When you invest your money in stocks and shares, a bank, building society or other investment body do you stop to consider how the money is then used? Is it then reinvested to manufacture tobacco or alcohol, arms or torture equipment, experimentation on animals, destruction of tropical forests, or other activities which not accord with your values or principles? Or are you just interested in the interest you gain on your investment?

If you are interested in ethical issues of this kind then the following guidance may prove helpful. However, the information provided is primarily related to opportunities in the UK and may not be very helpful to people living in other countries. However, the principles which underpin the policies mentioned below could inform the questions you may wish to put to investment bodies before making a decision as to where you place your own savings.
If you do have other ideas relevant to the UK or other countries please send this to the FIOH Network contact office.

For a more comprehensive assessment of the ethical performance of some of the main banks and links to their web sites go to the Ethical Policies of Banks section of CAMPAIGN NEWS.

Ethical investment
There are very few opportunities for investing money in a truly ethical way. Ethics are very narrowly defined by major banks under the current rules of economics. The word 'ethical' undoubtedly means different things to different people and an individual's ethical investment decisions might be influenced by the whether the bank/building society policy avoids investments in:

· the manufacture of armaments and torture equipment
· tobacco production
· animal experiments
· intensive farming methods
· subprime mortgage industry
· oil and gas production
· multinational companies
· alcohol production

Before assessing different investment alternatives, it is necessary to consider whether any of the these can be described as truly ethical. To what extent do they reflect social justice, equity, personal freedom, participatory government and decision making, local self reliance and community self determination?
The ethical policies of two banks and a building society in the UK are scheduled below. These could be used as a guide when banks are questioned about their policies. These policies are not perfect, but are better than those of the main high street banks.
Banking opportunities similar to these will probably be available in most developed countries, but future sustainability depends on the creation of steady state economies in which debt based money and usury play no part.
However, it is improbable that even these three models of investment can be regarded as a contribution to the kind of long term sustainable development required to ensure an ethical and fair distribution of world resources. A radical reform of the whole global financial system would appear to be necessary.
A means of promoting the health and vitality of local communities is to establish community based exchange mechanisms. At the present time this will prove difficult, but increasingly they may be used in many parts of the world to address the likely symptoms of global economic and environmental crises.

THE COOPERATIVE BANK'S ETHICAL POLICY - APRIL 2009

Human Rights
We support the principles of the Universal Declaration of Human Rights. In line with this, we will not finance:

· any government or business which fails to uphold basic human rights within its sphere of influence
· any business whose links to an oppressive regime are a continuing cause for concern
· any organisation that advocates discrimination and incitement to hatred
· the manufacture or transfer of armaments to oppressive regimes
· the manufacture or transfer of indiscriminate weapons, e.g. cluster bombs and depleted uranium munitions
· the manufacture or transfer of torture equipment or other equipment that is used in the violation of human rights.

International Development
We will seek to support poverty reduction. In line with this, we will not finance organisations that:

· fail to implement basic labour rights as set out in the Fundamental International Labour Organisation Conventions, e.g. avoidance of child labour, or that actively oppose the rights of workers to freedom of association, e.g. in a trade union
· take an irresponsible approach to the payment of tax in the least developed countries
· impede access to basic human necessities, e.g. safe drinking water or vital medicines
· engage in irresponsible marketing practices in developing countries, e.g. with regard to tobacco products and manufacture

We will support Fairtrade and the provision of finance to the working poor in developing countries, via microfinance.

Social Enterprise
We will seek to support charities and the broad range of organisations involved in the Social Enterprise sector including: co-operatives, credit unions and community finance initiatives.

Ecological Impact
We will not finance any business whose core activity contributes to:

· global climate change, via the extraction or production of fossil fuels (oil, coal and gas), with an extension to the distribution of those fuels that have a higher global warming impact (e.g. tar sands and certain biofuels)
· the manufacture of chemicals that are persistent in the environment, bioaccumulative in nature or linked to long term health concerns
· the unsustainable harvest of natural resources, including timber and fish
· the development of genetically modified organisms where there is evidence of uncontrolled release into the environment, negative impacts on developing counties, or patenting (e.g. of indigenous knowledge)
· the development of nanotechnology in circumstances that risk damaging the environment or compromising human health.

