Ethical Consumer, Issue 187, Nov/Dec 2020

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£4·25 187 Nov/Dec 2020 www.ethicalconsumer.org

Are mortgage lenders helping to build a zero carbon future?

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2 Ethical Consumer November/December 2020 ETHICAL CONSUMER Editorial WHO’S WHO A boom time for ethical a potential death sentence across the THIS ISSUE’S EDITORS Rob Harrison & Ruth Strange world. The Black Lives Matter protests, PROOFING Ciara Maginness (Little Blue Pencil) consumers WRITERS/RESEARCHERS Jane Turner, Tim Hunt, In the month of September we attracted as well as acting as a reminder of the Rob Harrison, Anna Clayton, Josie Wexler, new subscribers to the magazine at the fact that too many things are profoundly Ruth Strange, Mackenzie Denyer, Clare Carlile, fastest rate for a couple of decades. This wrong, are also bringing with them a Francesca de la Torre, Alex Crumbie, Tom Bryson, doesn’t appear to be a blip or freak event renewed sense of the power of boycotts Billy Saundry, Jasmine Owens 1 REGULAR CONTRIBUTORS Simon Birch, Colin Birch though, as previous months also showed and positive buying. DESIGN Tom Lynton similar growth rates. For a co-operative LAYOUT Adele Armistead (Moonloft), Jane Turner publisher, which like most in the print Evidence from elsewhere COVER Tom Lynton sector has seen revenues in decline since Surveys, although not always reliable, are CARTOONS Marc Roberts, Mike Bryson, Andy Vine 2005, this has come as a bit of a surprise. showing big increases in environmental AD SALES Simon Birch awareness. One global survey showed SUBSCRIPTIONS Elizabeth Chater, Francesca Thomas, Nadine Oliver Why is this happening? that 70% of people claimed to be more PRESS ENQUIRIES Simon Birch, Tim Hunt Some of our team think this is all just down aware post COVID-19 that “human ENQUIRIES Francesca Thomas to 30 years of continuous improvement activity threatens the climate and that WEB EDITOR Sophie Billington in what we do. We write more articles and environmental degradation can threaten THANKS ALSO TO Marlous Veldt, Merle Büter, Emma reports with better quality research than humans.” A further 40% intended to Kerrison, Katy Davies, Catherine Harbour, Jane Darling we used to. We are better at telling the practice more sustainable behaviours in outside world about them and we have the future.2 We are also aware of big post All material correct one month before cover date and © Ethical Consumer Research Association built more ways to pay. There may also be COVID-19 growths in some sectors like Ltd. ISSN 0955 8608 the fact that some people who now can’t organic food sales.3 Printed with vegetable ink by RAP Spiderweb Ltd, go out may suddenly have found that they Finally, there is definitely change going c/o the Commercial Centre, Clowes Centre, have time to read a magazine. on in the financial sector with a surge Hollinwood, Oldham OL9 7LY. 0161 947 3700 Whilst this dull-but-true explanation of interest in ethical investments and a PAPER 100% post-consumer waste, chlorine-free will no doubt account for some of this scramble to get a handle on the carbon and sourced from the only UK paper merchant growth, there is a faint hope that bigger emissions in investment portfolios.4 This supplying only recycled papers – Paperback (www.paperbackpaper.co.uk) changes are also afoot. Perhaps these issue and the last has been tracking some RETAIL DISTRIBUTION is handled by Central Books crazy times in which we find ourselves of these changes and highlighting some of on 0845 458 9911. are driving a change in the way people are the better companies to do business with. Ethical Consumer is a member of INK thinking? It is perhaps surprising then, in these (independent news collective), an association of dark days, how many glimmers of light radical and alternative publishers. www.ink.uk.com Shining a light on inequalities there still are. There’s nothing like a pandemic to shine We are a Living Wage employer, a multi-stakeholder co-op, and Fair Tax Mark accredited. a light on greedy businesses making poor And a clarification decisions. For example, COVID-19 hotspots Some readers were confused by a in Leicester making front page news finally statistic in the last editorial comparing forced Boohoo and government regulators the different impacts of investments and to face up to the illegal sweatshops which flights. The research we were referring to had been operating there in plain sight for claimed that taking one less international nearly a decade. We talk about this in an flight a year for a working lifetime will extended news feature on page save around 19 tonnes CO2 – the figure ABOUT THE ADVERTISERS 38. Meatpacking plants from was not for a single flight. We talk about ECRA checks out advertisers before accepting their the US to Germany also made the problems of making this kind of ads and reserves the right to refuse any advert. front page news as they turned comparison in more detail one p.29. COVERED IN PREVIOUS PRODUCT GUIDES Abundance out to be key sources of wider (177), Cheeky Panda (179), Ecology Building Society (187), Ethex (177), Ethical Shop (185), community infection too. ROB HARRISON EDITOR Green Stationery (185), Infinity Wholefoods Worse still has been the References: 1 https://atlantablackstar. com/2016/12/23/black-lives-matter-launches- (178), Kingfisher Toothpaste (184), Plamil (183), realisation that modern new-interactive-website-promoting-connecting- Vegetarian Shoes (185). inequalities have run consumers-black-owned-businesses 2 www. OTHER ADVERTISERS BSI, Bhopal Campaign, bcg.com/en-gb/publications/2020/pandemic-is- so far out of control heightening-environmental-awareness 3 www. Green Building Store, Greenpeace, Investing theguardian.com/environment/2020/sep/03/uk- Ethically, Send A Cow, Shared Interest, The Path, that being poor is not organic-food-and-drink-sales-boom-during-lockdown 4 www.ai-cio.com/news/pandemic-creates-watershed- Womankind. just an indignity but moment-sustainable-investing

WHAT IS ETHICAL CONSUMER? Democratise the market by enabling Push for wider political action and 2consumers to assert their own ethical 5legislative change. Ethical consumerism is We are an independent, not-for-profit, multi- values by using our shopping guides. not a replacement for other forms of political stakeholder co-operative founded in 1989 action. But it is an important additional way and based in Manchester. Our primary goal is Have a fully transparent ranking system. All for people to exert their influence. making global businesses more sustainable 3our data is available to subscribers. through consumer pressure. Our mission is to: HOW TO CONTACT US Engage with companies by telling them why Unit 21, 41 Old Birley Street, Manchester, M15 5RF Help consumers to challenge corporate we are buying or not buying their products. 4 0161 226 2929 — 10-5pm 1 power by using their economic vote every We also send them detailed questions about [email protected] — general time they go shopping. their policy and practice on ethical issues. [email protected] — subscriptions

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4 Ethical Consumer November/December 2020 g b s windows ad 91x137mm Ethical C dec 2018 FINAL.indd 1 14/12/2018 10:42 ETHICAL CONSUMER Contents

NEWS FEATURES SHOPPING GUIDES

06 Food & Home 30 Ethical Financial Advice Mortgages Oatly, gene editing, Lush Prize, ethical financial advisers and ethical 10 Introduction Christmas shopping without Amazon investment platforms 11 Green mortgages 08 Campaigns 12 Score Table & Best Buys News from Almeria 44 Boycotting Trump’s funders 14 Green Homes Grant 08 Trump’s corporate connections 15 Alternative housing Home & Car Insurance 44 16 Introduction 16 Insurance companies and COVID 17 Climate change action 18 Score Table & Best Buys 21 Eco brokers and green transport insurance Ethical Pensions 09 Ethical Consumer Week 24 Introduction Programme for this year’s online 26 Score Table & Best Buys conference 28 ethical company pensions 22 Ethical Novice 29 Pensions and carbon Car Insurance 37 Tax justice 24 our new Tax Conduct rating, Amazon’s tax bill, Fair Tax Mark news REGULARS 38 Clothes Boohoo review, PayUp campaign, 46 Christmas gift H&M cuts ties with Xinjiang subscriptions Give a gift subscription to Ethical 38 Consumer 48 Letters A regular forum for readers’ views 50 Inside view Accounts for small solar powered trains businesses and charities 32 Introduction 50 33 Charity and community accounts on offer 34 Score Table & Best Buys

41 Beyond consumerism new clothing repair app

42 Climate heat pumps, oil companies co-opt COP26, coal mines in the UK

ethicalconsumer.org 5 NEWS Food & Home

DON’T MISS THE CHANCE TO HAVE YOUR SAY ON RISKY What’s going NEW GMOS on with Oatly? Liz O’Neill, Director of the UK umbrella In recent weeks, Oatly campaign group GM Freeze tells us how. has faced widespread The Department for the Environment, Food and boycott calls, after it Rural Affairs (Defra) is planning what could be a was announced that the pivotal public consultation on the status of gene company had accepted a editing in UK food and farming and it’s important that people who value a responsible, fair and $200 million investment sustainable food system take part. from private equity firm Gene editing is the latest form of genetic Blackstone. modification (GM). It focuses on making small changes to DNA rather than moving genes The firm is part owned by Stephen between species but is prone to errors and Schwartzman, who is reportedly a donor even the tiniest changes can have devastating for Trump, and has been accused of unexpected impacts. The first gene-edited financial links to companies accused of crop to be grown commercially is a herbicide- deforestation in the Amazon. tolerant oil seed rape, engineered to withstand As it is only a relatively small holding repeated spraying with particular weedkillers. of 10%, Oatly’s score has fallen just 0.5 Gene editing is as risky as more established GM in our table since the investment, still techniques and will support the same kind of leaving it with a robust 12. industrial, exploitative farming. However, it has The brand lost the half mark under much better PR. Political Activities, due to Blackstone’s Plans for a gene editing consultation were political donations and lobbying. announced in response to a well-orchestrated Blackstone itself receives an attempt to use the Agriculture Bill to deregulate Ethiscore of 4 in our ratings, losing full gene editing. Amendment 275 (later withdrawn) marks under Environmental Reporting, would have allowed Ministers to classify gene Climate Change, Pollutions & Toxics, editing as non-GM and, therefore, exempt from Human Rights, Supply Chain Management, Political Activities, Anti-Social the legal safeguards that have protected our food Finance and Tax Conduct. and our farms for the past twenty years. However, the investment does not necessarily mean a shift away from At the time of writing details of the ethics for Oatly itself. consultation are still under wraps. Sign up for Crucially, as a private equity firm, Blackstone is a passive investor. Unlike GM Freeze action alerts at www.gmfreeze.org/ shareholders in a publicly traded company, Blackstone does not have any emails to ensure you don’t miss the chance to control over the running of the company. have your say. Oatly remains above many other manufacturers in our guide to plant milks – www.ethicalconsumer.org/food-drink/shopping-guide/vegan-non- dairy-milk. Oatly says it needed investment to grow and reach more mainstream customers and took investment from Blackstone rather than a specialist green investor to show private equity the benefits of green investment. “Our bet is that when Blackstone’s investment in our oat-based sustainability movement brings them larger returns than they would have been able to get elsewhere a powerful message will be sent to the global private equity markets, one written in the only language our critics claim they will listen to: profit.” But many Oatly consumers have accused Oatly of “selling its soul”. The fact that some of the profits from your purchase will go to this investor is reason enough to avoid the brand, alongside the other links mentioned above. If you do want to avoid Oatly, the following brands of oat milk were our recommended brands. l The Bridge, an Italian organic and vegan company, was a Best Buy in our guide. l Ecomil and Rude Health were recommended buys. Ecomil is a Spanish organic and vegan company whilst Rude Health is a UK company that sells organic oat milk. See an extended version of this article on our website –

6 Ethical Consumer November/December 2020 NEWS Food & Home NEWS IN BRIEF

ASDA to be sold lifespan of smartphones and therefore New make-up guides makes phone companies more money. It was announced at the beginning of The few phones with replaceable now on our website October that ASDA has been sold by US batteries are usually at the lower end of We have just updated this guide which retail giant Walmart for £6.8 billion to the specs and price spectrum. scores and ranks the ethical and two billionaire brothers from Blackburn Except, of course, the Fairphone, environmental record of 33 brands of and private equity company TDR Capital. whose whole ethos is to have removable make-up. We look at which brands are Walmart will keep a minority stake in and replaceable parts. The Fairphone 3 cruelty-free and vegan, the issue of ASDA. was out in April and you can buy it in full plastics in make-up and the natural and The brothers made their money or on a contract from Phone Co-op. organic certifications you might see. building a petrol station business. Luckily, the EU is on the case and has www.ethicalconsumer.org/health- The sale will need regulatory approval plans to make battery replacements beauty/shopping-guide/make-up which is expected next year and so we will easier so as to reduce e-waste. In a similar We have also checked out the best wait until that happens before updating the move in February, the EU voted to force make-up brands for darker skin – new owners on our database and letting companies to adopt a common charger, www.ethicalconsumer.org/health- you know how ASDA will score. Under which Apple is, no doubt, unhappy about. beauty/best-make-brands-darker-skin Walmart’s ownership ASDA currently scores 0. ASDA made its name by offering low prices but competition with the CHRISTMAS PRESENTS IN A TIME OF COVID discounters Aldi and Lidl has made this more difficult. Christmas may be a little different this year so it’s an opportunity to Replaceable phone change the presents you give and receive too. batteries Maybe a voucher for a local If you are thinking about getting a new business that is struggling – arts phone, you should be aware that it’s venues, bookshops, cinemas, very hard to find a smartphone with a restaurants, etc. replaceable battery! And it has been for For buying other presents a long time, but the move happened very online, it goes without saying that quietly. It used to just be Apple but now Amazon should be avoided (see most phones have fixed, non-removable p.37). Check out our ethical online backs so you can’t replace the battery. retailers guide on our website. Clearly this is a retrograde move for And use Amazon alternatives if TAX AVOIDER which there can be no rational justification you are buying books or a tablet that takes account of the environment. It’s or e-reader. See our guides online. planned obsolescence which reduces the The Lush Prize 2020

The testing of chemicals on animals to check for their safety is falling out of favour. It is expensive, time consuming, abusive to the animals used and increasingly being found to be an unreliable predictor of problems for humans. One of the most promising new technologies to offer a systematic and permanent replacement is the use of ‘big data’ to create predictive models. In November, Ethical Consumer and Lush are putting on a conference (online of course) which is exploring the idea that big data might be close to being able to replace animal use completely. On November 11th, we will also be holding the Lush Prize Awards Ceremony online, where we can see some of the most innovative projects driving forward animal-free testing around the world and hear from the winners. Both events are free to attend. The awards will be 'livestreamed' at 4.00pm that day and the conference takes place around it. More information is available from: www.lushprize.org/2020-prize/2020-conference

ethicalconsumer.org 7 NEWS Campaigns Supermarkets call on Spanish Government to act

Following a joint investigation by Ethical Consumer and The Observer, the British Retail Consortium, representing UK supermarkets, has called on the Spanish Government to launch an inquiry into conditions for migrant workers in Almeria. The announcement begs the question why the supermarkets themselves are not doing more to address abuses in their supply chains.

Almeria. A joint supply chain not reached the towns; yet multiple cases investigation by Ethical have been reported on farms in the region Consumer linked many of and in the dilapidated house blocks near Poor working and living conditions leave workers them to the supply chains of the farms where other workers live. vulnerable to COVID, but most are more worried about not being able to work than being ill. Tesco, Sainsbury’s, Asda, Lidl “People want to protect themselves,

Photos © Ofelia de Pablo & Javier Zurita/The & Javier de Pablo © Ofelia Photos Guardian and Aldi, amongst other UK but they cannot”, says Almudena Puertas supermarkets. from the NGO Cáritas. “They are here he joint investigation, published At the time of the investigation, the because there is work and we need them.” in September, found that region was seeing more than 100 new migrant workers on vegetable cases of COVID-19 a day. Yet many of the farms in Almeria supplying UK workers stated that they were not being Ongoing labour Tsupermarkets had been left unprotected provided with protection. in the face of a new wave of COVID-19 “Gloves and face masks in the abuses infections in the region. greenhouse? Temperature checks? They All 45 of the workers interviewed “We pick your food,” one worker, don’t give you anything,” Hassan said. claimed that they had been subjected to Hassan, said during interviews for the Another worker employed by a systemic labour exploitation throughout piece, “but our health doesn’t matter to company supplying the UK said that he the pandemic, including being refused anyone.” had only been given two face masks in six payment of wages and being employed on The British Retail Consortium, which months. illegal temporary contracts. represents Sainsbury’s, Asda, Lidl and Another, Muhammed, said that he was “It’s like they have forgotten we are also Aldi, amongst others, released a statement fired after testing positive for COVID-19. human beings,” says Ali, who has lived in in September following the investigation: “When I contracted COVID-19, I’d already Spain for more than 15 years. “We call on the Spanish Government spent two years working for this company Read the full investigation at: to launch an investigation into labour without papers and two years on a www.theguardian.com/global- conditions in the Almería region to help temporary contract, but when I came development/2020/sep/20/we-pick-your- our members stamp out any exploitative back they said there is nothing for me food-migrant-workers-speak-out-from- practices.” here,” he says. He says he and others who spains-plastic-sea Olivier De Schutter, the United Nations did not get their special rapporteur on extreme poverty, jobs back also echoed calls for the Spanish Government did not receive to act, but also said that supermarkets the sick pay they must do more. were entitled to as “The pandemic has exacerbated the essential workers. unacceptable conditions facing migrant Medical workers and the Spanish Government charities have must urgently act,” de Schutter said. been distributing “But two-thirds of all fruit and vegetables masks and gloves consumed across Europe and the UK and providing come from these greenhouses and all the temperature companies and retailers up these supply checks in the The ‘plastic sea’ of greenhouses in Almeria covers 31,000 hectares. chains have a responsibility to these shanty towns workers as well.” where many of the workers Delia McGrath from SOC-SAT union in Almeria and La Via live, alongside Campesina spoke at Ethical Consumer Week 2020 on “People want to SOC-SAT the the poor treatment of migrant workers in the region and local agricultural the ongoing campaign with Ethical Consumer to improve protect themselves” union. The local conditions. See a video of her session ‘ Working together to The Observer interviewed more than government claims resist corporate power’ at www.ethicalconsumerweek.com 45 workers employed on farms in that the virus has

8 Ethical Consumer November/December 2020 This year our conference is online. This magazine may be landing on subscriber’s doorsteps smack bang in the middle of it, so if you haven’t already, check the programme, and we hope you’ll join us from wherever you are for a wide selection of panels, workshops, and virtual tours. To register, visit: www.ethicalconsumerweek.com. Most sessions will also be available to view as videos on the website after the conference has ended, but don’t miss the opportunity to take part in live discussions and Q&A’s with the speakers if you can. Ethical Consumer Week 2020 explores the role of consumers, businesses and NGOs in building more resilient communities in the face of Covid-19 and the ecological crisis. We will look at the underlying issues, a radically reimagined future and actions we can all take to support just transitions. We will also gain inspiration from many examples which are already creating ripples of change.

