Making credit work better for all - Sustainability Report 2021
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Sustainability Report 2021 Making credit work better for all
Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Introduction
Welcome to Lowell’s first Sustainability Report. Contents
In 2021, we worked together to define our Sustainability Strategy to support
our mission to ‘make credit work better for all’, and address wider societal Overview
needs for a more inclusive and sustainable future. To achieve these aims, Our CEO’s perspective 3
we have set out clear goals and ambitions across four key areas, covering About Lowell 5
our customers and clients, colleagues, communities, and the environment. Our business at a glance 6
Our role in the credit cycle 7
When debt becomes unmanageable, everyone should have access to Our Sustainability Strategy 8
the support they need to become debt free. So, we take the time to fully Better for Customers 9
understand our customers’ circumstances, and work with them to help them Better Ethics and Understanding 14
take control of their money and improve their financial health. For our clients, Better for Society 19
we work in partnership, tailoring our approach to commercial and customer Responsible Business 25
communications to suit their business and provide a seamless customer Performance Scorecard 33
journey. For our colleagues, we offer a rewarding and challenging career that
provides fulfilling work and personal growth.
This first Sustainability Report highlights our progress in 2021 against our
strategy and sets out our plans for the future so we can be held accountable
for our impact. We hope it offers insights into the way we work and shines
a light on how we have supported all of our stakeholders through the
challenges of the last year.
Lowell Sustainability Report 2021 2
Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Our CEO’s perspective
I am delighted to welcome you what our customers and clients tell us they want. Lowell has a good history as a
to Lowell’s first Sustainability We also strive to treat everyone with respect, responsible and ethical collections
ensuring our impact in society is a positive one, business. In a world in which
Report. and that any harmful impacts, such as our carbon sustainability is more important than
footprint, are minimised. In doing so, we not only ever in building long-term resilience,
Sustainability is something we hear a lot about, and do the right thing, we also deliver a resilient and I believe the way we work and behave
it’s a word that gets used in many ways, so we have consistent performance – both financial and non- as a business sets us apart.
sought to define what it means for Lowell. For us, a financial. This gives us, I believe, a huge opportunity
sustainable business is a better business, delivering to grow stronger as a business in the future.
better returns for all of our stakeholders. To achieve This report shines a light on how we are doing
this, we rely on the three foundations upon which All of this is embedded in our Sustainability this and how we have supported all of our
Lowell is built: Resilience, Efficiency, and Delivery. Strategy, which acts as an umbrella and guide audiences throughout the challenges of the
Sustainability is embedded right
Together, these values place sustainability at the for the effective management of our ESG issues. last year. It demonstrates ways in which we are
across the organisation – from
heart of what we do, and underpin our mission to Since launching the strategy in 2021, we have leading our sector to shift outdated perceptions
governance processes to metrics
make credit work better for all. found that our work to embed and communicate about debt and help our industry make a
and performance. Our dedicated sustainability throughout Lowell has driven positive impact on society. I am proud of the
Sustainability Development Group I’m proud of Lowell’s long track record of operating even greater alignment across the business with efforts of all our colleagues in these difficult
drives the agenda, but we all have as a responsible company and member of society. our aims and Values, such as being Better for times to help us achieve this and to build a truly
a role to play. We have always placed an emphasis on trust and Customers. This has been especially important sustainable, better business.
Colin Storrar, Group CEO integrity, supported by good governance and during the pandemic. This report highlights some
sound risk management. Because of this, we have of the ways in which customers – especially
been able to grow strongly, regardless of economic those in vulnerable situations or affected by
cycles and even, more recently, pandemics. COVID-19 – have received support from us
during this difficult time.
Over the last few years we have increased our
efficiency and delivery through digitalising our Our Performance Scorecard demonstrates that
processes, like our new mobile app and online environmental matters are non-negotiable. While
options for customers. Using technology to our carbon footprint may not be as large as some
continually improve our offering means a better businesses, there are areas where we can and do
and more personal service for our customers and make a difference, and we aim to lead our sector
clients. We make these developments based on on our social impact.
Lowell Sustainability Report 2021 3
Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
2021 highlights
Over half of our inbound Helped improve sector Our Group Sustainability
2 million customers insight and understanding Development Group was
customer interactions in the
became debt free with to improve consumer established
Nordics come through our digital
Lowell in 2021 outcomes
customer services platform
Read more p9 Read more p9 Read more p14 Read more p25
Provided valuable insights
1 2 Raised consumer
to assist policymakers in Set our baseline for Scope awareness of financial issues
understanding issues around Our colleague engagement 1 and 2 Greenhouse Gas and support available, reaching
financial vulnerability and the score for being ‘happy ’ Emissions and a target for over 10 million people
effects of the pandemic at work rose to 71 Net Zero emissions by 2030 in the UK alone
Read more p17 Read more p19 Read more p25 Read more p19
Lowell Sustainability Report 2021 4
Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
About Lowell OUR VALUES
Making credit work better for all
Our mission Pioneering – we ensure Excellence – we work
Our mission is simple: it is ‘to make credit work future success by leading together to exceed
better for all’. Our work is important, so it’s advances in statistical expectations, recognise
important to us that we do it well. We carry out and behavioural science, success and deliver the
responsible debt collection, helping customers to and the way we work best individual solutions.
take control of their finances, get out of debt, and each and every day. We strive for excellence
regain full access to the economy. every day; every one of
us makes a difference,
Our Values and has a personal
Everything we do is driven by our five Values, responsibility to do so.
