Co-operative updates ethical investment guidelines

The Co-operative Bank this week updated its ethical investment policy, making lending guidelines at the bank more stringent than ever.

Following a survey of 80,000 customers, the Bank has updated its policies on biofuels, fossil fuels, the arms trade, and animal testing.

The bank will now decline business in connection with biofuels that have high global warming potential, and companies that distribute fossil fuels.

Previously, the bank had only excluded companies extracting or manufacturing fossil fuels.

With regards to arms, certain weapons were highlighted in the survey as unacceptable, regardless of the nation using them.

Co-operative will no longer invest in the manufacture or transfer of indiscriminate weapons, including cluster bombs and depleted uranium munitions.

Testing on animals was previously only banned for household and cosmetic products.

Now, the policy will extend to ban any commercial or scientific testing on great apes.

“They are human’s closest living relatives, and have cognitive abilities and a degree of self-awareness not shown by other animals,” the bank said.

In addition, the bank will now refuse investment to any company or organisation that incites hatred on the basis of sexual orientation or race.

Since launching its ethical stance in 1992, The Co-operative Bank has seen average yearly growth in business of 14%.

Co-operative Bank’s chief executive David Anderson said: “Never has it been more important that responsible lending is prudent lending and I’m pleased to say that The Co-operative Bank’s Ethical Policy has stood us in good stead for more than 15 years now.

“The Bank’s Ethical Policy has led to more than £1 billion in unethical business being declined, but it has also contributed to a massive £3.8 billion net growth in our corporate lending.”