Programme overview

Saturday Sunday Monday Tuesday Wednesday Thursday Friday 24 October 25 October 26 October 27 October 28 October 29 October 30 October Exploring the issues Context setting Day of discussion to envision our Shaping our spaces Transforming Transforming our Close future business relationships 10:00 - 11:00 10:00 - 11:30 Closing 10:00 - 11:30 10:00 - 11:30 How to 10:00 - 11:00 10:00 - 11:30 Introduction to the climate gap. A better food make transparency How to set A grassroots Ethical Consumer relationship with meaningful. meaningful response to Week. Better Food planetary COVID19. Traders. boundaries for children. 12:00 - 13:00 12:00 - 13:00 12:00 - 13:00 12:00 - 13:00 How 12:00 - 13:00 12:00 - 13:00 12:00 - 13:00 Join the olive The right recipe for Cafe/ open space can urban growing Cafe/ open space Exploring Animal Cafe/ open space harvest in a low carbon diet. hosted by Ethical help tackle food hosted by Ethical Resistance & hosted by Ethical Palestine. Consumer. insecurity and the Consumer. Transforming our Consumer. climate emergency? Relationship to Animals. 14:00 - 15:30 14:00 - 17:00 14:00 - 15:30 14:00 - 15:30 14:00 - 15:30 14:00 - 15:30 Claver 14:00 - 15:30 Stories of working A Journey to Beyond Sustainable Independent Online Business models Hill community Investing for the together. nourish. Limited to Consumption. Tools. for a just and project tour. future. 20 people. sustainable economy. 16:00 - 17:30 16:00 - 17:00 Ethical 16:00 - 17:30 16:00 - 17:30 16:00 - 17:30 16:00 - 17:30 16:00 - 17:30 Put your money gardeners' question Access not Weaving Economy for Empowering young Building Resilient where your values time. Ownership. regenerative Common Good. people in climate Communities with are. resilient regional crisis. Ethical Consumer. economies. 19:00 - 20:30 19:00 - 20:30 19:00 - 20:30 19:00 - 20:30 19:00 - 20:30 19:00 - 20:30 Youth Re-imagining How banks Creating a Tax justice and Can the platform Cafe networking textile’s future continue to fund community high rebuilding public economy help session. with Sewing Cafe the climate crisis. street. finances. build more resilient Lancaster. We communities? invite you to bring something to fix and mend during this session.

Key: webinar/panel networking/social session tour/walk/hack discussion/co-creation

ethicalconsumer.org 9 SHOPPING GUIDE Mortgages Mortgages for a zero carbon future

nless you happen to be the FRANCESCA DE LA TORRE looks into the world kind of person who is buying of mortgages and asks what lenders are doing to private jets and small tropical islands, a house is likely going help address the climate crisis. Uto be life’s biggest single expenditure. Unfortunately, the need for most of societies are better than banks. We also shows, building societies consistently us to borrow large sums of money in explore whether mortgage lenders could outperform banks when it comes to order to finance this creates a lucrative do more to help address housing issues ethics, with all of the building societies opportunity for the banking sector – such as the urgent need to increase the scoring above 12 and higher than any of the profits from which might end up poor energy efficiency performance of the mainstream banks. invested in problematic industries such many UK houses. This is mainly because of the fact that as fossil fuels or arms. You can read they do not invest in the same way as more about the big five banks and their banks. Regulations stipulate that at least controversial investments in our guide Choosing an ethical 75% of a building society’s assets must be to current accounts. The good news is held in residential property mortgages, so that there are actually many more ethical mortgage provider they are much less likely to be lending to options to choose from when getting According to the Building Societies companies with dubious ethical records. a mortgage, some of which are just as Association, building societies currently So far as we can tell, some may do a little affordable, if not more so, than products hold around a quarter of the total lending to companies but almost always from conventional banks. market share in mortgages. We hope to to smaller businesses to buy commercial In this guide we look at how to choose see an upward trend in this because, as buildings in their local areas. an ethical mortgage and why building a quick look at our scores table clearly Choosing a building society as your mortgage provider is the simplest way to ensure your mortgage is not supporting the nefarious activities of the financial A fully sector. The great news is that they are referenced also often cheaper than banks. According version of to Which?, a first time buyer with a small this Guide is on our deposit is much more likely to get a website good deal on a mortgage from a building society than a bank, and consumers will increasingly be seeing building society mortgages coming out at the top of the table on price comparison sites. Building societies seem to be more ethical in more ways than just how they are regulated. None of them were marked down for tax avoidance and Nationwide is the only building society to lose marks for excessive director pay. As our new tax column highlights, you are also much more likely to find high-risk company structures for the likely use of tax avoidance in the banking sector. None of the building societies were marked down for poor tax conduct. On the other hand, only four banks – Kent Reliance, Metro Bank, Paragon and Handelsbanken – did not lose marks under Tax Conduct.

10 Ethical Consumer November/December 2020 Further information on these enterprises. It also offers mortgages for companies is included in our guide to boat moorings, woodlands, and shared savings accounts which can be found in ownership housing. Issue 186 of the magazine and on our Its innovative C-Change scheme offers website. homeowners discounted mortgage rates for energy-efficient homes which fit the Switching mortgages criteria above. There are four levels of If you already have a mortgage and discount on a standard variable mortgage want to switch to a more ethical option, ranging from 0.25% to 1.25%. then this is not only possible, but could The level of discount offered depends also save you money, even if it incurs on the energy standard of the home, so some upfront costs. Most mortgages the more energy efficient the home is, the come with a fixed-term period which bigger the saving you can make on your fixes a low interest rate for a number mortgage. of years. It is generally recommended Saffron Building Society offers to remortgage when you reach the end borrowers a 0.1% interest rate reduction of this period to avoid paying standard with it’s new Retro-Fit mortgage if interest rates and this can be a great borrowers can show they have made opportunity to switch to a more ethical changes that improve the EPC rating by provider as well! Green mortgages one band to at least an E (so those with a band G will have to improve by two Mortgage brokers ‘Green mortgages’ refer to mortgages bands). Whether you are getting a new mortgage with lower interest rates or other Nationwide’s Green Additional or just switching providers, navigating preferable terms which are only Borrowing offers 0.69% reduction the world of interest rates, fixed-terms available to those buying energy efficient off normal interest rates if 50% of the and repayment options can be a bit homes or committing to improving the loan is used to make your home more overwhelming – especially if you are energy efficiency of a home. In theory, sustainable. This includes the following also thinking about the ethics of your this will encourage buyers, sellers measures: “air source heat pump, mortgage! and home builders to be paying more cavity wall insulation, double glazing/ Mortgage brokers are essentially attention to the energy performance of replacement windows, electric car financial advisors and can help make homes and help ensure that our existing charging point, ground source heat the process of finding the right mortgage housing gets brought up to the standards pumps, loft insulation, small scale wind a lot simpler. They also manage the needed to meet global carbon reduction turbine, tanks and pipes insulation”. They application process. You don’t have to agreements. do not appear to require evidence of how use a mortgage broker, but they will generally have access to mortgage offers not available directly to consumers. Financial services has a critical role to There are a huge number of brokers in the UK and there are also multiple turn the current crisis into a defining moment mortgage broker directories listing them, so it was not within the scope in the fight against climate change. It has of this guide to rate them or provide recommendations on that basis. never been more relevant and important for Some do appear to specialise in ethical finance or green mortgage Ecology to continue to provide a progressive options although you may have to pay for these services. We discuss Independent force for positive environmental change Financial Advisors in a separate article PAUL ELLIS, CHIEF EXECUTIVE, ECOLOGY BUILDING SOCIETY on page 30. There are plenty of free services available though, the largest of these Who offers what much measures improved efficiency. This in the UK is a company called London These products are still relatively new product is only available if you have your & Country. The Money Saving Expert and we hope to be seeing more providers main mortgage with Nationwide. website also lists Habito, Trinity starting to explore how they can reduce Barclays Green Home Mortgage Financial, and Trussle as major UK the climate impact of their investments offers lower interest rates on mortgages brokers and suggests using unbiased. through green mortgages. Only four of for people buying a new property with co.uk to find local brokers. the companies in this guide appear to be band A or B energy rating or above 81. While they might not be specialists in offering a green mortgage product: The property has to be bought from ethical products it will be perfectly fine The Ecology Building Society provides one of Barclays' partner house building for you to let whatever mortgage broker mortgages which promote sustainable companies. you choose know that you only want to housing and communities. This can be see mortgages from building societies or for self-build energy-efficient housing, While the availability of green mortgages just compare the list they provide to you ecological renovation, improvements or is still fairly limited there are signs with our score table yourself! conversion, or small-scale and ecological that other mortgage lenders are also

ethicalconsumer.org 11 SHOPPING GUIDE Mortgages

USING THE TABLES Environment Animals People Politics +ve USING THE TABLES Ethiscore: the higher the score, the Positive ratings (+ve): better the company. Scored out of 14. Plus up to 1 extra point for Company Company Ethos: Ethos and up to 5 extra points for e = full mark Product Sustainability. = half mark Green (good) = 12+ E Product Sustainability: Amber (average) = 11.5–5 Various positive marks available Red (poor) = 4.5–0 depending on sector. H = worst rating h = middle rating = best rating/no criticisms found Best Buys are highlighted in blue

BRAND 14 + 6 extras) (out of Ethiscore Reporting Environmental Change Climate & Toxics Pollution Habitats & Resources Oil Palm Animal Testing Farming Factory Animal Rights Human Rights Rights Workers’ Chain Management Supply Marketing Irresponsible Arms & Military Supply Technologies Controversial Call Boycott Activity Political Finance Anti-Social Conduct Tax Ethos Company Sustainability Product COMPANY GROUP

Ecology Building Society [S] 15.5 e 0.5 Ecology Building Society Leeds Building Society 13.5 h h E Leeds Building Society Chelsea Building Society 13 H h E Yorkshire Building Society Cumberland Building Society 13 H h E Cumberland Building Society Egg 13 H h E Yorkshire Building Society Yorkshire Building Society 13 H h E Yorkshire Building Society Coventry Building Society 12.5 H H E Coventry Building Society Nationwide Building Society 12.5 H h h E Nationwide Building Society Newcastle Building Society 12.5 H H E Newcastle Building Society Principality Building Society 12.5 H H E Principality Building Society Saffron Building Society 12.5 H H E Saffron Building Society Skipton Building Society 12.5 H H E Skipton Building Society West Bromwich Building Soc 12.5 H H E West Bromwich Building Society Kent Reliance 11.5 H H h OneSavings Bank Plc Metro Bank 11.5 H H h Metro Bank Plc Paragon Bank 11.5 H H h Paragon Banking Group PLC Gatehouse 11 H H H Gatehouse Financial Group Shawbrook Bank 11 H H H PSCM Pooling/Marlinbass Limited Al Rayan Bank 10.5 H H h h h Masraf Al Rayan (MAR) Q.S.C. Handelsbanken 6 H H h h h h h h h H h h h Svenska Handelsbanken AB Danske Bank 5.5 H h h h h h h H h h h h h h h Danske Bank A/S Post Office 5 H H h h h h h h h h h h h h h h Bank of Ireland Group/Post Office Bank of Ireland (NI only) 4.5 H H h h h h h h h h h h h H h h Bank of Ireland Group TSB 4 H H h h h h h h h h h h h H h H Banco de Sabadell S.A. Bank of Scotland 3.5 h H h h h h h H H h h h H H H Lloyds Banking Group plc Halifax 3.5 h H h h h h h H H h h h H H H Lloyds Banking Group plc Lloyds Bank 3.5 h H h h h h h H H h h h H H H Lloyds Banking Group plc Santander 3.5 H h h h h h H H h h h h H H H Banco Santander, S.A. Scottish Widows 3.5 h H h h h h h H H h h h H H H Lloyds Banking Group plc Coutts 3 h H h h h h h H H h h h h H H H NatWest Group NatWest 3 h H h h h h h H H h h h h H H H NatWest Group Royal Bank of Scotland 3 h H h h h h h H H h h h h H H H NatWest Group Ulster Bank 3 h H h h h h h H H h h h h H H H NatWest Group First Direct 2 h H H h h h h h H H h h h h H H H HSBC Holdings plc HSBC 2 h H H h h h h h H H h h h h H H H HSBC Holdings plc Barclays 0.5 H H h H h h H H H h h H H H H H Barclays Plc

All the research behind these ratings is available for subscribers to see on the score tables on www.ethicalconsumer.org Definitions of all the categories are at www.ethicalconsumer.org/our-ethical-ratings [S] = ethical lending policy m nsu er o .o c r Best Buys are decided by the editorial team based on the research we have undertaken, the scoring system and the unique insight into the issues l g a that our editorial team has. 9 times out of 10 this will be the brand (or brands) that are top of the table but sometimes an ethical company which

h t is truly innovative scores less well on our rigid scoring system and we use the Best Buy and Recommended section to acknowledge this. A

e Y company cannot be a Best Buy if it scores worst for Supply Chain Management. BES T BU

12 Ethical Consumer November/December 2020 m nsu er o .o c r l g

starting to pay more attention to the its value. The increasing urgency of the i

h Energy Performance Rating of their climate crisis along with rising energy BEST t

e Y portfolios. For example, West Bromwich bills will likely mean energy efficiency will BUYS B U Building Society stated that it had done be on the minds of more and more buyers ES T B “considerable work to understand the and houses falling short will decrease in environmental impact of our Investment value and become harder to sell. The Best Buys in this guide are Ecology Property subsidiary West Bromwich So, if preventing catastrophic climate Building Society and Leeds Building Homes Limited, with action being taken breakdown isn’t enough of an incentive Society. to ensure the portfolio meets the newly in and of itself then perhaps the potential Ecology Building Society has ethics introduced EPC standards” and NatWest financial risk of being left with a portfolio embedded into the organisation with stated “We will support customers in of inefficient housing is enough to get a key focus of reducing climate impact the UK & Republic of Ireland who have mortgage lenders to act. and supporting community projects. mortgages with us to become more While there might not seem too many It also sits comfortably at the top of energy efficient. Our aim is to have options available right now, we would the table. It only offers mortgages to 50% of the mortgages we provide at or expect the green mortgage market to new eco-builds and energy-efficiency above Energy Performance Certificate have rapid growth. The more green programmes. (EPC) rating C or equivalent by 2030”. mortgage offers that become available, Leeds Building Society offers more However, it appeared that NatWest’s the bigger the disparity between the conventional mortgage lending but activities around this were largely value of a high EPC band house and a stood out from the other building focused on sharing energy efficiency low EPC band house. This will hopefully societies because of its commitment to advice and links to government funding encourage mortgage lenders to offer ethical certification, being both Living with its customers rather than providing more products to people who already Wage and Fair Tax Mark accredited. actual funding. own inefficient housing to help them improve their rating. Lower heating bills Is a green mortgage an ethical should also mean people find mortgage mortgage? payments more affordable. What is important to remember here On the other hand, considering how is that the ‘green’ in a green mortgage we got into this situation, it does not seem Ecology is linked to your actions, not those of wise to rely too heavily on the market your lender. It is the house you are economy for climate solutions. Any 15.5 choosing to buy that has the reduced actions by mortgage lenders need to be Leeds environmental impact. The profit made backed up by government regulation for on your mortgage by the lender could new builds, and government funding for 13.5 still end up invested in any number of improving existing housing – particularly environmentally harmful activities. to support people on a low-income to For example, Barclays offers a green ensure they do not bear the brunt of low mortgage but loses marks under EPC band devaluation. Climate Change, Pollution and Toxics, Habitats and Resources and Palm Oil. A green mortgage does not necessarily Credit union equate to an environmentally ethical RECOMMENDED mortgage. mortgages Unfortunately, reduced interest rates Credit unions are co-operatives which We recommend any of the building represent much less of an incentive when provide accounts, loans and a range of societies, including the numerous interest rates are low, and the global services to their members. Like building smaller ones that have not been pandemic has been causing interest rates societies, they are mutuals owned included in this guide. We would also to plummet. If you are buying an energy- and controlled by the members, not recommend looking into whether you efficient house at the moment, it will not by external shareholders pushing for can get a credit union mortgage. They cost you much more, and in many cases maximised profits. They are also not- offer a clear alternative to banks and could still cost you less, to get a regular for-profits so represent a good ethical their unethical investment practices. mortgage with a more ethical lender than option. a green mortgage from a company like Barclays. Ecology has been providing sustainable finance to The financial argument for offering a green mortgage support positive environmental and social impact for nearly Until you have finished paying off your mortgage, your house acts as an forty years. We hope we’re seeing a genuine step change in assurance on the money you borrowed. If you stop being able to pay your the way financial services is supporting decarbonisation – mortgage the lender can repossess the house in order to recuperate costs. greenwashing is no longer an option. Mortgage lenders therefore rely on the housing they have lent on to maintain PAUL ELLIS, CHIEF EXECUTIVE, ECOLOGY BUILDING SOCIETY

ethicalconsumer.org 13 SHOPPING GUIDE Mortgages THE GREEN HOMES GRANT

If you were thinking of making energy saving improvements to your home then now is a great time to do it as the government's Green Homes Grant scheme has just launched. Homeowners can apply for up to two-thirds of the cost of sustainable home improvements up to the value of £5,000. Those on low incomes can have the entire cost covered up to the value of £10,000. In order to be eligible, you must install a ‘primary measure’ which covers either insulation (loft, wall and floor all count) and/or low-carbon heating (such as a heat pump or solar thermal). If you install one primary measure you can then also use grant money to fund ‘secondary measures’ which include things like draught proofing and double or triple glazing. The work also has to be carried out by certified installers approved by the government. The grant is available from September 2020 until 31 March 2021. You can find all the information at www.gov.uk/guidance/apply-for-the- green-homes-grant-scheme. You can also make use of the Green Homes Grant in conjunction with some of the green mortgages and loans mentioned in this guide. Always make sure you do your research before making changes to your property

Some credit unions also offer provider. As the money is made through economic uncertainty, lack of job security mortgages, but this is mainly in Scotland rent rather than interest this is seen as and talk of a housing market crash so is not necessarily a widely available permissible and halal by many Muslims. means that buyers who were planning to choice in the UK. For example, to apply When it comes to Islamic mortgages purchase a property with a 5% deposit for a Glasgow Credit Union mortgage you there are not a huge amount of options have suddenly found they need to come must be a member and live or work in the available in the UK. HSBC and Lloyds up with significantly more cash, even Glasgow postcode. As these products are stopped offering Islamic finance products, if they had an ‘agreement in principle’ not widely available to all UK consumers so they are now only really available from beforehand. we have not included them in our guide specialist providers. The lockdown also saw millions of but it could be worth looking into whether Two of the main providers are workers put on furlough with 80% of there is a credit union in your area included on our score table, Al Rayan and their wage paid by the government. Many that offers mortgages because they are Gatehouse Bank. lenders decided not to acknowledge this another good alternative to a bank. Charles Haresnape, of Gatehouse, as income in mortgage assessments, You can read more about saving with said: “We believe that Sharia finance, others required furloughed workers to credit unions here: www.ethicalconsumer. regardless of religion, is ethical finance. have a return-to-work date or a deposit org/money-finance/saving-credit-unions People want a good deal but they want to above a certain percentage. It also know it is ethical. affected furloughed workers’ ability to “We will not finance the arms trade, switch mortgage providers. Islamic mortgages gambling or alcohol. No major banks can The government could have chosen give those assurances. Young people are to support first-time buyers locked A key principle of Islamic finance is that very conscious of these issues.” out of a housing market that is already money should have no intrinsic value. Although neither have a policy to avoid inaccessible to so many. Instead, the This means that earning or paying investing in fossil fuels, it does look like government decided to stimulate the interest is forbidden. Therefore, for the two providers of Islamic mortgages on housing market with a stamp duty a financial product to be considered our table, while not as high scoring as any holiday. This serves to benefit anyone halal, there can be no payment of of the building societies, do considerably buying property, including second interest by either party involved in the better than the mainstream banks. homes and buy-to-let properties. The transaction. only group it There are a few different types of doesn’t benefit, Islamic mortgage but the most common How has COVID and arguably is the Home Purchase Plan (HPP). With may actually an HPP product the consumer purchases affected mortgages? disadvantage, is a certain percentage of the house and COVID-19 has had a knock-on effect on first time buyers the mortgage provider purchases the the mortgage sector and on consumers purchasing remaining percentage. The consumer looking to get a mortgage. property under then pays rent on this percentage which Before the lockdown it was very £500,000 (as also contributes to the gradual buying of common for mortgage lenders to provide they were the whole property from the mortgage 90-95% of the cost of a property. Now, already exempt).