Furthermore, we will seek to support: business involved in recycling and sustainable waste management, renewable energy and energy efficiency, sustainable natural products and services (including timber and organic produce), and the pursuit of ecological sustainability.

Animal Welfare
We will not finance any organisation involved in:

· animal testing of cosmetic or household products or ingredients
· the exploitation of great apes, e.g. in experimentation or general commercial use
· intensive farming methods, e.g. caged egg production
· blood sports, which involve the use of animals or birds to catch, fight or kill each other
· the fur trade

Furthermore, we will seek to support: businesses involved in the development of alternatives to animal experimentation and farming methods which promote animal welfare (e.g. free range farming).

Customer Consultation
· We will regularly reappraise customers' views on these and other issues and develop our Ethical Policy accordingly.
· From time to time, we will seek to represent our customers' views on the issues contained within our Ethical Policy and other ethical issues, through, for example, our campaigning initiatives.
· On occasion, we will make decisions on specific business, involving ethical issues not included in our Ethical Policy.

This Policy was developed after 80,000 customers returned questionnaires in 2008 on the Bank's ethical policy. 97% of customers supported the Policy in 2008. £1 bil of finance has been declined since the Policy was launched in 1992, £400 mil has been pledged to green initiatives and £25 mil to microfinance to the world's poorest people. Support for the policy statements ranged between 70% and 99%.

The Cooperative Bank p.l.c. Head Office
P.O. Box 101
1 Balloon Street
Manchester M60 4EP,UK.
Website: www.cooperativebank.co.uk

TRIODOS BANK

Your money - Your choice
When most people think of a bank, they think of the organisation that keeps their money safe and secure until they need it. When most people decide who to bank with, they consider the rate of interest they will receive, the services they will benefit from and how easy will it be to access their money. What most people don't think about is how that bank then invests their money when they're not using it.
A bank's core business is to use the money savers deposit, to lend it to someone else. With most banks you don't know who's using and benefiting from your savings. Instead the bank is in control of your money and decides who they will lend it to and what that money will be used for. But if you ask the bank what they're doing with your money they won't tell you.

A Transparent Bank
Triodos Bank is different. We only lend to organisations which create real social, environmental and cultural value such as charities, social businesses, community projects and environmental initiatives. Each one is a practical, well-grounded initiative dedicated to social aims which benefit the community, care for the environment, respect human freedom and develop individual talents and capacities. As part of our commitment to transparency we publish a Project List, which details all the activities that we finance in the UK and Ireland at the time of printing.

Positive or Negative
Many financial organisations, from high street banks to pension providers now offer funds and schemes where you can save and invest your money ethically, partly in response to the success that ethical pioneers including Triodos Bank have had. Most ethical investments use negative lending criteria. This means that the organisations that they lend money to cannot be involved in malevolent activities such as child labour, large scale environmental damage or the arms trade. But Triodos Bank has a different approach - the enterprises we invest in are all actively pursuing social, environmental and cultural goals, not just avoiding negative activities.

With a Human Approach
While Triodos provides opportunities for people to save and enjoy a reasonable rate of interest, a growing number of social enterprises need to finance their development. Many charities, social businesses, community groups, environmental initiatives have a wide range of socially valuable and innovative projects which need access to credit. They need a banking partner which understands the way they work, recognises and supports their values, and can work with them to find the right financial arrangements for their needs.
Triodos Bank co-workers use their expertise and judgement to assess each loan application on its own merits, analysing a project's social, environmental and cultural 'added value' as well as its financial performance. We have a genuinely human approach to banking, sharing the values of the enterprises we support and taking the time to visit and understand each one. As a result, we support a wide variety of initiatives in many sectors, all over the UK and Ireland, reflecting the growing strength and diversity of the social economy.

Making a Real Difference
Saving with Triodos Bank means that people in all parts of the UK and Ireland can develop and build organisations which enrich their community and safeguard the environment - building a more sustainable future for us all.

