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SHOPPING GUIDES TO Current Accounts Savings Accounts Ethical Investment Funds 2 Ethical Consumer Sept/Oct 2020 ETHICAL CONSUMER Editorial WHO’S WHO A year of climate action that suggested that moving your THIS ISSUE’S EDITOR Rob Harrison pension to sustainable funds can save PROOFING Ciara Maginness (Little Blue Pencil) WRITERS/RESEARCHERS Jane Turner, Tim Hunt, In January, before COVID 19 had moved around 2,200 tonnes of CO2 emissions, Rob Harrison, Anna Clayton, Josie Wexler, the goalposts for everyone, Ethical whereas taking one less international Ruth Strange, Mackenzie Denyer, Clare Carlile, Consumer staff decided at an annual flight a year will save around 19 tonnes.1 Francesca de la Torre, Alex Crumbie, Tom Bryson, strategy day that 2020 would, for us, be We’ve been scratching our heads on this Billy Saundry, Jasmine Owens REGULAR CONTRIBUTORS Simon Birch, Colin Birch the year of carbon. We would use what this one because we felt that although DESIGN Tom Lynton resources we could muster to focus on it might be illustrating the very point LAYOUT Adele Armistead (Moonloft), Jane Turner increasing our impact in this space. we wanted to make, there is a danger it COVER Tom Lynton Although for a while, the pandemic is overstating it somewhat! We hope to CARTOONS Marc Roberts, Mike Bryson, Andy Vine, gave pause to the idea that anyone had explore this in more detail later. Alex Crumbie control over their own destiny, it now As we discuss throughout this AD SALES Simon Birch SUBSCRIPTIONS Elizabeth Chater, feels like we are beginning to get back magazine, the decisions that Francesca Thomas, Nadine Oliver on track with some of the plans we once make determine the direction of travel PRESS ENQUIRIES Simon Birch, Tim Hunt had. for the whole of the global economy ENQUIRIES Francesca Thomas and therefore for us all. Getting the WEB EDITOR Sophie Billington Working on the climate financial product choices right will THANKS ALSO TO Marlous Veldt, Merle Büter, Emma Kerrison. change ratings mean that the foundations on which Remote Research Volunteers: Katie Spittle, In the first half of this year we gave everything else will be built will be right Catherine Harbour, Mark Lidgett, Grace Critchley a complete overhaul to the way we too. All material correct one month before cover date rate companies on their carbon and Long term readers will know that and © Ethical Consumer Research Association climate change impacts. We are we’ve been saying this for a while now Ltd. ISSN 0955 8608 trying to capture the degree to which but it does feel like there has been some Printed with vegetable ink by RAP Spiderweb Ltd, a company is demonstrating that it recent movement, not least because the c/o the Commercial Centre, Clowes Centre, has grasped the seriousness of the range of initiatives and campaigns we Hollinwood, Oldham OL9 7LY. 0161 947 3700 situation and is doing something about can write about in this magazine have PAPER 100% post-consumer waste, chlorine-free and sourced from the only UK paper merchant it. Somewhat worryingly, but not mushroomed. supplying only recycled papers – Paperback altogether unexpectedly, is our initial Because of all of this, the next issue (www.paperbackpaper.co.uk) finding that roughly 93% of the financial of the magazine will continue our RETAIL DISTRIBUTION is handled by Central Books organisations we have looked at for this focus on finance and look at some of on 0845 458 9911. issue do not currently make the grade. the other products that most of us Ethical Consumer is a member of INK (independent news collective), an association of We’ve included a page giving more buy such as car and home , radical and alternative publishers. information on this new ranking, as well pensions, mortgages and ISAs. We felt www.ink.uk.com as some of the technical detail around that the danger of readers getting a bit We are a Living Wage employer, a multi- what we are looking for on page 42. of finance fatigue was outweighed by co-op, and Fair Tax Mark accredited. the importance of getting this stuff right Working on finance and the impact it can have when you For most people, addressing their do. And, as you will already know, own carbon impact usually means there’s always lots of other great reducing flying or putting more content in each issue. With a bit insulation in the roof. At Ethical of luck it might help us catch-up Consumer we think that the impact with some lockdown-induced ABOUT THE ADVERTISERS of choosing a financial service production delays too. provider should factor more highly ECRA checks out advertisers before accepting their ads and reserves the right to refuse any advert. in these kind of assessments, COVERED IN PREVIOUS SHOPPING GUIDES Abundance and this is why this is one of (177), Cheeky Panda (179), Ecology Building the core focus areas for this ROB HARRISON Society (186), Ethex (177), Infinity Wholefoods issue of the magazine. EDITOR (178), Kingfisher Toothpaste (184), Vegetarian Shoes (185). During the course of OTHER ADVERTISERS Amnesty International, Green our research we came Building Store, Green Stationery, Investing across one calculation Reference 1. www.nordea.com Ethically, Practical Action.

WHAT IS ETHICAL CONSUMER? Democratise the market by enabling Push for wider political action and 2consumers to assert their own ethical 5legislative change. 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 Sept/Oct 2020 ETHICAL CONSUMER Contents

40 FEATURES SHOPPING GUIDES

44 Facebook Boycott Banking & Finance Stop Hate for Profit 10 Introduction 44 22 Banks and the environmental crisis 26 Banks and inequality 28 Banks and the human rights crisis

23

NEWS

06 Food & Home Tesco and deforestation, ban SUV REGULARS adverts, Ethical Consumer Week Current accounts guide 46 Gift subscriptions 12 Introduction 08 Clothes Give a gift subscription to Ethical 13 Financing destruction Boohoo scandal, #PayUp Peacocks, Consumer living wages website 14 Score Table & Best Buys 49 Letters 15 How to switch 40 Climate A regular forum for readers’ views Aid for fossil fuels, electric bikes, our new Climate Change rating 50 Inside view Savings accounts guide Carbon footprint labelling 18 Introduction 43 Boycotts Amazon avoids tax again 19 The most ethical accounts 50 20 Score Table & Best Buys 46 Beyond consumerism Autumn foraging tips Ethical investment funds 47 Campaigns Almeria and Covid guide 33 Introduction 46 35 Fossil-free funds 36 Score Table & Best Buys 37 Choosing an ethical fund

13

ethicalconsumer.org 5 NEWS Food & home

with catastrophic consequences for Tesco urged to drop meat company Indigenous groups, forest wildlife and the climate. linked to Amazon deforestation Furthermore, many new infectious diseases in people come from animals whose primary habitat is dense tropical forests like the Amazon. The more forest

© Tommaso Protti / Greenpeace Protti © Tommaso that’s destroyed, the more people come into contact with wildlife, the greater the risk of new pandemics. Tesco, along with other UK supermarkets and fast food chains are complicit in this destruction as they are buying industrial meat and dairy from companies owned by known forest destroyers. JBS, the world’s largest meat processing company, is notorious for its links to forest destruction and Nearly 80 per cent of deforested areas in Brazil are now used for cattle pasture. has subsidiaries based in the UK. Its products are sold on many UK Greenpeace UK is calling on Tesco grow crops like soya, 90 percent of which supermarket shelves. Tesco has been to stop buying meat and dairy from is fed to animals to produce meat and targeted because it uses more soya for companies allegedly involved in Amazon dairy. In Brazil, forests are being slashed animal feed than any other supermarket deforestation and to halve the amount and burned to make way for beef farms in the UK. of meat it sells by 2025. Alison Kirkman and soya plantations. A longer version of this article, and a from Greenpeace UK explains why. Scientists warn that in less than 20 link to the Greenpeace petition, appears The meat industry is the biggest driver years the Amazon could reach a tipping on our website – www.ethicalconsumer. of deforestation. Over a quarter of the point, when so much has been destroyed org/food-drink/tesco-urged-drop-meat- world’s land is used to graze livestock and the forest will begin to die and dry out company-linked-amazon-deforestation

Earth Overshoot Day

Earth Overshoot Day is an inauspicious annual milestone marking the date at which the planet has overshot its ecological boundaries for the year. This year it was on 22nd August which means we are currently using our natural resources 1.6 times faster than ecosystems can regenerate. Ever since 2006, when the event was first marked, Earth Overshoot Day has crept forward in the calendar year, reflecting the inexorable pressure that a growing economy and rising consumption levels place on the planet. Until 2020, that is. Last year’s Earth Overshoot Day was on July 29, the earliest date ever. But this year’s milestone has been pushed back three weeks to August 22 demonstrating that the trajectory we’ve been on is reversible and that we have an opportunity to rebuild society with a greater focus on . This year the push back was largely a result of the effective RESOURCE DEMAND EXCEEDS EARTH’S BIOCAPACITY shutdown of the global economy, induced by the coronavirus RESOURCE DEMAND WITHIN EARTH’S BIOCAPACITY pandemic, which reduced humanity’s ecological footprint by 9.3%. On the website – www.overshootday.org/about – you can also see would fall if all of humanity consumed like the people in this a country’s overshoot day – the date on which Earth Overshoot Day country. For the UK, it would have been May 19th this year.

New network to campaign against the oppression of Palestine

A new UK network, Palestine Action (PA), was launched in July to connect Palestine solidarity groups across the UK. The network’s key objective is holding corporations that profit from crimes against Palestinians to account. So far PA has announced two campaign targets: equipment manufacturer JCB and arms company Elbit Systems. JCB is accused of being complicit in human rights violations, including home demolitions and ethnic cleansing. JCB sells bulldozers to the Israeli state, which are reported to be used during the demolition of Palestinians’ homes. JCB appears in our guides to Batteries and Walking Boots. Elbit Systems is Israel’s largest privately-owned arms company. Elbit’s biggest single customer is the Israeli Ministry of Defence. About 85% of drones used by the Israeli military are manufactured by the company. It has four factories in the UK – in Oldham, Tamworth, Kent and Shenstone. More information is at: http://palestineaction.org

6 Ethical Consumer Sept/Oct 2020 NEWS Food & home Ban SUV advertising

If SUVs (sports utility vehicles) were a country, they would rank seventh in the world for carbon emissions.1 Yet, in a bid to sell more expensive vehicles, car manufacturers are pumping money into advertising them. For every one electric car sold in the UK last year, 37 SUVs were sold.2

SUVs emit an average of 25% more CO2 than a medium-sized car and are deadlier in collisions with pedestrians. Globally, rising sales of SUVs are the second biggest cause of increasing

CO2 emissions (after power generation, but ahead of aviation and heavy industry). The New Weather Institute and Possible (formerly 10:10 Climate Action) are calling on Oliver Dowden, the Secretary of State for Digital, Culture, Media and Sport for an immediate end There is a petition at https://actions.wearepossible.org/a/ to advertising of these vehicles which are fuelling the climate petition-ban-polluting-suv-advertising and their full report is at emergency. www.badverts.org/take-action/stop-suv-ads Possible said: “If we want to build a new economy that puts The petition is part of their Badvertising campaign launched in people and planet ahead of polluter profits, then we need to free July to tackle high carbon advertising from fossil fuel companies, ourselves from the pressures of high carbon advertising. So just car companies and airlines. That campaign includes: as campaigners called time on cigarette advertising because of l model motion for councillors to propose a ‘Low Carbon its harmful impacts, we’re calling time on adverts that fuel the Advertising Policy’ for your local authority climate crisis.” l stopping energy-guzzling digital advertising screens

An 18-month-long investigation published ETHICAL CONSUMER WEEK 2020 in June shows that Ikea’s demand for cheap wood This year we are taking our annual conference online for the first ever is destroying a habitat for Ethical Consumer Week, 24th–30th October. The week will include: lynx and brown bears. l Over 30 online event Some of Ikea’s best- l Panels and webinars selling chairs have been l Interactive sessions including discussions, workshops and repair cafes traced to illegal logging l Virtual tours in the Ukraine’s ancient Carpathian forest, one of Ethical Consumer Week will explore the role consumers, business and the last sanctuaries for NGOs can have in building more resilient communities in the face of these and other endangered species. Covid-19 and the ecological crisis. Sessions include: Ikea is the biggest single consumer of wood in the world using 1% of the world’s wood every year. It relies Closing the climate gap Creating a community high on certifiers from the Forest Stewardship Council l Miguel Alejandro Naranjo Gonzalez street (FSC) to label as ‘sustainable’ the wood it uses. – United Nations Framework l Neil McInroy – CEO of CLES The investigation by Earthsight is highly critical Convention on Climate Change (national organisation for local of the FSC and stated that the chairs in question l Josie Wexler – Ethical Consumer economies) were FSC certified. It said: “Ikea has among the best Magazine l Dr Sara Gonzales – Markets 4 All, environmental credentials of any large furniture firm. University FSC is by far the best label of its kind. But as global Working together to resist leaders, they must do better.” corporate power Empowering young people A SumOfUs and Earthsight petition is demanding l Roxana Pencea-Bradatan – Mining during a climate crisis that Ikea conducts an independent investigation Watch Romania l Bel Jacobs – Extinction Rebellion of all of its timber suppliers in high-risk countries l Delia McGrath – SOC-SAT (a Fashion Action such as Ukraine, Belarus and Russia, and demands in Almeria and La Via l Zunaira Malik – Action for reform of the FSC to ensure its certified wood truly is Campesina, Spain) Conservation sustainable. In the long term, it must set ambitious targets for phasing out wood from natural forests – Plus, there’ll be sessions on urban gardening, the gig economy, business and eventually, for eliminating the use of virgin wood models for good and much more. altogether. Join us Saturday 24th – Friday 30th October from wherever you are, l https://actions.sumofus.org/a/ikea-cheap-chairs- for a week of online panels, workshops, and virtual tours. aren-t-worth-the-destruction-of-our-forests As part of the week, Ethical Consumer seeks to support local l Read the full Earthsight investigation – www. discussion groups that reflect on and dig deeper into the week’s content. earthsight.org.uk/investigations/flatpacked-forests To facilitate this we are seeking local hosts that pull together groups of friends, colleagues and neighbours to go through Ethical Consumer 1 Komenda, N. (2019, Oct 25) SUVs second biggest cause of emissions rise, figures reveal. The Guardian. 2 Paton, G. (2019,Dec 09) SUVs outsell electric cars week together. To find out more visit bit.ly/ECweek2020 by 37 to 1. The Times. ethicalconsumer.org 7 NEWS Clothes Boohoo to set up its own factory in response to recent Leicester scandal

Over the last few weeks, we have been working conditions behind some of its virus being pressured to go to work and reporting on the allegations of illegally clothes, but nowhere near all, and still not tell their fellow workers. low wages, poor working conditions and fits in with its -fast fashion model. In response to widely reported furlough fraud in Leicester garment Manufacturing in the UK allows the retailer allegations, largely from a report produced factories, those largely supplying online to replenish stocks and bring in new lines by campaign group Labour Behind the fast fashion brand Boohoo. The company much quicker than if it were shipping in Label and backed-up by an undercover has cut ties with two suppliers despite orders from other countries and, according investigation by The Sunday Times, claiming that it has found no cases of to The Guardian, manufacturing clothes Boohoo found itself dropped by major workers being paid under the minimum in-house is also part of Boohoo’s strategy retailers including Amazon (you know its wage.1 to get clothes to consumers faster. This bad when you are dropped by Amazon In a recent move Boohoo has now helps fuel a culture of over-consumption for poor working conditions!), Very.com, announced that it will set up its own of clothing, the manufacture of which Next, Asos and Zalando. The scandal also ‘model’ factory in Leicester where it has has huge environmental impacts. Large saw Boohoo’s share price take a plummet purchased a 2.5-acre plot of land. CEO amounts of clothing are also ending up in with its market value dropping by £1.7 John Lyttle stated the new factory “will landfill and companies are not required to billion.3 But the company’s share price has have the latest capital equipment and take responsibility for this. already started to recover, so Lyttle may promote the highest standards of health Leicester was the first area to be put still be in line for a £50 million bonus from and safety throughout the facility”.2 The under local lockdown amid numerous the company if he gets the Boohoo market company says they hope the site will reports of factory workers in the city being value to around £6 billion by 2024.4 employ 250 garment workers and be up forced to work throughout the lockdown Meanwhile, Labour Behind the and running by September. and often with poor social distancing Label and others continue to tackle the This move may lead to the company and protective equipment, and cases of systemic issues of fast fashion and poor being more directly accountable for the workers who had tested positive for the government.

PEACOCKS BLOCKS CALLS TO #PAYUP Campaigners have been calling on fashion brands to #PayUp This included blogger ‘Oh So Ethical’ who said “The PayUp after numerous clothing companies responded to the pandemic campaign is tearing down the ethical charade these brands have by cancelling orders and refusing to pay their suppliers for curated, compelling brands like Peacocks to now actively silence clothing that was in production or being shipped. This tactic criticism, in a bid to preserve their public image”. As Peacocks has put millions of garment workers’ livelihoods and lives at blocked Oh So Ethical, campaign group No Sweat, who work significant risk. to end sweatshop labour, stepped in to lend them their Twitter The #PayUp petition was started by Remake, an anti-fast account in order to continue the campaign and shine a light on fashion campaign group, and has been successful in convincing the action (or rather inaction) Peacocks has taken. some companies to take responsibility. Brands such as Gap, Levi’s Bangladeshi manufacturers say the company owes them £27 and Asos have committed to paying their suppliers in full. Others, million in unpaid bills and have threatened to halt production such as Arcadia Group (which owns Topshop, Miss Selfridge and and deliveries.5 Peacocks has yet to commit to paying the money more), Primark, and Walmart (Asda/George) have yet to make the owed so we would encourage everyone to get involved in the commitment. #payup campaign. Peacocks, owned by The Edinburgh Woollen Mill, is apparently You can see updates on who still needs to pay up here: particularly intent on avoiding this commitment, and has been https://remake.world/stories/news/payup-brand-updates vigilantly blocking anyone who has criticised it on social media.