14 Ethical Consumer November/December 2020 ALTERNATIVE HOUSING OPTIONS

Renting is not a positive experience for many people in the UK with high costs, low-quality housing and unresponsive landlords being common complaints. It’s not surprising that many people hope to move on to home ownership, but with that goal becoming increasingly inaccessible to many it might be worth considering some alternative options. Co-housing and housing co-ops offer a middle ground between renting and ownership that can work really well.

Forgebank is an eco cohousing development in Halton, Lancashire consisting of 35 leasehold homes (a mixture of two and three bedroomed houses), shared buildings, low carbon workspace and riverside woodland habitat. Planned and designed by the residents with the architects and a local building firm, the first residents moved in 2013. © Lancaster Cohousing © Lancaster

HOW DO HOUSING CO-OPS WORK? the co-op and its members. They may come and visit you. Housing co-ops essentially work by making people both a When you find a house they’ll need a valuation. Depending on tenant and a landlord. The house or houses are owned by how much loan stock you’ve got, you may need a top-up loan, a registered co-operative who manage it. The membership for example from Radical Routes”. of the co-op is comprised of whoever is living in the According to Radical Routes getting a mortgage is one of housing. This puts people in control of their own rent and the final steps to setting up a housing cooperative. Its nine maintenance, which can often mean lower costs and better steps are: living conditions. 1. Form a group Housing co-ops come in all shapes and sizes. They can be 2. Raise some money a group of people living in a single property and united by a 3. Register your co-op set of common values and beliefs, or they may be comprised 4. Record-keeping and documentation of separate private living spaces occupied by a variety of 5. Issue loan stock different people. Co-housing projects are a collection of 6. Look at houses private dwellings but with some shared spaces to encourage 7. Draw up a business plan a strong community. 8. Get a mortgage 9. Buy a house and move in!

CAN YOU GET A MORTGAGE TO SET You can find full details of these steps as well as further UP A HOUSING CO-OP? information by visiting www.radicalroutes.org.uk

Yes! You can set up a housing co-op with a mortgage. This may be a more accessible route to better housing for those YOU MIGHT ALSO BE INTERESTED IN: on a low income because the mortgage won’t be based on just your own finances. l www.cohousing.org.uk has lots of information about Radical Routes is a network of housing and worker intentional communities and co-housing which is more suited co-operatives. It gives the following advice on getting a to those looking for a shared community but not necessarily a mortgage for a housing co-op: “Make initial contact with shared living space. potential lenders and compare the deals they offer. Typically, they will offer to lend you up to 70% of the house value, l www.diggersanddreamers.org.uk advertises spaces in repayable over a period of 25 years. They will need to see existing housing co-ops or co-housing set ups. It also has your business plan, and possibly background information on adverts from those looking to set up such groups.

ethicalconsumer.org 15 SHOPPING GUIDE Insurance How do the insurance claims stack up? JOSIE WEXLER examines the companies that sell home and motor insurance.

lthough different forms of find out the underwriter from the ‘Key Authority, four of which are covered in risk sharing – sometimes in Facts’ document which must be provided this guide: Zurich, Ecclesiastical, RSA and ‘benevolent societies’ – goes way when you’re considering buying a policy. Hiscox. But it really involves many more. back before biblical times, the Comparison websites will also sometimes The same fight is taking place across AUK is responsible for inventing modern tell you. the world. In France, a court ruled against insurance companies, when they sprang To complicate matters, underwriters Axa, and it has been forced to pay out to up to insure against fire after the great sometimes have their own underwriters, restaurants that were forced to close. The fire of London. The UK insurance as they may re-insure a specific risk via a court cases are likely to go on for years, industry is still huge – we have the different underwriter. as there are so many different policy fourth largest industry in the world, and All of the companies in this guide sell wordings to dispute. are the biggest exporter. both motor and home insurance except In this guide we look at insurance for Ecclesiastical, which just sells home Dividend payments companies’ investment and climate insurance (except to the clergy, to whom it While they have been refusing to cover policies, at their more shady political also sells motor insurance). lockdown losses, insurance companies activities, and at their responses to have not all been acting like these are COVID-19. truly the lean times. Insurance companies Regulators in the UK, France and the and COVID-19 EU have all asked insurance companies to What this guide suspend dividend payouts to shareholders How much of the bill for COVID-19 will in the wake of COVID-19. covers be paid by insurance companies is, as Aviva, RSA, Hiscox and Direct Line There are two types of company that sell we write, still very much up in the air. agreed to cancel all dividend payments for insurance – underwriters and brokers. The High Court is currently adjudicating 2019 and said that they will not consider The underwriter is the actual insurance on a case involving a large number further payouts until the end of the year. company, that pays out on the claims. of insurance companies which have But many other insurance companies While they do often sell directly to the been refusing to pay out on business have not. Axa, Admiral (EUI), Ageas and public, many also sell through brokers interruption cover, saying that it does Hastings have gone ahead with dividend such as the AA, which take commission. not cover pandemics. Without it, payments, but with reductions. And As usual, we are only covering thousands of small and medium-sized Zurich, Legal & General, and Allianz just underwriters in this guide because businesses face bankruptcy. refused, saying that they would make there are too many brokers to cover – The case explicitly involves eight their full dividend payments. The others hundreds in the UK. If you are buying companies chosen as a representative do not appear to have spoken publicly on through a broker, you should be able to sample by the Financial Conduct the matter.

A fully referenced version of this Product Guide is on our website © 31moonlight31 | Dreamstime.com

16 Ethical Consumer November/December 2020 Investment transparency

Insurance companies take money up front from their customers, betting on the chance of having to pay out later. In the meantime, therefore, they sit on a lot of money. How do the Or rather, they don’t sit on it. UK insurance companies had about £143 billion invested in 2017, equivalent to about 7% of the entire UK GDP. About 90% of the industry’s profits comes from its investments. One industry expert described insurance as "investment companies that raise the money for their investments by selling insurance". At a global level, insurers are the second largest group of institutional investors after pension funds. insurance claims This means that the most crucial aspect of an insurance company for ethical consumers will be its investment policy. Otherwise, you may be inadvertently funding unethical activities like coal-fired power stations and white phosphorus weapons with your premiums. As with the other financial companies, we rated all the insurance companies on their investment transparency, based on whether or not they have clear ethical stack up? criteria for what they invest in, and whether they publish their voting history for the investments that they have. They were rated as follows:

Top of the pile Axa, Aviva, Allianz (LV=), Co-op Insurance, Legal & General/Fairmead Getting there Ecclesiastical, Zurich, Covéa, Lloyds Bank Vague/ unsubstantiated RSA (More Th>n) Bottom of the pile NFU Mutual, Hiscox, Ageas, esure, Direct Line (Churchill), J.C. Flowers (UK General), EUI (Admiral), Hastings

Co-op Insurance (owned by the Co-op supermarket group, not Co-op Bank) doesn’t actually publish its voting history, but it has such a clear lending and investment policy, that we gave it an exemption. It says, for example, that it will not invest in any business involved in the extraction or production of fossil fuels (oil, coal and gas), or any business that is involved in the transfer of armaments to oppressive regimes, or any business that fails to implement basic labour rights such as the avoidance of child labour. For the full policy see our website.

Climate change

The insurance industry’s business is impacting companies or a positive bias and has committed to investing $5 billion risk, which makes its financial interests to investing in low-carbon technologies” in low-carbon technologies. It is listed as a with regard to climate change somewhat in favour of “an intelligent strategy” that “leader” by Insure Our Future (see p. 19). muddy. The 2020 Global Insurance “maintains a robust balance sheet”. l AXA calculates the “warming Outlook states, alarmingly cheerfully, l Ecclesiastical says that it has a "no oil potential” of its investments. It will not “While there are serious downside risks sands or Arctic drilling" policy, but has invest in companies that derive over to be managed, the potential upside in little else of substance. 30% of their turnover from coal. It has terms of premium growth is huge.” l Ageas just says that it does not invest committed to have €24 billion in green That aside, most insurance companies in companies that are strongly active investments by 2023. do now publish something on what they in coal, which is a start, but not nearly l Aviva has also divested from the most are doing to tackle climate change. enough. carbon-intensive fossil fuels. And it says However, not all – we couldn’t find l Legal and General only has very "we...plan to increase our investment in

anything from J.C. Flowers (UK General). weak policies on divesting from fossil low-carbon infrastructure through to | Dreamstime © Hartphotography And scarcely better are NFU Mutual, fuels, although Insure Our Future does 2030; this is in addition to our £3.8 billion esure (Sheila’s Wheels), Direct Line mention that it is a leader on supporting low-carbon infrastructure investments (Churchill), EUI (Admiral) and Hastings, shareholder resolutions calling for over the last five years." It says that who just talk about the climate impact of climate action. it calculates its “Portfolio Warming their offices. That is a huge cop out – the Potential” but doesn’t report on it in any main climate impacts of an insurance Companies who do better real detail. company come from what it underwrites Some insurance companies are doing a l RSA rules out investing in or offering and what it invests in. bit more however: insurance to most coal mines or power Also weak are these companies: l Zurich measures the carbon impact utilities that generate more than 30% l Hiscox discusses the climate impact of its investments, it will not insure or of their revenue from coal. It also has of its investments, but outright rules out invest in either coal or tar sands projects policies on oil sands and shales, and on "a blanket ban on investing in climate- or companies heavily involved in them, projects relating to energy extraction in

ethicalconsumer.org 17 SHOPPING GUIDE Insurance

USING THE TABLES Environment Animals People Politics +ve USING THE TABLES Ethiscore: the higher the score, the Positive ratings (+ve): better the company. Scored out of 14. Plus up to 1 extra point for Company Company Ethos: Ethos and up to 5 extra points for = full mark Product Sustainability. e E = half mark Green (good) = 12+ Product Sustainability: = 11.5–5 Amber (average) Various positive marks available = 4.5–0 Red (poor) depending on sector. H = worst rating h = middle rating = bes t rating/no criticisms found Best Buys are highlighted in blue

Ecclesiastical home insurance 7 HHhh hhhhh h hhhh e Allchurches Trust Ltd Aviva 6.5 h H h h h h H H H H Aviva Plc Quotemehappy 6.5 h H h h h h H H H H Aviva Plc Allianz Your Cover 6 H h h HHHHHH Allianz SE

Co-op Insurance 6 HhhhhHH h H h Hh E Co-operative Group Ltd Legal & General/Fairmead 6 H h h HHHHHH Allianz SE

Covea 5 HHhhhhhhhh hhHhhh E Covea Ageas 4.5 HHhhhhhhhh hhhhHh Ageas Hiscox 4.5 hHhhhhhhhh hhhhhhH Hiscox Ltd MORE TH>N 4.5 hHhh hhhhH hhhhhhH RSA Insurance Group

NFU Mutual 4.5 HHhhhhhhhh hhhhhhH E NFU Mutual Insurance Society UK General 4.5 HHhhhhhhhh hhhhHh J.C. Flowers & Co. LLC Admiral 4 HHhhhhhhhH hhhhhH Admiral Group Churchill 4 HHhhhhhhhH hhhhhH Direct Line Insurance Group Direct Line 4 HHhhhhhhhH hhhhhH Direct Line Insurance Group Hastings Direct 4 HHhhhhhhhh hhhhhhH Hastings Group Holdings plc Zurich 4 HhhhhhhHh hhhhHhH Zurich Insurance Group AG Lloyds Bank 3.5 h Hhh hhhHH hh hHHH Lloyds Banking Group esure 3 HHhhhhhhHh hhhhHhH Bain Capital LLC Sheila's Wheels 3 HHhhhhhhHh hhhhHhH Bain Capital LLC Tesco 0 HHHHhhHHHH Hhh h H H h Ageas/Tesco plc

m nsu er o .o c r l g Best Buys are decided by the editorial team based on the research we have undertaken, the scoring system and the unique

a insight into the issues that our editorial team has. 9 times out of 10 this will be the brand (or brands) that are top of the table but

h t sometimes an ethical company which is truly innovative scores less well on our rigid scoring system and we use the Best Buy and

e Y Recommended section to acknowledge this. A company cannot be a Best Buy if it scores worst for Supply Chain Management. BES T BU © Bubbersbb | Dreamstime.com

18 Ethical Consumer November/December 2020 m nsu er o .o c r l g

the Arctic or Antarctic. It reports on the portfolio’s carbon intensity, but no clear i

h emissions of its investments. targets for reduction could be found. BEST t

e Y l Allianz does not insure or invest in BUYS B U coal-fired power plants or coal mines. We are requiring all financial companies ES T B It says that it “strategically invests in to commit to pull all investments from low-carbon assets, including renewable fossil fuels, or else they get worst in our Our best buy is Co-op Insurance, energy, green buildings, and green new climate change rating system. Thus, which has a very strong ethical bonds". all of the companies in this guide get investment policy. l Covéa has mostly divested from coal worst, although some are doing more and publishes a calculation of its asset than others.

Co-op Insurance 6

RECOMMENDED

Also recommended are Aviva, Allianz and Zurich, as they are strong on INSURE OUR FUTURE investment transparency, and do better than others with regard to their climate policies. Insure Our Future, previously called Unfriend Coal, is a global coalition of campaigning organisations that is pressuring insurance companies to get out of fossil fuels and support low-carbon technologies. Each year it rates the largest insurance companies on their policies, including BRANDS TO AVOID five in this guide: Zurich, Axa, Aviva, Legal & General and Allianz. Its aims are to get insurance companies to: We recommend avoiding esure’s brands – esure and Sheila’s Wheels. Esure l Stop insuring coal, oil and gas projects and companies does consistently badly – it has no real l Divest from the fossil fuel industry climate policy, its investment is opaque l Insure and invest in the low-carbon economy and, in 2019, its then chairman and l Bring all their business activities, including as shareholders and corporate lobbyists, in part owner Sir Peter John Wood gave line with the goals of the Paris Agreement £1 million to the Conservative party. Not everyone will agree that this was a Insure Our Future can be found at: https://insureourfuture.us good thing to do.

Table highlights

Tax avoidance States, which is why we find it nearly l In 2016, Aviva Employment Services Axa, Aviva, esure, NFU Mutual, Hiscox, every time we look into an industry. Axa, Ltd, a subsidiary of Aviva, gave nearly Zurich, MORE TH>N, Allianz, Legal & Aviva, Zurich, Allianz and UK General £12,000 to Tory MP Michelle Donelan. General, Lloyds Bank, Hastings and Tesco were all marked down for donations to l In 2016 Ageas gave £35,000 to the were all marked down for likely use of tax US Democrats and Republicans. Liberal Democrats and £30,000 to the avoidance strategies. It is, however, rarer to find significant European Movement of the UK Ltd. Ecclesiastical, Ageas, Covéa, Direct Line, UK political donations. However, there Admiral, and UK General, did not show the were several on this occasion: Arms and military supply signs of it. l Sir Peter John Wood, the founder of Aviva, Allianz, Axa, Lloyds Bank and The Co-op is Fair Tax Mark certified. both Direct Line and esure, and at the Legal & General were all marked time the Chairman and part owner of down for investing in companies that Donations to political parties Esure, gave £1 million to the Tory party in manufacture nuclear weapons. It is very common for company employees 2019. He has since stepped down from his to give to political parties in the United chairmanship.

ethicalconsumer.org 19 SHOPPING GUIDE Insurance

CLIMATEWISE ClimateWise is a voluntary insurance industry initiative. Members have to report on their climate policies, and support research relevant to climate change and the insurance industry. Being a member is a sign that an insurance company has intentions to tackle its climate impact. All of the companies in this guide are members apart from Co-op, Covéa, Legal & General, NFU Mutual, Ageas, esure, Direct Line (Churchill), J.C. Flowers (UK General), EUI (Admiral), and Hastings.

