Better Health for All

Paragon Banking Group, a financial services company, demonstrates positive contributions to health through its environmental initiatives and comprehensive employee mental health programs. The company has achieved a 54% reduction in market-based emissions since 2019

and sources 93% of its purchased electricity from renewable sources. It also provides £400 million in funding through a Green Homes Initiative and aims for net-zero by 2050, which indirectly contributes to better public health by improving air quality and mitigating climate change. For mental health, Paragon offers comprehensive programs for its employees, including a Wellbeing Team with 18 trained representatives, an Employee Assistance Program, mental health awareness training for managers, and regular wellbeing surveys. Employee feedback in 2023 showed 97% agreed their manager cares about their wellbeing and 94% felt part of a supportive team. Additionally, Paragon signed the Mortgage Industry Mental Health Charter in March 2024 and raised £31,165 for the mental health charity Mind in 2021-22.

Fair Money & Economic Opportunity

No specific quantitative data was provided in the articles to assess Paragon Banking Group PLC against the defined KPIs for Fair Money & Economic Opportunity. While the company mentions efforts in areas such as supporting SMEs

, enhancing product value , and simplifying communications , the evidence does not include measurable percentages, ratios, or outcomes required by the rubric's quantitative thresholds for any of the KPIs.

Fair Pay & Worker Respect

No specific, quantifiable data points were found in the provided articles to assess Paragon Banking Group PLC against the defined KPIs for Fair Pay & Worker Respect. The articles mention policies, commitments, awards for apprenticeships and D&I, and the effectiveness of an employee forum, but do not provide metrics such as living wage coverage, CEO-median pay ratio, collective bargaining share, safety incident rates, pay equity ratios, overall employee engagement scores, turnover rates, substantiated labor violation counts, insecure contract share, or health insurance coverage rates. Over 85 employees completed apprenticeship programs in 2022.

In 2023, 88% of employees found the forum effective in gathering feedback. Paragon was aiming to achieve 40% female representation in senior management by 2025 and 5% ethnic minority representation by 2027. In December 2022, Paragon achieved Disability Confident Level 2, reflecting efforts to create an inclusive workspace for individuals with disabilities.

Fair Trade & Ethical Sourcing

Paragon Banking Group PLC, as a financial services company, does not directly engage in the sourcing of physical materials.

Consequently, KPIs related to fair-trade certification, supply chain traceability for physical goods, and high-risk material spend are not applicable. The company has a comprehensive Supplier Code of Conduct that mandates a zero-tolerance approach to modern slavery and human trafficking, requires suppliers to prevent bribery and corruption, respect human rights, and pay the real living wage. A Modern Slavery Statement outlines policies and procedures, including a risk-based approach to supplier assessment and mandatory employee training. Around 16% of suppliers were reviewed, and no material concerns were found.

Honest & Fair Business

Paragon Banking Group has a Sustainalytics ESG Risk Rating of 13.5, indicating a low controversy risk.

As of March 31, 2025, 70% of the Board members are conflict-free, comprising six independent non-executive directors and the Chair, who was independent upon appointment. The company maintains a comprehensive anti-bribery and corruption policy, adhering to the Bribery Act 2010, and requires all employees to complete mandatory training. An established whistleblowing procedure and hotline, operated by Protect (a third-party charity) and supervised by the Board, is available to all employees.

Kind to Animals

As a financial services company, Paragon Banking Group PLC does not manufacture products, conduct animal testing, source animal-derived ingredients, or operate animal agriculture facilities. Therefore, several animal welfare KPIs are not applicable. While the company's Motor Finance team volunteered at an animal sanctuary

and Paragon offers green agriculture finance , the provided evidence does not include specific, quantifiable data on measurable biodiversity impact from conservation initiatives or active engagement in animal welfare policy advocacy that align with the rubric's thresholds. Additionally, although Paragon has a policy to avoid lending to organizations whose activities lead to the detriment of animal welfare , this qualitative policy does not provide the quantitative data required to score the 'animal_agriculture_ethics' KPI.