8 Ethical Consumer Sept/Oct 2020 NEWS Clothes

NEW WEBSITE HIGHLIGHTS FAILURE TO UK Government ENSURE LIVING WAGES The new Fashion Checker website (fashionchecker.org) contains easy-to- aid for high street understand information on how well different fashion brands are doing in ensuring that their workers are paid a living wage. The website has been supply chains created by and Labour Behind the Label – two The UK Government has announced a new fund to organisations campaigning for better working conditions in the garment improve workers’ rights and conditions in high street industry – to shine a light on poverty wages. supply chains during the coronavirus pandemic. The website contains information on numerous high-street and online Businesses said to be benefiting from the scheme brands, including Primark, Boohoo, Asos and Topshop, as well designer include Primark, Mondelez (Cadbury, Green & brands like Gucci and Hugo Boss and sports brands like Puma and Adidas. Blacks) and Tesco. The fund begs the question why Nearly all the brands mentioned above were rated ‘E’, meaning these multi-million pound brands are not already the “brand makes no claim and no public evidence was found that its protecting those within their supply chains. suppliers are paying a living wage, which means the brand cannot prove The Vulnerable Support Chains Facility will that the workers making their clothes earn enough to live on”. Gucci channel £4.85m in UK aid and £2million from was rated ‘C’ meaning the “brand claims that 50% or more of its supplier businesses into improving conditions in agriculture factories are paying a living wage to all their workers, some plausible and garment supply chains, and will focus on explanation is given, but the evidence is not public, which means many of Myanmar, Bangladesh, Kenya, Uganda, Ethiopia, the workers making their clothes do not earn enough to live on”. Tanzania, Rwanda and Ghana. Labour Behind the Label said: “As demand for ethical and sustainable The fund is intended to make workplaces safer, fashion has increased, brands have responded with large-scale marketing and ensuring that supply chains can continue to campaigns and fancy sustainability reports. At the same time, they have provide the UK with goods throughout the rest of the continued to ruthlessly seek lower prices for goods, forcing suppliers to coronavirus pandemic. operate on narrow profit margins and squeezing the wages of workers who Its announcement follows ongoing criticism of are already living on the poverty line.” fashion brands for their treatment of those within their supply chains since the outbreak of Covid-19 (see PayUp campaign above). UK fashion brands have cancelled millions of pounds worth of orders, contributing to mass lay-offs in many countries supplying clothing to the UK. Concerns have also been raised about the unsafe conditions for those continuing to work in sweatshops during the pandemic. Campaign group Labour Behind the Label said that some factories had “remained open without enough safety measures, meaning that garment workers are risking their lives for their jobs.” Critics are questioning why public money is needed to ensure safe conditions for those producing for mainstream brands. Labour Behind the Label says “Supply chains are not vulnerable by chance, but rather by design. The brands receiving funding, participate in a system that actively seeks out production in countries with low wages and poor workers rights. It is deeply concerning that DFID funding, intended to end extreme poverty, will be funnelled into brands which have a track record of prioritising profit over the people who make their clothes.” Questions have also been raised about the particular recipients of the fund, which includes companies implicated in workers’ rights abuses and tax avoidance. Labour Behind the Label is asking consumers to sign its petition to brands including Primark and M&S, who have been named amongst those to be supported by the fund. Sign here: https://labourbehindthelabel.org/covid- 19-support-workers

References: 1 www.theguardian.com/business/2020/jul/26/boohoo-to-set- up-model-garment-factory-in-leicester 2 ibid 3 ibid 4 www.thisismoney.co.uk/ money/markets/article-8395357/Boohoo-boss-braced-50m-bonus-row.html 5 www.theguardian.com/business/2020/may/25/bangladesh-clothing-makers- say-philip-day-edinburgh-woollen-mill-owes-them-27m

ethicalconsumer.org 9 SHOPPING GUIDE Banks

Looking for a bank with a moral compass

hree years before the COVID-19 that British-based banks and finance l banks and the environmental crisis pandemic, it was clear houses had provided more than $2 l banks and the human rights crisis even to capitalism’s biggest billion in financial backing to Brazilian l banks and inequality cheerleaders, the World beef companies linked to Amazon TEconomic Forum, that “the global deforestation.2 Perhaps this made We have also listed some of the issues economy is broken”.1 With the climate sense to the banks based on immediate on our ‘moral compass’ image above as crisis spinning out of control and financial return on investment. Yet, when another way of illustrating the choices that ever rising inequality, the idea that balanced against the scientifically agreed bankers are currently making. the single-minded pursuit of profit actions needed to preserve a global by unregulated global business will ecosystem and allow Homo sapiens as a somehow lead to better outcomes species to thrive, it looks less smart. The role of consumer for everyone is now, quite rightly, That many people now understand filed under ‘tried and proven not to the central role of banking has been choices work’. Unfortunately, there do not shown by recent Extinction Rebellion Whenever Ethical Consumer is currently appear to be any global protests. For example, in October 2019, approached by journalists asking about institutions capable and ready to step dozens of XR protesters were arrested the top five or ten ethical choices that in to fix things. This means we face the for demonstrating outside the Bank of consumers can make, changing bank daunting task of trying to persuade England. Hundreds of protestors sat down accounts is almost always on the list. This the institutions we do have to change in the road outside the bank in a protest is because, although your own savings direction quickly. against “the system bankrolling the might not be that great, the place of most environmental crisis”.3 banks at the centre of the web of business means that the choices you make can Banks and the become amplified across the economy. Civil society rising When choosing a bank, you are in a web of unethical sense choosing how you want the whole business Campaign groups have, of course, long economy to look. been concerned about the impacts A glance at the average savings of UK Banks and other financial institutions that banks make, from the boycotts of adults shows not just how unequal our will play a particularly important role over its support for racism in society is but how this amplification might because they sit at the heart of the South Africa in the 1970s to modern- work. broken global economy. The decisions day campaigners against deforestation. Figures vary, but we know that roughly: they take daily – on which projects In 2020, the list of reports and analyses l 9% have no savings at all. to finance or not – determine the published by civil society criticising l One third have less than £600 in savings. direction of travel for this economy banks appears to be longer than ever. We l Average UK savings are £9,633. and therefore for us all. have highlighted some of these in the l Men have almost double (£13,140.61) the In June of this year for example, a ten special feature pages that follow our average savings of women (£6,869.84). report by the Bureau of Investigative main buyers’ guides and which group l Londoners have the highest average Journalism and Unearthed found them into three themes: savings with £28,978.4

10 Ethical Consumer Sept/Oct 2020 Generally, banks can lend up to nine to deal with climate times the amount of money you have impacts, however, it with them.5 This means that even the is less easy for them relatively small deposits of 10,000 to argue that making people could become a more impactful similar steps to £10 billion of lending to either positive address non-financial or destructive businesses around the values like human world. rights is impractical or Fortunately, as our guides show, there uneconomic. are a now some specialist ethical banks that understand all this and are creating some great alternative options. Triodos Ranking the is one of them and, as a counterpoint to some of the depressing stories elsewhere, banks we look at one it has To simplify this recently supported in Cleveland on page down for consumers, 38. we have integrated all the criticisms performing financial institutions in this On page 21 we also look at how useful found into our ranking tables and the magazine, Triodos and WHEB, have legally Credit Unions are as a mutual project in Ethiscores that appear on our website. acknowledged their responsibility to non- supporting the one third of us with very For example, when we find that Barclays economic stakeholders by converting to little to put away. has been financing Brazilian Beef B-Corporation status since our last review. companies criticised for rainforest Mutuals, such as building societies which destruction, we deduct half a mark are owned by their customers, are also a The special case of under the ‘Habitats and Resources’ good alternative option for many financial category. We do this whenever we find services. the climate a problematic ‘banking or investment This groundswell in climate activism is relationship’ between two companies, 2. Develop clear public policies that undoubtedly forcing many banks to put and most global financial institutions prioritise human, ecological and other systems in place to begin to measure end up losing marks in most of our animal interests over financial ones in the and address the climate impacts of the ethical categories. event of a conflict. decisions they are making. As we discuss extensively elsewhere in this magazine, 3. Be fully transparent about all (non- many of these systems are still woefully Choosing a way retail) and investments above a inadequate, but it is important that stated amount. they are happening. These actions forward If communities are able to identify the admit that making decisions based In order to calibrate a moral compass financial institutions behind the projects only on financial return (and a very for banking going forward, there are affecting them, it allows all-important narrow definition of risk) is inadequate four elements that banks will need to feedback loops. Ethical Consumer’s 2020 and must be urgently redressed if we address, and consumers will need to Manifesto suggests that this are to avoid some very dangerous and look out for: should be required by law. We talk more immediate outcomes. 1. Think hard about corporate form about financial transparency in financial Banks have paid lip service to non- Institutions that think they have a firms on page 39 too. financial values such as human rights financial duty to shareholders which for decades now, while taking little real overrides their duties to the rest of 4. Set up properly resourced teams to action. Now that they are quickly setting society should have no part to play in the measure, understand and address ethical up systems, departments and standards economies of the future. Two of the best impacts across all lending. We saw that such measures are emerging around carbon impacts above. Engaging with The last year has brought a communities affected, via the transparency groundswell of activism demanding element above, will be a key part of this role. Incredibly, more than 75% of us still bank banks cut their fossil fuel financing, with one of the banks. It is very hard to make global financial institutions at the same time that increasingly change behaviour, but not impossible. During the Barclays boycott over its role extreme weather events have further in South Africa, its share of the student market fell by 15%. This was enough to underscored the urgency of the force a U-turn, which was one of many to contribute to the lasting change that later climate crisis RAINFOREST ACTION NETWORK 20206 occurred in the region. References: 1 https://www.weforum.org/agenda/2017/01/the-global-economy-is-broken-inclusive-capitalism-can-fix-it2 www.thebureauinvestigates.com/stories/2020-06-04/revealed-uk- banks-and-investors-2bn-backing-for-meat-giants-linked-to-amazon-deforestation 3 https://www.theguardian.com/environment/2019/oct/14/extinction-rebellion-activists-stage-protest-at- bank-of-england 4 Sources include https://www.finder.com/uk/saving-statistics and www.raisin.co.uk/newsroom/articles/better-saving-money5 It is more complex that this, but largely true: See e.g. https://positivemoney.org/how-money-works/advanced/the-money-multiplier-and-other-myths-about-banking 6 https://www.ran.org/bankingonclimatechange2020

ethicalconsumer.org 11 SHOPPING GUIDE Current accounts Current issues in banking CLARE CARLILE looks at the ethical issues with current accounts.

anks have long been known for While big banks (most of those scoring everything from green-energy projects to their unethical practices. As we under 10 on our score table overleaf) sustainable community-led housing. outlined in our introduction, finance multinational companies and they sit behind some of the most projects, many of the smaller banks won’t Bcontroversial industries in the world – provide this kind of corporate investment Campaigning for from nuclear weapons to the exploration and lending. They instead focus on loans for new fossil fuels. and mortgages for individuals or small change Many of the mainstream banks are companies, while building societies focus As the 2020 ‘Banking on Climate Change’ trying hard to reform their image and some on financing homes and other buildings. report (see page 22) states, and we have made steps in the right direction. Yet, They therefore won’t be funding dirty mentioned in our intro, this year has in recent decades, there has been little global conglomerates – arguably making seen a “groundswell of activism”, much true change in their practices. Fortunately, them more ethical by default. of it targetting high street banks. there is a handful of alternative banks that There are still steps that these banks Barclays and HSBC face ongoing can properly claim to be ethical. and building societies can take to improve campaigns. Following a long-running their impacts, and these are also explored People and Planet campaign, the National throughout our guides. Union of Students (NUS), Young Labour What is ethical The very best banks though, will and students unions at universities not only prohibit the financing of dirty including Sheffield, Bristol and Surrey banking? industries, they will fund the transition to have all voted to boycott Barclays. The biggest impact that banks make on a fairer, more sustainable economy. Our In May, Extinction Rebellion (XR) the world comes from the companies and Best Buy in this guide, Triodos, finances sprayed fake oil onto the Barclays projects they choose to provide loans, headquarters in insurance and capital for. Canary Wharf, as In recent years, lots of mainstream well as branches banks have developed some kind of in other cities. ethical guidance for their lending “It is and investments, excluding the very unconscionable worst sectors. Many, for example, now that Barclays prohibit the financing of some new coal Bank is using projects, for example coal-fired power Britons’ bank stations. While this is a step in the right accounts to invest direction, we don’t think a bank can be in the very fossil considered ethical overall without more fuels destroying comprehensive policies. To be considered us. Barclays must ethical in 2020, at the end all new fossil very minimum, fuel investments A fully referenced banks should not immediately version of be providing new and instead fund this Product funding for fossil the renewable Guide is on our website fuel projects and green COVID-19 companies. Extinction Rebellion sprayed fake oil onto the Barclays recovery that will headquarters. give the millions

12 Ethical Consumer Sept/Oct 2020 of Britons losing their jobs due to the ICICI), , HSBC, Lloyds Human rights abuses pandemic, hope for a positive future,” Banking Group, NatWest Group, By funding environmental breakdown, XR spokesperson Donnachadh McCarthy Santander and all continue UK banks also show a disregard for said. to provide finance for or invest in fossil human rights. HSBC has also faced protests at its fuel companies. Climate change is already having a AGMs from campaign group ‘Market The Co-operative Bank was the only devastating effect, disproportionately Forces’ for its ongoing investments high-street bank that had expressly affecting those in the Global South. in the coal industry. “The bank continues to serve as the financial lifeblood of Today, the Amazon’s irreplaceable the most climate wrecking industry on the planet,” the ecosystems are under immense threat, organisation says. Customers and shareholders have written driven primarily by a handful of to the bank telling it to align its investments with the Paris industrial interests, industry-beholden Agreement. governments, and organized crime…big Financing and banks and large investment companies investments play a critical role AMAZON WATCH Where dodgy investments – for example in companies like Nestlé or Amazon – were found, we prohibited support for fossil fuels. Environmentally damaging projects and marked banks down. We look at banks’ financing of fossil companies also often directly harm local Often, though, companies do not fuels in more detail on pages 22-23. communities. Unsustainable palm oil publish information of this kind. It’s even But the environmental impacts from plantations, deforestation, and mining harder to find information on the projects these banks don’t end there. From and extraction frequently displace and companies for which banks provide funding factory farming and palm oil communities and violate Indigenous other like loans and plantations to the mining and extractive rights. On page 23 we look at some of the insurance. industries, the banks remain behind specific fossil fuel projects funded by UK We therefore also rely on the huge some of the most environmentally banks and their devastating impact on number of reports from civil society destructive practices in the world. local populations. organisations like BankTrack and Amazon Watch has said “Today, the For years, banks have also been Campaign for Nuclear Disarmament Amazon’s irreplaceable ecosystems are criticised for their role in the arms that monitor banks’ financing for and under immense threat, driven primarily industry. They have provided financing investments in problematic industries. by a handful of industrial interests, for companies involved in everything industry-beholden governments, and from nuclear weapons to the supply of Environmental breakdown organized crime … big banks and large arms to countries involved in the war in By investing in fossil fuel companies and investment companies play a critical Yemen. We write about this on pages 28 funding new fossil fuel projects, banks role.” to 29. They have also been criticised for lock us into a high climate impact future On page 24 we run through some backing companies that supply military for many years to come. of the key reports on banks’ roles in equipment to the Israeli government – Some banks claim to be making environmental destruction which are https://waronwant.org/resources/deadly- improvements. Yet, since the 2015 Paris reflected in our score table. investments agreement, 35 of the world’s major private banks have provided a total of $2.7 trillion in lending and underwriting to the fossil fuel industry – with fossil fuel financing increasing each year. Banco de Sabadell (owner of TSB), Barclays, Citigroup (Citibank), Danske Bank, Deutsche Bank (part owner of

TAKE ACTION You can make an individual pledge to boycott Barclays here: https:// act.peopleandplanet.org/petitions/ barclays-bank-boycott-barclays HSBC has been criticised for its complicity in arming Israel.

ethicalconsumer.org 13 SHOPPING GUIDE Current 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: 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 Ethos Company Sustainability Product COMPANY GROUP

Triodos [S] 16 e 1 SAAT Cumberland 13 H h E Cumberland Building Society app-based bank 12 H H Monzo Bank Limited

Nationwide 12 H H h E Nationwide Building Society app-based bank 12 H H JTC Starling Holdings Limited Metro Bank 11.5 H H h Metro Bank Plc 10.5 H H h h h Masraf Al Rayan (MAR) Q.S.C Revolut app-based bank 10.5 H H h H Revolut Ltd ICICI 7.5 H H H H H h h h ICICI Bank Ltd 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 0.5 Silver Point/Anchorage Capital Virgin Money 7 H h h h h h h h h h h H Virgin Money UK PLC 7 H h h h h h h h h h h H Virgin Money UK PLC 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 Danske Bank A/S (NI Only) 4.5 H H h h h h h h h h h h h H H Bank of Ireland Group Bank of 4.5 h H h h h h h H H h h h H H plc 4.5 H h h h h h H H h h h h H H , S.A. 4.5 h H h h h h h H H h h h H H Lloyds Banking Group plc 4.5 h H h h h h h H H h h h H H Lloyds Banking Group plc Santander 4.5 H h h h h h H H h h h h H H Banco Santander, S.A. TSB 4.5 H H h h h h h h h h h h h H H Banco de Sabadell S.A. Citibank 4 H h h h h h h H H h h h h H H Citigroup Inc 4 h H h h h h h H H h h h h H H UK Government NatWest 4 h H h h h h h H H h h h h H H UK Government Royal 4 h H h h h h h H H h h h h H H UK Government 4 h H h h h h h H H h h h h H H UK Government 3 h H H h h h h h H H h h h h H H HSBC Holdings plc HSBC 3 h H H h h h h h H H h h h h H H HSBC Holdings plc M&S Money 2 h H H h h h H H H H h h h h H H HSBC/Marks & Spencer Barclays 1.5 H H h H h h H H H h h H H H H Barclays Plc Tesco 1.5 h H H H h H H H H H H h H H Tesco plc

All the research behind these ratings is on www.ethicalconsumer.org Definitions of all the categories are at www.ethicalconsumer.org/our- ethical-ratings. Triodos [S] = transparent and ethical lending policy Co-op Bank/Smile [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 l g 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

c

i

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 . BES T BU

14 Ethical Consumer Sept/Oct 2020 m nsu er o .o c r l g

a

c

Table highlights i

h BEST t

e Y Tax avoidance BUYS B U Many of the banks in this table score poorly for likely use of tax avoidance strategies. ES T B

