Before considering
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? Such an assessment first requires an understanding of
the nature of money and the basics of economics and current systems
which systematically pump wealth from the poor and middle class to the
rich.
If you have ever wondered why even those banks who profess to have ethical
standards encourage borrowing, you need to realise that money today
takes the form of bank credit that must be borrowed into circulation.
The cash we use every day are simply physical tokens of the money that
was first created as bank credit. For money to come into circulation,
someone must go into debt to a bank.
This debt imperative creates a growth imperative that is forcing us
to destroy the life-support systems of the world. Economic power has
been concentrated by centralising the control over the medium of exchange,
limiting access to it and charging interest/usury for its use. The entire
machinery of money and finance has been appropriated to serve the interests
of centralised power.
A means of promoting the health and vitality of local communities is
to establish community based exchange mechanisms. At the present time
it will prove difficult to establish such mechanisms, but increasingly
they may be used in many parts of the world to address the likely symptoms
of global economic and environmental crises.
With regard to the
two most important global issues of our time, namely global poverty
and global warming, the Global
Monetary Reform page of the FUTURE
WORLD section of this web site describes a way of mitigating
the effects of both of these issues based on a system known as 'contraction
and convergence' involving the use of permits for consuming fossil fuels.
Contraction and Convergence (C&C), a plan for reducing greenhouse
gas emissions developed by the Global Commons Institute in London (GCI),
provides the way of linking a global currency with the limited capacity
of the planet to absorb or break down greenhouse gas emissions. Through
a global rationing system, 'energy backed currency units' (ebcus) would
be distributed to countries in proportion to their populations within
a global cap on the use of fossil fuels related to a limit on greenhouse
gas emissions. These ebcus could then be traded on the intrnational
market. For example a country in Africa, which might have more units
than it can use, could sell them to the USA. It should be noted that
under the present international monetary system, in which the main reserve
currency is the dollar, the USA does in effect receive a massive subsidy
from the rest of the world.
A community exchange
system and three alternative investment bodies are described briefly
below.
THE CO-OPERATIVE
BANK'S ETHICAL POLICY
Human Rights
Through our investments, we seek to support the Universal Declaration
of Human Rights.
In line with this, we will not invest in:
· 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
The Arms Trade
We will not invest in any business involved in:
· the manufacture
or transfer of armaments to oppressive regimes
· the manufacture of torture equipment or other equipment that
is used in violation of human rights
Corporate Responsibility
and Global Trade
We advocate support for the Fundamental International Labour Organisation
Conventions.
In line with these, we will seek to support businesses which take a
responsible position with regard to:
· fair trade
· labour rights in their operations and through their supply
chains in developing countries.
We will not support:
· irresponsible
marketing practices in developing countries
· tobacco product manufacture
· currency speculation
Genetic Modification
We will not invest in business involved in the development of genetically
modified organisms (GMOs), where, in particular, the following issues
are evident:
· uncontrolled
release of GMOs into the environment
· any negative impacts on developing countries; in particular
the imposition of 'Terminator' technologies
· patenting; in particular, of indigenous knowledge
· cloning; in particular, of animals for non-medical purposes.
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
· community finance initiatives
Ecological Impact
In line with the principles of our Ecological Mission Statement, we
will not invest in any business whose core activity contributes to:
· global
climate change, through the extraction or production of fossil fuels
· the manufacture of chemicals which are persistent in the environment
and linked to long term health concerns
· the unsustainable harvest of natural resources, including timber
and fish.
Furthermore, we
will seek to support businesses involved in:
· recycling
and sustainable waste management
· renewable energy and energy efficiency
· sustainable natural products and services, including timber
and organic produce
· the pursuit of ecological sustainability.
Animal Welfare
We will not invest in any business involved in:
· animal
testing of cosmetic or household products or ingredients
· intensive farming methods, for example, 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
· farming methods which promote animal welfare, for example,
free range farming.
Customer Consultation
· We will
regularly reappraise customer's views on these and other issues and
develop our Ethical Policy accordingly.
· From time to time, we will seek to represent our customer's
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.
Please phone 0845
714 2128 if you would like to receive this in Braille, large print or
on audio cassette.
The Co-operative
Bank p.l.c. Head Office
P.O. Box 101
1 Balloon Street
Manchester M60 4EP
UK
Website: www.co-operativebank.co.uk
Note
The above ethical policy was the outcome of a questionnaire to customers
whose support for the policy statements ranged between 70% and 99%.
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.com
Tel 0117 973 9339
Fax 0117 973 9303
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, mudblock, straw bale
Sustainable lifestyles
and economic activity
· Small scale ecological industries or businesses such as recycling,
organic farms, local shops
· Co-operative 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
· we operate a minimum savings rate of 1% gross and pay interest
on all balances however low
· 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