Private health insurance

In areas like health, private insurance donors on Reform’s website, although substantial commission from the is an alternative to a government safety the Association of British Insurers is still companies. net, which gives the companies a there, and three 2018 events were listed financial interest in cutting parts of the as “supported by Prudential” (Prudential net away. Both Axa and Aviva sell private is an insurance broker). Discrimination based medical insurance. None of the other Most funding for right-wing think companies in this guide do, as far as we tanks is not in the public domain, and so on race, wealth and could tell. any information that does come to light loyalty In 2014, the Open Democracy website tends to look significant. published an article on the think tank In 2018, a BBC ‘You and Yours’ Reform, which has long argued for investigation found that, keeping all greater NHS privatisation, and had Price other details identical, entering the just recommended that people staying name Muhammad Khan into price overnight in hospital should pay ‘hotel Insurance is principally bought on price, comparison sites led to higher car charges’. It had found that “In recent years which can vary hugely. Most people buy insurance quotes compared to a white Reform has been funded by: Prudential, through price comparison websites, British name, with the biggest difference Legal & General, Scottish Widows [Lloyds and we plan to publish a guide to them being £360. Companies claimed that Bank], Aviva, Benenden insurance, Gen soon. They can be used in conjunction this was not racism, but just the result of Re (reinsurer of health products) and US with our ethical ratings to help make a fraud detection tools that look for when health insurance giant UnitedHealth ... sensible choice all round. In addition, to a false name is being used at a known The industry’s trade body, the Association save money, it is worth address. of British Insurers, is also a donor.” reading meta sites The Financial Conduct Authority has Most of these are no like Money Saving not reported evidence of direct racial longer on the Expert, that do price discrimination, which would be illegal. list of comparisons of However, indirect discrimination, or price comparison discrimination based on wealth, are sites. It is also perfectly legal and routine. Insurance worth being companies consider postcodes and the aware that local crime rates when deciding on policy the price rates. If you live in a poorer area, you comparison will be charged more. And if you live in a sites take flood-prone area, you may struggle to get home insurance at all. The FCA also found that insurance companies often charge a ‘loyalty penalty’ – much higher prices to existing customers so, all else being equal, it is usually worth your while suppressing the feelings of profound affection that you have built up for your existing insurance

company, and being a bit promiscuous. | Dreamstime.com © Phasinphoto

20 ECO BROKERS AND GREEN TRANSPORT INSURANCE

Insurance for green transport exceptions (Admiral is one), companies Naturesave home insurance Most mainstream insurance companies do not generally cover bicycle theft and Naturesave is a home insurance broker now insure electric vehicles, although damage outside of the home as part of with a specifically green offering: it offers they generally charge more than for standard basic policies. discounts for eco buildings, uniquely petrol or diesel vehicles, partly because If you have a more expensive bicycle covers solar PV panels as a standard part electric vehicles are still a bit of an and want to get specific insurance for of the policy and specialises in offering unknown to them and they are nervous it there are a number of brokers which cover to alternative house builds like about things such as the cost of repairs. specialise in it, including Cycleplan, timber-framed and straw bale. It donates There are a few brokers which Bikmo, Velosure, CycleGuard and ETA (the 10% of the premium to environmental specialise in them, such as pluginsure Ethical Transport Association). and conservation projects. and Greenways, and which may offer The ETA started as an alternative Unfortunately, Naturesave’s cheaper quotes. We weren’t able to get breakdown cover scheme because the AA underwriter, Canopius, does not have such information on which underwriters they was campaigning for road building. great green credentials. It does not publish use. Cycleplan’s underwriter is Aviva, any investment policy at all. You can often get bicycle cover as Bikmo’s is Hiscox, Velosure uses a Naturesave says: “at present we are part of a general home insurance policy. mixture, and CycleGuard and ETA both talking to Canopius to clarify their overall However, you need to make sure you have use General Insurance Ltd. Of these, Aviva position in regard to underwriting the the right kind of policy – with a very few does the best on the climate front. extraction of coal.”

Companies behind the brands

Ecclesiastical Insurance was founded in 1887 by the Church of England in order to provide insurance for its own buildings. It is owned by the Allchurches Trust, which uses its profits to fund Anglican churches and a few other Christian charities. It is very closely linked to the church, and its current trustees include The Venerable Karen Lund, Archdeacon of Manchester, and The Very Reverend Jane Hedges, Dean of Norwich. It does moderately in our ratings. Axa is a French multinational, and one of the biggest insurance companies in the world. It sells insurance in the UK under its own name, and under the name Swiftcover. Axa has faced a lot of criticism for investing in an Israeli weapons manufacturer, Elbit Systems, that allegedly manufactures the white phosphorus shells that were used in Gaza, and five Israeli banks that provide special loans for infrastructure projects in illegal Israeli settlements. After a 2019 petition asking it to pull its investment gained 140,000 signatures, Axa divested from Elbit Systems and one of the banks, but it also almost tripled its investment in the remaining banks. Aviva is a British multinational and the largest provider of UK insurance, although it also sells across the world. Its story goes back to the original 1696 Hand in Hand Fire & Life Insurance Society. Aviva does reasonably well in our ratings as it has good transparency and investment policies. NFU Mutual’s full name is the National Farmers Union Mutual Insurance Society. It started in the early 20th century, providing insurance for members of the National Farmers Union, but it diversified outside the farming industry during the 1980s. It is financially independent of the NFU, but still has strong links with it – it sells its policies largely through a network of agents in rural areas, and many of the agents double as NFU representatives. NFU Mutual does pretty consistently badly across our ratings. In particular, it did not seem to have any ethical investment policies. The NFU itself has been the target of criticism by Ethical Consumer for being a driving force behind the ongoing badger cull in England. Opponents of the cull will probably be less keen to choose NFU Mutual as their insurer.

ethicalconsumer.org 21 COLUMNIST Ethical novice

COLIN BIRCH with a light-hearted guide to trying, and sometimes failing, to be ethical.

CAR INSURANCE

It’s that month of the year when I have to staff turnover in these places. And schemes. But the cynic in me can’t help renew my car insurance – a time when discovering where an insurance company thinking that they’re actually planting I wish I owned an electric car, because invests the cash you give them isn’t easy. more trees just to increase the likelihood going through the annual nightmare Surprisingly, those lovable Meerkats of me crashing into one so they can bump of phoning up my provider to try and on the comparison website ads don’t my premiums up! get a better deal is so depressing that mention that many of the companies Thankfully, there are a few insurers it puts me at risk of attaching a length listed could be investing in firms which that do have ethical investment policies. of hosepipe to my traditional petrol contribute to the climate change that’s Some won’t invest in oppressive regimes exhaust and ending it all. In fact, the wrecking their habitat. … although the irony of taking this stance only reason I’ve never gone through I’m not naive – I know that many while operating call-centres which are with it is because I’d have to endure the of the financial giants backing major almost oppressive regimes in themselves nightmare of phoning up to arrange car insurance firms have questionable seems lost on them. decent life insurance first. environmental records. Some are so iffy These ethical firms are also prolonging However, COVID has made me that when I ask the sales staff what excess the lives of our cars by steering clear of approach the situation a little differently my policy comes with, I expect them to writing-off smashed-up ones whenever this year. The lack of human contact in say: “excess pollution and excess climate possible, and encouraging the use lockdown means I’m almost looking change”. Others invest in armaments and of recycled parts in repairs – this is forward to discussing compulsory excess, military supplies: presumably, the ones something to be applauded, even if, just policy schedules and no-claims discounts offering good third party, fire and theft occasionally, the boy racer in me wishes with a call-centre rep, as it’s been so long policies for tanks and amphibious landing they’d replace all the parts in my little, since I’ve chatted with a total stranger craft? I shouldn’t be surprised. Most of eco-friendly vehicle, with ones from a about anything. them would probably refuse to pay out Ferrari Testarossa, as it’s the only way I’ll This year, too, I’m approaching the for an act of God if they heard you were ever get to drive one! task full of environmental zeal, as it’s atheist. So, to sign up for more ethical car important to know just how ethical my For most of the corporates, the only insurance, I obviously need to discover car insurance provider is. I’d never given truly environmental switch they’ve made which of the providers puts something this much thought previously. Given how in recent times is moving to paperless back. Thankfully, that’s easily done happy they seemed to insure me during policy documents. Now, this is fine in by reading this esteemed magazine … my boy-racer days, I’d always assumed itself, as my last car insurance policy was though, to be honest, I’d love to find out they were mad rather than bad, but now so thick that it wasn’t worth the paper by phoning up all the insurers and asking I’m older and wiser I need to know more it was written on, literally as well as them lots of awkward questions they won’t before I sign up. metaphorically, but it hardly makes them like answering … To be honest though, it’s tough finding George Monbiot. See how they like it for a change. out the ethical credentials of the insurers. Some insurance companies are buying However, the ones that really caught If the call-centre reps say they’re “very carbon credits, based on our cars’ CO2 my eye are made from the faux leather green” this usually means they only emissions and putting them towards by-products of apples, figs, potatoes, started work there last week, such is the tree-planting and other carbon-offsetting coconuts and even pineapples. These would be perfect for my journey back to health. OK, I might not actually get round to running in them, but given the appalling nature of my lockdown diet, at least if I eat them I’ll be getting a couple of my five-a-day.

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ethicalconsumer.org 23 SHOPPING GUIDE Ethical Pensions In search of an ethical pension

ALEX CRUMBIE peruses the possibilities.

n the UK, 77% of employees were from the world of work. But it is vital that avoiding the negative consequences members of a workplace pension we all, young to old, take an interest in of investment. Moving your money to scheme in 2019, up from 47% our pension, and not just for the sake of an ethical fund can mean that you are in 2012, when the government’s our (hopefully) wiser and more wrinkled supporting important sectors such as Iautomatic enrolment initiative came future selves. healthcare or companies aiding the into force. For many, a pension will be transition to a low-carbon economy. One the largest investment they hold and, calculation by Nordea, a Nordic financial viewed collectively, the pension market The potential of services group, suggested that ‘greening’ carries huge weight. In April 2016 to your savings such as your pension “could March 2018, aggregate private pension pensions generate 27 times greater improvements wealth in Great Britain was £6.1 trillion, As you pay money into your pension, in a personal carbon footprint than which represented 42% of all wealth in that money is being invested, and eating less meat, using public transport, Great Britain. when it is invested in company shares reduc[ing] water use, and flying less”. It is hard to get most people interested (equities) you actually become a part There are problems with comparing in pensions until they start nearing owner of that company. If your pension carbon emissions across such different a riper age of life – when the pension is not invested in an ethical fund you will areas as consumption and investments, goes from distant and untouchable, to likely be the part-owner of companies in something that can potentially free you a whole range of unsavoury sectors such as arms, tobacco, and fossil fuels. Making sure your pension Many are shocked by this realisation. is invested ethically is a One poignant example is Dr. key element in a properly Bronwyn King, an Australian sustainable lifestyle. oncologist, who gave a TED talk in 2017 in which she described the horror of finding out A fully that while she spent her days trying to referenced treat lung cancer patients, her pension version of this Shopping fund was heavily invested in tobacco Guide is on companies. our website It is important not to frame our thinking around pensions as simply

24 Ethical Consumer November/December 2020 provider to give a flavour of the kind of choices available and language used. Most providers will offer a small number of ethical options amongst many more less ethical choices. For example, Nest has seven pension options, but only offers one ‘Ethical Fund’. Fidelity has nearly 50 ethical options amongst hundreds of less ethical choices. If you are looking for a more personal pension or SIPP then you are likely to have a greater choice.

Provider Some of their ethical funds Aegon Ethical Ethical Lifestyle Scottish Equitable Ethical Managed Aviva Stewardship Life Stewardship NGP MyM My Stewardship UK Equity Fidelity Fidelity Sustainable Reduced Carbon Fund Fidelity Water and Waste Fund Fidelity Sustainable so such claims should be swallowed will be placed in an investment fund, Global Equity alongside a fist-full of salt. We explore this which may even be managed by another Legal & General L&G Future World issue in detail on page 29. company. It is the ethics of this fund (or Funds It should also be emphasised that funds) which is key. LV= L&G Future World statistics such as Nordea’s do not mean With all the providers in our guide, Multi-Index that moving your pension to a greener you can request some form of ethical Liontrust Sustainable fund suddenly justifies biweekly flights fund, which are also called things such as Future to the Algarve. Reducing consumption ‘sustainable funds’ or ‘stewardship funds’. M&G Sustainable Multi is, of course, essential. The point One key feature of an ethical fund is that Asset is that, thus far, the importance of it should have exclusions criteria, i.e. it Nest Nest Ethical moving your investments has often should specify what it will not invest in. Old Mutual Quilter Investors been underappreciated. Making sure For example, Aviva’s Stewardship funds Wealth Ethical Equity your pension is invested ethically is a will not have “Any involvement in the Prudential M&G Multi Asset key element in a properly sustainable manufacture of whole weapons systems, Sustainable Allocation lifestyle, and also ensures that you are components or support systems.” Fund not the unwitting part-owner of any Sometimes these criteria are vague or Kames Ethical Equity particularly unethical companies. allow for a little too much leeway. Most Liontrust Sustainable people will look for stringent and detailed Future Corporate Bond exclusions criteria that complies with Royal London UK Ethical Pension What is an ethical their ethical stance and we talk more Fund pension? about these criteria in our guide to Ethical RLP Sustainable Funds Investment Funds (in EC186 and on our Scottish Scottish Widows According to research by Nest, the website). Widows Ethical Pension government scheme set up in 2008, 68% Some funds will also state what they do Standard Life Standard Life Ethical of UK savers want their investments to invest in, although these commitments Pension Fund consider people and planet alongside are usually more vague than exclusions SL ASI UK Ethical profits, and 71% of Brits would opt for a criteria. For example, the Nest Ethical Equity Pension Fund fully or partially sustainable pension if Fund guidance states, “We want to invest SL ASI Europe ex UK Ethical Equity Pension they had the choice. But what makes an in companies that ... have a responsible Fund ethical or sustainable pension? approach to biodiversity.” Although The People's B&CE The People's In this guide we have identified the it is more difficult to set clear criteria Pension Pension Ethical major pension providers in the sector for inclusions than exclusions, Ethical which offer some kind of ethical option Consumer hopes to see more funds Virgin Money Currently unavailable due to creating a new for clients. Generally, you will choose a provide greater clarity on this in future. scheme. Not taking pension provider (such as those in the We have provided a table showing just new customers at score table overleaf) and then your money some of the ethical funds offered by each present.

ethicalconsumer.org 25 SHOPPING GUIDE Ethical Pensions

USING THE TABLES Environment Animals People Politics +ve USING THE TABLES Ethiscore: the higher the score, the Positive ratings (+ve): better the company. Scored out of 14. Company Ethos: Plus up to 1 extra point for Company = full mark Ethos and up to 5 extra points for e Product Sustainability. E = half mark Green (good) = 12+ Product Sustainability: Various positive marks available Amber (average) = 11.5–5 depending on sector. Red (poor) = 4.5–0

H = worst rating h = middle rating = best rating/no criticisms found Best Buys are highlighted in blue

NEST 13.5 h H e Nat. Employment Savings Trust The People's Pension 13 H H e B&CE Holdings Limited Royal London 11 H H h H E Royal London Mutual Insurance Prudential 10 h H H h H M&G Plc Legal & General 8.5 h H h h h h h h H Legal & General Group plc Virgin Money 7 H h h h h h h h h h h H Virgin Money UK PLC Aviva 6.5 h H h h h h H H H H Aviva Plc LV= 6 H h h H H H H H H Allianz SE Fidelity 4.5 H H h h h h h h h h h h h h h H FIL Limited Old Mutual Wealth 4.5 H H h h h h h h h h h H h h H Quilter PLC Standard Life 4.5 h H h H H H h h h H H H Standard Life Aberdeen PLC Aegon 3.5 H H h h h h h h h h h h h h H h H Aegon NV Scottish Widows 3.5 h H h h h h h H H h h h H H H Lloyds Banking Group plc

a insight into the issues that our editorial team has. 9 times out of 10 this will be the brand (or brands) that are top of the table but

h t sometimes an ethical company which is truly innovative scores less well on our rigid scoring system and we use the Best Buy and

e Y Recommended section to acknowledge this. A company cannot be a Best Buy if it scores worst for Supply Chain Management. BES T BU

Table highlights While both Nest and The People’s had policies around carbon and climate Pension scored well, Nest proved to have change, none went so far as to prohibit At the top of the table were NEST and better environmental reporting and also investment in all fossil fuel companies, The People’s Pension. It should be had more stringent exclusions criteria for and therefore they received our worst noted that both only provide workplace its ethical funds. rating. pensions. Both organisations received a All companies scored worst for our Despite this, Nest deserves particular positive Company Ethos mark because Carbon Management and Reporting mention for its climate strategy, they were not-for-profit announced in mid-2020, institutions and neither in which it stated it will received any negative marks decarbonise its investments. in the Anti-Social Finance 71% of Brits would opt While other pension funds or Tax Conduct categories. may have stringent climate This is at odds with all for a fully or partially rules when it comes to other companies in the specific funds (ethical or guide, with the surprising sustainable pension if environmental funds), Nest exception of Virgin Money is leading the way among which was not marked down they had the choice. larger providers in terms for its tax conduct. (Virgin of decarbonising its whole Money UK Plc is connected portfolio. It has set robust to the wider Virgin Group through the rating. Companies need to meet a phase out dates for investment in Virgin brand but operates as its own number of criteria to score well in this companies involved in carbon intensive group of companies which includes category, including not being involved sectors, such as thermal coal, oil sands Clydesdale Bank and Yorkshire Bank. in any projects that are considered to and arctic drilling, and pledges to No subsidiaries within this group were be particularly damaging in terms of invest more in “companies that are found to be in tax havens.) climate impacts. While most companies developing solutions such as renewable

26 Ethical Consumer November/December 2020 m nsu er o .o c r l g

energy infrastructure and low-carbon i

technologies.” BEST t Companies behind e Y The highest scoring provider that BUYS B U offered workplace pensions and personal the brands ES T B pensions was Royal London, which gained half a Company Ethos mark for being a Nest Corporation is a non-departmental Workplace pensions: Nest is a not- mutual foundation. (Old Mutual Wealth is public body which is accountable to for-profit organisation and we were a mutual in name only). Parliament through the Department for particularly impressed by its recent There are several companies such as Work and Pensions but, in practice, is carbon divestment policies. Pension Bee that we came across when relatively independent, operating at an Personal pensions: Royal London doing this research but did not include arm’s length from the UK government. scored highly on our table and also is a in the table opposite because they do not It was set up in order to ensure that mutual society. manage the funds themselves as they are all employers had access to a high- primarily providers of a user-friendly quality workplace pension scheme platform. You’ll find that each of Pension following the 2008 Pensions Act, which Bee’s funds are managed by other introduced auto-enrolment. It is now NEST providers – it’s Future World Plan is, for the largest pension scheme in the UK by example, managed by Legal & General. membership with 9 million savers. 13.5 Fidelity is owned by FIL Limited, a company headquartered in Bermuda, Royal Transparency & a country on Ethical Consumer’s list of tax havens and listed as second worst London engagement on the 2019 Corporate Tax Haven Index, In the last issue we explained that placing it just behind another British 11 we assess the transparency and overseas territory, the British Virgin engagement policies of financial Islands. Somewhat surprisingly, the institutions which hold equities. They company’s website is relatively open are rated according to four categories: about its tropical headquarters, but then Top of the Pile, Getting There, Vague/ again, sometimes hiding in plain sight is Unsubstantiated, or Bottom of the Pile. more effective than slithering about in the Among the providers in this shadows. guide, none were ranked as Vague/ In 2019, research by the Sunday RECOMMENDED Unsubstantiated or Bottom of the Pile. It times found that Fidelity had not been appears that transparency in the sector honouring the terms of the majority We recommend funds that received our has improved somewhat since we last of its socially responsible funds. Out ‘Top of the Pile’ rating for transparency examined it in 2018, but there is still a of 49 socially responsible funds, only and engagement. See left for details. long way to go. one met Fidelity’s ethical guidelines, which included avoiding investment in “companies involved in promoting alcohol, tobacco or gambling, or in the defence industry”. The People’s Pension was launched BRANDS TO AVOID in 2011 by B&CE, a not-for-profit organisation formed in 1942, through Avoid brands towards the bottom of our collaboration with employer federations table and those that did not receive our and trade unions in the construction ‘Top of the Pile’ rating for transparency industry. The scheme now has over 4.9 and engagement. See left for details. million members.