Best Triodos, Cumberland, Monzo, Nationwide, Starling, Metro Bank, Handelsbanken, The Our best buy for current accounts is Co-operative Bank, ICICI, Virgin Money, M&S Triodos, which remains squarely at the Middle Revolut forefront of the banking industry when it comes to ethics. Al Rayan, Lloyds Banking Group, Banco Santander, Citigroup, NatWest Group, HSBC, Worst Barclays, Tesco Triodos Climate Change 16 Our new Climate Change rating means that we now not only look for dodgy practices (such as investments in fossil fuels), but also at how a company reports on its own carbon impacts and its commitment to reduce these. Most banks scored a worst in this category, including any investment bank which had not prohibited investments in fossil fuels. Triodos was the only company in this guide to score a best in this category. Cumberland and the Co-operative Bank scored a middle. All the rest scored a worst. We explain our new Climate Change rating on page 42. RECOMMENDED

Positive marks The Nationwide and Cumberland The ethical leaders received positive marks for their transparency and for the clarity Building Societies and the of their ethical lending policies. The Co-operative bank received half a Product Co-operative Bank (including its Smile Sustainability mark for its lending policy. Triodos received a Company Ethos mark brand) are all also recommended. for being certified as a B-Corporation and providing a social and environmental Unlike Triodos which has a small alternative, and a full Product Sustainability mark for having an ethical lending monthly charge, these banks all offer policy and being transparent about its investments and engagement. free banking services. The Co-operative Bank remains a recommended buy as it maintains a How to switch account crystal-clear ethical stance across a number of issues. If you’re considering Government regulation designed to reduce monopoly in the UK banking sector switching to the Co-operative Bank has forced banks to make switching accounts quick and easy, taking just seven or are already a member, you may working days. When you open a new , it will usually ask you during the wish to join the Customer Union for application whether you want to switch. If you do, by providing the details of your , which we cover in the old account, the switching service will move your money, direct debits and standing ‘Companies behind the brands’ section orders across, and close your previous account. on page 17 and in more detail on our It will also transfer any payments meant to go into your old accounts, for example website. your salary. For at least three years, any money paid into the old account or wrongly down to come out of that account will be moved across into the new one. We asked about our readers’ experience. Sarah, who recently switched from HSBC to a more ethical option, said that she was motivated to switch accounts by “the knowledge that my investments and any BRANDS TO AVOID interest gained by the bank was ultimately being used (at least in part) to fund things/activities that I find abhorrent: Amazon Barclays is the biggest banker of fossil rainforest destruction and other global warming/ecologically fuels in Europe, followed by HSBC. Both damaging companies. I did not previously know this. banks have also been linked to multiple “It couldn’t have been easier. The switch guarantee human rights abuses. We’d recommend service was as easy as switching electric or Wi-Fi avoiding their brands: supplier. Remortgaging is always hard but it l Barclays wasn’t any harder moving banks. My only l M&S Money (50% Barclays) concern was why didn’t I do this sooner.” l HSBC If you are switching accounts for l First Direct (HSBC) ethical reasons and want to write to your previous bank to let them Citigroup, Lloyds Banking Group know why, we have published (Lloyds, Halifax, Bank of Scotland), a template letter on our NatWest Group (NatWest, RBS, website at: Coutts) and Santander (Santander, www.ethicalconsumer. Cater Allen) all also face multiple org/money-finance criticisms, not least for their ongoing financing of fossil fuels.

ethicalconsumer.org 15 SHOPPING GUIDE Current accounts

In addition, many new app-based banks are backed by individual investors BANKING AND COVID-19 and venture capitalists who may hold Opportunistic lobbying investments across a wide range of Banks have long been known for their huge lobbying spends. Citigroup has spent industries which have ethical issues almost $4.5 million on lobbying in the US in the 2020 election cycle and HSBC of their own. For example, Monzo is spent over $2 million in 2019. almost 25% owned by Passion Capital – In 2018, a report by Corporate Europe Observatory found that financial a company that was co-founded and is lobbying had “kept us vulnerable to future crises and costly bailouts” following jointly owned by Stefan Glaenzer, who pled the 2008 financial crash. Financial institutions were said to have pushed back guilty of sexual assault in 2012. (Monzo’s against major reforms, leaving legislation full of loopholes. other major investor is owned by the Civil society says that banks are now opportunistically using the coronavirus brother of Jared Kushner, senior advisor crisis to lobby for roll-back of any successful regulatory reform, covering and son-in-law to Donald Trump.) “everything from capital and liquidity to accounting and climate change” The financial services these companies according to the . offer may also be linked with banks and In the US, for example, the Bank Policy Institute – a lobby group for big banks investment funds doing dodgy deals. For including Barclays, Citigroup, HSBC and Santander – is recommending that the example, Monzo provides savings accounts Federal Reserve ease the periodic ‘stress tests’ that banks take to show they can and cash ISAs through other banks (listed withstand another economic crisis. in our Savings Accounts and Cash ISAs guides). When Monzo was recently asked Poor treatment of workers by a customer on Twitter whether it Some banks have also been accused of mistreating workers during the pandemic. considered ethical issues when choosing l Revolut employees say they have been forced to choose between quitting their its banking partnerships, it responded: jobs voluntarily for a small severance payment or being fired. “It’s not something that we consider at the l Santander workers in Brazil say the bank has broken its commitment with Contraf- moment.” CUT union to maintain jobs amidst the crisis and has become the first bank in the Although we haven’t marked the country to sack employees. companies down for these links, they are not quite as problem-free as they first appear to be.

App-based banks bills increase or are due to be paid; and Is my money safe? helps to reduce your bills by suggesting With regards to the protection of money, 25 million customers – equivalent to cheaper alternatives. Monzo and Starling have the full £85,000 half the country’s population – now use While this used to be somewhat Financial Services Compensation Scheme . unique, more and more mainstream (FSCS) protection. This means should While many mainstream banks offer banks are offering similar options. It is anything happen to your bank you are their own apps, the shift has also seen also easy to download a free budgeting protected up to £85,000.However, doubt a rise in mobile-only app-based banks. app like Emma, Yolt, Money Dashboard has been raised about the security of These banks offer traditional services or Tandem (none of which have yet been funds held through Revolut which is not such as current and saving accounts, rated by Ethical Consumer). covered by the FSCS. mortgages and credit cards. The only With regards to the security of your difference is that they exist solely as an So what about ethics? data, they all offer similar security app on your smartphone or tablet. Like building societies, these app- settings to those you get with traditional Three app-based banks are included in based banks do not currently make banking apps such as using passwords this guide: Monzo, Revolut and Starling. large corporate loans or investments, or passcodes. Starling and Monzo offer and therefore are not directly funding security measures such as Touch ID/ What do they offer? destructive industries like arms and Fingerprint scan. Once you have downloaded their fossil fuels. However, unless they tell us If you particularly want to switch banking app, you can access a range of clearly otherwise, they may do so in the to an app-only bank, Starling appears financial services. Monzo, Revolut and future. marginally more engaged than the others Starling all offer personal and business When we asked them about this, only on ethical issues. current accounts. Monzo also now offers Starling appeared to have any kind of savings accounts and cash ISAs, which ethical policy for its lending services, and can be managed through the app but this was pretty vague. It states: “We do not are held at other financial institutions, provide banking services to organisations such as . Revolut offers ‘savings that use excessive power to systemically vaults’ also held at other banks and the promote public behaviour that is harmful option to trade stocks, commodities and to individuals, groups or to the whole of cryptocurrencies through its app. Starling society in order to maximise their own and Monzo also offer loans. profits. This may include, for example, Secondly, the apps all offer analysis arms manufacturers and tobacco of your spending and help track money companies ... We lend to UK-based spent in real time. The Monzo app, for individuals and small businesses and, as example, tells you how much money you a policy, don’t lend to companies involved can spend each month; notifies you when in extracting fossil fuels.”

16 Ethical Consumer Sept/Oct 2020 Companies behind the brands

The Co-operative Bank has long been hailed as the Canada and the US that are “in violation of indigenous people’s mainstream ethical option for current accounts. right to Free, Prior, and Informed Consent.” In 2013, the bank was forced to look for private capital to stay HSBC is the fourth largest banking group in the UK. The afloat. Since then, it has been owned by a number of hedge funds company has the worst gender pay gap of any UK bank, with and equity investment firms. The buy-out has raised concerns women earning just 52p for every £1 paid to men. It has publicly about how ethical it can really be and has impacted its score in backed China’s recent anti-democratic legislation in Hong Kong, our table. which states that any person seen as ‘undermining national Working with Ethical Consumer, its customers organised to unification’ with China faces up to a lifetime in prison. At least keep the bank on track, forming The Customer Union for Ethical 24 people had been arrested under the legislation at the time of Banking, also known as Save Our Bank. Despite concerns, the writing, including four students between the ages of 15 and 21. bank continues to have a leading ethical policy amongst the In 2018, the company launched a policy prohibiting the high-street banks. For example, it prohibits the financing of financing of new coal plants. However, it left significant companies involved in the extraction or production of fossil loopholes. Although it will no longer lend to companies building fuels, and of companies involved in the manufacture or transfer new coal plants, it continues to hold investments in them. It of indiscriminate weapons. is also financing the Payra Port Coal Terminal in Bangladesh, There is more information about Save Our Bank and which will increase the country’s coal imports from 1.5 million how to join the Customer Union on our website at www. metric tonnes a year to 21.5 million. ethicalconsumer.org/ethicalcampaigns/save-our-bank. Read our ‘What’s wrong with HSBC and Barclays?’ page on Nationwide Building Society is the largest building society our website: www.ethicalconsumer.org/money-finance in the world. In 2018, the company confirmed to us that it had Lloyds Banking Group is the largest group for current “no direct investment in coal, oil, gas, tobacco, arms, alcohol accounts in the UK, through its brands Lloyds, Bank of Scotland or gambling” and that it had withdrawn from new commercial and Halifax. The group has been criticised in a number lending, making it a good ethical option. of reports for its financing of companies behind Amazon App-based bank Revolut scores reasonably in our rating deforestation, nuclear weapons and fossil fuels, among other system, because it doesn’t hold investments in or provide issues. financing for large conglomerates. But it has been repeatedly Citigroup is a multinational financial corporation, with criticised for its poor treatment of workers. Its employees say a turnover of over £80 billion a year. The company has been that they are expected to work way beyond their hours, face repeatedly criticised for its financing of companies involved in impossible targets and were told to work for free during the environmental destruction and human rights violations. It is the recruitment process. second largest banker of fossil fuels in the world; amongst the Barclays is the largest individual provider of current four banks to have led funding for the top fossil fuel expansion accounts in the UK and Europe’s biggest financier of fossil fuels companies; and the biggest banker of coal outside China. since the Paris Agreement. From 2016-19 the company provided It has been involved in financing four pipeline projects in $118.1 billion in fossil fuel funding. At its AGM in May 2020, over Canada and the USA in recent years, including the North Dakota 75% of Barclays shareholders voted against a resolution to end Access Pipeline which prompted widespread protests at the the company’s investments in fossil fuels. Standing Rock Sioux reservation over environmental concerns Barclays has insured bond deals worth $2.75 billion for meat and its violations of Indigenous rights. In 2017, executives of the producer JBS – a company linked to Amazon deforestation and company admitted that they’d been too hasty in financing the corruption in Brazil. It is also a key backer for oil pipelines in project.

ethicalconsumer.org 17 SHOPPING GUIDE Savings accounts Choosing an ethical savings

RUTH STRANGE explains how aligning your savings with your account values can make a big difference.

s we have discussed earlier, banks have huge power to decide what direction we go in as societies. Therefore, Awhere we put our savings makes a big difference too. We give our top recommendations for the most ethical savings accounts, explore other options including building societies and credit unions, and remind ourselves what’s so bad about most high-street banks. Some say that savings accounts are all about earning interest on your money. But in mid-2020, with little competition in interest rates, and with the top five UK banks having poured approximately £150 billion into financing fossil fuels since the Paris Climate Agreement was adopted in

2015, perhaps this is the easiest, as well © Pixelrobot | Dreamstime.com as the most important time to make your account align with your values. And if you do decide to move your money to a better bank, don’t keep quiet about it. Tell other people why. Ethical Consumer has some standard forms on its website to help you do this. Each of our recommendations are covered by the Financial Services Compensation Scheme, or FSCS. This means that savings up to £85,000 per person, per firm, are repaid to the saver if a firm should fail. Why are most high- executive pay, and to accelerating climate change and global insecurity street banks so bad? through the lending choices they make. Many of the banks in this guide also A fully referenced To put it simply, the way they manage appear in our guide to current accounts, version of money causes harm, and has major and we also say more on each of these this Product impacts throughout the world. They era-defining issues in our ten special Guide is on our website contribute to the underfunding of public feature pages, 22-31. Below is a quick services through tax avoidance, to rundown of the worst scorers in four key extreme inequality through excessive areas.

18 Ethical Consumer Sept/Oct 2020 SAVING TIPS l If you have debt (which includes mortgages), you are likely to be paying more in interest on the debt than you can earn on savings, so it probably makes more sense to focus on paying off the debt first. l There are various apps and online tools to help you save, plan a budget or Tax avoidance calculate the value of saving. One technique is known as ‘skimming’, where you Secrecy and tax avoidance continues regularly skim off just a few pounds to round off your balance in any current to occur in the banking sector, accounts, and transfer that to a . undermining the funding of public l Savings accounts for children are an important consideration. Up to 16 or 18 services that society depends on. We years is a good amount of time to build up savings, and they tend to have higher rank companies on their likely use of tax interest rates too. avoidance strategies, by looking at the l See our longer online guide for more information including government type of subsidiary companies they have supported savings schemes if you are aged 18-39, or are receiving tax credits or in tax havens. Universal Credit and working. Worst rating: Al Rayan, Banco de Sabadell, Barclays, Citigroup, HSBC (includes First Direct, and part owns M&S Money), Lloyds Banking Group (includes included Barclays, Triodos and Charity Bank both focus Bank of Scotland, Halifax, Scottish (RBS, now NatWest Group which includes their lending on progressive businesses Widows and ), Coutts and Ulster Bank), and Danske and organisations, and publicly disclose Oaknorth, RBS (NatWest), Sainsbury’s, Bank. Although The Co-operative Bank all these investments – a great practice Santander (includes Cater Allen), was listed as having a policy that excluded for a sector that is resistant to openness Shawbrook, Tesco. all nuclear weapons investments, it is and . They both got an extra currently 12% owned by Invesco, an Product Sustainability point for this. Excessive executive pay investment company also linked to Triodos offers Easy Access, Regular We mark companies down for paying nuclear weapons producers. Savings, Fixed Rate bonds, Cash ISAs, their senior staff more than £1 million in Children’s savings accounts, and Business a year, as we believe this to be excessive The worst of the worst and Charity savings accounts. in a world of huge inequalities. We have highlighted two anti-social Charity Bank offers 33- or 93-day Citigroup was the worst, with its finance issues – tax avoidance and notice, and Business, Charity, Club and highest paid director getting a shocking directors’ pay – and the funding of both savings accounts. $25 million in 2019, but many other high- fossil fuels and nuclear weapons. Four street and supermarket banks appear on names cropped up in all four of these the list, which you can view on page 26. areas – Barclays, Citibank, HSBC and Other ethical options Santander. Funding climate change Building Societies and mutual Six companies featuring in this guide are ownership listed in the latest ‘Banking on Climate What are the most Savings accounts are also offered Change’ report (more info on page 22) by building societies which have looking at who funds extreme fossil ethical savings traditionally been a more ethical choice fuels, like tar sands, Arctic oil and coal accounts? and are scoring roughly twice as much mining: as the big banks below them. Barclays, Citibank, Deutsche Bank Our top three recommendations for In our rankings, building societies all (part owns ICICI Bank), HSBC (including the most ethical savings accounts are get a positive Company Ethos mark for First Direct, and part owns M&S Money), Ecology Building Society, being ‘mutuals’, i.e. owned by and run NatWest Group (Coutts, Ulster Bank, RBS), and Charity Bank. Each host multiple for their members. All customers are and Santander (including Cater Allen). positive stories on their websites about members and are able to vote at AGMs or projects they have funded and initiatives stand for election to the Board. Funding nuclear weapons they are involved in. In each case, the Regulations stipulate that at least 75% producers money held in savings accounts makes of a building society’s assets must be held Eleven banking groups in this guide this work possible. in residential property mortgages, so were connected to the financing of the Each gets a positive Company Ethos they are much less likely to be lending to nuclear weapons industry, according mark on our rankings table for offering an companies with dubious ethical records. to the latest ‘Don’t Bank on the Bomb’ innovative alternative to the mainstream So far as we can tell, most do a little report (more info on page 28). banking industry. They also get an extra lending to companies but almost always Again, Citigroup was named as one of Product Sustainability point for having to small businesses to buy commercial the worst, having invested more than $17 an ethical lending policy. All three are buildings in their local areas. billion in 2019. Also named, in order of members of the Global Alliance for In our new Climate Change rating $millions invested, were Lloyds Banking Banking on Values (GABV), a network of (see page 42), we are not yet expecting Group (includes Bank of Scotland, banking leaders from around the world building societies to discuss the climate Birmingham Midshires, Halifax and committed to advancing positive change impacts of their lending. However, moves ), HSBC (includes HSBC, in the banking sector. are being made towards green mortgages First Direct, part owns M&S Money), Ecology is a building society with a in the sector, and we will explore more Santander (includes Cater Allen), ICICI difference, focusing on mortgage loans when we update the Mortgages guide in Bank, Banco de Sabadell (TSB Bank), and to make homes more energy efficient. the next issue. Bank of Ireland (Post Office). Ecology BS offers Easy Access, 90-day In March 2016, Ecology Building Banks with policies excluding nuclear notice, and Regular Savings accounts, Society became the first building weapons investments, but with loopholes Cash ISAs, and Children’s savings society to receive the Fair Tax Mark, that meant they did actually invest, accounts. demonstrating its openness and

ethicalconsumer.org 19 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: 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 Ethos Company Sustainability Product COMPANY GROUP

Triodos [S] 16 e 1 SAAT Ecology Building Society [S] 15.5 e 0.5 Ecology Building Society Charity Bank [S] 14.5 H e 0.5 Big Society Capital Limited Leeds Building Society 13.5 h h E Leeds Building Society , Egg 13 H h E Yorkshire Building Society Cumberland Building Society 13 H h E Cumberland Building Society Yorkshire Building Society 13 H h E Yorkshire Building Society Coventry Building Society 12.5 H H E Coventry Building Society Newcastle Building Society 12.5 H H E Newcastle Building Society Principality 12.5 H H E Principality 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 Monzo app-based bank 12 H H Monzo Bank Limited

