How Ecology Building Society supported 371 sustainable properties and projects in 2021

In its full year results, Ecology Building Society announced an increase in total assets of 13.40% to above £250m for the first time.

The society also reported a record 76.59% increase in new mortgage lending, which was supported by a 14.6% increase in the number of members saving with the society.

The society said in a statement: "This is an outstanding performance against a backdrop of economic and societal uncertainty and provides a strong platform for growth."

In 2021 Ecology lent more than £69.4m supporting 371 sustainable properties and projects. It ended the year with a 22.3% growth in mortgage assets.

The society, which marked its 40th anniversary in 2021, offers a range of ethical savings accounts which fund mortgages for properties and projects supporting individuals and communities to adopt green building practices, improve the energy efficiency of the UK’s housing stock and to live or work in a way that promotes a sustainable economy.

During the year the society launched its 2030 Strategy, co-developed with members and colleagues, setting out how it will realise its ecological mission for the remainder of the decade.

In 2021, the society had total assets of £256.3m, which is an increase on the £226m recorded the year before. Profit after tax was £1.019m, compared with £0.524m in 2020.

The statement added: "The results build on more than 40 years of uninterrupted profitability demonstrating that values-based and purpose-driven finance also makes real economic sense. The £1.019m profit adds to Ecology’s capital base, increasing its financial strength and enhancing its ability to remain resilient to the economic impact of the cost-of-living crisis and extend the benefits of our sustainable lending."

"Ecology begins 2022 with a strong pipeline of sustainable lending prospects and membership growth generated by the increasing awareness of climate and ecological issues. This provides Ecology with an excellent platform for growth as the crucially important green recovery gathers pace."

Commenting on the results, Chief Executive Paul Ellis said: “’These results mark an outstanding year of sustainable growth for Ecology demonstrating, more than ever, the strength of our lending model and the importance of finance that has a positive impact for people and our planet.

“2021 was a special year for Ecology as we marked our 40-year anniversary of pioneering sustainable finance. We’re powered by over 12,000 members, so it was critical that they helped to shape our new strategy setting out how we will realise our ecological mission for the remainder of this decade. Members can continue to be assured that their money is delivering a real contribution to tackle the climate and ecological crisis as well as supporting our agitation for system change.

“I’m immensely proud that, for the first time, we have made comprehensive disclosures on climate risk using the internationally recognised TCFD framework showing how we’re helping to build momentum for other banking organisations to report on their climate impacts.

“Looking ahead our strong pipeline of lending for low impact homes and financial position gives us a firm foundation to continue to invest in our services to our members, innovate, and grow our sustainable lending further during 2022 and beyond.

“I am departing Ecology well assured that I will be leaving the society in the very capable hands of those who are determined to build on the society’s legacy as a leading example of the transformative power of ethical finance.”

Mr Ellis is stepping down at the end of April 2022 after more than 40 years of involvement with Ecology, including 27 as chief executive.