SHARIA FUNDS The world of Islamic banking has long placed rules on what practices are permissible or halal. Regarding investments, there are two key criteria. Firstly, as Top of the Pile: Aegon, Aviva, Legal & interest is not permitted under Sharia law, any return on investment must be from General, LV= (Allianz), Nest, Prudential the actual share of profits made by a company or fund, rather than a fixed return (M&G), Royal London, Standard Life, The based on charging interest. Secondly, investments must not be made in companies People's Pension whose activities do not comply with Sharia law, such as those manufacturing, Getting There: Fidelity (FIL Ltd), Old selling or offering alcohol or haram meat (e.g. pork), or those involved in gambling, Mutual Wealth, Scottish Widows (Lloyds night club activities, or pornography. The second criteria is therefore much the Banking Group), Virgin Money same as the negative screening process applied by many ‘ethical’ or ‘sustainable’ funds. For more on our transparency rating, Most of the providers in our table offered access to Islamic funds, with many see the Ethical Investment Funds guide in offering the HSBC Islamic Global Equity Index fund. EC186 or on our website.

ethicalconsumer.org 27 SHOPPING GUIDE Ethical Pensions Types of pension Persuading your employer to opt There is a huge amount of variation when for an ethical pension fund as the it comes to pension schemes, but for our purposes there are two main categories: default option is a fantastic way to personal pensions or self-invested personal pensions (SIPPs), and workplace increase impact. pensions.

Personal pensions and SIPPs Campaigning for an ethical company pension These are very similar in that both are generally set up by the individual and Persuading your employer to opt for funds won’t perform as well as their give you choice over your investments, an ethical pension fund as the default traditional counterparts. But as discussed with SIPPs giving greater flexibility. It is option is a fantastic way to increase in Ethical Consumer’s guide to Ethical important to emphasise that personal impact. This may not be easy and will Investment Funds (EC186), the opposite forms of pension are only suited to those likely require the support of colleagues. has more recently found to be true. who are comfortable with managing The investment charity ShareAction has Ethical funds have fared particularly well their own investments. It is usually a number of resources on their website during the coronavirus crisis because recommended that you speak with to help you start the conversation to they are generally invested in healthcare an independent financial advisor or change your workplace pension. See: and technology, and not invested in fossil impartial organisation before opening a shareaction.org fuels which have been badly hit by the personal pension. A common concern is that ethical falling price of oil.

Workplace pensions These are set up by your employer and typically involve both you and your employer contributing to the fund. In PENSION CAMPAIGNS 2012, auto-enrolment came into force, meaning that all UK employers had to set Make My Money Matter is a fantastic campaign launched in 2020 with the up pensions for all workers that met the aim of “creating a movement calling for the trillions of pounds invested in our following criteria: UK pensions to build a better world.” The campaign, co-founded by rom-com l not already in a workplace pension screenwriter superstar, Richard Curtis, is l aged 22 or over well-aligned with Ethical Consumer’s work l under State Pension age on pensions, aiming to enlighten individuals l earning more than £10,000 a year about where their money is being invested and l working in the UK. pushing for change at the level of individuals, The scheme, a well-placed nanny-state organisations, and government and industry. intervention, has led to a substantial As well as asking people to move their increase in the number of workers holding pensions to more ethical funds, it is asking a pension. supporters to “be a net zero hero” by signing its Most of the providers in our guide petition which calls on all UK pension funds to offered both workplace pensions and some ensure that all default pension funds commit to form of personal pension. It should be Net Zero emissions by 2050. noted that Nest and The People’s Pension To find out more and get involved, see: only offered workplace pensions. MakeMyMoneyMatter.co.uk

Which type is more ethical? ShareAction is promoting a campaign around the Pensions Bill which will be Neither is necessarily more ethical than debated in Parliament in 2020. They are urging people to contact their local MP the other, but personal pensions give you to tell them that you want your pension to be in line with the goals of the Paris more flexibility and choice, meaning you Climate Agreement. For details see: shareaction.org can be more discerning about where your money is invested. Not everyone has the time or knowledge to manage their own pension, but there are ethical choices available for more managed pensions. The main issue faced by those placed into a workplace pension is that your cash is usually placed into the default fund, which rarely has robust ethical credentials. Most workplace providers offer several different funds so it should be possible to switch to a more ethical fund or, even better, to persuade your employer to switch its default fund to an ethical fund.

28 Ethical Consumer November/December 2020 The problem with comparing pensions and flights

Josie Wexler ponders the be considered part of your ‘carbon issue. footprint’. The idea behind this is that if people didn’t demand things, nobody would provide them. n page 24 we quoted a claim Nordea therefore appears to be by the financial services double counting emissions. The same company Nordea, that emissions that it allocates to your greening your financial assets, pension will, somewhere else, be Osuch as your pension, could “generate allocated to someone’s personal carbon 27 times greater improvements in your footprint as a flight they’ve taken or a personal carbon footprint than eating computer they’ve bought. less meat, using public transport, If you’re totally and completely reducing water use, and flying less.” responsible for them, by investing in The figure has been quite widely the company, that has to mean that the quoted by other organisations, such as consumer isn’t responsible for them Make My Money Matter.1 at all, by taking the flight or buying the While we encourage readers to green computer. In other words, the emissions their investments, we are concerned of consumption are zero. that this figure is misleading. It is not But if you are saying that, then how good to overstate your case – it can can you compare the emissions of lead to contradictory figures flying your investments to those of your own about, leaving people confused and not consumption which, according to this knowing who to trust. methodology, has emissions of zero? The effect of investments is more indirect still. It is true that selling shares will have some effect on the company. But Who takes Direct and indirect how much product the company shifts is also substantially influenced by demand. responsibility for effects It is wrong to treat investors buying or emissions? The problem with Nordea’s comparison selling shares in airlines as the only thing is that it is comparing things that can’t that influences how many flights airlines Nordea calculated the figure by really be compared: direct actions – sell. dividing companies’ emissions whose effects that you have control between their shareholders. If you own over; and indirect ones – where your 50% of a company’s stock, it allocates action is only one of the things that will Our conclusion you responsibility for 50% of the influence the outcome. emissions that that company emits in When you burn a lump of coal in a Thus, we think that Nordea’s the course of its activities. wheelbarrow you have direct control comparison overstates the case. As we The problem with this becomes over that lump of coal being burned. say elsewhere, investing ethically is a clear when you consider that a normal When you decide not to take a flight you key element in a properly sustainable ‘carbon footprint’ of your consumption are having a somewhat more indirect lifestyle, but it would be wrong to think allocates you, the consumer, effect on the number of flights, but it that it is more important than what you responsibility for these emissions. If will still only take a few hundred people eat or how you travel. you buy a computer, the emissions deciding not to go before the flight is Having said all this, it is still generated during its production will cancelled. interesting to consider the question, how much effect do investors have, and how should responsibility for emissions be divided up between investors and HELP WITH MOVING YOUR PENSION consumers? We’ve not yet managed to work out It is recommended that you seek independent advice when making significant a better way of doing this but would be changes to your pension. Here are a few places where you can receive advice: really interested to hear whether any of l Citizens Advice Bureau – free and impartial advice. our readers have information about other l Pensionwise – free and impartial government advice service. ideas or projects which have. l ShareAction – a responsible investment charity that can help you move to an ethical fund. l Independent financial advisor (IFA) – see our feature on p30. Reference: 1. https://makemymoneymatter.co.uk/whats- the-issue

ethicalconsumer.org 29 FEATURE Finding ethical financial advice ROB HARRISON navigates the increasingly overlapping world of ethical financial advisers and online investment platforms.

hirty years ago, when you needed financial advice, However, they can be really useful for complex long-term you’d make an appointment with someone in a smart arrangements like pensions and mortgages and we suggest suit in a high-street office. These days, although you consulting them occasionally in some of our money guides. With can still meet real people if you want to, you can also an online platform or app though, it is possible to start investing Tmake a virtual visit to ‘roboadvisers’ or investment platforms ethically from as little as £2 per week. which, a bit like gambling websites, can offer a mind-boggling Although we now look at ethical financial advisers and variety of places where you can put your money. ethical investment platforms separately, in reality their services Approaching a firm for bespoke advice is rarely commonly overlap – with the websites of financial advisers often recommended for people with less than £50,000 or even enabling logins to trading platforms and investment platform £100,000 to invest (which is the majority of UK citizens). websites commonly offering lots of structured advice. Ethical financial advisers

Financial advisers tend to operate l Castlefield Partners, Manchester, Personal chemistry as small businesses, partnerships or London & Salisbury. Tel: 0161 233 4890 We always like to add that, even with sole traders and there are more than l The Ethical Investment Co-operative, ethical advisers, you do need to find 5,000 in the UK. Ethical Consumer Yorkshire. Tel: 01748 889440 someone with whom you are comfortable readers are almost certainly looking for l The Ethical Investors Group, personally, and it may be worth trying someone who will respect their ethical Cheltenham. Tel: 01242 539 848 . more than one. As one reader has principles and take them seriously, l Investing Ethically, Norwich. Tel: explained: which may have proven difficult a 01603 309020 “I had some money I wanted to invest number of years ago. However, since In 2020, we added a fifth which and so I started looking for a financial well before lockdown, money has been specialises in offering both socially adviser. I found quite a few who claimed to pouring into ethical funds, many of responsible investment advice and know about green and ethical investments, which have performed better than Sharia-compliant arrangements: but I wasn’t impressed by any of them. traditional funds during the COVID l Simply Ethical, Middlesex. Tel: 0208 They explained that I could cut out certain crisis. This means that even previously 945 3786 companies, but they didn’t really seem to cynical advisers are showing more We are always interested to hear from understand what I wanted to do. It took a respect for this approach and you’d our readers about good (and indeed bad) while to find someone on my wavelength, be hard pressed to find one that experiences they have had with financial but when I did, it made such a difference.” didn’t mention ‘sustainability’ or a advisers, so do please get in touch if you similar buzzword at least once in their have something you’d like to share on the How much does it cost? promotional materials. In a way, this subject. Since January 2013, when new can make finding a decent ethical regulations came in, financial advisers adviser harder than it was. have had to charge a fee for investment, At Ethical Consumer we have tended pension and endowment advice rather to publish just a very short list of than accepting commission. It is normal advisers with a long track record of to agree a fee in advance and rates are ethical advice and who are clearly commonly around £100-£250 per hour. choosing to specialise in advising people with ethical concerns. Four The former Spurs and international have been on our list for a while: footballer Frédéric Kanouté is listed as a simplyethical.com client.

30 Ethical Consumer Nov/Dec 2020 Ethical investment platforms

Online investment ‘platforms’, where risk and other personal circumstances, here we have focused on providers seasoned investors can instantly move and then automatically generates which only offer ethical funds (a very their money between thousands of suggestions for investment. recent development), or which clearly complex investment choices, have The riskiest way to invest, but one list an ethical-only sub-brand. been around for a while. More recently which can create the most positive though, a wave of new entrants have ethical impact, is to put money directly Specialist ethical platforms created approaches designed to attract into ethical projects you like the look l Big Exchange (see box below) less-experienced investors and those of – such as wind farms in Wales or l Tickr with small amounts of money to invest. social housing in Brighton. For more Most interesting to us is a number of information about some really great Ethical sub-brand specialist ethical providers which we Direct Ethical Investment platforms l EQ Investors look at in more detail below. like Ethex and Abundance, see EC 186, l Nutmeg Socially Responsible All these platforms normally offer or our website for a more in-depth l Plum Ethical to place you money in various different examination. l Wealthsimple Socially Responsible ‘pooled funds’, each of which will hold shares in a range of different companies Choosing an ethical investment Tickr and Nutmeg work by investing and industries. This is generally seen platform for funds in exchange traded funds (ETFs) or as a good way to reduce the risk of loss There are so many direct-to-consumer passive tracker funds. These funds are in the longer term. We published a investment platforms around now cheaper to run but have not always separate guide to some of the best Ethical that comparison websites (such convinced everyone on the quality of Investment Funds in EC186 and on our as comparetheplatform.com) have the ethical screening.1 We have not website. It is worth seeing if you recognise emerged to help navigate them. Some yet formally reviewed them at Ethical any of our best funds in platforms which of these platforms are run by the by Consumer, but will no doubt do so at claim to offer socially responsible choices. the big banks like Barclays and HSBC, some stage in the future. One of the most well-established whose unconvincing approaches to examples of the platform approach ethical issues we have covered in more Although this article is not one of is nutmeg.com. It has been labelled detail in our guides to current and our in-depth Shopping Guides, the Big a ‘roboadviser’ by market observers savings accounts. Exchange platform appears particularly because it takes users through a Although it will be possible to choose well aligned to the values of Ethical questionnaire, asking about attitudes to an ethical fund within most platforms, Consumer readers.

can do this too. The information provided also contains a THE BIG EXCHANGE ‘potential controversies’ box which used 3D’s research to advise about exposure to some of the things that Ethical The Big Exchange is a new ethical investment platform Consumer thinks are problematic, such as oil, banks, animal from the Big Issue Foundation. It went live in October 2020 testing, etc. www.bigexchange.com so is hot off the press at the time of writing. It only offers investments in ethical funds and we particularly like it at Ethical Consumer because it uses research from 3D Investing. 3D Investing is an organisation which systematically checks to see whether ethical funds are really living up to their claims, and for several years has provided information to Ethical Consumer for our guides to Ethical Investment Funds. As a user, if you find investments baffling, you can just pick from three pre-picked ‘bundles’ on the Big Exchange website – which spread your investments across around ten different funds. If you want to specify exactly which funds you want to invest in you

References: 1 www.investorschronicle.co.uk/2016/07/28/funds-and-etfs/etfs/when-ethical-etfs-aren-t-ethical-vkiS3RN1lqiQEx0Zq7TvQM/article.html

ethicalconsumer.org 31 SHOPPING GUIDE Small business and charity accounts Business as usual? BILLY SAUNDRY assesses the current account options for small businesses and not-for-profit organisations that want to bank ethically.

his guide reveals which banks Worrying times for times and loan demand has been are the most ethical providers incredibly high, the crisis has further of current accounts for small businesses underlined the misalignment between businesses and not-for-profit It has been, and continues to be, an mainstream banks and the needs of small Torganisations. Most banks provide extremely difficult period for many organisations. current accounts specifically for small businesses. As COVID-19 brought businesses and these tend to come with most non-essential economic activity to monthly fees and transaction charges. a halt, the government launched waves Big 5 dominance Also tucked away in the business of support packages for struggling section of banks’ websites are accounts companies. For all their neglect of the small business for charities and other not-for-profit However, these hundreds of billions of sector over the years, the big banks organisations, though not all banks pounds did not make their way directly to remain dominant in the provision of provide these. businesses. Instead they were in the form business accounts in the UK. According The table includes companies that of guarantees for banks who provided to market research, Barclays, Santander, provide business current accounts. Banks the loans. This meant businesses were Lloyds Banking Group, HSBC and RBS that only offer business savings accounts obliged to take on more private debt Group (now NatWest) hold 85% of the have not been included, but many banks in a pandemic, whilst the banks were main accounts of small businesses. This listed both here and in our consumer reassured. is hardly surprising – switching is rare, savings accounts guide will offer business Unsurprisingly, this reassurance physical branches are still important savings accounts too. was not passed on to borrowers. Banks for financial advice, and many business Below we discuss the table in more came under fire for demanding personal directors prefer the ease of using the depth, as well as taking a broader look guarantees from those wishing to access same bank for business as they do for at the business banking sector. We also government-backed loans. Further personal finances. provide further detail of those banks criticism was directed at banks’ inability Interestingly, as a condition of its that provide accounts for charities and to approve loan requests with the government bail-out, RBS has been not-for-profit community organisations. necessary speed. tasked with boosting competition in the Finally, we revisit the issue of ‘de-risking’ This perhaps demonstrates more SME business banking sector. A pot of to see if there have been any changes the inadequacy of banks than serious £425 million has been used to support since our last guide in 2018. malpractice. The shift of UK mainstream challenger banks to increase and improve banking in the last few decades towards their offerings for small businesses. financial speculation and real estate A further £275 million is being used lending led to a neglect of productive to incentivise RBS business banking small- and medium-sized businesses – customers to switch banks. the ‘real economy’. The focus of banks Most of the first pot of cash has gone to on easy profits in the financial and challenger banks such as Metro, Starling housing sectors meant less emphasis on and Tide. But the scheme has been A fully referenced branch-based ‘relationship banking’. The criticised for being opaque and having version of resulting reduced capacity and expertise made questionable decisions. Serious this Shopping in providing quality services for small irregularities were identified on Metro’s Guide is on our website businesses amplifies banks’ difficulty balance sheet before it received £120 processing loan requests. million, and Starling’s CEO had a close Though these are exceptional relationship with the executive director