Nationwide 12 H H h E Nationwide Building Society Charter 11.5 H H h OneSavings Bank Plc 11.5 H H h OneSavings Bank Plc Metro Bank 11.5 H H h Metro Bank Plc Oaknorth Bank 11 H H H OakNorth Holdings Limited Paragon Bank 11 H H H PLC 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. Revolut app-based bank 10.5 H H h H Revolut Ltd ICICI 7.5 H H H H H h h h ICICI Bank Ltd Clydesdale Bank 7 H h h h h h h h h h h H Virgin Money UK PLC Co-op Bank/Smile [S] 7 h H h h h h h h h h H H 0.5 Silver Point/Anchorage Capital Virgin Money 7 H h h h h h h h h h h H Virgin Money UK PLC Yorkshire Bank 7 H h h h h h h h h h h H Virgin Money UK PLC 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 Danske Bank A/S Bank of Ireland (NI Only) 4.5 H H h h h h h h h h h h h H H Bank of Ireland Group Bank of Scotland 4.5 h H h h h h h H H h h h H H Lloyds Banking Group plc Birmingham Midshires 4.5 h H h h h h h H H h h h H H Lloyds Banking Group plc Halifax, Scottish Widows 4.5 h H h h h h h H H h h h H H Lloyds Banking Group plc Lloyds Bank 4.5 h H h h h h h H H h h h H H Lloyds Banking Group plc Post Office 4.5 H H h h h h h h h h h h h H H Bank of Ireland Santander, Cater Allen 4.5 H h h h h h H H h h h h H H Banco Santander, S.A. TSB 4.5 H H h h h h h h h h h h h H H Banco de Sabadell S.A. Citibank 4 H h h h h h h H H h h h h H H Citigroup Inc NatWest, Coutts 4 h H h h h h h H H h h h h H H UK Government NS&I, Ulster Bank 4 h H h h h h h H H h h h h H H UK Government Royal Bank of Scotland 4 h H h h h h h H H h h h h H H UK Government First Direct 3 h H H h h h h h H H h h h h H H HSBC Holdings plc HSBC 3 h H H h h h h h H H h h h h H H HSBC Holdings plc M&S Money 2 h H H h h h H H H H h h h h H H HSBC/Marks & Spencer Sainsbury's 2 h H H H h h H H H H h H H H J Sainsbury plc Barclays 1.5 H H h H h h H H H h h H H H H Barclays Plc Tesco 1.5 h H H H h H H H H H H h H H Tesco plc

20 Ethical Consumer Sept/Oct 2020 SHOPPING GUIDE

Savings accounts ume ns r o .o c r l g

a

c

transparency regarding its tax affairs. In are around 400 in the UK, we have not i

h December 2018, Leeds Building Society included them on our table, but we do BEST t

e Y also became Fair Tax Mark accredited, recommend them for savings accounts. BUYS B U becoming the first national high-street Like building societies, they are mutuals ES T B certified by the Fair owned and controlled by their members, Tax Mark. not by external shareholders pushing Due to their high Ethiscores, their All building societies do mortgage for maximised profits through dodgy ethical and transparent lending policies lending and most offer ISAs as well investments and shareholdings. and their alternative ethos, best buys as savings accounts. Three of them – Credit unions pool their members’ for savings accounts are Ecology Coventry, Cumberland and Nationwide money to make small loans in the Building Society, Charity Bank and – also do current accounts. Many offer community, providing an accessible and Triodos. services nationwide but others are only affordable alternative to the high interest open to savers in a specific region. To find rates charged by payday loans and Triodos your local building society, search the sharks. Credit unions pay out an annual members list on the Building Societies dividend to savers, based on the annual 16 Association website. We have only profit made, and some pay interest too. covered 11 of the 43 building societies in There are lots of ways to pay in, including the UK due to space and resources. direct deductions from your wages. To find your local credit union, search the Credit unions Find Your Credit Union website run by Credit unions are a widespread but ABCUL – the Association of British Credit lesser known option for savings accounts Unions. See our online feature on credit and other financial services. As there unions for more detail. Ecology 15.5 Charity Companies behind the brands Bank Ecology Building Society loans support community-led affordable housing as well as individual renovation projects, developing many inspiring examples of low- 14.5 impact living. It also participates in various policy initiatives aiming to deliver mass retrofit of energy efficiency improvements to homes, and in new European criteria for green mortgages. Since 1981, it has lent to over 3,000 projects. In 2019, 90% went to residential properties including sustainable new build, renovation and conversion, and RECOMMENDED 10% went to commercial and community projects including woodlands, housing co- operatives and shared ownership. Ethical Consumer also recommends Triodos publishes details of every organisation it lends to. You can explore this the other building societies covered in using a map on its website which pinpoints what it is financing near you, including this guide, plus the 32 smaller building social housing, sustainable energy, arts and culture, and . It also produces an societies that are not on our score in-depth blog on how money can have a positive impact, including its vision to reset the table, and credit unions. economy, with a resilient and inclusive recovery from the global coronavirus crisis. Triodos is also discussed in our guides to Current Accounts and Ethical Investment Funds. Charity Bank is 100% owned by charities and social purpose investors and is dedicated to supporting UK charities and social enterprises. In 2019, it made its BRANDS TO AVOID 1,000th loan, and has loaned more than £300 million to housing associations, care homes, churches, schools, community hubs and other social purpose organisations Barclays is the biggest banker of fossil since it launched in 2002. Over half of its borrowers were able to unlock additional fuels in Europe, followed by HSBC. Both finance from other sources as a result of loans from Charity Bank. You can also search banks have also been linked to multiple its website for projects funded in your region. human rights abuses. We’d recommend avoiding their brands: l Barclays l M&S Money (50% Barclays) All the research behind these ratings is on www.ethicalconsumer.org Definitions of all the l HSBC categories are at www.ethicalconsumer.org/our-ethical-ratings. Triodos [S] = transparent and l First Direct (HSBC) ethical lending policy Co-op Bank/Smile, Ecology & Charity Bank [S] = ethical lending policy

m Citigroup, Lloyds Banking Group nsu er o .o c r (Lloyds, Halifax, Bank of Scotland), l g Best Buys are decided by the editorial team based on the research we have

a undertaken, the scoring system and the unique insight into the issues that our NatWest Group (NatWest, RBS, Coutts)

c

i

h t editorial team has. 9 times out of 10 this will be the brand (or brands) that are and Santander (Santander, Cater

e Y top of the table but sometimes an ethical company which is truly innovative Allen) all also face multiple criticisms, BES T BU scores less well on our rigid scoring system and we use the Best Buy and not least for their ongoing financing of Recommended section to acknowledge this. A company cannot be a Best Buy if it fossil fuels. scores worst for Supply Chain Management.

ethicalconsumer.org 21 SHOPPING GUIDE Banks and environmental crisis

Financing fossil fuel expansion in a climate crisis

Banks, globally, have provided $2.7 trillion in financing for How do the companies fare? fossil fuels since the 2015 Paris Agreement, according to the most recent Banking on Climate Change report (www.ran.org/ Six companies in our guides to Bank Accounts and two bankingonclimatechange2020). companies in our guide to Ethical Investment Funds appear on The report – published annually by Rainforest Action Network, the report. BankTrack, Indigenous Environmental Network, Sierra Club, Oil Change International and Reclaim Finance – found that banking Rank Finance for Policy Total fossil out fossil fuel score for fossil fuels had risen to $736 billion in 2019 alone. Bank fuel finance of expansion out of In the report’s own words: “The sector as a since 2016 whole continues to take a position of extreme irresponsibility in 35 since 2016 200 the face of the climate crisis.” 3 Citigroup $71.685 bn $187.666 bn 9.5 7 Barclays $34.931 bn $118.106 bn 13.5 HSBC What does the report cover? 12 (including First Direct) $33.385 bn $86.528 bn 18.5

The report looks at 35 private-sector banks and their lending BNP Paribas 13 (part owns Impax $29.628 bn $84.223 bn 58.5 and underwriting of debt and equity issuances to major fossil Fund) fuel companies since 2016. Bank of Montreal It examines: 16 (BMO Fossil Free Fund) $36.718bn $82.115 bn 0.5 l financing for the most damaging fossil fuels – coal, tar sands, Deutsche Bank Arctic oil and gas, offshore oil and gas, fracked oil and gas, and 19 (part owns ICICI Bank) $25.150 bn $65.885 bn 13 liquified natural gas (LNG); Santander l financing for the top 100 companies involved in fossil fuel 29 (including Cater Allen) $13.742 bn $25.736 bn 20.5 expansion, through new extraction or infrastructure; NatWest Group l companies’ policies across these areas, scoring them out of 34 (including RBS, Coutts $2.654 bn $12.116bn 59.5 200. and Ulster Bank)

Banks backsliding SHAREACTION REPORT ON BANKS’ CLIMATE CHANGE ACTION Overall fossil financing has increased by 15% since 2016 and many of the banks have increased their individual financing In April 2020, ShareAction also published a report ranking in the last year. BNP Paribas’ backing has increased by $12.8 the 20 largest European banks on their responses to climate billion, HSBC’s by $6.7 billion and Citigroup’s by $6.3 billion. change. Finance for fracking, arctic oil and gas, and offshore oil and ‘Banking on a Low-Carbon Future II’ looks at climate- gas, continued to grow for the third year running. Finance for tar related risk assessment and management, low-carbon sands and LNG had also increased since 2018. products and services, public policy engagement and collaboration with other actors, and how climate considerations are implemented through governance and Bright spots strategy. It found that amongst the twenty banks it looked at, none The report found that “the only somewhat bright spots in terms demonstrated ‘Best Practice’. The average score was just of declining finance are in coal mining and power”. Finance for 39.9%, suggesting that they had a long way to go. the top 30 coal mining companies had declined by 6% between Eight of the banks in our guides appeared in ShareAction’s 2016 and 2019, and finance report. BNP Paribas and Lloyds Bank were rated as ‘leaders’ to the top 30 coal power scoring 63.2% and 61.7% respectively. HSBC (47%) and companies shrank by 13%. Santander (40.8%) were ‘building capacity’ whilst Barclays However, it also said that (39.5%), Deutsche Bank (36.3%) and NatWest (32.4%) were while coal finance was slowly ‘business as usual’. Danske Bank was rated as a ‘laggard’ shrinking, the trend was being with only a 12.5% score. more than compensated for Differences in the findings of the two reports suggest by growth in finance for the oil the distance between policy and practice for many of these and gas industry. companies. For example, although BNP Paribas was found NatWest Group was to be the leader by ShareAction, it continues to be the 13th identified as one bank making largest financier of fossil fuels according to Banking on progress. It was said to have Climate Change which looks at actual finance made available. slashed its fossil fuel financing Read the full report – Banking on a Low Carbon Future in 2019 and significantly – https://shareaction.org/research-resources/banking-on-a- strengthened its policies in low-carbon-future-ii February 2020.

22 Ethical Consumer Sept/Oct 2020 Fossil fuel expansion projects

UK banks continue to finance some of the most controversial fossil fuel Project: Cerrejón projects and companies around the world. Based on information collected by Country: Colombia BankTrack, Urgewald and the Banking on Climate Change report, we look at the Linked banks: Bank of Montreal (owns devastating impact two of these projects are having on the environment and BMO Funds), Barclays, BNP Paribas local communities. (owns 25% of Impax Fund), Citigroup, HSBC, Deutsche Bank (owns 19% Project: TransMountain Pipeline Expansion project of ICICI), RBS (now NatWest Group), Country: Canada Santander.1 Linked banks: AIG, Barclays, Chubb, Citigroup, Deutsche Bank, HSBC, NatWest The Cerrejón coal mine is the largest The TransMountain Pipeline Expansion project will nearly triple the flow of tar in Latin America. Its expansion over sands – which produce 15% more carbon dioxide emissions than conventional oil – the last five decades has led to the from the Alberta oil sands to the Canadian coast.7 destruction of whole villages populated Local communities already face oil spills from the pipeline. In June, 190,000 litres of by local indigenous and Afro-Colombian oil split over an aquifer that supplies water to the indigenous community Sumas First people. Last year, one quarter of the UK’s Nations’ reserve. It was the fourth spill in 15 years on the community’s land.8 Many coal imports came from Colombia.2 groups of First Nations (one of the predominant indigenous peoples in Canada) say that The diversion of water to the mine, they have not been properly consulted and that the pipeline is a threat to their way of combined with a ten-year drought in life. the region, is said to have left 37,000 Campaign group, Stand.earth says that the expansion will lead to 590,000 more indigenous children malnourished barrels of tar sands each day and an almost 7-fold increase in oil tankers in the Salish and caused at least 5,000 deaths from Sea, endangering the Orca Whale population.9 starvation (with others saying the figure Manuel is a member of the Secwepemc Nation resisting the pipeline. “This is closer to 14,000).3 In June, local movement is reclaiming our lands, our cultures, our language. Our language and indigenous communities appealed to the culture flows from our land, you can’t have one without the other.”10 UN to halt mining at Cerrejón in the light In 2017, Kinder Morgan, the owner of the project, withdrew following extended of the Coronavirus. They say that they are criticism. The Canadian government bought the pipeline and now leads the expansion. facing increased risks due to constant In February 2020, the Canadian courts upheld approval for the project, rejecting a legal exposure to poor quality air and the challenge from the First Nations.11 violation of their right to water. Between 2014-17, Citigroup, Deutsche Bank, NatWest Group and others co-financed “What we are demanding of Cerrejón is a CA$14 billion loan to the former owner of the project. In 2017, Barclays and HSBC our children’s health. We are fighting for provided a further CA$315 million and CA$200 million in loans respectively.12 At the our rights to live in a healthy territory, in time of writing, a reserve without pollution, just as it was AIG and Chubb before Cerrejón came in,” says Luz Ángela had failed to Uriana from the Wayuu Indigenous state whether Community.4 they would Names of just some of the renew their communities devastated or wiped off insurance of the the map by the project include: Roche, pipeline when Chancleta, Tamaquitos, Manantial, the current Tabaco, Palmarito, El Descanso, Caracoli, contract expires Zarahita, Patilla. in August, In 2013, Barclays, HSBC, Lloyds despite many Banking Group and NatWest Group other companies provided loans totalling over $13 billion saying that they for the Cerrejón coal mine.5 Since then, would no longer multiple banks have continued to finance be underwriting its owners – Anglo American, BHP the project.13 Group and Glencore – including Bank of Montreal (owner of BMO Funds), Barclays, BNP Paribas (part owner of Impax Calling themselves the Tiny House Warriors, a group of Indigenous Secwepemc people from Canada are building tiny houses in the path of the massive tar sands oil pipeline's Fund), Citigroup, Deutsche Bank, HSBC, planned route through their territory. Santander, and NatWest Group.6 www.tinyhousewarriors.com

References: 1 https://www.ran.org/bcc-2020-data-explorer 2 https://www.statista.com/statistics/370664/steam-coal-imports-to-the-united-kingdom-by-country 3 https://www.redpepper. org.uk/grounding-the-currents-of-indigenous-resistance 4 https://londonminingnetwork.org/2020/06/un-asked-to-suspend-cerrejon-coal-mining-in-colombia 5 https://www.banktrack.org/ project/cerrejon_coal_mine#financiers6 https://www.ran.org/bcc-2020-data-explorer 7 https://www.ucsusa.org/resources/what-are-tar-sands 8 https://www.ecowatch.com/trans-mountain- pipeline-oil-spill-british-columbia-2646173087.html?rebelltitem=6#rebelltitem6 9 https://www.stand.earth/people-vs-big-oil/trans-mountain-pipeline; https://twnsacredtrust.ca/concerns/ orcas 10 https://www.thestar.com/vancouver/2019/08/15/faces-of-the-resistance-six-pipeline-protesters-on-why-they-oppose-the-trans-mountain-expansion-and-what-theyre-prepared- to-do-about-it.html 11 https://www.theguardian.com/world/2020/feb/04/canada-trans-mountain-pipeline-expansion-approval-court-upholds 12 https://www.banktrack.org/project/trans_ mountain_pipeline_expansion_project_tmep#financiers13 https://www.stand.earth/page/un-insuring-trans-mountain

ethicalconsumer.org 23 SHOPPING GUIDE Banks and environmental crisis Financing environmental breakdown

Since we last updated our finance guides, numerous civil society reports have highlighted the role of financial institutions in funding environmental breakdown and the associated human and animal rights violations. Below we highlight just four of the reports that are reflected in our ranking tables.