created in partnership with our stakeholders. Our Ambition – we want
Values are our compass, capturing the essence of to be the best. If there
who we are and how we operate with transparency is a better way to do
and accountability. They are how we build trust something, we will find it
with all of our stakeholders. and make it happen. We Responsibility – we
want to set ourselves to earn trust by always
Our Leadership Philosophy be the leading example being open, reliable,
Our Leadership Philosophy is based on our Values and to others. accountable, and beyond
explains the crucial role our leaders play in navigating compliant. We simply
an increasingly competitive business environment. go out of our way to
It sets out our expectations that leaders create do our best and take
a workplace environment where colleagues can responsibility for our
thrive and develop, so we succeed in delivering our Compassion – we actions.
company strategy and business goals. Our Leadership see and respect the Our mission is simple – to make
Philosophy asks each individual to: individuals behind the credit work better for all. We carry
numbers, staying helpful, out responsible debt collection,
• be accountable for our strategy principled, and fair in enabling customers to take control
• have the courage to take the initiative everything we do. of their finances.
• take ownership to drive change
• be compassionate, authentic and empathetic
• be commercially focused Lowell Sustainability Report 2021 5
Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Our business at a glance
LOWELL HAS THREE
OPERATING REGIONS 22.9m
£1.8bn
accounts2
Lowell is at the forefront of the debt purchasing and debt servicing industry.
Today we operate in eight countries and manage more than 22 million gross
collections1
accounts, with one of the largest and most diverse portfolios of customer NORDICS
£3.6bn
accounts in Europe. Denmark, Finland,
Norway, Sweden
£12.8bn
Our business model estimated
As a credit management company, we deliver value in three ways: purchasing remaining
debt from companies, collecting debt repayments from customers, and assets under collections4
making collections on behalf of our clients. We are proud of our customer- DACH management3
centric approach. We actively engage with our customers to help them take Austria,
control of their debt and work with them to develop tailored solutions to Germany,
achieve the best outcome for everyone. We also become a trusted, long-term Switzerland
partner to our clients, helping them succeed through a commercially flexible
and ethical approach to debt purchasing and collections.
Across the countries where we operate, cultural attitudes towards debt
8 3,901
£898m
vary considerably. There are different legal and regulatory frameworks, and
varying splits between debt collection and debt recovery on behalf of third UK colleagues6
parties (3PC). Our sector expertise and experience enable us to adapt to England, operating
countries cash income5
these differences. By applying a local focus, and supporting it with Group- Northern Ireland,
wide resources, we can offer personalised approaches that meet all of our Scotland, Wales
customers’ and clients’ needs, wherever they are based.
Our business plan
We are committed to continual improvement. Our three-year business
strategy makes that a reality, through ongoing development of our processes, 1 2 4 6
2m
debt-free7
um of gross collections from
S he number of active accounts
T he amount we expect
T olleague number includes
C
services, prudent additions to our portfolio, and offering a best-in-class client owned debt portfolios and the we owned as at June 2021. to collect on owned debt 64 temporary workers
experience. gross collections on behalf of Accounts being individual non- portfolios as at December 2021
7
third party clients for the full performing loans and receivables across the next 120 months. he number of customers who
T
year 2021. that form a debt portfolio became debt free with Lowell
5
ross collections from owned
G during 2021.
3
F ace value of assets under debt portfolios plus fees and
management on our third commissions from third party
party servicing platforms as servicing.
at December 2021.
Lowell Sustainability Report 2021 6
Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Helping make the credit
cycle work
Our economy relies on the cycle of credit to At the same time, we help businesses that lend to
function. Affordable lending, or manageable debt, improve their liquidity, and enable them to invest Step 1
stimulates economic growth and investment. more in stimulating economic growth, providing Unlocking
It creates opportunities for individuals and employment opportunities, and widening financial people from debt
businesses. inclusion. We help people free themselves
from debt and regain control
Step 2
Helping people
But not all debt is manageable. When debt Supporting society
becomes unmanageable it’s rare that anyone is at We play a key role in producing research to measure re-join the economy
fault, but it still has a stigma attached to it – which the ability of households to manage their daily Freedom from debt
means people can regain
we believe is unfair. We’re working to remove this finances and adapt to sudden economic changes, full access to credit
stigma through listening to our customers, wider such as the loss of employment, sickness, and the
discussion, and policy development. impacts of the COVID-19 pandemic. The Financial
Vulnerability Index, a joint venture between Lowell
Large, unmanageable debts can exclude people and US-based research organisation the Urban The Credit Cycle
from the wider economy. This impacts their Institute, is using our extensive proprietary data Put simply, credit drives
lives and their wellbeing. It can also restrict the to help policymakers understand where resources the economy, stimulating
amount of money available for businesses to can be better targeted to make a difference for UK Step 4 growth and spending
invest elsewhere. consumers. Supporting activity
investment
Unlocking people from debt Our work is important, not just to the credit Businesses can Step 3
In 2021, 2 million customers became debt free management services sector or to the wider invest more to stimulate
economic growth,
Strengthening
with Lowell, moving a step closer to accessing all financial services industry, but to society as a whole.
create jobs and widen business liquidity
forms of credit. It provides invaluable data to policymakers to assist
financial inclusion Recovering money tied up in
their decision making. This understanding – that debt enables businesses to
We do this by treating everyone as an individual, debt is a societal issue – underpins everything we do. improve their liquidity
listening to and understanding their individual
K
W
IL
OR
E
H
NO W
circumstances, and being flexible in our approach. TO
T S
We support this work by sharing the insights we A E
LE
ND T I NU
gain from our unrivalled customer data to build ER C ON
,W LE
understanding of the many causes of debt, both E PL
AY A C Y C
KEY ROLE G THE
at an individual level and on a national scale. IN E N S U R I N
Lowell Sustainability Report 2021 7
Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Our Sustainability Strategy Our Sustainability Strategy, launched in 2021, is based around
four areas, each with a clear ambition and goals:
Developing our strategy and engaged our investors in its development.
