Coventry Building Society has signed up to the UN principles for responsible banking which it says will help it make a “positive impact on the environment and wider society”.

The UN document commits the UK’s second-largest mutual to six points, which cover alignment to the 2015 Paris Climate Agreement, managing risks to people and the environment from its activities, and working with clients and customers to encourage sustainability.

The UK’s eighth-largest lender, founded in 1884, has also agreed to responsibly consult with stakeholders, ensure its governance is effective and make sure its implementation of these principles is transparent.

The building society must publish a report in 18 months to show the progress it has made across these areas.

Over 200 banks around the world have signed up to this charter since it was launched in September 2019, the UN says.

Coventry Building Society chief executive Steve Hughes says: “These principles align perfectly with our purpose and ambition.

“We are determined to make a positive impact on the environment and wider society and deliver a better future for our millions of members and their communities across the UK.”

Hughes adds: “Running our business sustainably and with the long term benefit of our members in mind doesn’t just make sense now, it has been central to the success of our Society for more than 130 years.

“Now more than ever, it’s vital that everyone and every organisation takes an active role in preserving our world for future generations. We are proud to be able to make this commitment and work alongside other like-minded banks and building societies across the world to help drive this agenda forward.”