UK: Bank turns away £10m of unethical business

The Co-operative Bank, the fifth largest bank in the UK, turned away some £10 million (14 million euro) worth of business for ethical reasons last year, according to its annual profitability analysis.

The value of the business lost to the Bank due to ethical and ecological reasons was worth £9.9m at the end of 2005, compared with £8.7m the previous year.

However, whilst the Bank?s stance leads to business being turned away, the analysis also shows that a third (34 per cent) of the Bank?s £96.5m pre-tax profit last year can be attributed to its ethical and sustainability policies.

Analysing the businesses declined shows that environmental concerns are costing the Bank most. More than 50 per cent (£5.3m) of the value declined was for activity that conflicted with its ecological policies, and 25 per cent of the total (£2.4m) related directly to the Bank?s concerns around global climate change.

In addition, the cost of turning away business for animal welfare reasons was £1.9m; declining to do business associated with poor human rights and labour practices lost it £1.9m and rebuffing organisations involved in the production of problematic chemicals cost £0.9m.

Director of Business Management Craig Shannon said: ?This analysis demonstrates that through thick and thin we are prepared to turn away business for ethical reasons in line with our customers? concerns.

?Despite this scrutiny, the Bank?s corporate business goes from strength to strength with a growing proportion of business customers coming to the Bank because of our ethical positioning.?

www.co-operativebank.co.uk
www.co-operativebank.co.uk