Our Sustainability Strategy was developed through This enabled us to identify the most material issues
a rigorous process that identified and prioritised the and opportunities we wanted to address.
key issues for our business, stakeholders and sector.
It places sustainability at the heart of what we do. Through this thorough process, our Scorecard was
It is underpinned by a set of KPIs and a number of created and aligned with the SASB framework sector
performance targets, that are regularly monitored guideance as well as our own business activities. This led
and brought together for tracking through our to a natural weighting towards social elements, given
Sustainability Scorecard. our impact on consumers’ financial health. However,
we also place significant focus on environmental issues,
The Scorecard was developed following a thorough continually seeking to reduce our carbon footprint, and Supportive and Set the highest ethical Put people first to
review of existing guidance, frameworks and best we fully recognise that providing insight into our policies personalised debt standards and build a build a stronger business
practice, including the Sustainability Accounting and governance can provide reassurance and clarity. resolution for all positive sector and society
Standards Board (SASB), the Global Reporting Initiative
(GRI), the EU non-financial reporting directive, the UN Sustainable Development Group Trusted and engaging Values-led Improving debt understanding
Global Compact, the UN SDGs, and the Task Force on Our Sustainable Development Group reports to Personalised approach Client and customer promise Positive for colleagues
Climate-related Financial Disclosures (TCFD) standards. the Executive Committee and is responsible for Supporting the vulnerable Advancing standards Inclusive culture
and understanding
It supports the aims of the Glasgow Financial Alliance recommending, developing, embedding and Enabling financial health Community engagement
for Net Zero (GFANZ), formed in 2021 ahead of the communicating our Sustainability Strategy with impact.
COP26 Summit. We are committed to sharing our progress openly via
an annual report showing how we are delivering on our
We benchmarked our Scorecard against our peers and mission and Scorecard commitments; this is the first. A resilient and efficient business, supporting a low carbon world
other organisations in the wider financial services sector Strong governance Environmental responsibility
Read more about the Group’s work p27
Sustainability is embedded in our culture, our practices and
our performance. Our strategy acknowledges our desired impacts
on all major stakeholders – including our colleagues, customers
and clients. We must all work together to make a real difference
for each other, our communities and the environment.
Bitte Ferngren, Chief People Officer
Lowell Sustainability Report 2021 8
Overview Better for Customer
Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Better for Customers
Our ambition: To help customers return to financial
wellbeing. We do this by delivering tailored and supportive
solutions designed to help them take control of their debt.
How we’ll get there:
We ensure debt We treat every We ensure all We develop leading
repayment is simple, customer individually customers in tools and services to
accessible and and work with them vulnerable help customers build
supportive. to resolve their debt situations are financial resilience to
issues. protected and avoid problem debt in
respected. the future.
Did you know?
2 million customers
became debt free with
Lowell in 2021.
Lowell Sustainability Report 2021 9
Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Achievements and progress
Through this difficult year we’ve continued
Our KPI Stats 2021 to develop new ways to help our customers. DIGITAL HIGHLIGHTS
We want people to feel safe to take the
Customer Net Promoter Score first step with us, whichever channel • Our UK mobile app, offering
67 NPS UK 51 NPS NORDICS
they choose, and make sure they get the easy access
right support. We measure our progress • Our UK customer panel was
through regional Customer Net Promoter established to help us understand
Group Client Customer Treatment Score Scores (NPS) and a Group Client Customer our customers’ needs better and
97% Treatment Score to ensure we are meeting involve them in our proposition
their expectations. development. We’ve already had
more than 2,000 customers help
Debt Free Customers
2m Trusted and engaging with research and test out new
initiatives like our app
Whether our customers want to deal with • A common portal for all DACH
us in writing, on the phone, or online, we’re customers with live chat
here to help in a way that suits them. • LiveChat functionality
launched in the UK
For people taking the first steps to get out • New digital servicing
of debt, speaking to someone about it solution, enabling Swedish
isn’t always easy. And for most, the idea customers to acknowledge
of picking up the phone to a debt collector receipt of important
feels scary. This can lead to people avoiding communications online
dealing with their debts.
Our new digital solutions set out to tackle Over a million customers are now Did you know?