Mining and Destroying the Destruction Financing human rights Amazon in the Congo industrial meat In May 2018, Facing Amazon Watch’s ‘Complicity Basin and New farming Finance published ‘Dirty in Destruction’ report, Profits 6’. The report published in April 2019, Guinea ‘Butchering the Planet’, released looked at the global names the funders of Amazon In September 2019, Global in July 2020 by Feedback, extractives industry, deforestation. The report Witness published ‘Money highlighted some of the main which was involved in identifies the worst offending to Burn’, also looking at companies responsible for some of the worst labour, companies operating in the the funding for companies funding ‘Big Livestock’, and environmental and human soy, beef, leather, timber and involved in rainforest thereby implicated in the rights violations. sugar industries, and the destruction. It focused on environmental issues arising as It found that, “The rights financial institutions which the financing of six huge a result of the industrialisation of communities, farmers enable them. agribusinesses involved of animal farming. and indigenous people are It said: “The Amazon in palm oil, beef or rubber The report looked at the being trampled in the push Rainforest sustains life on production and operating in 35 largest meat and dairy for ever more extraction.” earth... While the Amazon’s the Amazon, the Congo Basin corporations, their greenhouse The report also looked health depends upon the or New Guinea. gas emissions and their dodgy at whether implicated stewardship of the nine Since 2013, many financial practices like chlorine washing companies and the financial countries that share this 5.5 instructions had provided chickens, as well as the financial institutions behind them million km2 biome, the role tens of billions of dollars to the institutions funding them. had responded to evidence of global markets – from implicated companies. It said: “Banks and of violations published in its commodity traders to financiers HSBC, Santander, BNP investors that wear with pride 2012 ‘Dirty Profits’ report. It to consumers – directly Paribas (owns 25% of Impax), their commitments to end found that companies had implicate us in its fate.” Barclays, Royal Bank of deforestation and combat climate largely failed to respond. Barclays, BlackRock (owns Scotland, BlackRock (owns change are deeply implicated in Barclays, BNP Paribas 10% of ), 10% of Janus Henderson), the financial support offered to (owns 25% of Impax), Citigroup (Citibank), HSBC, Deutsche Bank (owns 19% this ecologically destructive and Deutsche Bank (owns 19% Lloyds Banking Group, NatWest of ICICI), and Standard Life socially toxic industry.” of ICICI) and HSBC were all Group and Banco Santander Aberdeen were among those Barclays, Citigroup, HSBC criticised for their financing had all provided financing to having provided financing of and Banco Santander were all of the extractive industries.1 implicated companies.2 over £10 million.3 named.4

References: 1 https://www.facing-finance.org/en/publications/dirty-profits-1-62 https://amazonwatch.org/news/2019/0425-complicity-in-destruction-2 3 https://www.globalwitness.org/ en/campaigns/forests/money-to-burn-how-iconic-banks-and-investors-fund-the-destruction-of-the-worlds-largest-rainforests 4 https://feedbackglobal.org/wp-content/uploads/2020/07/ FeedbackReport-ButcheringPlanet-Jul20-HighRes.pdf

24 Ethical Consumer Sept/Oct 2020 Campaigning against Barclays and the Rampal Coal Power Plant in Bangladesh

Barclays is one of the largest banks in the UK and the “worst banker of fossil fuels” in Europe.1 We spoke to Tonny Nowshin, a researcher at environmental and human rights organisation Urgewald and a degrowth and climate activist who grew up in Bangladesh, about Barclays’ role in financing coal projects there.

Could you tell us a bit about what What do you think the only in Bangladesh but also many other Barclays is doing in Bangladesh? responsibility of financial countries in the Global South: as some Barclays is supporting the Rampal2 companies like Barclays is? early industrialised countries like the UK Coal Power Plant in Bangladesh which Financial companies like Barclays are begin to phase out coal, companies are threatens the world’s largest mangrove market leaders and they need to act like trying to make a last bit of money from forest, Sundarbans, a vital carbon sink. leaders, setting an example of how to the coal industry elsewhere. You can see There has been a huge movement be a responsible bank. Instead of acting that in all these projects, international against this power plant within like ‘banks against the future’ they need companies and financiers are involved. Bangladesh for the last nine years. to accurately assess the risk of their That’s why it’s even more important to The movement has not been able to investments and divest from projects raise awareness and talk about the big mobilise on the streets any more due to like Rampal. banks’ role. recent government repression, so we have turned it into a global How are communities on movement. We have appealed the ground responding to UNESCO, as the forest is a to and resisting this Natural World Heritage Site. project? UNESCO has strongly advised Communities recognise the against the project. However, impacts of these projects it is still going ahead. Barclays right away. They are the has provided US$300 million ones directly exposed – to NTPC – one of the main from losing homesteads initiators of this project – and agricultural lands to through bond underwriting. being directly exposed to the Without the financial pollution of power plants. support of Barclays this We have had big movements project could not go ahead. We against these projects in the can all see how climate change past and the protest against Thousands of Bangladeshis participated in a 155 mile Long impacts are rapidly unfolding: March from the capital Dhaka to the Sundarbans forest in 2016 the Rampal power plant it is not justifiable for any to protest the construction of various coal projects proposed for continues today. Bangladesh. company to keep channelling People on the ground Financial Accountabillity for Center money to such projects. are resisting such projects You grew up in Bangladesh. What everywhere around the globe in a similar Why is this project so damaging is the impact of coal projects on way, for example the fight against RWE for the environment and communities and the environment in Germany has been long and inspiring. communities? in the country? Now we see solidarity growing amongst We all know about the Paris Climate Up until now, coal hasn’t been a big part the movements. Last month, activists Agreement goal. To keep our average of Bangladesh’s energy sector. At the from Hambach forest in Germany (the temperature from rising no more than moment only 2.8% of our energy comes site of a widely opposed coal mine) led 1.5 degrees, we need to drastically move from coal.4 Yet, the government plans to solidarity actions supporting the save the away from fossil fuels. Coal is the worst increase dependence on coal up to 37% Sundarbans movement in Bangladesh. of all fossil fuels because it has a higher over the next decade by establishing 29 environmental impact. It is clear from new coal power plants.5 A longer version of this all scientific reports that we need to stop Coalmining takes away important land article is on our website. these coal projects to sustain life on this space for living, agriculture and nature. It planet. depletes ground water. Coal power plants Often these projects also involve also emit huge amount of fly ash, NOx, immediate violations of human rights CO2 and other heavy metals like lead and References: 1 www.ran.org/bankingonclimatechange2020 and pollution of nature. In the case of the mercury, which are bad for living beings 2 Official Name: Maitree Super Thermal Power Project3 Climate Defenders Report 350.org 4 Bangladesh’s energy Rampal power planet, the pollution would and the environment. composition, IEA: www.iea.org/countries/bangladesh 5 In a recent press conference government of Bangladesh said cause low birth weight for 24,000 babies There is a reason why so many coal they are reviewing the 26 proposed Power Plants: www. 3 dhakatribune.com/bangladesh/2020/07/31/bangladesh- and pre-mature death for 6,000 people. projects are now being proposed not mulling-dramatic-switch-away-from-coal-power-plans

ethicalconsumer.org 25 SHOPPING GUIDE Banks and inequality High pay in the financial sector

As the financial Banks & Building Societies Top Pay Top Pay InvestmentInvestment Fund Funds Top Pay Top Pay Bank 2019 2016 sector is known 2019 2016 Citibank £19.5m £11m Janus Henderson £5.7m £2.2m for its high pay Group Tesco £6.4m £4.2m excesses, we show AXA £5.5m £3.2m Banco Santander (Cater Allen) £6.1m £5.3m the pay of the highest BMO £5.4m £4.6m Barclays £5.9m £4.2m paid director of each Standard Life £4.6m £2.7m Lloyds (Bank of Scotland, £5.1m £5.5m Aberdeen company in these Halifax, Scottish Widows, guides. Birmingham Midshires) Legal & General Group £4.6m £5.3m HSBC (First Direct, M&S money) £4.9m £5.6m Liontrust Asset £4.4m £1.6m Ethical Consumer considers Management Virgin Money (including £3.4m £2m any remuneration over £1 Clydesdale Bank, Yorkshire Aegon (Kames Capital) £3.8m £1.2m million to be excessive, so Bank) (estimate) companies awarding pay of Paragon £2.8m £1.9m SVM Asset £3.8m – £1 million or over (shaded Management Co-op Bank £2.6m £4.5m red) lose half a mark in the Jupiter Asset £2m £3.8m Anti-Social Finance category. Danske Bank £2.5m £1.7m Management Group A comparison of the 2016 RBS Group (RBS, Coutts, £2m £3.5m £1.9m – and 2019 figures shows NatWest, Ulster) Royal Asset £1.9m £3m that many have risen, and Oaknorth £1.8m – Management Citibank (which is, notably, an American company) threatens J Sainsbury £1.7m £2.3m Ecclesiastical £1.5m £1.4m (EdenTree) to rise out of the stratosphere. OneSavings Bank (Kent £1.6m £910K But quite a few have also Reliance) Impax Asset £1.1m £452K Management Group fallen. TSB Bank £1.4m £3.7m £1.1m £1.4m We asked Luke Hildyard Nationwide BS £1.3m £3.4m of the High Pay Centre for his Svenska £412K £384K take on this. He said: Yorkshire BS (Chelsea BS, £971K £701K Handelsbanken Norwich and Peterborough BS) “Top pay in general has Triodos £312K £265K been pretty flat over the past Coventry BS £861K £970K Castlefield Partners £210K – decade, though it remains Bank of Ireland (Post Office) £854K £843K Sarasin & Partners LLP – – extremely high by longer-term Metro Bank £829K £1.3m historical standards.” WHEB Asset – – He further pointed out that Skipton BS £829K £921K Management there have been some specific ICICI Bank £720K £472K downward pressures on pay in Shawbrook £715K £3.5m the financial sector in the UK and EU, including increased Leeds BS £659K £350K of why the predatory and self-interested reporting requirements and West Bromwich BS £659K £636K business models we see around us need greater shareholder control, Al Rayan £656K £253K radical reform. Why anyone would not feel the EU cap on bonuses, adequately remunerated with the kind of and the Financial Conduct Newcastle BS £463K £314K still-relatively-generous sums available Authority’s Asset Management Svenska Handelsbanken £412K £384K at the lowest ten banks will remain a Market Review which Principality £394K £535K mystery to most people. scrutinised costs charged by Cumberland £358K £275K the investment industry. However, as Hildyard put it: Triodos £312K £265K “pay in the financial services Charity Bank £151K £140K sector is still extraordinarily Ecology £123K £96K high.” Key High pay in the boardroom Monzo £117K – plays a key part in reinforcing Revolut – – – figure could not be found rising inequality globally and Starling – – provides a stark illustration top pay in 2019 over £1 million

26 Ethical Consumer Sept/Oct 2020 The gender pay gap in the banking sector

In the third year of the another. Often women don’t ask for more compulsory publishing of money and are just grateful to be offered Investment Funds a job.”3 a gender pay gap for all Fifty years on from the Equal Pay Act companies with over 250 of 1970, campaigning women’s rights employees, the finance charity the Fawcett Society says that one industry comes in as the of the many reasons that there is a gender pay gap is because there is still pay second worst sector, after discrimination. Because there is generally education. not a transparent pay framework, many women don’t know that they are earning Finance firms are paying the average less than their male counterparts. man almost 25% more than the average To close the gap, employers should: woman. And that gap has increased by l Develop a positive action plan to about 1% on last year’s figures. Across all encourage and support women to apply 1 sectors, the gap is around 17%. for more senior roles. However, this financial year the l Ensure that part-time and flexible government suspended the enforcement work is available at all levels of the of gender pay gap reporting due to organisation. COVID-19, so only about a quarter of l Make paternity leave as generous financial companies have actually as maternity leave to encourage reported.1 We’re sure that the billion- men and women to share childcare pound businesses involved are delighted responsibilities. to be relieved of what must have been a l Improve transparency by extending couple of days of research work each! were paying out bonuses that are over gender pay gap reporting to companies The figures are based on the median 50% higher for men, on average. with 100 or more employees. – the middle wage of a range when l Introduce gender pay gap reporting everyone’s wages are lined up from by ethnicity – Fawcett found that the smallest to largest. The median is used What can be done? gender pay gap between White men and rather than the average or mean because Black African women and Pakistani & the median is a more representative Ann Cairns is executive vice-chair of Bangladeshi women was higher than for figure which is not skewed by a few highly MasterCard and co-chair of the 30% White women. paid people.2 Club, which aims to boost the number l Require employers to publish an of women in senior leadership. She says action plan to tackle gender pay gaps that she sees companies are starting to with meaningful sanctions for non- Individual banks take their pay gaps seriously, but that compliance. there is a need to change the corporate l HSBC posted an overall pay gap across culture which will take a long time. its 8 divisions (consumer, corporate, Dame Helena Morrissey, one of the investment ...) of 47.8%, almost the same City's most high-profile women and as last year. (The gap at just HSBC's UK founder of the Diversity Project, says that consumer banking (retail) arm was some firms are just seeking to comply 18.7%.) It said it was because of fewer with the law with "woolly or non-existent" women in high-paid senior roles and plans to improve.1 more women in junior positions or part- A spokesperson for the Women’s time jobs.1 Equality Party adds that the seeds of the l Between 2017 and 2019, Lloyds Bank gender pay gap are sown from a young and Santander's UK consumer banking age. “Our education system continues operations have closed their gap by more to influence gender norms that lead than 2%, but are still above the sector girls into lower paying jobs that are less average at 40.5% and 26.6% respectively. valued,” they explained. l Reporting for the first time, NatWest And Dr Julie Davies of the Manchester posted a gender pay gap of 34.1%. Metropolitan University Business School l Co-op Bank's gap remained at 22.6%. concurs “... women don’t negotiate their For bonuses, the average gender pay gap salary in their first role due to societal is 37.7%, an increase from two years ago. pressures, and so there is a cumulative Barclays' commercial arm and NatWest effect as they move from one job to

References: 1 BBC https://www.bbc.co.uk/news/business-51702864, HSBC's gender pay gap hits 47% as City split widens, 9 March 2020 2 The Guardian, What is gender pay gap reporting, and what does it mean? 28 Feb 2019 – https://www.theguardian.com/society/2019/feb/28/what-is-gender-pay-gap-reporting-and-what-does-it-mean 3 The Independent, 29 May 2020, WHAT IS THE GENDER PAY GAP AND HOW IS IT DIFFERENT FROM EQUAL PAY? www.independent.co.uk/life-style/women/gender-pay-gap-equal-pay-women-paid-less-motherhood-a8856121

ethicalconsumer.org 27 SHOPPING GUIDE Banks and the human rights crisis

WHO ARE THE BANKS Banking on Nuclear Weapons FINANCING? Here are three of the 18 nuclear weapons n June 2019, PAX, a member of weapon states and all NATO members, producers that the banks are funding: the Nobel Peace Prize winning except the Netherlands, which voted (UK) is part of the joint venture International Campaign to Abolish against the treaty. AWE-ML, which runs the UK Atomic Weapons Nuclear Weapons (ICAN), launched While states and civil society Establishment which is responsible for Iits latest Don’t Bank on the Bomb report, are turning away from the most manufacturing and maintaining Trident reviewing the financing of the nuclear destructive weapons ever created, nuclear warheads for the UK arsenal, as well as weapons industry by global financial these companies are helping the nine developing the new nuclear warhead, Mark4A. institutions.1 The report found that countries which still own nuclear At the time of writing, it was also handling the 325 financial institutions had provided weapons, and another 30 so-called UK’s COVID track and trace system. financing of $748 billion to the top 18 nuclear umbrella states, to keep the BAE Systems (UK) is involved in the nuclear weapons producers between use of nuclear weapons as part of their nuclear weapons programmes of France, the January 2017 and January 2019. The security strategies. UK and the US. It produces key components financing provided by the institutions for Trident II (D5) missiles for the US and could be loans, or UK nuclear arsenals. It also produces US ownership of more than 0.5% of the Hall of fame Minuteman III nuclear Intercontinental shares of at least one of the producing Ballistic Missile systems. BAE Systems is also companies. However, there also appears to part of the MBDA joint venture and provides 21 of these finance companies appear be a growing number of financial nuclear armed air-to-surface missiles for in our guides and thereby received a institutions which are choosing France. half mark in the Arms & Military Supply not to fund the nuclear weapons Boeing (USA) is contracted to help keep column on the score tables. See the Hall of industry. 36 institutions (up from 22 the Minuteman III missiles operational in the Shame table below for how much money in the 2018 report) were listed in the US nuclear arsenal until 2030. they are providing. Report’s ‘Hall of Fame’ for having a Boeing will also be producing Nuclear weapons have been prohibited comprehensive policy that excluded its replacement, the new by a UN treaty since 2017. 82 states have all types of investments in nuclear Ground Based Strategic signed the treaty and 44 have ratified it weapons companies (withdrawing Deterrent system for the but it needs 50 states to ratify it before past investments and avoiding future US, as well as the guided it can come into effect. 69 nations did investments). Triodos and The Co- tail kit for the new B61-12 not vote, among them all of the nuclear operative Bank were included. US nuclear gravity bomb.

