PAY.UK LIMITED — full event log

In September 2023, the Board approved the ESG strategy committing Pay.UK to achieving net zero emissions by 2040 or before, with intermediate targets being set and key work mapped out for 2023-2025.

sustainability_report p.25

Michael Ellis was appointed to the Board as Executive Director and CFO in August 2023, adding executive capacity alongside the CEO.

sustainability_report p.30

David McPhee was appointed CPEO and a new Policy and Engagement directorate was created, consolidating policy, industry engagement and external communications.

sustainability_report p.7

Following the Government's Future of Payments Review and recommendation for an NPV in late 2023, Pay.UK paused the NPA programme procurement process and reduced programme size and spend heading into 2024.

sustainability_report p.24

Pay.UK formally received ISO 27001 certification in August 2023, demonstrating commitment to international standards for information security management.

sustainability_report p.32

Pay.UK developed its ESG strategy in 2023 and continued GHG reporting per GHG Protocol. Scope 3 transport emissions from employee-owned vehicles increased notably (4.5 tCO2e vs 1.7 tCO2e in 2022) likely reflecting more office attendance post-pandemic.

sustainability_report p.25

Board approved high-level ESG strategy and roadmap in September 2023, including commitments to net zero by 2040, D&I targets aligned to FCA guidance, and resource reduction targets for water, fossil fuels, energy and waste.

sustainability_report p.19

Pay.UK's largest source of emissions is electricity purchased for its London office (2 Thomas More Square). The firm has reduced electricity consumption from 303,471 kWh (2022) to 272,591 kWh (2023) despite more colleagues returning to the office post-pandemic, attributing this to its long-standing hybrid working approach and operational efficiencies. Specific measures include decommissioning redundant kitchen infrastructure, enhancing meeting room heating/cooling controls, and desk-sharing to reduce IT energy demand.

sustainability_report p.25

Pay.UK has implemented a series of office-level energy reduction initiatives: adding Framery meeting pods (described as among the most sustainable available) to avoid office build-out, decommissioning a catering kitchen to reduce lighting and AC demand, enhancing meeting room HVAC controls with new hardware and software, and consolidating kitchen deliveries to reduce transport impacts. These measures contributed to a 7.2% reduction in total GHG emissions year-on-year.

sustainability_report p.25

Pay.UK operates a zero-waste-to-landfill estate managed by Bywaters. Dual-zone bins support dry recycling and other waste streams. Additional initiatives include recycling coffee grounds through colleague home composting and increasing use of plant-based products to reduce non-recyclable plastic waste. These measures form part of the firm's broader ESG strategy targeting reduced waste generation.

sustainability_report p.25

Pay.UK acknowledges that environmental impact extends to its supply chain and monitors suppliers' ESG practices, with particular focus on its largest supplier, Vocalink (a Mastercard company), which is noted to have well-developed ESG policies and practices. The firm's Third-Party Management Framework includes sustainability considerations as part of its proportionate approach to supply chain risk management.

sustainability_report p.25

In 2021 there was no business travel activity due to Covid-19. In 2022, business travel in employee-owned vehicles was included in Scope 3 reporting for the first time since the pandemic. This reflects the easing of restrictions and hybrid working model rather than a methodology change per se.

sustainability_report p.28

Matthew Hunt, Jean-Yves Rotté-Geoffroy and John Mountain departed the Board in 2022. Helen Crooks and Ajay Vij joined in January 2023. At executive level, David Morris joined as CTO and Lisa Mellor as CRO. This represents significant leadership transition.

sustainability_report p.4

Pay.UK obtained Silver accreditation from CSR-A (a UK CSR accreditation body) following an assessment against four pillars: Environment, Workplace, Community and Philanthropy. This is the first formal CSR baseline for the company.

sustainability_report p.27

Pay.UK launched its Inclusion Strategy in 2022, signed the Race at Work Charter, launched a diversity data collection campaign (50% return rate), and established a Race and Ethnicity working group. Active Bystander training achieved 93% completion rate.

sustainability_report p.27

Pay.UK and 15 UK banks announced in September 2022 that Paym (mobile payment service) would close permanently on 7 March 2023. The 2022 contribution to income was £2.5m. This reflects evolution of payments technology rather than a strategic climate event.

sustainability_report p.26

Revenue increased by 2% to £154.5 million (2021: £152.0 million) as transaction volumes grew in FPS (15.2%) and Bacs (2.5%). Costs rose 12% to £153.9 million driven by NPA investment, CASS marketing, and people investment.

sustainability_report p.18

The NPA Programme Committee, Legal Governance and Standards Committee, Managed Services Committee and Finance Committee were all formally disbanded during 2021. Responsibilities reassigned to Executive or remaining Board Committees (Audit, Risk, Remuneration, Nomination).

sustainability_report p.44

In previous years transport energy use was reported. In 2021 there was no business travel in employee-owned vehicles due to the ongoing COVID-19 pandemic. Only location-based Scope 2 electricity reported for 2 Thomas More Square.

sustainability_report p.43

Following a buy-in completed in 2020, Pay.UK completed a full pension buy-out in 2021. All assets and liabilities under the scheme were transferred to the insurance company and the obligation discharged to members. Scheme wound up in late December 2021.

sustainability_report p.28

Pay.UK's RFP for design and build of the NPA included detailed questions on environmental policy, governance, waste disposal and pollution, natural resource depletion, greenhouse gas emissions and environmental destruction as assessment criteria for delivery partner selection.

sustainability_report p.43

David Pitt joined as CEO in July 2021, replacing interim CEO Matthew Hunt. He reshaped the Executive team and redesigned the organisation in support of the new strategy. New strategy approved by the Board in September 2021.

sustainability_report p.8

The Board approved Pay.UK's new strategy for 2021-2026 in September 2021, introducing the concept of 'platform leadership' alongside existing roles as payment system operator and systemic risk manager. New KPIs to be developed and implemented from 2022.

sustainability_report p.16