that fear of first contact that stops people registered to have the option to manage
from getting the support they need, by their accounts online in the UK. Our My Over half of our inbound customer kr
making it simple and easy to access our Lowell self-service customer portal in the interactions in the Nordics come through
services. Customers can now choose to set Nordics attracts more than one million our digital customer services platform
up their accounts online, create a plan that logins each year, accounting for over
works for them, and contact us more easily. half of all inbound customer interactions
in the region. Lowell Sustainability Report 2021 10Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Supporting people through
Our KPI Stats 2021 a hard year Personalised approach Enabling
Support for Customers in Vulnerable Before the pandemic, it was estimated that just
We know some customers prefer more traditional
methods of engaging with us, such as phone or
broader
Situations over 8 million people in the UK alone were in post, and we’ve improved our support for them financial
We disclose our Group Policy and
Pledges for Customers in Vulnerable
debt. People all over the world find themselves in
financial difficulty for many reasons. Poor physical
too. At a Group level we are focused on First Touch
Resolution for our customers, and we’ve continued
health
Situations externally. {link}
or mental health, domestic abuse, lack of support, to develop our colleagues’ skills in awareness Alongside debt recovery, we
poor financial or digital literacy, separation, and job and showing empathy, especially for customers develop leading tools and
Enabling Broader Financial Health loss can all put people into situations that means in vulnerable situations. Our colleagues receive services to help customers build
We offer a range of debt support tools they need extra financial support. Understanding regular coaching, support, and access to feedback financial resilience. This includes
and services by region: the multiple pressures our customers face is a from the customers they’ve helped so they can accessible money advice on our
– UK: 33,000 customer app registrations critical part of how we deliver on our mission to see the impact of their work. websites and a free credit score
since July launch, 1-in-4 accessed free ‘make credit work better for all.’ function on our UK app – we’re
credit score. the first company in our sector to
– DACH: 17% of our inbound customer
interactions came through our digital
In 2021, at a Group level we introduced eight
Pledges for Customers in Vulnerable Situations
Building offer this.
enquiries process. supported in the UK by commitments to those confidence
– Nordics: 55% of our inbound customer
interactions in the Nordics come through
affected by COVID-19. These measures are
designed to make sure customers who find
through
our digital customer services platform. themselves in particular difficulty know they will knowledge
be treated with dignity and care and can trust that In Finland, we’re working with
we will find the right help for their needs. the National Public Services and
Information portal to provide
I ran into difficulties after leaving an advice and information on debt
abusive relationship. Lowell never once collection and settlement and to
pressured me, and a payment plan was promote financial health.
set up. Lovely customer service.
Joanne, UK customer reviewer
(Trustpilot 5-star rating, March 2021)
Lowell Sustainability Report 2021 11Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Viewpoint
CUSTOMER INDICATORS
CASE STUDY
Over a million
415,000
customers in the UK are
New consumer portal now registered to have
Through 2021, our practical support and digital the option to manage
innovations helped customers across our business Our digital innovations are enabling an Number of UK
their accounts online.
and beyond. increased take-up of online support from our customers who were
customers. Our new mobile app in the UK given additional
enables customers to access their account support due to
information, contact us, link to our website, being in vulnerable
CASE STUDY and make repayments. The app also includes situations (circa 5%)
free access to credit scores, making us the
A socially responsible first company in our industry to offer this
approach to disaster in
Germany
valuable tool to help customers control their
finances. 55%
Nordic inbound
customer interactions
When flooding caused widespread through digital
devastation in Germany in 2021, a quick CASE STUDY CREDIT STRATEGY AWARDS
servicing platform
response was required. Our immediate focus
was on the safety of our colleagues, ensuring Digital innovations Collections and Recoveries Service
4.4
they had the support they needed, including Provider of the Year – Winner
additional paid time off to deal with the Our digital innovations are enabling
personal impact of the floods. an increased take-up of online support Credit Services Association Customer
from our customers. Engagement Centre Award – Winner Our average UK
In addition to the direct impact of the flood, Trustpilot score has
we knew that thousands of our customers During 2021, over half of our inbound AMEX Power of Blue Award risen from 3.7 (Oct
could also be facing financial difficulty. So, customer interactions in the Nordics (for ‘outstanding work and performance’ 2019) to 4.44. We have
we suspended all collections in the worst-hit came through our digital customer by Mona Isene, Advisor, Norway, and the most reviews in
postcode areas and ensured they were all services platform, and 17% of inbound Matilda Ripendal, Case Handler, Sweden). our sector, over 18,500
treated in line with our Customers in Vulnerable customer interactions in DACH came Power of Blue award recipients are selected
Situations Policy. Additionally, we reached out through our digital enquiries process. In for delivering best-in-class results and
to local charities and relief groups to make the UK, over a million customers are now demonstrating a superior ‘will to win’ within 4 R
ating as at 15.02.22,
based on 18,736 reviews
financial donations to support their work. registered to have the option to manage their organisation.
their accounts online.
Lowell Sustainability Report 2021 12Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
What’s next?
Continued digitalisation Supporting customers in vulnerable situations Providing
Our targets From December 2021, all colleagues in all roles
financial
We will continue to develop the digitalisation of will receive a training package on the new
Customer Net Promoter Score our processes in all regions during 2022 to offer our Group Policy and Pledges to support Customers education
customers more choice in contact methods. in Vulnerable Situations. The aim is to refresh
Establish a standardised process for
collecting customer NPS across all awareness and understanding of the principles In the Nordic countries, we are
we follow, using interactive activities to embed supporting moves to add financial
regions by end of 2023 and achieve
above market rates ongoing Innovating to engage the key learning points. This sits alongside the literacy to the curriculum to help
ongoing coaching and support our customer-facing young people better understand how
Following an approach that has worked well for
Client Customer Treatment Score colleagues receive across all key skills, including to avoid falling into the debt trap.
customer communications across our Group,
listening, empathy, understanding, and tailoring In Sweden, we’re working to reduce
aintain excellent score of
M in the DACH region, we will introduce updated
above 85%
solutions. Our approach varies in each region: in the burden of debt – currently, the
customer letters, which have been rewritten with
DACH, each colleague receives a minimum of country has £6 billion of ‘invisible’
the help of a behavioural psychologist. Future
six coaching sessions, tailored to their individual debt, held by collection agencies.
