Tandem Bank has published its most comprehensive ESG report to date, disclosing that it supported over 94,000 customers in cutting an estimated 70,000 tonnes of carbon dioxide in 2024 through its green and ‘pathway to green’ lending.
The digital bank, which has repositioned itself in recent years to focus on sustainable finance, provided £572 million of funding to consumers making energy-efficient upgrades to their homes.
The report lands at a time when green finance is under closer regulatory and public scrutiny. Tandem has responded with full alignment to the Task Force on Climate-related Financial Disclosures and the Financial Conduct Authority’s anti-greenwashing rules, including detailed modelling of climate risk and flood exposure. The lender, which has also committed to reaching net zero by 2050, says its latest disclosures demonstrate how ESG is embedded throughout the organisation.
“We believe ESG is not just a reporting requirement — it’s core to our mission,” said Tandem’s chief executive, Alex Mollart. “By funding green lending through our savings deposits and aligning our products with that green mission, we’re not just talking about impact — we’re enabling it.”
In addition to lending activity, Tandem reported that over 80% of its vehicle loans are now Clean Air Zone compliant, with the average emissions on its book reduced to 127g CO₂/km. Its flagship Green Home Improvement Loans have funded more than £700 million to date.
The bank’s approach includes a taxonomy-aligned product range, covering solar panels, heat pumps and EPC A or B-rated homes, alongside ‘pathway to green’ options for products that exceed UK sustainability benchmarks but are not yet EU Taxonomy compliant. This, the bank argues, offers households a realistic route to begin decarbonisation without overpromising the extent of the environmental impact.
A significant part of the proposition is Tandem’s Green Hub, re-launched last year, which serves as a central resource for homeowners considering energy upgrades. The hub provides insight, tools and finance options to help households navigate the complexity of greener living.
Tandem’s ESG strategy has also been bolstered internally. James Streeter, appointed head of ESG last year, has led the rollout of full-scope governance, including reporting on all Scope 1, 2 and 3 emissions. While Tandem has purchased carbon credits to offset all operational emissions, Scope 3 Category 15 Invested Emissions are not yet included. The bank has also modelled climate scenarios across a range of warming pathways, from below 2°C to more than 3°C.
“This report marks yet another milestone for Tandem,” said Streeter. “We hope to reflect what ESG leadership looks like in practice – driving innovation, embracing full climate risk disclosures and embedding ESG across the origination, from the top down. We’re thrilled to have set our net zero 2050 target, made progress against this and are particularly proud to be able to fully offset all of our operational emissions as an organisation.”
