Atom bank has reported a 22% reduction in its operational carbon emissions over the last financial year, according to its latest Sustainability Report covering the year to 31 March 2025.

The reduction was achieved during a period of strong growth for the digital bank, with customer numbers increasing by 19%, lending volumes rising by 29% and savings deposits up by 31%.

The report forms part of Atom’s long-standing commitment to become climate positive from 2035, a target the bank first set out when it published its inaugural Sustainability Report in 2021. The lender has consistently argued that transparency and robust measurement are essential if the banking sector is to reduce its environmental impact in a meaningful way.

AMBITION AND MEASUREMENT

Atom’s latest report shows that total operational emissions have fallen by 22% since FY24, while emissions per employee declined by 27%. The bank said these results underline that emissions reductions can be delivered alongside commercial growth, rather than at its expense.

The Sustainability Report also sets out Atom’s approach to measuring and reporting financed emissions, covering the homes and businesses it lends to. The bank has placed particular emphasis on the methodologies used, with the aim of giving stakeholders a clearer understanding of its overall footprint and progress towards its 2035 goal.

As part of this work, Atom recently published findings from a trial conducted with Experian, which suggested that both Atom and the wider banking sector may be significantly over-reporting emissions linked to residential mortgage lending. The trial indicated that emissions could be overstated by as much as 50%.

The research raised questions about the reliability of EPCs as a proxy for estimating carbon emissions across mortgage books. Meter data used in the study showed lower emissions overall, with relatively small differences between properties with very different EPC ratings.

Atom said the findings have implications for the development of genuinely green mortgage products and for the banking sector’s contribution to the UK’s net zero ambitions. The lender has called for closer collaboration between the energy and banking sectors, as well as with government, to improve data quality and better understand how financed emissions can be reduced in practice.

OPERATIONAL CHANGES

The reduction in operational emissions was driven by a series of initiatives across the business. During the reporting year, Atom’s headquarters were based at the Rivergreen Centre, a building designed to minimise carbon emissions. Since then, the bank has relocated to The Pattern Shop in Newcastle, following the restoration and refit of the listed building to create an energy-efficient workplace.

The bank has also continued its electric vehicle scheme with Octopus EV, supporting employees in moving to lower-carbon transport. For customers, Atom launched its Retrofit Explorer tool, designed to help homeowners plan and improve energy efficiency through retrofitting.

In addition, the lender has integrated environmental, social and governance considerations into its supplier due diligence process, and continued its investment in the Poppy’s Wood conservation project in Northumberland, which supports biodiversity and carbon sequestration.

Edward Twiddy (pictured), 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.”