communications will focus more on detailing the
needs, strengths, and development areas, every We are encouraging politicians and
range of support available and the wider benefits
View our full KPI scorecard p34 year. Training considers customer treatment, regulators to set up a voluntary
to all aspects of customers’ lives from tackling
use of words and language, understanding the national debt register to identify and
debt repayment.
customer’s situation, finding the right solution support those at risk of becoming
based on their needs, and technical knowledge. over-indebted. We are also advocating
We will continue to use the knowledge gained
an Opt Out of Credit platform to
from our customer panels in the UK, and our online
enable people to choose not to
feedback platforms in the UK and DACH, which
receive credit-related marketing. In
capture the voice of our customers. One planned
the UK, we work with the Centre for
development focuses on the foundation of setting
Social Justice to help ensure the most
affordability repayment, which is how we establish
vulnerable in society do not become
what our customers can afford to repay. We
trapped in debt.
plan to streamline our Income and Expenditure
assessment processes to make them easier and
more accessible for customers.
Read more p18
Lowell Sustainability Report 2021 13Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Better Ethics and
Understanding
Our ambition: To be an industry leader in ethics and
standards; build a wider understanding of what our industry
does; and promote improved outcomes for all consumers.
How we’ll get there: Lowell is committed to developing
sector-leading standards and operating transparently.
We are defined by our Our customer policies and We help improve sector
colleagues – they are the heart practices set out our leading insight and understanding, by
and soul of our business and standards for how we support working with clients, partners,
bring our Values to life every our customers and guide our regulators, and policymakers to
day through their positive actions every step of the way. improve consumer outcomes.
interactions with each other,
our clients, and our customers.
Did you know?
The share of adults in the
UK claiming social benefits
is 15% (Financial Vulnerability
Index, Q1 2021).
Lowell Sustainability Report 2021 14Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Achievements and progress
Our Values and ways of working Just as our ways of working are embedded in Code of Conduct
Our KPI Stats 2021 our organisation, they are embedded into our In 2021, as an additional layer to our current policies
In the financial services industry, trust is vital. Governance structure too – so rather than having and practices, we developed our colleague Code of
The best way to build trust is to deliver what we a separate Ethics Committee, accountability Conduct. Designed to capture the essence of our
Clear Values and ways of working
say we will, and to be transparent at all times – sits with our Group and Regional Executive well-embedded culture and existing practices and
Developed a Group Code of Conduct and our sustainability reporting is key to this. Committees. Visibility and regular assessments policies, it sets out how we work as a company, and
and People Policy
of our performance are provided through our Risk how we expect everyone to do their personal best
We have a range of established and embedded Management framework and at our Group Risk to embody our Values and follow our guidelines. It
Group colleague engagement score policies and practices relating to Lowell’s way of Committee, where ‘Ethics & Governance’ and is an umbrella policy that aims to present a lot of
69 working, our conduct, ethics, and professional ‘Conduct’ are two of Lowell’s top ten key risks. existing information in one place. We’ll be rolling out
standards. Given the sensitivity of our work and Group-wide training on the Code of Conduct to all
the vulnerable situations in which many of our Client and customer promises colleagues in 2022.
Group colleague engagement survey
response rate
customers find themselves, such behaviour is Through our business-to-business relationships we
central to our business DNA and essential to our partner with a wide range of organisations and We have continued to develop new training on our
81%
licence to operate. All colleagues receive regular sector types. Each client is allocated a dedicated mission and Values, including a special section for
feedback, coaching and support to embody our Lowell contact who will work to develop bespoke new joiners as part of their onboarding programme.
Values; our Let’s Talk Performance Evaluation commercial and customer solutions. Whether it’s Living our Values is a key element in the design of
process assesses a colleague equally against both providing cash flow at times to suit their business our colleagues’ reward package, and performance
the ‘what’ and the ‘how’ they demonstrate, and schedule, developing unique service offers – such is regularly assessed and recognised. Additional
policies are in place to guide the specific treatment as helping them verify contact details for their coaching and support are provided where required.
of our key stakeholders, including our colleagues, consumers – or tailoring the customer journey
customers and clients. so it follows on seamlessly when they move to Group People Policy
Lowell, each offering is unique to our client. As part We want our colleagues to feel that Lowell is a
Top Employer of the Year – of our regular client audit programme, we also place where they are valued and can grow, develop
Lowell received this accolade offer our clients full access to our in-house business and have a fulfilling career. Our Group People
in Germany for the 16th experts to facilitate best practice sharing. Policy sets out what our colleagues can expect
consecutive year in 2021 from Lowell throughout their time with us and our
promises and commitments on key employment-
related areas, as well as how the policy will be
monitored to ensure its effectiveness.
Lowell Sustainability Report 2021 15Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Listening to our colleagues Improving incomes through partnership Inkassobrancheforening Board and Seppo Lahtinen,
Our KPI Stats 2021 Our annual colleague engagement survey, We are members of all the respective debt Director in our Nordic Commercial Unit, on the
completed by more than 80% of our team every collection associations in all countries where we Suomen Perimistoimistojen Liitto (SPL) Board.