No War, No Weapons

Paragon Banking Group PLC has no evidence of involvement in arms manufacturing, military contracts, or defense industry activities, indicating 0% revenue from such sources.

Its Supplier Code of Conduct prohibits direct lending to sectors involved with military activities, including firearms and ammunition manufacturing. This policy serves as a formal divestment policy for conflict-related exposures and codifies ethical red lines. Consequently, the company has no defense assets to divest and no exposure to any weapons. However, Paragon explicitly states it does not directly engage in peace-building initiatives.

Planet-Friendly Business

Paragon Banking Group PLC has achieved 95% renewable energy usage as of March 2024.

The company reduced its market-based emissions by 48% compared to its 2019 baseline by March 2024 and aims for net-zero operational emissions by 2030. Environmental initiatives include relocating London operations to a BREEAM standard site and utilizing Waste to Energy for waste disposal. Additionally, Paragon's SME Lending division expanded green asset funding for customers to include solar panels, wind turbines, and EV charging. The company also increased its Green Homes Initiative fund to £300 million to support SME housebuilders in developing energy-efficient homes, offering a 50% reduction on loan exit fees for homes with an Energy Performance Certificate (EPC) rating of A.

Respect for Cultures & Communities

The company has established at least 10 formal partnerships with local community groups and charities, including Tech She Can, Future First, Guide Dogs UK, Cardiac Risk in the Young, Children's Book Project, OASIS Mental Health Support, Spencer's Farm Retreat - Langdale Trust, multiple local schools, and The Women’s Association.

No cultural appropriation incidents have been reported. Free, Prior and Informed Consent (FPIC) processes and the tracking of indigenous suppliers are not applicable to the company's operations, as the provided articles do not discuss indigenous communities in relation to its activities.

Safe & Smart Tech

Paragon Banking Group's data retention practices include keeping customer data for up to 12 years after they cease being a customer, and in some cases, for an indefinite period.

The company holds ISO 27001 and ISO 22301 certifications for information security and business continuity, respectively, and uses GeoTrust security certificates for its website. It states compliance with UK data protection legislation, GDPR, and e-privacy regulations, and confirmed compliance with operational resilience deadlines as of March 31, 2025. The FCA Consumer Duty is also embedded in its processes. The company has formalised oversight and governance for its use of AI. Users are afforded standard data rights, including rectification, deletion, objection to marketing, restriction of processing, data portability, and access to personal information. The company uses industry-standard encryption for data in transit and has policies and procedures in place to comply with UK data protection legislation, with no documented incidents of unauthorized data use. Regular employee training on data protection is conducted, and authentication security is at an industry-standard level.

Zero Waste & Sustainable Products

Paragon Banking Group PLC effectively diverts 100% of its waste from landfill by maintaining a recycling rate of over 90% and sending all non-recyclable waste for incineration for energy generation.

The company has also achieved a 100% reduction in avoidable single-use plastic items in its operations, notably eliminating 256,000 single-use plastic cups previously used from January 2018 to January 2019 by providing reusable water bottles to all 1,300 employees. Paragon implements over ten waste reduction initiatives with measurable results, including a paper waste reduction program, installing a composter for bio-waste, and using super concentrates to replace 166 plastic bottles with one 5-litre container. Specific efforts like upgrading to pinless paper reduced consumption by 233 tonnes annually, and a "right first time" focus saved an additional 11 tonnes of paper. For hazardous waste, Paragon does not use CMR category 1A and 1B substances and ensures process water is collected by an authorized service provider for biological treatment. The company reported zero environmental incidents, including waste disposal violations, for the financial years 2019/2020, 2020/2021, and 2021/2022. While a Paragon entity, PTSA, aims to improve waste recovery by 4% over six months, company-wide waste reduction targets with specific timelines are not broadly detailed.