Triodos Bank
Brunel House
11 The Promenade
Clifton, Bristol BS8 3NN.
Website: www.triodos.co.uk. Email: mail@triodos.co.uk

MUTUAL BUILDING SOCIETIES
In recent years, a number of building societies have changed from mutual organisations into banks.
Being a member of a mutual organisation means the customers are the owners.
What are the benefits of mutuality?
There are many. Building society members enjoy the protection of the Building Societies Act. As a result of the Act, the interests of all existing and future members must be taken into account when mapping out the Society's direction.
By remaining a mutual a building society is answerable to its members, not outside shareholders. Many of the policies of mutual building societies overcome many of the negative aspects associated with bank investments (which rarely reflect advanced ethical principles).

ECOLOGY BUILDING SOCIETY
The prime focus of the Ecology Building Society is to promote an ecological approach to the built environment in the UK, and thereby foster sustainable communities. Any lending project that contributes to these aims is our concern. We regard our mutual status as a key means of promoting a more sustainable and equitable way of life.
Our principles inform our lending programme, our relationships with our customers, and how we conduct our business operations.

Ecological Lending
Our lending is governed by the principle of sustainable development, defined as "development based on the concept that the needs of the present should be met without compromising the ability of future generations to meet their own needs". Overall this allows us to engage in activities that promote, encourage or support the following objectives:

· The saving of non-renewable energy or other scarce resources
· The growth of a sustainable housing stock
· The development of building practices, ways of living or uses of land having, in each case, a low ecological impact.

The environmental benefits of each potential loan underpins our lending decisions. Our lending programme includes the following:

Sustainable housing practices
· Energy-efficient new residential dwellings (incorporating such features as timber-frames, high insulation, reclaimed materials, solar technology, water conservation etc.)
· Renovation of derelict, deteriorated or redundant properties where possible encouraging the highest level of ecological building practices
· Promotion of sustainable local building technologies such as cob, mud block, straw bale

Sustainable lifestyles and economic activity
· Small scale ecological industries or businesses such as recycling, organic farms, local shops
· Cooperative living
· Sustainable forestry and nature reserves

We will also consider:
· Non-standard constructions
· Sound properties in deprived neighbourhoods
· Properties with agricultural restrictions (but only where other features of the project make it acceptable lending)

Our commitment to sustainable development also means we will NOT lend:
· for holiday homes, because of the impact on rural communities
· where intensive agricultural practices are to be employed

A commitment to fairness
Our mutual structure also allows us to place the needs of our savers and borrowers at the centre of our business practice. This has led to the development of a number of principles that govern the service we provide to our customers:
· we do not charge for the ordinary operation of a savings account
· because of the pressures on the Society to maintain liquidity, we have recently had to restrict our 1% minimum interest rate guarantee to existing accounts only. Accounts opened after April 6th do not carry such a guarantee
· we don't wait for a cheque to clear before crediting interest
· we pay interest on all funds from the day after receipt
· we don't insist on high levels of unnecessary insurance

Operating a sustainable business
An environmental audit is conducted each year and the Society's Environment Policy reviewed. We seek to use items that come from renewable sources, assess materials for the minimal use of resources and install equipment that minimizes the use of energy. In the day to day running of the Society, we seek to reduce energy and water usage, and the generation of waste. We use exclusively green electricity and have offset the carbon emissions since creation in 1981, and have committed to an on-going programme with local environmental groups to account for future emissions.
In our treasury operations, we avoid the use of Banks that have a record of irresponsible lending which impacts on the environment.
Regarding remuneration, no one salary is to exceed five times the lowest full-time salary paid.

Our new head office was designed to have an airtight structure, high levels of insulation and low energy requirements.

Photovoltaic panels have been installed to generate electricity from the sun. Windows are double glazed I Plus argon filled, to improve heat retention. A heat exchanger and a high-efficiency condensing boiler have been installed.

The materials used are as far as possible from renewable sources, recycled or of low toxicity. The sedum nature roof serves to replace bird and insect habitat. A rain water harvesting system provides the water to flush the toilets and to water the roof.

The Ecology Building Society
7 Belton Road
Silsden
Keighley BD20 0EE
Website: www.ecology.co.uk; EMail: info@ecology.co.uk

FIOH UK, the FIOH Education and Development Fund and Plant a Tree in Africa all use only the Co-operative Bank and the Ecology Building Society.