Group client satisfaction score year, is one of the many ways in which we listen operate. Lowell is an affiliate member and sponsor
8.6 to our colleagues. In 2021 our Group engagement of the Federation of European National Collection In Germany, as part the Federal Association of
score was 69. A specific area of focus, fast-tracked Associations (FENCA). German Debt Collection Companies (BDIU) we
by the pandemic, has been our approach to ways worked in 2021 to create a Code of Conduct
Help improve sector insight and
of working. This has been shaped by colleague In the UK, we work closely with our industry trade for the industry, ensuring customers across the
understanding
feedback and has resulted in colleagues scoring body, the Credit Services Association (CSA). We country will get the support they need. Anke
– Membership of debt collection
us 815 when asked if they have the opportunity are members of the BDIU (Federal Association of Blietz, our DACH Operations Director, is a member
associations and business networks in all
our operating countries to work flexibly and to better balance work and Germany Debt Collection Companies) in Germany, of the BDIU Board, Holger Rampe, our Managing
personal life. the Associations for Finnish, Danish and Swedish Director of Analytics, is at the Präsidium of BKS
– Key partnerships that deliver better debt
understanding and education debt collection companies, and the Association Bundesvereinigung Kreditankauf und Servicing
– Funding for the free debt advice sector in Advancing standards of Trade and Services in Norway. Through such e.V. and our Head of Quality and Complaints
the UK
bodies, we take a strong leadership role within our Management, Thomas Schauf, chairs the BDIU’s
Raising standards together sector, working closely with peers and regulators to committee for data protection.
In the Nordics, we have introduced a new set standards for fair collections, develop codes of
Supplier Code of Conduct that outlines the conduct for the industry, and inform policymakers We also partner with organisations that guide
ethical behaviour and standards that we require through our research and data. policymakers and help to prevent people falling
8.6
from our suppliers. The Code’s principles will be into debt. Read more about our work with
used in all new contracts with suppliers, and we In 2021, our UK Operations Director, Kathryn the Centre for Social Justice. Our Payment
plan to include environmental and sustainability Morgan, was appointed to the CSA board and Indicator and our Financial Vulnerability Index
Our average client satisfaction score questions in future third-party audits of suppliers. we also represented all CSA members on a UK provide valuable tools to assist policymakers in
for the Group, demonstrated how we We have also introduced responsible selection of Treasury Working Party, focusing on VAT-related understanding issues around financial vulnerability.
are recognised as a trusted partner clients and portfolios, ensuring that the clients issues for credit management organisations.
we work with share our Values and commitment In Nordics, Lowell is represented at Board level
to good business ethics. By working closely with in the respective debt collection associations Lowell helps to fund the UK free debt
clients in this way, we can provide them with a in Finland, Sweden, Norway and Denmark. advice sector through Fair Share
range of services and solutions, including third- Johan Agerman, Nordic CEO, sits on the Board
Contribution (FSC). In 2021, we paid
party collections, debt purchase, or different of Svensk Inkasso, Geir Inge Skålevik, Legal
over £3.3 million into FSC, helping to
challenges. Under our One Nordic banner, in 2021 Director Nordics and Managing Director Norway,
ensure free, independent debt support
we successfully integrated our debt purchase and on the Virke Inkasso Board, Keld Hvolbøl, HR and
third-party collections, enabling us to offer a more Communications Director in Denmark on the Dansk
is available to those in need.
streamlined service to our clients.
5 Average score taken from our annual
colleague engagement survey Lowell Sustainability Report 2021 16Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Viewpoint CASE STUDY
Sharing insights on
Improving financial education financial stability in
Financial Vulnerability
Using insights from the Financial Vulnerability
Index, we have been assessing routes to combat
the UK
Index the long-term rise in household financial
vulnerability across the UK. Working alongside The Financial Vulnerability Index has
the Centre for Social Justice, we are supporting a provided valuable insights into the financial
project to identify financial education solutions resilience of UK households in the wake of
and policy recommendations that can make a Brexit, the pandemic and other economic
real impact, by improving young people’s money impacts by looking at national, regional
management skills to prevent persistent, harmful and parliamentary constituency levels.
debts. We are building a pilot in one parliamentary Now with its second iteration released
constituency prior to wider engagement. and two further releases planned for
2022, we have held meetings with the
As a central part of this project, we are supporting Government, regulators, policymakers and
a local youth charity in Blackpool, one of the We are concerned about our other influential stakeholders to dig into
country’s most financially vulnerable areas. The nation’s financial health. With COVID the data and see where national and local
charity, Boathouse Youth, specialises in improving support falling away, we can already see interventions can support better outcomes
financial skills through residential courses. The vulnerability ticking up. This has been for consumers in the UK.
project is due to report in the first half of 2022. rising since 2017 and we need to have an
honest conversation about why. The most recent research highlighted,
for example, a 7.9% rise in average credit
In 2021, we launched the first UK Financial John Pears, UK Managing Director, Lowell use in 2021. Credit use rose especially
Vulnerability Index to provide detailed sharply in Q3, following the reduction in
insight into the long‑term profile of financial financial support for households during
vulnerability across the UK. Combining the pandemic. Information like this can
anonymised Lowell data and publicly help policymakers better understand the
available data, we have built a recognised nation’s true financial health and inform
index for policymakers, charities, and judgments on the levels of support required.
the wider sector that provides a unique
understanding of the UK’s financial health
and informs decision making.
Lowell Sustainability Report 2021 17Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
What’s next?
Developing our policies Debt Management Bill seeking to significantly – as well as share information directly with our
Our targets We’ll be continuing to embed our Code of Conduct improve standards of public sector debt collection system. This will not only provide greater visibility
and People Policy through 2022, extending training practices and extend the protections and of key data, but also make communication
to all of our colleagues and new joiners. We also standards in the private sector to the public sector, between us and our clients more streamlined
Colleague training on our Code of aim to introduce a new Group-wide Customer helping those in debt. and efficient.
