Co-op ethical policy ‘has turned away £700m’
July 16, 2007 by admin
Filed under News, News-Banking
The Co-operative Bank (Co-op) announced today that it had declined more than £700 million worth of loans for ‘ethical and ecological reasons’.
It also claimed that its ‘ethical positioning’ is a ‘positive driver for business’, with its loan book growing 250 per cent in the 15 years which it has held its ethical policy to total almost £2 billion today.
The bank first formally committed itself to ethical investment in 1992, with its statement that it would not invest in businesses involved in cosmetics testing on animals. It formulated its Ethical Policy statement, committing it to supporting Fair Trade, in 1995.
The Co-op’s chief executive David Anderson hailed the bank’s ethical standard as responsible for changing society: “We’ve witnessed the end of cosmetic testing on animals in the UK; the introduction of legislation to phase out the manufacture of the most harmful chemicals; and Fair Trade – something our customers have supported since 1995 – is now a mainstream brand.”
The figures released by the bank show that ecological reasons – making up almost half the total at £324 million – were by far the most costly factor behind the bank’s loan refusals. Animal welfare came next at almost £150 million, with the arms trade, global trade and human rights concerns all costing over £50 million each.
Mr Anderson remains optimistic for the brand’s future: “Of course, major challenges remain, and going forward we will continue to press for change on the issues our customers care about.”