32 Ethical Consumer November/December 2020 of the body overseeing the distribution of in branch, means the lack of bricks and Community groups? the funds. mortar will continue to be a double-edged Business account switching has seen sword for online-only banks. The brands ranked on the score table a steep increase, in part due to the New banks are certainly more ethical overleaf all provide current accounts incentives of the scheme. However, it is than the established names. However, it is for small business, but the offering for questionable how much of a shake- an open question whether this will remain community groups and voluntary societies up will really be delivered by these the case. Starling Bank, for example, is much slimmer. Whilst the ‘challenger’ packages. Notwithstanding the has some good statements on avoiding app-based banks listed above tailor their manifold issues, including a lack of investment in certain industries such products towards making life easy for transparency in awarding funds, as fossil fuels and arms manufacture. micro-businesses, they are still only for the scheme appears to leave the But its environmental reporting and sole traders or registered companies. The power of the other four banking transparency commitment is not banks that do have accounts for non- giants relatively untouched. comprehensive. profit organisations tend to come with the The Starling website also names its stipulation of being a registered charity. leading financial backers as Harald For example, in 2018 a customer of the New challengers McPike, reported to be a “secretive Co-op Bank and member of Save Our Bank Bahamas-based investor”, and Merian complained that they weren’t able to open It’s clear that in a bid to disrupt the Global Investors. Merian was recently an account for a voluntary association. In ‘legacy’ high-street giants, most new acquired by Jupiter Fund Management response, Co-op Bank clarified that their banks are focusing on digital services. PLC, a company that receives Ethical Community Directplus Account was only for This makes sense, as the vast majority of Consumer’s worst rating for likely use of registered groups: Charities, Co-operatives small business’s financial activity is now tax avoidance strategies. However, a lack and Community Benefit Societies, Credit conducted online. After price, quality of clear linkages between the companies Unions and Community Interest Companies. online and mobile banking is the top means Starling currently avoids losing This policy was based on the bank’s priority for small business owners when any Ethiscore marks. risk appetite and regulation around fraud choosing a bank. With Starling’s sights set on rapid and money laundering. It acknowledged The growing assortment of primarily growth and an initial public offering in the that it now didn’t offer anything for small app-based business account providers, coming years, it will have to work hard to community organisations, and that it would including Starling, Monzo, Revolut, Tide, not let its first ethical steps be diluted by be reviewing the eligibility for its accounts and Coconut, offer not only their own the world of unethical finance. in 2020. account but also access to software that In some ways, the Co-operative Bank When a small voluntary organisation can manage other bank accounts and remains a better option than these does manage to open an account, they can company financial administration. challengers because of its crystal-clear miss out on important banking features, However, the inability to provide face- ethical policies. It also retains a small but such as the use of a debit card. To help to-face financial advice, the one activity diminishing branch network and a co- make sense of this, below we list the charity that small businesses still prefer to do operative union of customers. or community accounts on offer from the banks that achieve an Ethiscore of at least 5, along with their key features. Accounts for charities or community groups

Account Debit card? Open to all community organisations? Other requirements or features? No - must have exempt/excepted status with Charity Have to fit with Triodos’ sustainability ethos Triodos Charity Current No Account Commission, or to be in process of registering. and criteria; minimum £5,000 turnover. No, but charge card Unity Trust Business available subject to Yes. Seems to be open to various organisations, Minimum £500 deposit. Account credit checks from businesses to voluntary groups.

No. Charities can also open a Business Account but Mainly free but some fees do apply. Tide Business Account Yes Users must have the app to use via a web must be registered browser. Yes. Application documents for the Charity Account Reliance Bank Charity/ Yes (in other places called the “Community Account”) Free banking for 6 months subject to Community Account suggest the account is open to both registered conditions. charities and unregistered voluntary groups.

Metro Bank Community Yes Yes. For all clubs, societies and charities with an No monthly fees and no charges below a Account annual turnover less than £2 million. certain number of transactions.

Al Rayan Bank Community Yes This account is free of fees and charges for Current Account Yes most standard account services.

Co-op Bank Community Yes No – for registered charities, community interest No monthly fee and free for the vast Directplus Current Account companies, co-operatives and credit unions. majority of everyday banking services.

Yes. The Business Choice Charities is for registered Club & Societies Account has free banking Clydesdale/Yorkshire Bank Yes charities only, but the Club & Societies Accounts up to 10 transactions a month. Deposits, Current Accounts are for clubs, societies and non-profit making organisations. withdrawals and direct debits free. Need £1000 to open the account. Charges CAF Cash Account Yes No – for UK registered charities only. apply.

ethicalconsumer.org 33 SHOPPING GUIDE Small business and charity accounts

USING THE TABLES Environment Animals People Politics +ve USING THE TABLES Ethiscore: the higher the score, the Positive ratings (+ve): better the company. Scored out of 14. Plus up to 1 extra point for Company Company Ethos: Ethos and up to 5 extra points for = full mark Product Sustainability. e E = half mark Green (good) = 12+ Product Sustainability: = 11.5–5 Amber (average) Various positive marks available = 4.5–0 Red (poor) depending on sector. H = worst rating h = middle rating = best rating/no criticisms found Best Buys are highlighted in blue

Triodos [S] 16 e 1 SAAT Cumberland Building Society 13 H h E Cumberland Building Society Unity Trust Bank 12.5 H H E Trades unions & TU federations Coconut 12 H H Coconut Platform Limited Monzo app-based bank 12 H H Monzo Bank Limited Starling Bank app-based bank 12 H H JTC Starling Holdings Limited Tide 12 H H Tide Holdings Limited Metro 11.5 H H h Metro Bank Plc

Reliance Bank 11.5 H H H h e Salvation Army Int’l Trustee Co. Al Rayan Bank 10.5 H H h h h Masraf Al Rayan (MAR) Q.S.C. Revolut app-based bank 10.5 H H h h h Revolut Ltd Clydesdale 7 H h h h h h h h h h h H Virgin Money UK PLC Co-op Bank [S] 7 h H h h h h h h h h H h h 0.5 Silver Point/Anchorage Capital Yorkshire Bank 7 H h h h h h h h h h h H Virgin Money UK PLC

CAF 6 H H h h h h h h h h h h h h h h e Charities Aid Foundation (CAF) Handelsbanken 6 H H h h h h h h h H h h h Svenska Handelsbanken AB Danske Bank 5.5 H h h h h h h H h h h h h h h Danske Bank A/S Bank of Ireland 4.5 H H h h h h h h h h h h h H h h Bank of Ireland Group TSB 4 H H h h h h h h h h h h h H h H Banco de Sabadell S.A. Bank of Scotland 3.5 h H h h h h h H H h h h H H H Lloyds Banking Group plc Cater Allen 3.5 H h h h h h H H h h h h H H H Banco Santander, S.A. ICICI 3.5 H H H H h h h H h h h h H h h ICICI Bank Ltd Lloyds Bank 3.5 h H h h h h h H H h h h H H H Lloyds Banking Group plc Santander 3.5 H h h h h h H H h h h h H H H Banco Santander, S.A. Coutts 3 h H h h h h h H H h h h h H H H NatWest Group NatWest 3 h H h h h h h H H h h h h H H H NatWest Group RBS 3 h H h h h h h H H h h h h H H H NatWest Group Ulster Bank 3 h H h h h h h H H h h h h H H H NatWest Group HSBC 2 h H H h h h h h H H h h h h H H H HSBC Holdings plc Barclays 0.5 H H h H h h H H H h h H H H H H Barclays Plc

m nsu er o .o c r l g Best Buys are decided by the editorial team based on the research we have undertaken, the scoring system and the unique

a insight into the issues that our editorial team has. 9 times out of 10 this will be the brand (or brands) that are top of the table but

h t sometimes an ethical company which is truly innovative scores less well on our rigid scoring system and we use the Best Buy and

e Y Recommended section to acknowledge this. A company cannot be a Best Buy if it scores worst for Supply Chain Management. BES T BU

34 Ethical Consumer November/December 2020 m nsu er o .o c r l g

Table highlights by Virgin Money, offer over two years i

h of free banking for businesses with a BEST t

e Y Bottom of the table turnover less than £2 million, plus their BUYS B U The bottom end of our ethical rankings accounts for voluntary community ES T B tell a frustratingly predictable story. organisations come with a debit card (see Most of the mainstream banks score the table on page 33). As the exemplar ethical bank, Triodos badly and thus occupy the lower rungs once again tops our rankings. It is on account of their manifold bad Positive company ethos the only bank to do well across the financial practices. Excessive directors’ Better still are accounts from board, including for its environmental pay and tax avoidance are still rife in the organisations that get positive marks for and climate change policies. It also UK banking sector. their company ethos. is a B Corp, publishes details of its Furthermore, the big banks get marked The Cumberland Building Society, lending, and has clear minimum ethical down across most categories because now the only major building society to standards for organisations it provides of their investment practices. Far too offer business current accounts, keeps services to. For these reasons Triodos many banks lend money to unethical its business practices simple by sticking excels and receives our Best Buy for corporations and a lack of transparency to mortgage lending. Plus, it is mutually small business accounts. doesn’t help them take positive steps owned which helps to avoid the pressures forward. of profit hungry shareholders. Barclays and HSBC stand out, but Triodos is once again awarded the Best Triodos for the wrong reasons – they are two of Buy in this guide due to the strength of the world’s leading providers of fossil its environmental reporting and ethical 16 fuel finance. However, the fact that the policies. ‘Big 5’ all receive an Ethiscore below 5 demonstrates how unethical financial Changes since the last guide practices are most definitely the norm in Previous Best Buys don’t quite make the the UK banking sector. cut this time. RECOMMENDED l Unity Trust performs well and has a Top of the table clear and well-established commitment Though its ethical commitments aren’t An assortment of other options offer to providing banking services that have a as watertight as Triodos’, Unity Trust some hope for small organisations positive social impact. However, its ethical Bank still comes highly recommended looking to choose a bank with a social policies are far less robust than those of thanks to its solid ethical performance conscience. ‘Challenger’ banks such Triodos. and clear aim to be a bank that as Starling and Metro – as well as new l Falling even further is CAF Bank. The prioritises the social good. Its entrants to the digital business banking decrease in its Ethiscore is because of accounts are also open to all types of market, Tide and Coconut – lose marks the investment funds that it offers for organisations. for lacking adequate environmental and charity investors. Though not direct The Co-operative Bank’s detailed carbon reporting. But their current lack investments from the organisation itself, ethical policy still makes it a good of dodgy investments sees them remain its own named funds hold equities in a choice for those wanting a high-street a step above more established banks. number of unsavoury sectors including bank with a branch network. Falling further behind the challenger oil and tobacco. As there was no narrative The Cumberland is the only major banks but remaining markedly better to explain this, CAF Bank lost half building society to still offer business than the ‘Big 5’ are Co-op Bank and marks across all our categories. It still current accounts. Its mutual ownership Clydesdale/Yorkshire Bank. Co-op still received some positive marks for being a and good ethical credentials make it have a strong and wide-ranging ethical charitable organisation and for providing a good choice for those in its service policy. Clydesdale/Yorkshire, now owned services exclusively to not-for-profits. area.

BRANDS TO AVOID

HSBC and Barclays are amongst the biggest international providers of fossil fuel finance. Steer well clear of these dirty players. Adding to its bad reputation for mistreating small businesses, RBS (and the rest of the UK Government’s NatWest Group – NatWest and Ulster Bank) are implicated in numerous unethical practices such as dodgy deals and tax avoidance. Put your ethics first and choose another bank.

ethicalconsumer.org 35 SHOPPING GUIDE Small business and charity accounts

De-risking update Since this time, there has been de-risked, and we are working with less reporting of de-risking which the FCA on better communications In 2018, we reported on the issue suggests banks are applying greater around that.” of ‘de-risking’, a process whereby care and thought before they freeze The Sanctions and Anti-Money banks, in a bid to comply with new an organisation’s account. However, it Laundering Bill, due to come into international regulations against money is often unclear whether any concrete force once the Brexit transition laundering, freeze or cancel bank action has taken place. period ends, would create general accounts that seem risky. Unfortunately, In a 2019 report from the House exemptions and licenses for NGOs many humanitarian charities rely on of Commons Treasury Committee, carrying out humanitarian work in transferring funds to high-risk locations Stephen Jones from UK Finance sanctioned countries. This has been to carry out their work. This can raise highlighted the need for better received as a positive step by some red flags for cautious account providers communication from banks, stating charity bodies. However, whether this – banks such as Co-op and HSBC faced “In terms of access to banking, it is will represent a major break from criticism, in 2015 and 2017, respectively, very important that, if someone is de- current de-risking practice remains for closing the accounts of NGOs with banked, they understand why they have to be seen. little warning. been de-banked, why the institution has

Companies behind the brands

CAF Bank, and its parent charity Charities Aid Foundation, historic child sexual abuse in the 1970s and 1980s. It has also provide a hub for all forms of financial services linked to faced multiple allegations of discrimination towards LGBT charities. Individuals and businesses can access resources and people. charitable giving accounts. Charities themselves can access Joining rivals Starling and Revolut, digital-only Monzo CAF Cash Accounts, a bank account specifically for not-for- launched a business account in 2020. The company provides profit organisations, as well as savings, investment options, free and paying options, with the latter bringing extra functions loans and donating platforms. such as accounting assistance. The provision of digital admin Though CAF Bank is a keen supporter of charities – it functions for small businesses and freelancers is the focus of reinvests all its profits into the charity sector – one could doubt other app-based business account providers, Tide and Coconut. if it is strong enough in its advocacy of ethical business. Its own Tide (Tide Holdings Limited) was launched in 2015 and CAF Venturesome loan programme invests in not-for-profits counts Creandum, Passion Capital and Anthemis amongst its and social enterprises, but the investment funds that it offers to leading financial backers. Unlike Starling and Monzo, which charities invest in an array of bad corporations. A CAF factsheet are themselves registered banks, Tide teams up with PrePay from 2018 showed the CAF UK Equitrack Fund (managed by Solutions for payment services and ClearBank (a newly-licensed Legal & General) to have holdings in Shell, BP, HSBC and British ‘clearing bank’) to provide its business accounts. The Tide and American Tobacco. ClearBank team were awarded £60 million of RBS’s business Furthermore, a 2016 report produced by CAF and the London banking competition cash – some have criticised this due to the School of Economics entitled “Beyond Integrity” was criticised infancy of ClearBank and the fact that Tide itself is not a bank. by human rights campaigners for promoting corporations as a Tide makes some brief mentions of its ethical values in a positive force in advancing human rights. War on Want called 2019 blog. It also does not provide services to certain industries the report a “tool to whitewash the exploitative nature of many including weaponry and gambling. However, this is driven private sector industries, from the extractive companies through more by risk aversion than ethics – for example, charities are to fashion and electronics brands.” excluded in the same list. Reliance Bank is the bank of the Salvation Army. It is wholly Coconut (Coconut Platform Ltd) claims to be the “ultimate owned by the Salvation Army International Trust which appears accounting and tax tool for self-employed people”. This comes to be an overarching, co-ordinating charity for the Salvation in the form of an app that helps with invoicing, expenses and Army ‘territories’ all over the world. The Salvation Army is a tax affairs. As Coconut, like Tide, is not a bank but a digital Christian organisation with the objects of “the advancement of platform it is obliged to team up with another organisation the Christian religion … of education, the relief of poverty, and to provide its business other charitable objects beneficial to society or the community account. In this case of mankind as a whole”. PrePay Solutions provide Established in 19th century Britain alongside the Salvation the accounts as well as Army, Reliance Bank has traditionally served the financial needs Coconut’s debit cards. of its parent charity. It is a fully regulated, FSCS protected bank Coconut states “PPS holds and it offers current accounts and other services for charities, all funds in a safeguarded businesses and individuals. It positions itself as a socially account in accordance responsible bank, prioritising “business lending to charities, with the Electronic Money businesses and not-for-profits delivering positive social impact Regulations 2011 which in the UK.” protects customers However, its close link to the Salvation Army seems to against Coconut or PPS’s supersede any broader social mission. Up to 75% of profits insolvency.” Notably, are donated to The Salvation Army International to support its Coconut has no ethical “evangelical and charitable work around the globe”. This charity values statements at all on has been criticised in the recent past for numerous cases of its website.

36 Ethical Consumer November/December 2020 NEWS Tax justice

Amazon’s 2019 NEW TAX CONDUCT COLUMN tax bill is only As the sharp-eyed among you may have noticed, our tables now contain a separate column specifically on how likely a company is to be engaged in tax avoidance. It’s 3% despite a called Tax Conduct. While we have long rated all companies on this, our rating was previously buried in surge in profits the overall Anti-Social Finance column, alongside excessive directors pay and general financial corruption. At the beginning of September, Amazon With the whopping bill for COVID-19 on the horizon, it is more important than ever announced that it only paid around £14 for companies to be paying their way, so we decided to split out the column to make tax million in UK corporation tax in 2019, conduct more visible. which is just a 3% increase on 2018, despite its pre-tax profits growing by more than 35% during the same period, Our tax conduct rating is as follows: and it’s revenues by more than a quarter, to £13.7 billion. Best rating in countries on our current list of tax (a) The company has no subsidiaries havens. It does not have comprehensive based in jurisdictions on Ethical public country-by-country reporting with Consumer's list of 43 tax havens (see the narrative explanation as above. list www.ethicalconsumer.org/ethical- OR The company has everything required consumers-list-tax-havens). for a middle rating and also has reputable OR (b) The company has the Fair Tax secondary criticism for tax avoidance. Mark. OR (c) The company has comprehensive High risk company types are: country-by-country tax reporting, a l Ultimate Holding Company (UHC) clear public statement confirming that l Holding Company it is company policy not to engage in tax l Trust avoidance activity nor to use tax havens l Nominee Company for tax avoidance purposes, and provides l Limited Liability Partnership (LLP) a narrative explanation for what each l Intellectual property company entity in a tax haven is for and how it l Internal finance company is not being used for purposes of tax l Insurance subsidiary minimisation. l Management services company. Amazon says that its low tax bill is due to government incentives related to Middle rating Comprehensive country-by- investment in infrastructure. The company has two or more non- country reporting Amazon high-risk subsidiaries (see below) This consists of a full list of subsidiary has never which do not appear to be serving the companies stating the following: paid much local population and are registered in 1 Place of incorporation tax since its countries on our tax haven list. It does 2 Sales or turnover conception and not have comprehensive public country- 3 Net asset values or number of its tax affairs by-country reporting with narrative employees are extremely tax avoider explanation as above. 4 Profit opaque which cheaper shopping at the Tax paid. expense of our public services 5 is the reason we Worst rating are running a The company’s UHC is registered in a tax Some companies, such as financial boycott campaign against Amazon. haven to which it is not native, or it has companies, are required by law to report More on this story at www. two or more high-risk subsidiaries (see this, but often ‘forget’ to include one or ethicalconsumer.org/retailers/amazons- below) which do not appear to be serving two key subsidiaries in the list (those uk-tax-just-3-despite-surge-profits the local population and are registered located in Jersey, the Cayman Islands, etc).