Conduct
Charter, which will build on the commitments
All existing colleagues to participate we made to customers during the pandemic We recognise the continual need to Sharing market insights with our clients
in launch training during 2022 and and will set the standard for how we support As part of our partnership approach, we offer our
all new joiners to receive new develop new, more agile solutions –
welcome content our customers. such as our new self-service clients full access to in-house business experts to
management system. enable sharing of best practice. We proactively
Addressing financial vulnerability offer deep-dive sessions on hot topics, such as the
Colleague engagement One of our core partnerships is with the Centre introduction of new breathing space regulation
Increase our Group colleague for Social Justice (CSJ), a leading UK think tank Improving access to affordable credit in the UK. Our face-to-face offering is supported
engagement survey score and align focused on delivering social justice to the most We see access to affordable credit as a key by webinars, the most recent topics being our
to the global benchmark of 75 by
disadvantaged in society. We are a founding component of preventing people falling back into Financial Vulnerability Index and Payment
December 2025
member and long-term supporter of the CSJ’s harmful or persistent credit. Working with the Indicator in the UK and Nordics respectively.
Financial Inclusion Unit, which looks at ways to think tank Demos, we have mapped the Financial
Colleague engagement survey ensure the most vulnerable in society do not find Vulnerability Index onto the Good Credit Index to
response rate themselves excluded or trapped in financial debt. understand where and why the most vulnerable
aintain 80% plus participation in our
M The Unit has sought to provide policy insight areas of the UK also lack access to affordable
annual colleague engagement survey across various areas including illegal money credit. The project is due to report in January 2022
lending, hidden debt, and poor public sector and will provide further recommendations on how
Client satisfaction score debt practices. to tackle these dual difficulties in society.
aintain excellent satisfaction score
M
of above 8.5 On public sector debt collection, a CSJ report Self-service for clients
revealed that 42% of debt problems stem from In 2022, we will launch a new self-service system
Government-originated debt6, such as student for our 3PC clients in our DACH region. Clients will
loans and Council Tax bills. To help address this, we be able to see a complete picture of their accounts
View our full KPI scorecard p34
6
tbc
will continue to work with the CSJ to support and altogether in one place – including money paid and
provide best practice insight into a Government outstanding, customer numbers, and much more
Lowell Sustainability Report 2021 18Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Better for Society
Our ambition: To create a stronger society through fostering better
financial wellbeing, promoting inclusive work opportunities, and providing
support for our communities. We aim to always put people first and
believe this will build a stronger business and a fairer society.
How we’ll get there:
We actively engage We want to be a great We want to be a Through education,
customers and wider place to work. We community where community
society to improve want our colleagues everyone is free to be engagement and
debt management to feel valued and themselves and feels partnerships, we
and build financial know there are welcome and valued. will work to share
resilience. opportunities to grow, We’re committed to knowledge on how
develop and enjoy raising awareness of to make credit work
a fulfilling career, the importance of better for all.
balancing work and diversity and creating
personal life. an inclusive culture.
Did you know?
56.2% of UK adults have no
emergency savings (Financial
Vulnerability Index, Q1 2021).
Lowell Sustainability Report 2021 19Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Achievements and progress
Improving debt understanding Researching the effects of the pandemic
Our KPI Stats 2021 Our Payment Indicator (PI) is an annual survey-
We aim to create a stronger society through based research programme run by Lowell in the
Raise consumer awareness of financial fostering better financial wellbeing, promoting Nordics. It began in Sweden in 2017, expanding
issues and support available inclusive work opportunities, and providing support
for our communities. A better understanding of
to all of our Nordic countries in 2020. The research
provides insights into topics such payment ability
Speaking out
– 10 million consumers reached in the
UK alone debt, its effects, and how to manage it, is integral and financial vulnerability as well as perceptions of about debt
– 2021 campaigns included managing to this. Using our unique database and bespoke credit and consumers’ consumption patterns.
hidden debt, removing the stigma research, we share insights that are valuable for In the UK, we combined our research
of debt, and campaigns to promote customers, clients and policymakers. In 2020 and 2021, the research explored how findings with tips and advice on
consumer debt solutions and financial the pandemic affected financially vulnerable topics relevant to our customers.
education
In 2021, we ran a number of campaigns in the households, especially in the hardest-hit Nordic In partnership with StepChange,
– Nordic campaign proposing solutions UK and Nordics to raise consumer awareness countries: Sweden and Finland. It has provided a we looked at challenges such as
to issues identified by the payment
of financial issues and the support available. database of real value to politicians, government hidden debt and what people fear
indicator research, including ‘opt out of
credit’ platform We estimate our campaigns reached 10 million agencies, and policymakers on issues around most about money. Our advice
consumers in the UK alone. indebtedness in the region and has given clients an stressed the importance of speaking
additional perspective. PI also informs our website, out about such debt, and ways for
Contribute to wider system a hub for knowledge around over-indebtedness people to avoid or manage being
knowledge through new insights
as well as learning and advice to help develop in such situations.
– Financial Vulnerability Index launched financial health.
in the UK
Other issues we addressed during
69%
– Payment Indicator research continued the year included how comfortable
23%
in the Nordics
people are at managing their finances,
debt following specific events from
In the Nordics, we have launched a campaign running Christmas to divorce, and ways to
of people don’t of households in across the media and targeting government. Our remove the stigma of debt.
discuss their Norway state that campaign focuses on providing solutions to problems
debt, with over they have been identified by our Payment Indicator research. These
half (53%) too negatively include campaigning for an ‘opt out of credit’ platform
embarrassed to impacted by and providing greater support for financial education,
talk about it (UK) the pandemic budgeting, and debt management.
