the application for a Good Egg.”
“I was personally pleased and impressed to read about their carbon neutrality in scope 1, 2, and 3 emissions which is a huge achievement, and also their retrofitting programmes with housing associations. I would argue they deserve a slightly higher rating on the environmental track as a result of these, though it would be good to understand what percentage of assets this constitutes and how big a commitment it is from the bank overall. Nonetheless, it deserves credit.”
“The £6 per month fee is reasonable and comparable to other business bank accounts, and the commitment to supporting the CDFI sector is also very commendable, helping to nurture an ecosystem of different types and sizes of financial institutions. It would perhaps be a positive thing for Unity Trust to also offer personal accounts, however there is a benefit of specialism and sticking to what you know. Overall no complaints or criticisms from me and a big congratulations to Unity Trust.”
“They just need to get their net zero plan right to include all financed emissions. I’m very happy to approve the mark for them!”
“Their strong social purpose financing, combined with not financing harm (e.g. fossil fuels as far as I’m aware) means they qualify for a Good Egg.”
More on Unity Trust Bank from Good With Money:
Unity Trust Bank: 40 years of banking for impact
Banking on social impact: Unity Trust Bank
Unity Trust Bank awarded Good Egg mark