Fair Tax Mark news

The Fair Tax Mark is currently going international, and it received a boost last month when the United Nations ‘75 Global Governance Forum’ – part of the celebrations around the UN turning 75 – promoted it in its document ‘Roadmap for the Future We Want & UN We Need’. The report argued that responsible tax is key to rebuilding post-COVID public finances and creating a fairer playing field for businesses. It can be downloaded at www.platformglobalsecurityjusticegovernance.org/un75-roadmap/ In other Fair Tax Mark news, Epworth Investment Management has become the first fund manager to be awarded the Mark. It has more than £1.2 billion under management.

ethicalconsumer.org 37 NEWS Clothes Boohoo directors failed to act on known serious issues months before scandal

n July this year, front page news Levitt warned that if Boohoo did purchasing practices enable the payment stories about COVID-19 outbreaks not make a serious commitment to of the national minimum wage and the in Leicester clothing factories addressing problems in the Leicester end to Precarious Work in Leicester.” named Boohoo as the key company supply chain then “it is inevitable that Iresponsible. Part of Boohoo’s response to these problems will recur”. widespread criticism was to commission A bigger problem an ‘independent’ review by the QC Alison Levitt. The report from this review was NGOs challenge the A coalition of civil society groups published in September and found that including Labour Behind the Label Boohoo’s directors did not need a new review has commented, “Abuses in Leicester enquiry to tell them that serious workers’ The Ethical Trade Initiative released a garment factories must be set within a rights abuses were taking place in public statement in August outlining why wider landscape of laws and regulatory Leicester because they already knew.1 it would not be responding to the enquiry bodies that are clearly failing to provide There had in fact already been stating, “Tackling these challenges adequate protections to garment workers documentaries by Channel 4’s Dispatches through a questionnaire focusing upon across the UK. To drive meaningful in 2010 and 2017; research by the Ethical individual factories and incidents in one change, the government must take action Trading Initiative in 2015; analysis in city is not the best way to take forward to curb the abusive business practices the Financial Times in 2018; and an a full investigation into these matters. of brands that have contributed to this investigation by the Environmental Audit This is a supply chain issue that begins situation.” Committee in 2019. with corporate business practices around Campaign group Share Action stated, Key findings of this latest review purchasing and costing ...”1 “It is hard to imagine the steps as they included: Ethical Consumer also made a decision are set out in the report will significantly l The allegations about poor working not to submit evidence on these same shift the quality of Boohoo’s supply conditions and low rates of pay in many grounds. It was outside the narrow chain. It will still be reliant on an under- Leicester factories are not merely well- remit of the enquiry, for example, to ask invested supply chain where human founded but substantially true. whether turning a deliberate blind-eye rights challenges will remain. Although l Boohoo’s monitoring of its Leicester to the issue of sweatshop conditions the conditions in Leicester are not solely supply chain was inadequate and this might have been a core part of a business Boohoo’s responsibility to fix, they will was attributable to weak corporate model which had allowed Boohoo to need to go significantly further than what governance. expand dramatically in recent years by is set out in the recommendations if they l Boohoo capitalised on the commercial undercutting its competitors. are to have a supply chain that supports opportunities offered by lockdown Campaign group Labour Behind the decent jobs that we can all be proud of.” and took no responsibility for the Label demanded that Boohoo: “In a See our longer article online. The full consequences for those who made the transparent manner end the undercutting report from the review is also available on clothes they sold. of prices and ensure that all pricing and Boohoo’s website.

References: 1 www.boohooplc.com/sites/boohoo-corp/files/final-report-open-version-24.9.2020.pdf

38 Ethical Consumer November/December 2020 NEWS Clothes

Primark ‘Pays Up’ but Peacocks still won’t budge

campaign group, and has been successful in convincing some companies to take responsibility. Six months into the campaign and 21 brands have committed to pay up in full, unlocking $1 billion in Bangladesh alone. 18 other brands, however, are still refusing to pay. Peacocks, owned by The Edinburgh Woollen Mill (EWM), is particularly intent on avoiding this commitment, and has been vigilantly blocking anyone who has criticised it on social media. The amount it owes is in dispute. As we write, EWM announced it was on the brink of administration. This is sometimes used as a restructuring opportunity to avoid creditors and buy back profitable bits. EWM’s billionaire owner, Philip Day, lives in Switzerland and owns a castle in Cumbria. Sign a petition and see updates on who still needs to pay up here: https://remake. world/stories/news/payup-brand-updates

Primark has recently agreed to pay its suppliers for clothing orders which it cancelled as a result of retail constriction following the outbreak of coronavirus. Primark were one of a number of clothing companies which responded to the pandemic by cancelling orders and refusing to pay their suppliers for clothing that was in production or being shipped. This tactic has put millions of garment workers’ livelihoods and lives at significant risk. The #PayUp campaign was started by Remake, an anti-fast fashion

H&M to cut ties with Xinjiang supplier

Amid allegations of forced labour at and oppressive surveillance there is also to Huafu Fashion Co, which supplies some Chinese cotton producers in the Xinjiang believed to be a widespread regime of of our suppliers with a specific yarn. While province, H&M has announced that it will forced labour.2,3 there are no indications for forced labour be terminating its relationship with an The region is also China’s largest cotton in the Shangyu mill, we have decided to, “indirect supplier”. producer. Better Cotton Initiative recently until we get more clarity around allegations The Xinjiang Uyghur Autonomous announced that it was withdrawing of forced labour, phase out our indirect Region (XUAR) is home to millions licencing from cotton producers in XUAR business relationship with Huafu Fashion of Uyghur Muslims and the actions as a result of the difficulty in conducting Co, regardless of unit and province, within of the Chinese Government in the proper due diligence. the next 12 months". It also stated that it region are currently a source of grave H&M stated that it has an “indirect does not work with any factories located in concern. Alongside allegations of mass business relationship with one mill (in XUAR but did previously source BCI cotton internment, torture, forced sterilisation Shangyu, Zhejiang province) belonging from the region.4

References: 1 bcorporation.net 2 www.bbc.co.uk/news/world-asia-china-45474279 3 www.independent.co.uk/life-style/fashion/hm-china-forced-labour-huafu-fashion-co-cotton-xinjiang-b453138. html 4 https://hmgroup.com/content/dam/hmgroup/groupsite/documents/masterlanguage/CSR/Policies/2020/Xinjiang%20Statement.pdf

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40 Ethical Consumer November/December 2020 NEWS Beyond consumerism Longer-lasting clothes

Our Beyond Consumerism page seeks out ideas big and small, for rethinking economic systems, and reducing reliance on corporations and money. This time we hear from JOSEPHINE PHILIPS who is launching a new clothing repair app as we write.

WHAT IS THE SOJO SERVICE and routines, and we will allow them to tap into a younger demographic on the App. AND WHAT MAKES IT AN I really believe in knowing who is behind ETHICAL ALTERNATIVE? the business you’re supporting, so when a customer is choosing on the App, they’re So, to make it easy to understand I able to read a short description of who the describe Sojo as a Deliveroo-like service seamsters are, what’s their story, and see but for clothing alterations and repairs pictures of what they and their shop looks instead of food! Essentially, we connect like. customers with local seamster businesses Moreover, in the current climate this through an App and pick-up/delivery kind of service could be really crucial to service to ensure people can get their keeping businesses running as our model clothes altered or repaired with a few simple is a contact-free one in which there’s no clicks. need to actually go to a shop. Much in the The essence of the idea was to create a really same way food delivery kept restaurants going easy process for the customer. I want people during lockdown, we’d love to create the same for to be able to buy second-hand clothes with fewer your local Seamsters. sizing restrictions, in the knowledge that they could Right now, with our majority women riders, we’re fit the clothes to their bodies instead of the other offering flexible part-time work that allows them way around. In contrast to the throwaway culture to choose their own hours and days, with no shifts that is so prevalent at the moment, I really want to later than 9pm. All our riders have signed up with a encourage a repair culture. passion for both cycling and a sustainable fashion Overarchingly, the mission is to increase the lifespan of mission. Down the line I envision things like a rider clothes- clothing, crucial to a more circular and sustainable fashion swap event and other community-creating small events. industry. WHEN WILL SOJO BE LAUNCHING WHAT IS MOST IMPORTANT TO YOU AND WHERE? ABOUT BEING A BLACK WOMAN- Sojo will hopefully be launching in mid-October in West and OWNED COMPANY? South West London and then, if the whole process is running smoothly, I’d like to quickly expand to the whole of London in I love the idea that I’m actually living out the mantra ‘be the mid-late November. change you wish to see in the world.’ Someone like Sharmadein Once I’ve proved the model works, I’d then love to grow to Reid has been such a role model to me and has helped so much Brighton, Bristol and throughout the UK! in making me believe I can do this. I would just love it if, at some point, I too could inspire other young black women to pursue founding a company in an incredibly white male-dominated industry. Being part of pushing up that ‘0.0006% of venture capital funding going to women of colour’ statistic would also be a big achievement. Most importantly, I can build a company that emulates my values, create the company culture that I believe in and hire people that aren’t the typical tech employees (cis-straight-white- men) in the true knowledge that diversity is a power instead of a box-tick. WHAT WILL THE WORKING CONDITIONS BE LIKE FOR SOJO SEAMSTERS AND DELIVERY PEOPLE?

So, we’re ‘onboarding’ seamster businesses themselves, which means that, essentially, we’re just trying to support the business that they already run. They all have their shops and equipment © Daphne Milner

ethicalconsumer.org 41 NEWS Climate

OIL COMPANIES PUSH TO Druridge Bay celebrates whilst CO-OPT COP26 CLIMATE SUMMIT Cumbria chokes

Culture Unstained, a research, l Shell has been seeking to ‘partner’ with In September, the Secretary of State engagement and campaigning the government on COP since July 2019 for Housing, Communities and Local organisation, have revealed how major and raised COP26 over dinner with the UK Government rejected plans for a huge oil and gas companies have pushed Ambassador in The Hague. opencast coal mine in Northumberland to influence and sponsor the COP26 Campaigners are now calling on the on the basis that it was deemed “not climate summit over the last year, despite President of COP26, Alok Sharma, to environmentally acceptable”. This marks organisers only launching their official explicitly rule out partnerships with fossil the second time a Secretary of State has call for sponsors in August. fuel companies, after the ‘Big Oil Reality rejected this application from Banks The UK Government’s COP Unit has set Check’ report (released in September) Group, following Northumberland County out criteria for sponsors of a UN climate made clear that no major oil and gas Council’s 2016 approval of the opencast summit, indicating that applicants company has adopted a “serious climate mine application.3 must be “leaders in their industry, plan aligned with the Paris goals”.2 The campaign to Save Druridge Bay driving positive change and innovation A coalition of climate organisations from potentially the biggest coal mine in towards a lower carbon world”. However, (including Culture Unstained, 350.org, the UK, has been long, and its success is emails and meeting notes (released to Glasgow Calls Out Polluters, Polluters arguably down to collaborative campaign Culture Unstained following Freedom Out, Friends of the Earth Scotland and efforts facilitated by local campaign group of Information (FOI) requests) reveal a Corporate Europe Observatory) have Save Druridge. backchannel between oil companies and launched a petition calling on Alok Whilst celebrations ensued in Druridge officials that could compromise the UK’s Sharma and the COP Unit to: Bay, Cumbria County Council bizarrely attempts to show climate leadership.1 l Publicly rule out fossil fuel companies moved one step closer to approving a The documents revealed how Equinor, as sponsors because they are responsible coking coal mine which would produce

Shell and BP have been in close talks for high levels of greenhouse gas nine million tonnes of C02 every year until with UK Government officials for many emissions and are continuing to invest in 2049 (well beyond 2030 when most of our months, discussing sponsorship and fossil fuel extraction. emissions reductions must be underway other forms of partnership around the l Ensure that no big polluters – or in order to avoid the worst effects of the COVID-delayed summit, now scheduled companies facilitating other forms of climate crisis). for November 2021. They show how: environmental destruction – are included Campaigners are now calling on Robert l Norwegian oil giant Equinor has had as sponsors of the COP. Jenrick, Secretary of State for Housing, in-depth meetings with the COP Unit and Dr Chris Garrard, Co-director of Communities and Local government, to was brazenly pushing for a sponsorship Culture Unstained, commented: call-in the decision and refuse the mine deal in emails to civil servants last “The cynical motives of the fossil fuel permission to start. October: “If I was to ask you – ball park – industry have once again been laid bare. For more information about this and how much money you would like from us, Whether it is by sponsoring museums or other campaigns working to end coal- for what, and with what visibility for us, the crucial COP26 climate negotiations, fired power generation, coal extraction what would you say?” these companies are more bothered about and coal imports in the UK, visit l During a two-week period in March, looking green than genuinely shifting www.coalaction.org.uk BP discussed its involvement in COP26 their businesses away from fossil fuels at four separate meetings across as the climate emergency - and the Paris government, including over lunch with Climate Agreement - demands. The list of Minister for Business Kwasi Kwarteng, cultural organisations and institutional TAKE ACTION where notes recorded how: investors cutting ties to oil companies is “[BP] really want to be involved growing fast. With COP26 delayed, Alok Kick polluters out of COP26 [in COP26] and [is] keen to work with Sharma and the COP Unit must now draw Sign the petition to kick polluters government. the same ethical red line. Otherwise it out of COP26: [BP is] currently meeting with will be showing the world that it is siding https://act.350.org/sign/kick- several different people from all across with major polluters before the talks even polluters-out-of-COP26 government.” begin.” Stop the Cumbria Coal Mine Sign the petition to Robert Jenrick, calling on him to refuse permission for the Cumbria coal mine to start: you.38degrees.org.uk/petitions/ stop-the-cumbria-coal-mine

References: 1 https://cultureunstained.org/ bigoilpushtosponsorcop 2 http://priceofoil.org/2020/09/23/big- oil-reality-check 3 https://www.coalaction.org.uk/2020/09/14/ coal-roundup-september-2020

42 Ethical Consumer November/December 2020 NEWS Climate IN THE SMART HOME… HEAT PUMPS JONATHAN ATKINSON of Carbon Co-op peers into some of the complexities we face in the transition to low carbon homes.

With talk of junking new gas boilers by 2025, and incentives equivalent gas thanks to the new Green Homes Grants, heat pumps are very boilers because, much the low-carbon alternative for people of the moment! although they At Carbon Co-op, we’ve seen enquiries go through the roof use less energy in the last few months, but it’s worth getting to grips with the overall, electricity technology before diving in. is far more Heat pumps act like a fridge in reverse. Heat is extracted from expensive than either water, trenches dug in the ground (Ground Source Heat gas. Fortunately, Pumps, pictured below) or directly from the air (Air Source Heat there are incentive

Pumps) and used to warm water for radiators to heat a home. schemes like the Jefferies © C.P. Renewable Heat An air source heat pump extracts heat from Incentive (RHI) the air to heat a home. and Green Homes Grant to assist with this, but it requires some sums to work out the overall costs. The quality of heat pump installations has sometimes come in for criticism. Oversized systems generally run less efficiently and can end up costing customers more in the long run. A crucial factor (identified by Tipperary Energy Agency from installations in Ireland) is the requirement to take accurate heat loss measurements of the home in order to appropriately size systems and radiators. With this in mind it may be worthwhile getting an assessor or engineer to do some design work up front, rather than getting the whole job done by an installer. Unlike gas boilers, heat pumps generate a constant moderate Finally, look out for MCS (Microgeneration Certification heat, meaning radiators need to be replaced with oversized Scheme) accredited installers – you need this accreditation to versions (or underfloor heating installed). Due to the lower qualify for RHI and you can always go back to MCS to resolve heating potential they work far better in well-insulated homes. issues. An appropriate solution also needs to be found for hot water, for All in all, heat pumps are an integral part of the energy example a tank with an immersion heater. transition in the UK, an exciting and transformative Heat pumps cost a significant amount to purchase, between technology, but householders need to be well informed to deal £5,000 and £14,000, and generally require more to run than with the complexities and potential pitfalls.