HALL OF SHAME $ millions BlackRock (owns 10% of Janus Henderson) 61,200.1 CLUSTER MUNITIONS Citigroup (Citibank) 17,017.0 The production of cluster munitions has been BNP Paribas (owns 25% of Impax) 9,967.3 banned in over 100 countries because of their Deutsche Bank (owns 19% of ICICI) 6,757.4 indiscriminate killing. They spread dozens, or even hundreds, of bomblets over an area the Janus Henderson 6,104.9 size of a football stadium and can remain on the Barclays 5,038.9 ground like landmines that kill and injure civilians Lloyds Banking Group 4,311.1 long after the conflict has ended. AXA Equitable 3,733.7 Blackrock and Citigroup, the top two nuclear HSBC 2,976.5 weapons funders, are also in the ‘hall of shame’ Invesco (owns 12% of Co-op Bank) 2,965.3 for investing in cluster munitions producers.3 A Santander 2,193.6 further 10 finance companies that appear in our Legal & General 2,092.0 shopping guides “have made a serious effort to RBS (now NatWest Group) 1,821.4 adopt and implement a policy to disinvest from BMO Financial Group 1,589.9 cluster munitions, but have some shortcomings in either the policy or its implementation”. They ICICI Bank 1,408.2 are: Aegon, Axa, Barclays, BNP Paribas, Danske, (Aberdeen Standard Investments) 374.4 Standard Life Aberdeen Deutsche, Handelsbanken, HSBC, Lloyds Bank Aegon 320.9 and RBS (NatWest). Danske Bank 260.1 Triodos and Co-op Bank are in the ‘hall of fame’ Schroders (owns 11% of Liontrust funds) 165.2 for having implemented a comprehensive policy (Jupiter Ecology fund and part to not invest in cluster munitions. owns Kent Reliance & Charter Savings) 147.7 Banco de Sabadell (TSB) 127.0 Bank of Ireland (Post Office) 43.4 References: 1 Shorting our security-Financing the companies that make nuclear weapons, June 2019, ICAN and PAX 2 Beyond the Bomb, Global exclusion of nuclear weapon producers, October 2019, ICAN and PAX 3 Worldwide Investments in Cluster Munitions: a shared responsibility', (Ranked by total finance made available to nuclear weapons companies) December 2018, PAX

28 Ethical Consumer Sept/Oct 2020 Banks profiting from the arms trade to the Middle East and North Africa

ince 2000, an estimated 60% of the world’s conflict-related deaths have been in the Middle East and North Africa (MENA) Sregion, while violence in Iraq, Libya, Syria and Yemen continues to displace millions of people annually. Evidence shows that these crisis-affected © Think Defence via flickr CC-BY-NC-2.0 countries are being supplied with arms by companies funded by European banks. As such, these banks are linked to the human rights abuses that occur in these countries. Non-profit organisation Facing Finance released a report in May 2019 highlighting the ten European banks with some of the highest investments BAE sells its Typhoon aircraft to the Saudi Air Force, which uses them in Yemen. Saudi in eleven of the global arms companies Arabia is BAE systems’ largest customer representing 21% of BAE’s sales. involved. The total finance amounted to €24.2 billion. The largest volume of health system has “almost collapsed” Who are they funding exports overall was to Saudi Arabia and after the bombing of hospitals, clinics and the UAE – countries not only considered vaccinations centres. and how much? controversial for arms exports due The UN had verified the deaths of at All of the companies listed in the table to being defined as unfree countries least 7,700 civilians by March 2020, with below are also listed on the opposite themselves, but also due to their role in most caused by Saudi-led coalition air page for funding nuclear weapons the war in Yemen. strikes. Monitoring groups put the figure as producers. high as 12,000. Investment company BlackRock Thousands more civilians have died has investments of €32.6 billion in the The civil war in from preventable causes, including weapons companies in the report. This malnutrition, cholera and other diseases. is far more than all ten European banks Yemen The United Nations has warned that the combined. This is despite stating that it Yemen is the poorest country in the death toll from the coronavirus pandemic expects all the companies in its portfolio Middle East and, since March 2015, could "exceed the combined toll of war, to make “a positive contribution to has been hosting a civil war between disease, and hunger over the last five society”! the Yemen government, backed by the years." Lloyds Bank was one of the two largest Saudi-led coalition, and the Yemen About 80% of the population – 24 overall providers of loans to the arms rebels, backed by Saudi oil rival Iran. million people – need humanitarian companies, totalling €4.1 billion. Lloyds The Saudi-led Alliance has destroyed assistance and protection. Some 20 million provided finance to General Dynamics Yemen’s means of food production, people need help securing food, according (which has exported to Egypt and Saudi targeting factories, farmland, to the UN. Almost 10 million of them are Arabia and is involved in the production warehouses and markets. Yemen’s considered "one step away from famine".1 of nuclear weapons) totalling €2.4 billion. In terms of actual shareholdings in the HOW MUCH ARE THEY FUNDING? arms companies. Deutsche Bank ranked second of all the banks with holdings in Finance provided Investments Finance company eg loans eg shareholding all of the arms companies, totalling €2.6 (€m) 2015—2019­ (€m) as of Jan 2019 billion. BlackRock – owns 10% of Janus Henderson ethical investment funds 32,600.0 Lloyds Bank 4,129.99 4.29 Facing Finance e.V. is a non-profit organisation Barclays 1,216.09 1,634.85 headquartered in Berlin that takes a stand Banco Santander 1,635.43 97.65 against financial corporations’ violations in the areas of environment and climate change, Deutsche Bank – owns 19% of ICICI labour and human rights, corruption, and any Bank 1,814.41 2,615.29 use of weapons that are against international BNP Paribas – owns 25% of Impax 2,320.26 1,081.84 law. Read the full report here – www.facing- ethical investment fund finance.org/en/publications/dirty-profits-1-6/ References: 1 Yemen crisis: Why is there a war? 19 June 2020 – www.bbc.co.uk/news/world-middle-east-29319423 dirty-profits-7

ethicalconsumer.org 29 SHOPPING GUIDE Banks and the human rights crisis Financing racism in US private prisons

CoreCivic and GEO Group are the largest providers of private prisons and immigration detention centres in the US. Clare Carlile explains how financial institutions like HSBC, BlackRock and Citigroup are facing increasing criticism for their funding of them.

Lobbying for and 2019 saw repeated reports of children being separated incarceration from their parents while in America now locks up more custody and, in 2019, it was people than anywhere else found that 24 immigrants in the world. GEO Group and had died while being CoreCivic have played a role detained under the Trump America’s high incarceration administration.7 rates. Both companies are GEO Group also runs accused of lobbying for the immigration detention centres harsh legislation that means in the UK. the country now holds 20% of the world’s prisoners, despite having 5% of its population.1 Time to divest The disproportionate impact on black Americans is clear: a Following a long-running black man in America is over five times use of penal labour in their prison and campaign in America, many financial more likely to be incarcerated than a immigration facilities.4 Since 2018, institutions in the US have cut their white man, and the likelihood that a low- repeated reports have stated that the ties with the industry. Campaign income black man has been behind bars companies pay migrants or prisoners organisations estimate that 72% of future is 52%.2 under $1 an hour to do maintenance jobs financing to private prison companies – In the 1990s-2010s, both companies such as cooking and cleaning – despite estimated to be over $1.9 billion – is no had links with the American Legislative making considerable profits from their longer available.9 Exchange Council (ALEC) – a policy group incarceration. California, Colorado, New GEO Group has acknowledged that responsible for drafting legislation in Mexico and Washington State have all pressure on financial institutions to multiple states to increase the severity of filed cases against the companies.5 distance themselves from the industry prison sentencing. In 2019, GEO Group “I see prison labor as slave labor that could impacts its “financial conditions”. and CoreCivic respectively spent $1.52 still exists in the United States in 2018,” In 2018, Barclays, HSBC, NatWest Group million and $1.65 million on lobbying. Kevin Rashid Johnson, who is currently and BNP Paribas all provided financial While the two companies claim that they serving a life sentence, wrote in The services for the companies.10 BlackRock have never lobbied on criminal justice or Guardian in 2018. “Prisoners who do owns 12% of both CoreCivic and GEO immigration enforcement issues, they do not agree to such abject slavery are put Group. lobby for longer sentences and increased in solitary confinement. I know from The following companies were also government funding for the private prison personal experience.”6 found to hold smaller investments in sector. There is also substantial evidence CoreCivic and/or GEO Group: AIG, Allianz, that private prisons have lobbied for AXA, Barclays, BMO Financial Group, lowering the barriers to prison labour.3 Immigration detention Citigroup (Citibank), HSBC, Invesco (owns 12% of The Co-operative Bank), Legal & Over the last few years, CoreCivic and General, and Standard Life Aberdeen. Exploitation of prison GEO Group have also been criticised In July 2019, Barclays told CBS for their role in Trump’s brutal anti- Moneywatch that it has no plans to lend to labour immigration regime. the private prison industry in the future, Both CoreCivic and GEO Group face Nearly 75% of immigrants detained in and in 2020 committed to divesting from lawsuits from multiple states for their America are held in private prisons.8 2018 the sector.11

References: 1 https://www.marketwatch.com/story/its-time-for-investors-to-divest-from-companies-that-profit-from-mass-incarceration-and-cheap-us-prison-labor-2020-06-292 https://www.motherjones.com/crime-justice/2018/02/the-race-gap-in-u-s-prisons-is-glaring-and-poverty-is-making-it-worse 3 https://soundideas.pugetsound.edu/cgi/viewcontent. cgi?article=1025&context=ipe_theses 4 https://humantraffickingsearch.org/labor-exploitation-in-private-prisons-a-blog-series5 https://www.prisonlegalnews.org/news/2019/apr/15/geo- group-corecivic-face-class-actions-alleging-prisoner-slave-labor 6 https://www.theguardian.com/commentisfree/2018/aug/23/prisoner-speak-out-american-slave-labor-strike 7 https://www. nbcnews.com/politics/immigration/24-immigrants-have-died-ice-custody-during-trump-administration-n1015291 8 https://populardemocracy.org/sites/default/files/%28Updated%29%20 2019%20Data%20Brief%20The%20Wall%20Street%20Banks%20Still%20Financing%20Private%20Prisons%20FINAL%20EMBARGOED%20UNTIL%204-8-19%201030am.pdf 9 https:// www.forbes.com/sites/morgansimon/2019/07/19/does-defunding-work-1-9b-later-private-prisons-seem-to-think-so/#d8487504a959 10 https://www.banktrack.org/company/geo_ group#financiers ; https://www.banktrack.org/company/corecivic#financiers11 https://www.cbsnews.com/news/private-prison-companies-were-supposed-to-thrive-under-trump-instead- theyre-under-fire/ ; https://www.forbes.com/sites/morgansimon/2019/09/30/geo-group-runs-out-of-banks-as-100-of-banking-partners-say-no-to-the-private-prison-sector/

30 Ethical Consumer Sept/Oct 2020 Banks’ historical links to the slave trade

Barclays, HSBC, Lloyds Banking Group and Lloyds said: “A lot has changed during NatWest Group have all been identified as the 300-year history of our brands and while we have much within our heritage having historical links to slavery. to be proud of, we can’t be proud of it all. We stand against racism, slavery and discrimination in all its forms and truly believe that by reflecting, understanding, new project from University and have recently set up a taskforce led promoting and valuing the diversity of our College London has tracked the by our BAME [Black, Asian and Minority colleagues, we will deliver better results. beneficiaries of the 1837 Slave Ethnic] colleagues which will look at what We can do more, we can do better and we Compensation Action, which more we can do as a bank. This includes will do it together.” Apaid £20 million in ‘compensation’ looking at making contributions to BAME Barclays is made up of 250 to slave owners for the abolition of groups.” predecessor banks, one of which - the slavery – worth billions in 2020 terms. HSBC merged with Midland Bank in Colonial Bank - clearly indicates its role It has found that an estimated 10-20% 1992, a predecessor of which – the London in the British Empire. Two managers, of the UK’s wealth has significant ties Joint Stock Bank – has clear links to a subscriber and three directors have to slavery, including that of many UK slavery. Its first manager, George Pollard, been named on the UCL website as either financial institutions. Individuals jointly received equivalent to £230,000 having been involved in the slave trade or involved in predecessor banks that today for giving up 134 slaves in Nevis. having received compensation. merged to form Barclays, HSBC, Lloyds HSBC said: “We are committed to Barclays told The Guardian: “The Banking Group and NatWest Group were learning from the past and, in particular, history of Barclays, like other institutions, amongst those listed as having received anything that would be inconsistent with is being examined following recent compensation for their slave ownership. our values today. HSBC has zero tolerance events. We can’t change what’s gone NatWest Group (formerly Royal towards racial discrimination, or any before us, only how we go forward. We Bank of Scotland) published a report other type of discrimination.” are committed as a bank to do more to in 2009 which found that directors of Eight former companies associated further foster our culture of inclusiveness, NatWest Group’s predecessor banks with Lloyds Banking Group have equality and diversity, for our colleagues, had owned slaves, as well as providing links to those who claimed or received and the customers and clients we serve.”1 loans and other support for plantation compensation for the banning of slavery. It is interesting to view the banks’ fine owners. Eighteen directors of NatWest’s In the 1860s, the bank merged with words about making things better going predecessor banks are identified in the several other institutions. John White forward in the context of three of them UCL database as having links to slavery. Carter was director for one of these, and being listed as having ongoing financial NatWest Group said: “We have a strong received compensation for owning 80 connections with the US private prison multicultural network across the bank people enslaved over five estates. providers, discussed opposite.

CALLS FOR REPARATIONS

Caribbean nations are calling for reparations from firms that profited from the slave trade. An alliance of 12 countries, which includes Jamaica, Trinidad and Tobago and Barbados, has said that leading British institutions should take part in a “negotiated settlement” to return some of the wealth back to the Caribbean. “Unfortunately, one cannot go back and remake the history but you can make atonement: it is not enough to make your apology as a public spectacle, it is not enough to present it as public relations exercise,” Hilary Beckles, chairman of the CARICOM Reparations Commission, representing the alliance, says. “It is not about public relations – it is about a negotiated settlement whereby everyone finds closure within a moral framework. To say sorry and issue a press release is disrespectful – it does not fly with the people who were victimised.”2

Hilary Beckles, chairman of the CARICOM Reparations Commission, which is Commission Reparations © Caricom calling for reparation from institutions that profited from slavery.

References: 1 www.ucl.ac.uk/lbs 2 https://today.caricom.org/2020/06/19/sorry-is-not-enough-caribbean-states-say-of-british-slavery-apologies/

ethicalconsumer.org 31 ETHICAL CONSUMER WEEK BUILDING MORE RESILIENT COMMUNITIES

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32 Ethical Consumer Sept/Oct 2020 SHOPPING GUIDE Ethical funds An introduction to ethical investment

nvestment can be a tricky area to ethical investments. It shows the kind of crowdfunding platforms which structure get your head around, before you projects which have been seeking money contributions as investments rather than even begin to think about ethics. this year through three of our favourite donations, though the three platforms on Only around one third of people positive investment providers. Normally, the table screen projects to ensure they Iin the UK currently hold investments this kind of investment involves buying are ethical before supporting them. in shares.1 This is unsurprising really shares directly from a small company We do have a longer review of Direct because, with investments, there is or social enterprise. These shares tend Ethical Investment platforms on our a risk of losing all of your money if not to be tradeable, unlike shares on the website which looks at the wider companies or projects fail. As we saw on UK stock market, and are a much riskier ecosystem of possibilities for direct page 10, the average amount of savings bet than putting money in a pooled fund. project support – www.ethicalconsumer. in the UK was around £10,000. It makes Nevertheless, you do get to fund and org/money-finance/direct-ethical- sense to have good financial defences support only the projects which excite investment-platforms before taking investment risks, and most simply cannot afford, or do not choose, to take these risks. One of the best ways for small investors to reduce risk is to invest in ‘pooled’ funds, each of which will hold shares across many companies. The six pages that follow examine pooled funds which claim to be ethical. Some of these have now been around for nearly 40 years in the UK and financial returns from them have generally been much better than money saved in bank accounts. Nevertheless, it is important to note at the outset that there is another way of thinking about ethical investment. We have been writing about this ‘alternative investment’ approach at Ethical Consumer for thirty years now, One of Ethex’s current projects is which also has been known variously as affordable housing ‘direct ethical investment’ or ‘positive in Brighton & Hove. investment’ over that period. www.ethex.org.uk

you, and you will have a much more We are planning to update this review Direct Ethical direct relationship with a project once in the next issue of Ethical Consumer, with you sign up. If the projects are successful a special feature looking at the broader Investments too, you can enjoy the feeling of having subject of investing ethically online. The ‘2020 projects’ column in the table contributed to something important. below provides some good examples of On one level this approach is not what we mean when we talk about direct very different from the types of online Independent financial advisors Provider Focus area Some 2020 projects We are also planning to look again at our • Property development for previous review of ethical independent Helping investors homeless people in Cornwall Ethex financial advisors. The landscape to make positive • Electric car and bike hire firm in www.ethex.org.uk investments simply is changing here too, with more and securely Exeter • Affordable housing in Brighton opportunities to use online portals to do research and to buy into ethical funds. • Anaerobic digestion plant for power generation at a If you have had any good or bad Abundance Investment Mobilising money for Staffordshire farm experiences with ethical advice from www.abundanceinvestment.com good • Solar panels on council-owned independent financial advisors, or rooftops in Berkshire indeed of using online portals for ethical • Two hydro sites for the Highland investment, we’d be interested to hear Funding for Community Energy Society in Energy4all community-owned Scotland from you. You can email us at letters@ energy4all.co.uk renewable energy co- • Rooftop solar panels for the ethicalconsumer.org operatives in the UK Edinburgh Solar Community Co- References: 1 https://www.finder.com/uk/investment- operative statistics

ethicalconsumer.org 33 SHOPPING GUIDE Ethical funds Ethical Investment

Funds ALEX CRUMBIE shares his findings …

he international financial What is an system sits behind the global economy, acting not as an all- investment fund? controlling puppet-master as An investment fund is a pool of money Tsome conspiracy theories would have used to invest in companies or assets us believe, but as an enabler of activity. with the aim of making financial Some of this, as we have seen in the returns, usually in the long run. Putting features elsewhere in this magazine, is your dosh in a pooled incredibly destructive. investment fund Due to its power and influence, the allows you to invest finance sector is vital in the fight against across a large number climate change and other issues we of companies, thereby face. Engaging with it, however, can feel spreading risk more effectively. intimidating due to its complex and But this does not mean investment intangible nature, as well as the jargon funds are risk free. As nearly every that permeates it. investment site will tell you: investing But whether we like it or not, we carries risk and you could lose your are nearly all connected to the larger money. For pooled ethical funds, it also financial system in some way. Most of us means you need to agree with all the will have bank accounts and some will other investors what the ethical criteria hold investments, either because we should be. Helping navigate this have a pension (see the space is one of the upcoming Ethical purposes of Consumer guide this guide. to Pensions which will be published in the next issue), or because we have chosen

© Pamela Mcadams | Dreamstime.com © Pamela to invest savings in a collective fund. This guide aims to explore and explain some of Investment trusts the key issues in the world of investment It is also possible to invest in an funds and highlight some of most ethical investment trust, which functions in funds on the market. a very similar way to an investment fund but is set up as a publicly listed A fully referenced company. Investing your cash in an version of investment trust therefore this Product means buying shares Guide is on our website in the trust as you would any other company on the

