Atom Bank, the UK’s first app-only bank, has made headlines by purchasing 25 acres of newly planted broadleaf woodland in Northumberland, as it becomes the first UK bank to commit to being carbon positive by 2035.
The woodland, comprised of species such as willow, sycamore, birch, alder, and rowan, is expected to sequester approximately 7,000 tonnes of CO2 as it matures.
Atom’s current annual operational emissions range between 500 and 700 tonnes, making this a significant step toward offsetting its carbon footprint while scaling its business.
Notably, the land was previously an open cast coal mine, and its transformation into a thriving woodland represents a dual effort to restore natural habitats and address climate change.
This financial year, the bank plans to acquire or lend on an additional 100 hectares of land to advance its sustainability objectives.
The bank’s decision to directly own this woodland, along with the carbon credits generated as it matures, is an innovative model for integrating sustainability into banking.
By holding the asset on its balance sheet, Atom retains control over the carbon offset process and achieves efficiency compared to purchasing credits externally.
The Government’s push for biodiversity net gain—ensuring new developments contribute positively to habitats—is another area where Atom is poised to make an impact. While the Northumberland woodland is registered under the England Woodland Creation scheme and cannot count as a biodiversity credit source, Atom is exploring projects that could generate biodiversity net gain credits. Such efforts could allow Atom to support housing development while fostering nature-rich habitats to mitigate the environmental impacts of construction.
Atom bank has been measuring its carbon impact for three years and reported a 2.2% reduction in operational emissions in the last financial year, despite a 600% increase in operating profit. This year, the bank will also disclose the financed emissions linked to its lending activities, further advancing transparency in its sustainability journey.
Mark Mullen, Atom bank’s CEO, emphasised the importance of the initiative, “We’ve made this significant investment in an area local to Atom because we recognise the responsibility we have to our planet. We could have invested this money in employing more people or launching new products – as to be fair we usually do – but this time we chose trees. In time, these trees should store more CO2 than our company has been responsible for emitting in all the years since we were founded.”
Ed Twiddy, Director of ESG at Atom bank, added, “Directly owning this woodland and putting our balance sheet to work in a different way is one example of how the power of the banking model, combined with a value set that prioritises doing the right thing, can be turned in favour of both the planet and a profitable future for Atom.”
Atom’s forward-thinking approach highlights how innovative financial models and sustainability commitments can coexist, demonstrating leadership for the FinTech sector and the banking industry at large.