NUMBER 25 OF THE 52 CLIMATE ACTIONS: START A CLIMATE CONVERSATION WITH FRIENDS AND FAMILY

ethicalconsumer.org 43 FEATURE Boycotting Trump’s funders

JOSIE WEXLER and MERLE While dark money groups have BÜTER revisit Trump’s reported spending nearly $1 billion on U.S. elections in the last decade, the Centre for corporate connections. Responsive Politics (CRP) (one of Ethical Consumer’s main sources of information in US campaign finance) argues that that figure is likely to be “the tip of the iceberg” n 2017, we investigated the because there are types of dark money that companies who had donated to the don’t need to be reported.3 Trump campaign or were visibly supporting his administration in Isome way, focusing on those which were Individual donations consumer-facing in the UK. Several years on, with another election When it comes to individuals, there are, approaching, we took another look. again, some limits on what can be donated Trump is not short of donor money. to official campaigns, but when it comes to The coming US election is set to be easily Super PACs, all limits are off. the most expensive in history, and he Small donations do play a role. About has so far raised a lot more than Biden, 15% of the US population made some although Biden is starting to catch up. He kind of political donation in 2016.4 But hasn’t spent a cent of his own money this called ‘outside spending’ – campaigning a New York Times analysis found that time. independently on politicians’ behalf. donations from fewer than 400 exceedingly But there is a huge amount that we This includes ‘Super PACs’, which have rich families comprised nearly half of all simply don’t know about who is funding to declare their donors, and ‘dark money’ publicly disclosed presidential campaign Trump, due to the role of ‘dark money’ groups, which are non-profits which can funding during the 2016 campaign cycle. in US politics. ‘Dark money’ may sound receive anonymous donations. On the Republican side, more than half of it like briefcases stuffed with cash being In reality, few companies give to was accounted for by just 130 families.5 passed silently on park benches but, in Super PACs. There are exceptions, many Some of these major donors inevitably reality, it is perfectly legal and parts of it of them energy companies – Koch has have links to companies – they’re directors are counted by the US Federal Election given $8.3 million to Super PACs in this and chairmen and major shareholders. Commission. round, and Chevron $2.9 million – all of The CRP categorises individual donors it to Republicans. But still, in total, out of according to the company that employs more than $1 billion raised by Super PACs them, on the basis that major donations are Background on US (and a few other similar entities) in this likely to be from more senior staff. election so far, only $45 million has come But associating the donation with campaign funding from corporations.1 The largest individual the company is made slightly more The US refuses to regulate political donor, Thomas Steyer, has donated complicated by the fact that there can be spending like we do, on the basis that it more on his own (to Democrats) than all conflicting donations from within the same would violate the first amendment right corporations put together.2 company. For example, one of Trump’s to free speech. Instead, it supposedly It could be that companies just don’t widely publicised biggest public donors regulates at the other end – donations. want to donate. But that isn’t the only during the 2016 campaign was Robert It has a labyrinth of regulations about possible explanation. Corporates have Mercer, co-chief executive officer of the who may give what to whom, and one faced some very unwanted attention hedge fund Renaissance Technologies. But of the most notable is that corporations for giving to Super PACs, and why be at the same time, Renaissance’s founder are forbidden from donating to political bothered with that, when you can go the James Simons is a prominent Democrat candidates or parties. ‘dark money’ route? Sure, you might want who supported Hillary Clinton. Overall, However, that is not the end of the politicians to know to whom they need Renaissance staff gave about equally to story because corporates are allowed to address their gratitude. But you also both parties.6 to give to groups that engage in what is might just want them to win.

44 Ethical Consumer Nov/Dec 2020 l Darwin Deason, who owns 4% of Xerox,8 most of the personnel have corporate Major donors with donated $405,000 to Republicans and $1 rather than public administration million to Republican Super PAC America backgrounds. Companies whose ex- links to consumer- First Action.9 executives have passed through include facing UK companies l Peter Thiel was another donor we Goldman Sachs, Blackrock and Exxon.10 mentioned last time, who is close to Trump Trump also convened high-profile Billionaires who gave significant and has given $250,000 to Republican- Business Advisory Councils after his amounts to Trump have been listed aligned groups in this round. He runs an election which we reported on last time, by various outlets such as Forbes.7 investment firm called the Founders Fund, with which he held televised summits in However, most are affiliated with US real which invests in tech platform companies the Oval Office. However, these collapsed estate, financial, health and energy firms such as AirBnB and Facebook. after the Charlottesville rally in late 2017, which do not operate in the UK, or they Several who were previously involved in which far-right protester James Fields are effectively retired, having made their have abandoned ship. Les Wexner, ex-CEO drove his car into the crowd of counter- fortunes by selling their companies. of L Brands, which owns Victoria's Secret, protesters, killing one of them. Trump’s The names below, however, have some and was previously a big donor, left the subsequent comments that “there’s blame link with companies who are consumer- Republican party after Trump’s comments on both sides” caused a huge outcry, facing in the UK: regarding the far-right protest in and in the following days many CEOs l Stephen Schwarzman, the CEO of Charlottesville (see below). To complicate resigned from the councils, led by the Blackstone, is often described as Trump’s matters, he has since stepped down as CEO pharmaceutical company Merck. They biggest supporter on Wall Street. He has after he was revealed to have significant finally decided to disband altogether, given $3.7 million to the 2020 campaign connections to Jeffrey Epstein. saying that his Charlottesville comments so far. Blackstone employees as a whole had “become a distraction”. made $22 million in political donations in He has convened new CEO councils to 2020, of which 58% went to Republicans, The fossil fuel advise on the management of COVID-19, making it the company with the 2nd but these are less of a political spectacle. largest total staff donations to the GOP. companies Blackstone is a private equity firm, Given that Trump continues to show total which invests in other companies. It contempt for climate change, it would be Who to boycott? has sold some of the investments it had surprising if the fossil fuel companies when we last reported on this in 2017, weren’t inclined to smile on him a little. The true answer to which corporations and no longer owns Jack Wolfskin or As described above, Chevron and Koch are helping Trump is – although there are the SeaWorld centres that make whales were two major corporate donors to pro- a few crumbs we can pick over – nobody perform tricks for entertainment. But it Trump Super PACs. Their staff have also really knows. While so much money is has bought Ancestry.com, the Bumble and made other big donations as individuals changing hands in the dark, everyone is Badoo dating apps, and Takeda Consumer – Chevron employees have given $5 being denied a proper understanding of Healthcare. It has also just bought a 10% million in political donations this cycle, the world; even Trump cannot know who stake in Oatly. with 70% going to Republicans. Koch is supporting him. l Isaac Perlmutter, chairman of Marvel employees have given $11 million; 95% to However, if you want to avoid Entertainment (the comic book division Republicans. companies that we know have some link of Marvel), donated $360,000 to Trump Other international fossil fuel to Trump, those which are public-facing in in 2020 and $5 million to a Super PAC companies’ public donations are lower, the UK which have the clearest links are: supporting Trump and other conservative although Shell did force its workers at l Chevron (Texaco) candidates. Marvel Entertainment is a a plant outside Pittsburgh to attend a l Blackstone (Ancestry.com, Bumble and subsidiary of Walt Disney. political event featuring President Trump Badoo) l Oracle CEO Safra Catz and her in August 2019, on pain of losing overtime l Oracle computer software husband Gal Tirosh gave $250,000 to pay. However, the bulk of Shell employees’ l Estee Lauder cosmetics (including Trump’s joint fundraising committees in $200,000 in political donations in 2020 Aveda, Bobbi Brown, Clinique, MAC) June 2020. actually went to Democrats. ExxonMobil We have published an article about the l Ronald Lauder, a director and employees have given $1.7 million, with conundrum of Blackstone’s investment in shareholder in Estée Lauder, donated 60% going to Republicans. the otherwise progressive brand Oatly on $100,000 to Trump’s Victory committee Overall, Open Secrets reports the oil and page 6. and more than $1.6 million to pro-Trump gas industry as having given $75 million in organisations. Over 100 employees public political contributions in 2020, with signed a letter calling for him to be fired 85% of that going to Republicans. References: 1 www.opensecrets.org/outsidespending/summ. over these donations, putting particular php?chrt=V&type=S 2 www.opensecrets.org/outsidespending/ summ.php?disp=D 3 www.opensecrets.org/news/2019/02/ emphasis on race issues. This hasn’t somp3-billion-dollar-dark-money-tip-of-the-iceberg 4 www. happened, but the company offered to pewresearch.org/fact-tank/2017/05/17/5-facts-about-u- Other business links s-political-donations 5 www.nytimes.com/2015/08/02/ donate $1 million to support the black us/small-pool-of-rich-donors-dominates-election-giving. community. Trump has filled his cabinet and inner html?referringSource=articleShare 6 www.opensecrets. org/orgs/totals?id=D000022219 7 www.forbes.com/sites/ l Linda McMahon, owner of World circle with ex-corporate executives and michelatindera/2020/04/17/here-are-the-billionaires- Wrestling Entertainment Inc (WWE), is lobbyists and suits stuffed with corporate backing-donald-trumps-campaign 8 https://investors.xerox. com/investors/shareholder-profile 9 www.prwatch.org/ the chairwoman of the Pro-Trump Super cash. And despite the sky-high rate of news/2020/01/13522/some-america%E2%80%99s-biggest- corporations-help-finance-anti-impeachment-ads 10 https:// PAC America First Action. to which she turnover in his team, one thing that has www.brookings.edu/research/tracking-turnover-in-the-trump- has herself given $360,600. remained consistent throughout is that administration

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46 Ethical Consumer November/December 2020 ethicalconsumer.org 47 ETHICAL CONSUMER Letters

in this magazine and I look forward to Vegan domination the next issue covering mortgages, ISAs & pensions, etc. However, I wondered I am disappointed that Ethical Consumer why you have not done a guide for credit seems so dominated by veganism which cards. Given that none of the three best came out very clearly in the footwear buy banks you recommend offer them report in EC185. but most people still use them and are There also seem to be a number of likely to do so given the protection they times when a company that makes and offer for larger purchases under the sells a product, for example boots or Consumer Credit Act, this seemed like bulldozers (page 27 of EC185) which can an odd omission. I would very much be used for both good and bad purposes, like to switch from my current provider is castigated because of the perceived and surely there has to be a better unacceptable use. I am certainly appalled option than the ones currently offered by the demolition of Palestinian homes by the banks that rate so poorly in your but to blame Caterpillar rather than the guide? If not then perhaps it is time for Israeli government??? Also, unless one your readers to start a campaign to get is a pacifist, a defensive military force an alternative, it feels like a gap in the may be needed by even the most non- market that someone could step into! aggressive country. Clare By all means attack companies that pollute, mistreat their employees, fail to Ed: Thanks for raising this with us Clare, pay their taxes and make unsustainable we will try and examine this when products, but not always to criticise them we next look at the banking sector. because of what the end user may do. We There are at least two banks in our all use computers but so do oppressive recommended buys that offer credit card regimes, so are we all lumped together? deals: Nationwide and The Co-operative My rant – off to order my organic veg Tax haven or home? Bank. box. Peter After your recent edition on banking, spare a thought for those of us living in No more TV Ed: Veganism is rapidly growing in the Isle of Man – a tax haven to most, an popularity and there are many good ‘international business centre’ to our I was interested in your complaint to reasons for moving away from animal government. the BBC regarding the Amazon logo on products, which is why we are covering It is perhaps telling that in the world of screen during the News. This explains it. offshore finance it is currently impossible exactly why I got rid of my television last In regard to Caterpillar and similar to bank ethically here. In recent years, year. cases, we take the view that companies both Nationwide and the Co-op Bank have Margaret should take an active stance if their withdrawn their offshore presence. In goods are being used harmfully. It an unexplained paradox, Triodos allows would not be difficult for Caterpillar to residents of the island to open savings Vehicle share scheme release a statement condemning the accounts but not current accounts. When use of its products in the human rights I have queried Triodos repeatedly about insurance abuses committed by the Israeli state this they simply state that it’s down to ‘due I’ve been having trouble getting – or to refuse future sales to oppressive diligence’ and have offered no further insurance for a community-based regimes – but as far as we know the explanation. Quite why the diligence is electric vehicle share scheme, and I company has not done this. different for savings and current accounts thought that you should know. I do not know. Nick Not all residents of the island are here Co-operation in the for nefarious tax purposes. There are Ed: We asked our friends at Carbon some of us who would much rather prefer Co-op if they could give advice. They natural world the island made its way in the world recommended you get in touch with Next Social Darwinism (“Beyond without facilitating damaging offshore Generation as they are supporting a few Consumerism” article – EC185) is a finance, and some of us who would very similar schemes: www.next-generation. classic case of a spurious set of ideas happily bank more ethically were we able org.uk projected onto nature with no in-depth to do so. In our Insurance guide this issue we knowledge of its subject. Kropotkin’s Michael mention some brokers which specialise reaction against it (“Competition is in electric vehicle insurance such as the law of the jungle but co-operation pluginsure and Greenways. However, is the law of civilisation”) falls into its Credit cards guide? we know that Nick has not had any luck trap. Mycorrhizal fungi’s alliance with with either of these being able to provide trees, bee colonies, chimpanzee tribes, Many thanks for the excellent guides insurance for a shared electric vehicle. lichens (which are an alliance of algae to all the financial products included Any ideas anyone? and fungi) – all these demonstrate that

48 Ethical Consumer November/December 2020 ETHICAL CONSUMER Letters co-operation is also the law of the jungle. readers – or indeed staff! EVERYONE? Not just the people who care Ecology is a discipline still in its infancy On September 7th this year, the but wake up the ones who are oblivious in many ways. As those seeking a more government announced a large that their choices in life affect the harmonious relationship with the earth extension to the permitted cull areas whole world, and not just them! I feel so it is vital that we understand how many – despite an earlier promise to phase passionate about this, and so frustrated, of our beliefs are simply doodles on the it out. If there are any dairy farmers or even as my husband battles terminal blank canvas of human ignorance. ecological farming organisations out cancer, I strive to learn about these Dan there who would now like to publicly issues, educate myself and make the right condemn this and to enforce a badger- choices, but it is a minefield. I don’t know friendly approach locally we would be what to do for the best sometimes. But I Badger campaign delighted to hear about it. try and spread the word nonetheless. In the interim, avoiding dairy, and telling Lisa I was interested to read the information your retailer why, still makes sense. The on your website about the badger cull same applies to NFU Insurance (see Ed: How we get these important campaign. I would like to be able to page 16) whose close financial links to messages out is the golden question! We boycott dairy products coming from the primary organisation campaigning in keep trying to promote our research as badger cull farms. Would it be possible favour of the cull make it another poor widely as we can, and we are growing. to ask farms to declare themselves choice for opponents of this unscientific We are at a crucial point in humanity’s ‘badger friendly’ and to have this as part and ecologically damaging specicide. history and it seems that the world is of an existing certification such as the waking up, especially to the issue of Organic label or RSPCA ‘freedom foods’? climate change. Whether we wake up fast enough will only become clear Ed: In 2013, Ethical Consumer, in future – as the philosopher Hegel alongside other badger groups, tried to I try and spread the enigmatically remarked, ‘The owl of organise a boycott of milk from within Minerva spreads its wings only with the the first two cull zones. However, it word ... falling of the dusk’. It is also important to soon became clear that any producers Thank you for trying to make a stress that while some responsibility lies and retailers offering support were difference to the world. Although there with the individual, the blame for these quickly coming under intense pressure are people who care and want to change issues must primarily lie with the social to backtrack. In addition, the organic for the better, I fear humanity has gone and economic structures that empower movement refused to take sides. In the too far and is beyond help. Of course, a the few and disempower the majority. end, no clearly cull-free options for dairy small proportion of people will carry on Those that benefit from these structures could be found. When a farm declared striving to achieve the impossible; we’ve put a great deal of effort into maintaining itself badger-friendly one week, the got to try haven’t we? But not enough the status quo and keeping people claims would mysteriously disappear look for this information, or are even oblivious. from its website the next. aware, or indeed care enough to make As the same pattern progressed through changes. Corrupt governments, greedy later culls, we came to conclusion that companies and the ignorant general We welcome readers’ letters. Letters this left consumers wanting to take public; they are just too corrupt, too may be edited for reasons of space action through their buying choices little greedy and too unaware that change isn’t or clarity. If you do not want letters option and, in 2018, we joined with going to happen quick enough to make a or emails to be published, please Viva in a call to boycott all English dairy difference. It has spiralled out of control. mark them ‘Not for publication’. Our produce during the cull. This was not a Nevertheless, please keep trying, and address is on page 3, or email us at [email protected] universally popular choice amongst our so will I. How can we get this message to

ethicalconsumer.org 49 INSIDE VIEW Solar trains on track

A groundbreaking innovation has paved the way for solar powered trains, says SIMON BIRCH.

The pioneering track-side solar farm in Aldershot that feeds solar power directly into the railway. © Elevated Imagine / Possible. © Elevated

f we've got any chance of averting Plus, there are plans to roll out solar- electricity at a lower cost than that climate meltdown, then the one powered trains in Wales where Riding supplied from the grid. ace that we've got up our sleeves is Sunbeams is now working with Transport Significantly, this has caught the eye of human ingenuity. for Wales to build renewable energy, Network Rail which has given the project ICurrently, one of the most exciting including wind power into their plans to an enthusiastic thumbs-up and is now examples of a techno-fix to the climate electrify the train lines north of Cardiff. embarking on its own ambitious plan to crisis can be found on a ditch polluting diesel and de- neglected piece of ground next carbonise its network, which to a railway line just outside is the single biggest user of Aldershot station. Our goal is to electricity in the UK. Around 100 solar panels Central to the whole Riding are now supplying renewable generate enough solar Sunbeams pioneering project energy to the electrified rail is the involvement of local line to directly power the energy to power the communities as Leo Murray trains that rumble along the explains: tracks every day, for the first equivalent of one in “Our goal has always time anywhere in the world. been to see community and “We'd had the idea of every ten trains in the commuter-owned solar farms installing solar farms next to powering the railways for the railway lines to power trains, country LEO MURRAY benefit of the railway routes, but because this had never the communities that host been done before we didn't know if it Further afield, Murray says that even them and of course the planet.” was technically possible. Usually solar though solar works well in relatively high- The first community-owned solar farm panels connect straight to the national latitude countries such as the UK, there's that's on track to start powering its local grid,” says Leo Murray from Riding an even bigger opportunity for track-side railway is Cuckmere Community Solar Sunbeams, the social enterprise leading solar farms in sunnier South America and Company in East Sussex which lies on the the project, which was set up by climate also especially India. London to Eastbourne mainline. charity Possible and the low-carbon co-op The reason why climate social With negotiations currently taking Community Energy South. entrepreneurs such as Murray are so place with Network Rail, the planned By working with a team of experts excited by the prospect is that solar has a ten-hectare solar farm is expected to and electrical engineering specialists, vastly smaller carbon footprint compared start powering a 32 km section of the the breakthrough came last August with to grid-supplied electricity. commuter line within 18 months. the confirmation that yes, it was indeed “Drawing power from the grid emits “The idea that we can feed clean solar possible to use solar generated electricity five times as much carbon as getting it power directly from a locally owned solar to directly provide power for trains. from solar, so every unit of power from power station into the railway is a perfect Now Riding Sunbeams is powering full the grid that we're meeting with solar way of living much more in harmony beam ahead. yields very large carbon savings,” explains with the planet,” says Alistair Scott from “Our goal is to generate enough solar Murray. Cuckmere Community Solar, adding that: energy to power the equivalent of one The other key benefit of solar is that, “If we pull this off, it will count as a big in every ten trains in the country,” says thanks to its plummeting cost, future life achievement for me.” Murray. subsidy-free solar farms could supply @SimonBirchSays

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