34 Ethical Consumer Sept/Oct 2020 public stock exchange. All the options As with our in our guide are investment funds, with last guide to STRANDED ASSETS the exception of Impax’s Environmental investment funds, Markets Plc, which is a trust, this being we have teamed the only investment option that Impax up with the 3D offers its UK customers. Investing research project in order to Independent Financial Advisors provide additional If this is an area that you are unfamiliar information to the with, it may be useful to consult an tables produced by independent financial advisor (IFA) that Ethical Consumer. specialises in ethical investment. We You can easily talk more about this on page 33 and our see which funds website. are fossil free by We should also note that there are consulting the 3D other ways of investing your money Investing table on ethically, such as through direct p38. investment platforms online. For more On our score on alternative investment approaches see table on p36, all p33. funds that were free of fossil fuel The concept of stranded assets is an important element Good returns from ethical investments of the financial argument against investing in fossil fuels. investment received a Product An asset (a thing you can own) becomes stranded if it There is growing evidence to show that Sustainability can no longer be used. For example, it is reasonably investing ethically is not at odds with mark. A total of likely that, at some point in the future, the burning of making reasonable returns – a concern fourteen funds fossil fuels will be greatly limited or not possible at that has previously been common. were fossil fuel all, either because doing so has become so morally Research published in June by the free, but only reprehensible or because governments have implemented global investment company Morningstar three companies strict regulations in order to control carbon emissions. found that sustainable investment funds (Impax, Triodos, Anyone holding fossil fuel assets would be in possession frequently outperform their traditional and WHEB) of assets that cannot be used, i.e. ‘stranded’, resulting counterparts. The study analysed nearly received our best in financial losses. To invest in fossil fuels is therefore 4,900 funds domiciled in Europe and rating according not only morally unsound but also financially foolish. found that nearly 59% of the sustainable to our new Carbon funds performed better than the Management average traditional fund. These funds and Reporting also have generally fared better during category, which is represented in the funds to disclose the carbon emissions the COVID-19 crisis – in part because Climate Change column. To be awarded of their portfolios (often referred to they are not heavily invested in oil and a best rating we expected the whole as Scope 3 emissions) because this is other fossil fuels. Ethical Consumer company, not simply the fund, to meet where their main carbon impact lies. magazine publishes bimonthly reports a number of stringent criteria. These In 2014, the Montreal Carbon Pledge on the financial performance of key included reporting on their current was launched, supported by the United ethical funds on its money pages and the carbon emissions, setting targets in line Nations and Principles for Responsible current performance of the funds in our with international agreements, and not Investment. It called for investment guide appears in the table on page 36. being involved in any projects that were funds to commit to measure and considered particularly damaging in publicly disclose the carbon footprint terms of climate change, such as investing of the companies in their investment Fossil-free funds in fossil fuel companies. (For more portfolios on an annual basis. It argued details on our Carbon Management and that this would allow funds to identify According to the UN, “Climate Change Reporting category, see p42.) priority areas and actions for reducing is the defining issue of our time and Many funds received a Product emissions, track progress, and make we are at a defining moment.” It is Sustainability Mark because the featured comparisons to global benchmarks. essential that we take action at all fund was fossil fuel free, but fell down in levels – from individuals, to companies the Carbon Management and Reporting and organisations, to governments – to category because they were found to reduce carbon emissions. As already invest in fossil fuel companies in other Among the companies in our guide, stated, moving your money is one of funds under their management. the following were signatories to the the most effective actions you can take Subscribers can see the detail of these Montreal Pledge: to reduce your carbon footprint. As new ratings through the scores tables in l Axa fossil fuels are responsible for such a the online versions of these guides. l EdenTree large proportion of carbon emissions, l Impax we believe that it is essential to choose The footprint of funds l Rathbone investment funds that do not invest in In light of the climate emergency, there l WHEB fossil fuels. is increasing pressure on investment

ethicalconsumer.org 35 SHOPPING GUIDE Ethical funds

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: 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 Ethos Company Sustainability Product COMPANY GROUP

FP WHEB Sustainability Fund [C] 16 e 1 WHEB LLP Triodos Pioneer Impact [C] 16 e 1 SAAT Castlefield B.E.S.T. Sust. Income 13 H H 1 Castlefield Partners Limited

Royal London Sustainable Leaders 11.5 H H H E Royal London Mutual Insurance Sarasin Sust. Global RE [C] 11 H H h h H 1 Sarasin & Partners/J. Safra Group BMO Responsible Global Equity [C] 10.5 h H h h H H 1 BMO Financial Group AXA Ethical Distribution [C] 10 h H h h h H H 1 AXA Group Legal & General Ethical 9 h H h h h h h H Legal & General Group plc EdenTree Amity International [C] 7 H H h h h h h h h h h h h h 1 Allchurches Trust Ltd

Impax Environmental Markets [C] 7 H H h h h h h h h h h H H E 1 Impax Asset Management Group Janus Henderson Global Sust. [C] 7 H H h h h h h h h h h h H 1 Janus Henderson Group Plc ASI Global Equity Impact [C] 6.5 h H h H H H h h h H H 1 Standard Life Aberdeen PLC Jupiter Ecology Fund [C] 6.5 H H h h h h h h h h h h h H 1 Jupiter Fund Management Plc Liontrust Sust. Future European 6.5 H H h h h h h h h h h h h Liontrust Asset Management LF Heartwood Growth Sust. Multi A. 6 H H h h h h h h h H h h h Svenska Handelsbanken AB Quilter Cheviot Climate Assets [C] 6 H H h h h h h h h h h h h h H 1 Quilter PLC Rathbone Ethical Bond [C] 6 H H h h h h h h h h h h h h H 1 Rathbone Brothers plc SVM All Europe SRI 6 H H h h h h h h h h h h h h SVM Asset Management Kames Ethical Corporate Bond [C] 5 H H h h h h h h h h h h h h H H 1 Aegon NV Quilter Cheviot 5 H H h h h h h h h h h h h h H Quilter PLC

[C] = carbon divested fund ie no investments in fossil fuels. All the research behind these ratings is on www.ethicalconsumer.org Definitions of all the categories are at www.ethicalconsumer.org/our-ethical-ratings

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

c

i

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

Companies behind the brands

BMO is the Bank of Montreal and prides itself on being Canada’s first bank, founded in 1817. It is the eighth largest bank in North America by assets, of which it held CA$852 billion in 2019. BMO received our best rating for its investment transparency and engagement but received our worst rating for likely use of tax avoidance due to it holding a number of subsidiaries in Bermuda – that British overseas territory famously known as the place where things go missing. Standard Life Aberdeen is the result of a merger, completed in 2017, which saw the joining of Aberdeen Asset Management Plc and Standard Life Plc. A 2019 report in The Guardian named the company as holding significant shareholdings in Marfrig and JBS, meat companies implicated in Amazon deforestation. Another report, ‘Don’t Bank on the Bomb’, stated that Standard Life Aberdeen had invested a total of $374.4 million in companies that manufactured nuclear weapons between January 2017 and January 2019. Triodos Bank was founded in the Netherlands in 1980 and now has branches in a number of European countries. Its name stems from Ancient Greek, ‘Tri hodos’, meaning ‘three-way’, to describe the company’s long-term approach to take account of people, planet and profit. Interestingly, Triodos has deliberately avoided becoming a public listed company in order to retain greater control over its core mission.

36 Ethical Consumer Sept/Oct 2020 m nsu er o .o c r l g

a

c

Measuring the carbon footprint concerns of Ethical Consumer readers i

h of an investment portfolio is no easy (fossil fuels, banks, animal testing and BEST t

e Y feat because it is heavily reliant on the arms). This data comes from 3D Investing BUYS B U companies in that portfolio having and is not based on investment criteria ES T B measured their own carbon emissions. but on actual investments held by each But demanding that companies measure fund. WHEB & Triodos came top of our table their carbon footprint should be an and also scored highly according to 3D important part of an investment fund’s 2. Which company owns the fund? Investing’s ratings. Both companies engagement, and many of the funds we At Ethical Consumer we always ‘follow focus exclusively on positive and analysed stated that they were doing the money’, so our analysis is primarily sustainable investing and neither invest this. In 2019, the hedge fund TCI made aimed at the ultimate owner of a in the fossil fuel sector. the news by warning companies that it company or a fund. You may have found would vote against company directors a fund that appears ethical, but it might if carbon emissions were not disclosed. be owned by a company that also has The manager of TCI stated: “Investing its fingers in less ethical pies. Some in a company that doesn’t disclose its companies in this guide are relatively pollution is like investing in a company small and independent, such as WHEB, Triodos that doesn’t disclose its balance sheet.” whereas others are linked to far larger Triodos is not a signatory to the corporations, such as Kames, which is 16 Montreal Pledge, but is one of the sector owned by Aegon. leaders in terms of its carbon disclosure. It has been working with the Partnership 3. What is its financial WHEB for Financials performance? (PCAF) to develop a robust and extensive Examining a fund’s historical 16 methodology for disclosing its carbon performance may give an idea of the impact. Much more detail about this strength of a given fund, but it certainly approach is available on its website. doesn’t give definite assurance about how it will perform in future. After all, if past performance was the only factor Choosing an ethical necessary to consider, it may seem sensible to bet that a turkey which had RECOMMENDED investment fund shown rapid growth throughout the There are thousands of pooled funds past year will continue to grow past Castlefield scored well according to on the market, and more than two December 25th. our ranking and its B.E.S.T funds have hundred of them in the UK carry the Nevertheless, we have included strict exclusions criteria, including no name ‘ethical’ or ‘sustainable’. The the average performance of the funds investments in fossil fuels. Its financial score table opposite ranks just twenty featured in this guide on the 3D Investing performance has been less good different ethical funds. We have chosen table on page 38. recently though. some of the most popular from the biggest providers, as well as some of the 4. How transparent is it? most important carbon divested funds Once you have identified a potential available. fund, check whether it discloses all We think there are four main questions its investments. Some funds will only BRANDS TO AVOID to ask of an ethical fund before parting disclose the top-ten investments, but a with your money. fund that is serious about transparency Avoid funds that are invested in will disclose all the companies it fossil fuels. These include the vast 1. What are its investment invests in. An investment company’s bulk of non-ethical funds that are criteria? transparency also affects how we score it out there and not reviewed in this Funds should have criteria that guide in our guides and we provide more detail guide. The funds in this guide not fully which type of companies it invests in. about how each scores in our broader carbon divested in July 2020 were: Look for funds that have a stringent transparency rating on page 39. LF Heartwood Growth Sustainable exclusions policy detailing which sectors Multi Asset, Legal & General Ethical, and companies it will not invest in. For Liontrust SF European Growth, Royal example, most ethical funds will not Company Ethos London Sustainable Leaders, and SVM invest in the arms sector or tobacco All Europe SRI. companies. Also look for what sectors Four companies received Company and companies a fund will invest in. For Ethos marks. WHEB and Triodos example, an ethical fund might focus on received a whole Company Ethos mark are “Well positioned to benefit from investing in healthcare or companies as both are Certified B Corporations. the transition to a more sustainable working in low-carbon sectors. They also focused solely on providing global economy.” Royal London received We look at fossil-free funds in more services considered to be social and/ half a Company Ethos mark because detail on page 35. or environmental alternatives. Impax it is owned by Royal London Mutual The 3D table on p38 contains four received half a Company Ethos mark Insurance Society Limited which, rather columns which identify some of the key for only investing in companies that obviously, is a mutual organisation.

ethicalconsumer.org 37 SHOPPING GUIDE Ethical funds

3D Investing 1 Quality of sustainability According to its founder, John Fleetwood, management “3D Investing rates funds on a philosophy 3D Investing is an organisation which 2 Avoidance of ethical controversy of ‘Do good, avoid harm and lead change’. examines funds and scores them using 3 Social impact This philosophy will remain the same, but a 5-star rating system. We think it 4 Financial performance the 5-star rating methodology will shortly provides the best and most detailed 5 Transparency move to a different basis. 3D Investing analysis of the companies actually held is now part of Square Mile Research and in pooled ethical funds available in Since our last guide, 3D Investing has Consulting.” the UK. The 3D rating is based on an become part of another company and For more information about 3D Investing, assessment of funds in five key areas: will shortly be changing its methodology. please visit: www.3dinvesting.com

Invests in... 3D 5 Year Growth at Fund Name Stars Fossil Animal Ethiscore 12/8/20 (%) Fuels? Banks? Testing? Arms? Impax Environmental Markets 5 7 88.9 Triodos Pioneer Impact 5 16 64.2 FP WHEB Sustainability 5 16 78.4 ASI Global Equity Impact 4 6.5 62.6 BMO Responsible Global Equity 4 10.5 103.4 Janus Henderson Global Sustainable Equity 4 7 104.6 Jupiter Ecology 4 6.5 64.4 Liontrust Sustainable Future European Growth 4 * 6.5 63.9 Quilter Cheviot Climate Assets 4 † 6 54.9‡ EdenTree Amity International 3 7 55.7 Kames Ethical Corporate Bond 3 5 24.2 Rathbone Ethical Corporate Bond 3 6 33.0 Royal London Sustainable Leaders 3 * 11.5 38.1 Sarasin Sustainable Global Real Estate Equity 3 11 22.4 Castlefield B.E.S.T Sustainable Income 2 13 -1.7 LF Heartwood Growth Sustainable Multi Asset 2 6 Fund under 5 years AXA Ethical Distribution 2 10 17.2 Legal & General Ethical 1 9 2.7 SVM All Europe SRI 1 6 24.8

* Via power producers † Via gilts and US government bonds ‡ as of 30/6/20 (quiltercheviot.com) A CASE STUDY OF GOOD PRACTICE – TRIODOS In July 2020, we asked Triodos, a in turn gives their parents and carers a a larger, more flexible space means that long-time leader in the world of ethical break from their caring roles. MAIN can offer tailored support and a more finance and in Ethical Consumer’s own In July this year, a loan from Triodos appropriate environment for those that we reports, whether it had any examples Bank UK and a generous donation support. We can offer safe and comfortable of positive projects it had financed from the Finlay Cooper Fund allowed spaces for those with specific needs, whilst recently that we could tell our readers MAIN to purchase a former community providing a wider range of equipment and about. They wrote the following short nurses’ station in the town. The building facilities, such as pool tables and kitchens.” piece for us. (formerly known as Unity House) is to be Post-COVID-19 it is imperative that transformed into the new Finlay Cooper organisations like MAIN continue to receive MAIN is an organisation that Centre, and will enable MAIN to increase financial support. Often overlooked by provides a care service for people the impact of its work and meet the regular banks, care organisations need to with a range of disabilities (including growing demand for its services. know that there are banks that will support autism and cerebral palsy) by giving MAIN will be able to double its existing them through difficult times. them the skills they need to live an space, increasing its impact from 400 Building Back Better is reliant on independent life, whilst having fun visitors per week to over 700, while spending money in the right places and and making friends. The charity runs also providing specialist equipment for it is empowering to think that we can all clubs and services for children from different ability groups. support the transition to a greener, fairer Middlesbrough, Redcar and Cleveland, Helen Jaques, MAIN’s charity manager, world by investing our money to create Stockton, and County Durham, which comments: “The advantage of having positive change.

38 Ethical Consumer Sept/Oct 2020 OUR TRANSPARENCY RATING © Fabrizio Zanier | Dreamstime.com © Fabrizio

hen we examine investment funds, we rate them If a fund was marked as ‘Bottom of the pile’ then it lost half against the usual criteria that we apply to other a mark across each of our categories, excluding those that companies, such as tax and environmental are purely policy-based references such as the Supply Chain reporting. But we also want to rate them on the Management reference. Wcompanies they invest in. We did this first by rating them For the details of how each company scored according to this according to their transparency and engagement policies. rating, see the online guide on the Ethical Consumer website. According to our assessment of these policies and Next to each company in the score table you will be able to click disclosures, a company was placed in one of the following on these ratings and read our assessment in full. categories: Top of the pile: Aegon, AXA, BMO, Castlefield, Legal & General, TOP OF THE PILE Royal London, Sarasin & Partners, Standard Life / Aberdeen Asset Management, Triodos, and WHEB a) A clear investment, engagement and voting policy, which Getting there: AllChurches Trust (EdenTree), Impax Asset includes consideration of ethical risks, with Management, Janus Henderson, Jupiter Asset Management, b) full or extensive disclosure of voting history, and Kames (owned by Aegon), Liontrust Asset Management, c) a clear statement that these policies apply across all the Quilter Cheviot, Rathbone Brothers, Scottish Widows, SVM assets under management. Asset Management Vague / Unsubstantiated: Industrivarden (LF Heartwood GETTING THERE Growth) Bottom of the pile: None Some details of ethical investment, engagement and voting policies, with limited disclosure of voting history. Our transparency and rating system does well to highlight best practice, but one issue is that companies that are not rated VAGUE/UNSUBSTANTIATED ‘Top of the pile’ for their transparency and engagement will generally receive comparatively much lower scores because Some reference to an ethical voting policy or engagement they have been marked down according to the companies strategies, or a published stewardship statement, but more they invest in, many of which do not fare well against Ethical information required to assess how robust they are. No voting, Consumer’s strict rating system. or voting disclosure for a single subsidiary only. BOTTOM OF THE PILE WHAT IS ESG? No information on ethical investment, engagement or The term ‘ESG’ is ubiquitous in the realm of finance and shareholder voting policies could be found. business more generally. A medium-sized acronym, it is usually found scurrying across the pages of corporate sustainability reports shortly before AGMs, nesting between Scoring photos of clean-energy windmills and poor-but-seemingly- happy children from some low-income country. If a fund was marked as ‘Top of the pile’ we did not mark The acronym might raise the eyebrows of music fans, but it down for the specific investments it held, even if it held sadly it has nothing to do with Emerald Sapphire & Gold, the investments in companies that scored badly according to South Bronx dance-punk band formed in 1978. In our current Ethical Consumer’s ratings. This is because the fund was context it stands for Environmental, Social and Governance, considered to have strong engagement and transparency and refers to a plethora of issues that investment funds and and so was considered to be using its influence to improve other banking institutions should be taking into account. companies it was invested in. While it is most certainly a good thing that ESG has If a fund was marked as ‘Getting there’ or ‘Vague/ become common parlance in the world of finance, sometimes unsubstantiated’ then we marked it down for its investments (especially after looking through a company’s less-than- according to information on our database. For example, if a adequate policies) one gets the feeling that some seem to fund held shares in a company that received our worst rating think that simply mentioning the phrase a certain number of for animal testing then we would mark the investment company times is enough to be able to say you’ve dealt with it. down by half a mark in the Animal Testing category.

ethicalconsumer.org 39 NEWS Climate Campaigners condemn use of UK aid for fossil fuels in Africa

We know that climate change impacts communities and exacerbates poverty in the global south the most, and the UK is hosting a crucial global climate summit next year. With CDC set to become an ever-bigger part of UK aid after the abolition of DfID, this latest revelation points to a worrying future. If investments like these continue, it will make the UK government and its claims of climate leadership a laughing stock ahead of COP26.” The news follows Global Justice Now’s analysis earlier this month which already revealed that over half a billion pounds of UK aid has been invested in fossil fuel projects overseas since the Paris Environmental activists in Kenya are determined to show that coal has no place in the Agreement was signed in 2016. country’s future.