Lowell Sustainability Report 2021 20Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Our KPI Stats 2021 Positive for colleagues Building a diverse and inclusive culture
Diversity is all the visible and invisible differences
Positive for colleagues that make us unique, including our personalities
Number of employees
We want to be a great place to work. That means and life experiences. Inclusion means embracing
3,901 helping our colleagues to feel happy and valued, all colleagues regardless of their differences when
– Full-time – 3,244 with opportunities to grow. we collaborate, solve tasks, develop, innovate,
– Part-time – 657 and make decisions. We want to be a community
Colleague development and wellbeing where everyone is free to be themselves, and feels
Temporary and contract colleagues
– Temporary – 64 We want our colleagues to enjoy fulfilling careers welcome and valued.
– Contract (fixed term contract) – 90 with us. We encourage and support all of our
colleagues to plan their career and consider Working towards our Diversity and Inclusion (D&I)
any development needs as part of our Let’s Vision, in 2021 we created a D&I Council, which
Gender diversity
Talk performance evaluation process. Through reports directly to our Executive Committee. Each
– Company-wide: feedback, we understand what our colleagues region also has a D&I plan, with awareness-raising
39% male and 61% female
want and need. We set our People agenda based activities, targets and KPIs, and survey measures in
– Our senior team: on what they tell us is most important to them, place to assess progress and gather data. In 2021,
67% male and 33% female and appropriate for us to be a sustainable business. our company-wide gender split was 39% male and
61% female, and our senior team was 67% male
Employee turnover Since the start of the pandemic, we have and 33% female. We aim to improve the gender
22% (of which 17% is voluntary) expanded wellbeing activities offered to colleagues, balance in senior roles by 2025.
and invited external specialists to run digital, as
well as face-to-face, sessions on mental health, We also created a series of ‘Involve groups’ in 2021.
self-care and financial wellbeing. Our underlying Including colleagues from across the business, these
focus on each person’s development and wellbeing groups do just what their name suggests – involve
means we focus on the whole individual. our colleagues directly in how important societal
issues such as D&I and colleague wellbeing are
Employment turnover at call centres is generally managed within the company, and how we select
quite high, and our figures are in line with the norm. the charities we support. As the groups become
Globally, the turnover trend is increasing as working established, they’ll be making a real contribution
from home has opened up wider opportunities and to how we evolve as a responsible company, and
demand. Our focus to address this is, therefore, on better reflect the communities we serve.
making Lowell a great place to work.
Lowell Sustainability Report 2021 21Overview Better for Customers Better Ethics and Understanding Better for Society Responsible Business Performance
Leadership Philosophy over £100,000 to local charities, including shelters
Our KPI Stats 2021 Our new Leadership Philosophy was established for domestic violence victims and the homeless,
in 2021. Based around four leadership capabilities food banks and those helping people improve their
Group colleague engagement survey – Clarity, Energy, Success and Resilience – the mental health. Money was raised through colleague
scores for ‘happy’
philosophy will guide how our business is led and fund raising, match funding, and our Lowell Giving
71 managed in the coming years. This will include donation pot.
the creation of our Leadership Development
Group colleague engagement survey Programme, launching in 2022, in which all of In DACH, we partnered with the Westdeutsche this included significant donations supporting
scores for ‘opportunities to learn’ our people managers will participate. Allgemeine Zeitung newspaper in 2020. WAZ cancer research. In Finland, we are long-standing
64 donate newspapers to two local schools to help supporters of a local hospital’s children’s intensive
A new hybrid working model promote financial literacy and education, and care ward and provide support for cancer research
The pandemic showed the world that working linked to this, we are now offering internships and mental health, as well as financial literacy
from the office doesn’t have to be the only option. and educational training at Lowell Germany. In amongst schoolchildren. Since 2011, we have
Flexible and remote working is now the preference 2021, 530 school students benefited from this organised a Christmas Wish Tree campaign to
of more than 80% of our colleagues. So, we’ve programme. donate Christmas gifts to deserving children.
enhanced our offering and are committed to In Sweden, we support Stadsmissionen, an
retaining a hybrid model that will help colleagues Support for our annual Wish Tree campaign organisation that helps, among others, the
to continue to benefit from the increased flexibility continues to bring deserving children a little bit of homeless and low-income families.
to suit their own needs and circumstances, seasonal joy. In Essen, we provide gifts for a local
something that we know they value. kindergarten run by VKJ, which supports young
people in socially deprived areas. In Ratingen, our
Community engagement colleagues organised a Wish Tree in 2021 in aid
We aim to create a stronger
of the Burgholz Children’s and Youth Hospice in
society through fostering
Wherever we operate, we aim to support Wuppertal, while colleagues from our Wuppertal
better financial wellbeing,
local communities. office donated gifts for several local social
institutions. Lowell DACH also donated €25,000
promoting inclusive work
In the UK, since 2015 we have donated £450,000 to Aktion Deutschland Hilft, a global emergency opportunities and providing
to the Leeds Hospital Charity, which supports relief charity. support for our communities.
hospitals across the city. This includes £50,000 for
the charity’s Capital Appeal to raise funds for a new In the Nordics, we support a wide range of
hospital, due to open in 2026. In 2021, we donated causes within the countries we operate. In 2021,
Lowell Sustainability Report 2021 22You can also read
