The UK-based Co-operative Bank has published its first Values and Ethics report, highlighting its significant environmental achievements, along with progress against its customer-led Ethical Policy, established in 1992. It is the only UK bank to have an ethical policy co-created by customers, and views this policy as essential to its comeback after its financial collapse in 2014.
According to the report, the Bank sources 99 percent of its electricity from renewables, recycles 70 percent of its waste and has offset more than 100,000 tons of CO2 since 2006 – all part of its mission to be “beyond carbon neutral.” In addition, the Bank reports notable achievements in fulfilling its ethical mission, such as becoming a Living Wage employer and launching a new overdraft co-created with customers to offer a transparent charging structure.
Following its financial crisis and separation from the Co-operative Group in 2014, the Bank has redoubled its efforts to act ethically and to institute sustainable practices. In January 2015 the bank expanded its Ethical Policy, pledging not to lend to companies involved in irresponsible gambling, payday loans and tax evasion.
Last year, the Bank turned down four applications because of ethical policy issues or their impact on the environment and climate change.
“We remain the only high street bank in the UK to have a customer-led Ethical Policy,” said Laura Carstensen, Chair of the Co-operative Bank’s Values and Ethics Committee. “Earlier this year, the Bank strengthened and extended its Ethical Policy based on the views of more than 74,000 customers and colleagues and this allowed us to bring the Policy into line with what our customers care about today. The Co-operative Bank has long been at the forefront of reporting to its customers and wider stakeholders and our Values and Ethics Report builds on this heritage. It marks our first opportunity to provide an update to customers, colleagues and our wider stakeholders and shows how we are embedding the expanded Policy into the operations of the business.”
The report details Co-operative Bank’s position on all aspects of its values and ethics, from human rights and the environment, to international development and supporting economic and social development in Britain. Carstensen acknowledged that the Bank still has progress to make in restoring confidence in its practices:
“The values and ethics which underpin the Bank’s business are the golden thread that runs through everything it does, and are vital to rebuilding the business and restoring trust. We are mindful of the mistakes the Bank has made in the past and know we still have much more to do to turn the business around.”
The Ethical Policy established by the Bank is critical to its comeback, she said.
Co-operative Bank’s commitment to being ‘beyond carbon neutral’ through renewable energy and offset projects also positions it to be a leader among financial sector environmental initiatives. With Bank of America’s announcement this week of a significantly expanded environmental business commitment (to $125 billion), we could be heading towards sustainable financial practices truly taking hold in the mainstream.
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Published Jul 29, 2015 7pm EDT / 4pm PDT / 12am BST / 1am CEST