Innovation

Monmouthshire Building Society (MBS) is integrating Environmental, Social, and Governance (ESG) principles into its core operations to build a more sustainable and socially responsible business. A key innovation is the launch of eco-friendly mortgage products that incentivize members to buy homes with high energy performance ratings (EPC A/B), allowing larger loans for energy-efficient properties and promoting sustainability in housing. This initiative supports the UN Sustainable Development Goal 13: Climate Action by encouraging carbon footprint reduction.

Additionally, MBS has achieved a 52% reduction in emissions since 2022 and has offset all its emissions for the first time. This contributes to Goal 13 as it minimizes the society's environmental impact. MBS collaborates with Climate Partner to enhance its sustainability practices and participates in tree planting to further offset carbon emissions. 

The focus on innovation also includes social impact through community engagement and employee development. Initiatives like Colleague in the Community and the Academy empower staff to volunteer and grow their careers, aligning with Goal 10: Reduced Inequalities and Goal 11: Sustainable Cities and Communities. MBS aims for a more sustainable and equitable future for both its members and the broader community.

Inspiration

The Society strategy is agreed by board and regularly refreshed, in the most recently approved strategies ESG was a core theme throughout. The Society has set up an ESG forum and has defined KPIs as part of the balanced business scorecard that relate to Carbon reduction and Social impact. This then feeds down into some of the practices that the Society undertakes such as updating our procurement processes to assess ESG of any suppliers we use. 

Overall impact

Monmouthshire Building Society (MBS) has incorporated environmental, social, and governance (ESG) strategies into its plan for 2024-2029, leading to notable early achievements in sustainability and community engagement. Importantly, MBS has cut its emissions by 52% since 2022 and has, for the first time, completely offset its carbon emissions in collaboration with Climate Partner. While the adoption of MBS’s eco-friendly mortgage offerings has been lower than anticipated, likely due to timing and consumer awareness issues, the Society’s efforts are in line with industry trends and regulatory demands, establishing it as a frontrunner in sustainable finance.

MBS’s community-focused initiatives, including partnerships with local charities and support for financial and life skills education, have strengthened community ties. The Academy program offers opportunities for individuals from diverse backgrounds, promoting social mobility and workforce development. Furthermore, the Society's commitment to colleague growth through programs like Network75 and apprenticeships highlights its role in driving regional financial and social progress.

Business benefit

Monmouthshire Building Society (MBS) has prioritized digital transformation and innovation, particularly through the introduction of a mobile app and the digitization of its savings operations. By moving toward a paperless environment and streamlining processes like onboarding and document management, MBS has not only increased operational efficiency but also improved the member experience. These technological advancements have reduced administrative costs and enhanced access for members, helping to build long-term loyalty and retention. The focus on digital tools also aligns with growing customer expectations for convenient, fast services. As a result, MBS has created a more agile, future-proof business model that will support sustainable growth.

Furthermore, MBS's commitment to community-focused initiatives and employee development has positively impacted its brand reputation, employee satisfaction, and retention. The implementation of programs like the Academy, partnerships with local schools, and collaboration with initiatives such as Shelter Cymru have not only provided valuable skills and development opportunities for employees but also helped MBS integrate more deeply into its communities. These efforts improve employee well-being, create a sense of purpose, and contribute to high retention rates. Additionally, these social initiatives boost MBS's reputation as a socially responsible organization, opening up opportunities for new partnerships and investments, as the demand for businesses with strong ESG practices continues to grow. The society's evolving ESG strategy further creates new investment opportunities, as the focus on sustainability aligns with broader market trends toward environmentally responsible investing.

Social and environmental benefit

The launch of eco-friendly mortgage options, though slower to gain traction than expected, supports the shift towards energy-efficient homes. MBS promotes the purchase of properties with high energy performance ratings (EPC A/B), allowing larger loans for such homes. This initiative encourages the construction of energy-efficient houses, reducing energy consumption and carbon footprints in the housing sector. While adoption has been gradual, these efforts raise awareness about the importance of energy efficiency. Additionally, MBS’s tree-planting and environmental projects benefit local ecosystems.

These initiatives foster a sense of responsibility, promote sustainable financial products, and support community efforts. By focusing on environmental and social impact, MBS is integrating ESG principles into financial services, ensuring lasting value for its members and communities

Interview

Graham Sumsion, Head of Operations