Photo: decoalonize.org CC: BY-NC-SA 2.0 BY-NC-SA CC: decoalonize.org Photo: As the UK prepares to host the rearranged COP26 climate summit in Campaign group Global Justice Now Daniel Willis, climate campaign in November 2021, campaigners has condemned new revelations about manager at Global Justice Now are calling on the government to get its the UK government putting aid money commented on this news: “CDC have house in order by putting a stop to all into fossil fuel projects overseas, as today let slip that another £100 million use of public money to finance fossil fuel highlighted in the 2019 annual report of of UK aid has gone directly to fossil fuel projects overseas, as well as commit to CDC Group, a wholly owned projects in Africa – even as they try and a socially just plan to divest from all its by the Department for International talk up their record on climate change. fossil fuel investments within two years. Development. What’s more, a derisory 15% of the The report lists CDC investments, electricity generated by their investments For more information about the need including £65.5 million in a gas power was renewable last year – this has actually to decarbonise aid see: www.globaljustice. station in Ghana, and £34.9 million in fallen”. org.uk/resources/decarbonising-aid-why- the gas-fired Azito power plant in Cote “It is a totally contradictory use of uk-must-end-its-overseas-fossil-fuel- d'Ivoire. UK aid to be investing in these projects. financing-cop26 © Greenpeace Positive news from BP?

BP has announced a 10-year plan to slash its oil and gas production and increase its renewable energy business. By 2030, BP says it will produce 40% less oil and gas; generate 20 times more renewable energy and invest 10 times more in low-carbon technology. Although these targets should be taken with a pinch of salt, this is a first for a major oil company and could mark a step change for the fossil fuel industry. Greenpeace have responded to this announcement by calling on campaigners to hold BP to account and to place pressure on the other oil giants, such as Shell, to follow suit. They also highlight key weaknesses in BP’s announcement that need to be addressed if its plan is to be meaningful:1 1. Close the loopholes. BP’s 40% target currently fails to account for all its production operations, including those that it part owns. In addition, as BP sells the fuel of other companies via In 2019, activists occupied a BP oil rig that was set to head to the North Sea to drill for up to 30 million barrels of oil. BP’s rig its petrol stations, its targets also need to cut overall emissions, operator has fined Greenpeace £80k for the action. addressing emissions from oil sales as well as production. 2. Focus on the real solutions. Some of BPs proposed climate survival. For other oil companies like Shell, this should be a rude solutions have been roundly criticised and include advocating awakening” wrote John Sauven, executive director of Greenpeace for biofuels and hydrogen production from methane, a fossil UK. fuel. Join Greenpeace in keeping up the pressure: www. Although there is much room for improvement, “BP has greenpeace.org.uk/news/bp-oil-production-renewable-energy woken up to the fact that the next decade will be crucial to References: 1 www.greenpeace.org.uk/news/bp-oil-production-renewable-energy

40 Ethical Consumer Sept/Oct 2020 NEWS Climate

terrain – tackle more hills and you need IN THE SMART HOME… more power. Take careful note of the battery size and take manufacturers’ range estimates with caution! If range ELECTRIC BIKES is crucial, e.g. for a commute, bear in JONATHAN ATKINSON of Carbon Co-op peers into some of the complexities mind some models feature add on range we face in the transition to low carbon homes. extenders disguised as water bottles!

Price Once eBikes were a You can pay anything from £600 to many niche pursuit but in thousands of pounds. As always, you get © Ribble Cycles a post-Covid world what you pay for. If you’re considering where many are the bike for a commute, you probably fearful of packed want something over £2,000, but bear public transport in mind Bike To Work schemes reduce or gridlocked and spread the cost. You can also save roads they are fast money by retrofitting a motor using kits gaining popularity. available on the web, but you’ll probably There are now a need the assistance of a competent bike huge range and mechanic. As for charging, a full battery variety of eBikes. is likely to cost pennies in terms of Here’s some things electricity use. to bear in mind when considering a Ethical considerations model. All the same ethical considerations Ethical Consumer outlined in its August A Ribble Hybrid ALe eBike. The motor is in the rear wheel hub and What’s an 2018 shopping guide to electric bikes the battery in the bike’s downtube. This one costs about £2,000. eBike? (www.ethicalconsumer.org/transport- Electric bikes are travel/shopping-guide/electric-bikes ) battery powered push cycles. They feature road bike on a mountain trail! If there’s are relevant here – including workers’ ‘pedal assistance’ so the harder you pedal a specialist bike available there’s an rights, conflict minerals and favouring the more assistance they provide. In the electric version. But the extended range independent outlets. There are some UK there is a legal cut off limit, so as the and power also means eBikes can new, specialist manufacturers too. bike hits 15.5mph assistance tapers off. achieve uses standard bikes can’t, such Added to this, responsible battery as a daily 30 mile commute or acting as disposal should be a consideration – What will you use it for? a replacement second car suitable for regular use means the battery will have The kind of eBike you select should be shopping trips. an effective lifespan of perhaps as short tailored to the purpose you are purchasing as a couple of years. it for: there’s no point taking a lightweight A long way to go? Our last bit of advice – try before you Range is linked to the battery size buy! eBikes are really fun and plenty of and capacity – bigger batteries can go places now offer hires, so try one out for further – but range also depends on yourself and see if it might be right for you.

NUMBER 15 OF THE 52 CLIMATE ACTIONS: USE CLIMATE TOLERANT PLANTS

ethicalconsumer.org 41 NEWS Climate BEST? OUR NEW CLIMATE CHANGE RATING

or many years, we rated companies Targets initiative (SBTi), which is an In the first few years, we think it will be in our climate change column international collaboration between very difficult to get a best rating, however, primarily based on the industries the Carbon Disclosure Project, World we think it important to indicate where they were involved in. Fossil fuels, Resources Institute, WWF, and the UN we think the direction of travel should Fcars and aviation companies, for example, Global Compact. be. Only five companies in this magazine received low ratings. We separately rated As the name suggests, the aim of the received the best rating: Ecology, Triodos, them on their environmental reporting project is to get companies to sign up WHEB, Impax and M&S. in the adjacent column, looking at to science-based emission reduction In the last quarter of 2020, Ethical whether they had targets to reduce their targets – ones that are “in line with what Consumer will be seeking grant funding environmental impacts, but we have is necessary to meet the goals of the Paris to apply this ranking quickly across the never judged the targets themselves. Agreement – to limit global warming biggest 2,000 companies on our database In an era of climate emergency, we to well-below 2°C above pre-industrial which make up the scores for all our felt that that wasn’t good enough. We levels”. shopping guides. If you know of anyone have therefore developed a new, more 312 companies are signed up to who might be interested in supporting sophisticated, climate change rating the SBTi, including some biggies like this project, please contact consultancy@ which we are going to be applying to all Walmart, Vodafone, Veolia and Unilever. ethicalconsumer.org companies in all industries from this magazine onwards. OUR NEW CLIMATE CHANGE RATING Avoiding greenwash Part 1: Company shows that it has a reasonable understanding of its areas of climate A major problem in the area is companies impact and how to ameliorate it, and is taking steps to do so. which can talk the talk, but not really a) A company must discuss its areas of climate impact and discuss plausible ways walk the walk. We have therefore built in it has cut it in the past, and ways that it will continue to cut it in the future. several parts to the rating that we hope b) A company must have relevant sector-specific policies in place. will weed out those who are just burbling. c) A company must not be involved in any particularly damaging projects like tar Firstly, the company has to publicly sands, oil or aviation, be subject to damning secondary criticism regarding it’s discuss plausible ways in which it has climate actions, or involved in funding climate denial think tanks. made real cuts to its emissions in its most significant areas of impact, and will Part 2: continue to do so. A company that owns a Company reports its scope 1&2 emissions annually (Scope 1 is direct emissions coal plant talking about changing the light by the company. Scope 2 is emissions in purchased electricity and heat). bulbs in its head office really doesn’t cut it. For the finance companies in this issue, Part 3: for example, we are looking for full carbon Company reports scope 3 emissions, covering at least tier one suppliers. divestment. Secondly, the company has to be taking Part 4: the calculation and public reporting of Company has a future target in line with international agreements. its emissions seriously, which means l The company has a target to cut 2.5% per year or more of its absolute scope 1&2 including major portions of its ‘scope 3’ greenhouse gas emissions, without offsetting. emissions. These are emissions from the OR factories in company supply chains, or in l The company has a scope 3 target and a scope 1&2 target that adds up to the company investments, or in the use of a equivalent of 2.5% or more a year. companies’ products. Scope 3 emissions OR can easily amount to 90% of a company’s l The company has a target to reduce scope 1&2 emissions per pound value added impact, but regulatory requirements tend by 7% or more a year. not to require them to be reported, not OR least because they are very difficult to l The company has targets in place agreed by the SBTI. measure. This is not good enough given the emergency we are in. Rating system: BEST = Company gets Parts 1-4 MIDDLE = Company gets Parts 1&2 Judging targets WORST = Company gets none of the Parts.

In order to judge a company’s emission NB: Small companies with a turnover under £10.2 million receive best if they pass reduction targets, we are using the Part 1. methodology used by the Science Based

42 Ethical Consumer Sept/Oct 2020 NEWS Boycotts Amazon forces sellers to pay its Digital Services Tax

Amazon has increased the fees paid by our last magazine, we estimated that the small businesses and other sellers on UK had lost over £1 billion in taxes from its site to pass on the cost of the Digital the profit shifting of Google, Facebook, Services Tax introduced by the UK Microsoft, Apple and Amazon in 2017. Government from 1st September. The Companies generally pay taxes based company, which has a market value of on the amount of profit they register in over $1 trillion, increased UK fees by 2%, a country. But because tech companies matching the new taxation. By passing the often trade in intangible things like taxes on to its users, Amazon is directly patents that can be located anywhere, it forcing small businesses to pay the cost of is easy for them to register their profits its tax avoidance. in tax havens and avoid paying in higher 38 Degrees says, “By the time you tax countries even if they have substantial tax avoider finish this sentence, Amazon boss Jeff business there. The Digital Services Tax cheaper shopping at the Bezos will have made £12,000 … At a time instead looks at sales made in a country expense of our public services when these businesses are struggling to – making it an important step towards get by, it’s an indefensible decision.” taxing tech companies fairly. The Digital Services Tax is aimed at ensuring that search engines, social media services and online marketplaces TAKE ACTION Ethical Consumer has a boycott call like Amazon are paying their share of against Amazon for its tax avoidance. taxes. Sign 38 Degrees petition asking We are also campaigning for the digital It follows ongoing repeated criticism of Amazon to pay the tax itself: service tax to be increased to 10%, to Amazon for its tax avoidance practices. In you.38degrees.org.uk/petitions/ ensure that those profiting from the 2018, the company paid just £220 million amazon-pay-the-digital-services- coronavirus pandemic are also helping in direct UK taxes, despite revenues in tax-yourself bear the cost – see www.ethicalconsumer. the country amounting to £10.9 billion. In org/technology/big-tech-sales-tax.

Amazon accused of firing whistleblowers

Amazon has been accused of firing employees in America who failing to comply with social distancing practices. have spoken out about unsafe conditions in the company’s However, it has acknowledged that Cunningham and Costa warehouses during the coronavirus pandemic. Campaigners say were fired for “repeatedly violating internal policies” that that at least six workers have already been fired and others face prohibit employees from commenting publicly on its business ongoing retaliation. without approval from executives. They had previously received In March, Chris Smalls was fired after he led a walk-out at warnings for speaking out about the company’s poor climate a New York Amazon facility, demanding that the warehouse record with campaign group Amazon Employees for Climate be closed for cleaning after one of its workers tested positive Justice. for COVID-19. Also, in March, Courtney Bowden was fired after Athena Coalition, a campaign network tackling Amazon, says pushing for paid time off for part-time workers and Gerald “We are concerned that Amazon has developed a pattern of Bryson was fired after being involved in two protests over surveillance, targeting, and firing of whistleblowers around the worker safety in Staten Island. country”. It says that others are facing ongoing retaliation. In April, user experience designers Emily Cunningham Democratic senators including Elizabeth Warren and Bernie and Maren Costa were sacked after circulating a petition Sanders have sent a letter to the company asking about its within the company about health risks for Amazon warehouse conduct. The New York state attorney general has said that the workers during the pandemic. Bashir Mohamed was fired after company may have broken the state’s whistleblower law. circulating paper petitions in English and Somali about the One of the company’s Vice Presidents and senior engineers impossibility of practising social distancing at a Minnesota Tim Bray has also quit over concerns following the dismissals, facility where he worked. which he suggested exposed a “vein of toxicity running through Amazon claims that Mohamed, Bryson, Borden and Smalls the company culture”. were sacked for a range of issues, including vulgar language and

References: 1 https://www.wsj.com/articles/fired-amazon-warehouse-workers-accuse-company-of-retaliation-which-it-denies-115868913342 https://www.cnet.com/news/fired-amazon-worker- says-termination-was-retaliation-for-speaking-out 3 https://edition.cnn.com/2020/04/22/tech/amazon-warehouse-bashir-mohamed/index.html 4 https://www.theguardian.com/technology/2020/ apr/14/amazon-workers-fired-coronavirus-emily-cunningham-maren-costa5 https://www.tbray.org/ongoing/When/202x/2020/04/29/Leaving-Amazon

ethicalconsumer.org 43 FEATURE

Stop Hate

Tom Bryson tells us more about the new Facebook boycott campaign. for Profit

hroughout July 2020, over 1,000 The problem with platform. It also recorded an alarming companies took unprecedented increase in religion-based and race- action against Facebook’s Facebook based harassment across all social media policies on hate by withdrawing Facebook uses algorithms to platforms between 2019 and 2020. Tpaid advertising from the platform. recommend pages and groups Campaigners and advertisers have to individual users, and groups long called for social media companies to peddling hate and extremism are Stop Hate for Profit take greater responsibility for their role frequently promoted in this way: in allowing harmful misinformation and Facebook’s own study found that 64% boycott campaign hateful ideologies to spread. Criticisms of the users in extremist groups in The Stop Hate for Profit campaign was have intensified in recent times, in part Germany joined due to the platform’s launched on June 17th 2020, in the due to the social media activities of recommendations, while a separate wake of the George Floyd protests, by a Donald Trump, whose repeated fallacious investigation by UK-based counter- coalition of US civil rights and non-profit and inflammatory posts have been extremist organisation Institute organisations including Anti-Defamation allowed to influence millions of followers. for Strategic Dialogue (ISD), found League, Color of Change, Common In May this year, Trump was widely that Facebook’s algorithm “actively Sense, Free Press, League of United Latin condemned for inciting violence with his promotes” Holocaust denial content. American Citizens, Mozilla, National posts on social media in response to the Indeed, Facebook may well have Association for the Advancement of protests that followed the death of George a financial incentive to allow hate Colored People, National Hispanic Media Floyd, in particular his statement “when speech; as inflammatory content can Center, and Sleeping Giants. the looting starts the shooting starts”. generate engagement, leading users In July 2020, the campaign asked While Twitter acted to hide the to spend more time on the platform businesses to withhold all paid comment for “glorifying violence” and and therefore be exposed to more advertising from Facebook and the violating its policies, Facebook allowed advertising. other platforms it owns (including the post to remain unchecked. CEO Mark The propagation of hate speech Instagram and WhatsApp) for one month, Zuckerberg stated “I disagree strongly on the platform has had devastating demanding Facebook implement ten key with how the President spoke about this, real-world consequences. A United policy changes (see opposite) that would but I believe people should be able to see Nations report says the use of Facebook amount to “real progress” in dealing with this for themselves …” This was despite played a “determining role” in hate speech and misinformation. Zuckerberg having testified before Myanmar’s military spreading hateful congress in October that any content propaganda against the Rohingya. A calling for violence “including [by] a genocidal campaign there has seen politician” would be taken down. tens of thousands die and hundreds of Trump’s words served to highlight thousands displaced. some of the entrenched problems with The platform also seems to Facebook’s approach to moderating encourage harassment. A 2020 survey harmful content, which go far beyond the of American social media users carried president’s posts. out by Anti-Defamation League found that 42 percent of daily Facebook users experienced harassment on the

44 Ethical Consumer Sept/Oct 2020 STOP HATE FOR PROFIT’S

By withdrawing advertising, 10 DEMANDS OF FACEBOOK Progress? the campaign was able to 1 Hire a ‘C-Suite’ or boardroom level executive specialising in civil rights to evaluate impact Facebook’s primary products and policies for the potential for discrimination, bias, and hate. source of revenue. In 2019, 98.5% of Facebook’s 70 billion Submit to regular, third party, independent focused on hate and misinformation and 2 publish the results of these audits publicly. dollar revenue was generated through advertising. Agree to refund advertisers whose ads were shown next to content that was later removed Central to the campaign 3 for violations of terms of service. was the notion that “hate on Facebook is not good for Actively seek out and remove groups focused on ‘white supremacy, militia, antisemitism, 4 violent conspiracies, Holocaust denialism, vaccine misinformation, and climate denialism.’ advertisers”. Many of the advertisers expressed their 5 Adopt ‘common-sense changes’ to policies to help prevent radicalisation and hate. concerns about their adverts appearing alongside divisive content and how that could Stop recommending groups and content associated with hate, misinformation or 6 conspiracies. affect their image. Stop Hate for Profit 7 Create a mechanism to automatically flag hateful content in private groups for human plans to take more action review. in the coming months, and organisers see the campaign Stop allowing exemptions to politicians from the terms of service and remove 8 misinformation related to voting. growing in Europe and in other places. Some advertisers 9 Employ expert teams to review submissions of identity-based hate and harassment. have decided they want to continue pausing spending past July until Facebook takes Allow individuals facing hate and harassment to connect with a live Facebook employee 10 for support. more aggressive action against hate speech. Facebook committed to ‘instituting Impact of the boycott sufficient measures’ to be awarded the green status. Over one thousand businesses While the July boycott has come to responded to the campaign and paused an end, the movement appears far from their advertising on Facebook, including over, with some companies such as Ben & some of the worlds’ best-known Jerry’s, Coca-Cola, HP and Mars extending multinationals and brands such as their advertising pause beyond July. The Unilever, Adidas, Ford and Volkswagen, campaign has also led to further scrutiny drawing widespread attention to of Facebook’s policies from legislators Facebook's role in spreading hate and and governing bodies. costing the platform millions of dollars Stop Hate for Profit itself appears in revenue. to be committed to further action until Facebook made several public Facebook meets all its 10 demands, statements in response to the campaign stating “the ad pause in July was not a full and conceded to some of the demands, campaign – it was a warning shot across such as creating a senior role to oversee Facebook’s bow”. civil rights (demand 1), although this was Find out more and sign the petition to not at the ‘C-Suite’ level recommended, support the campaign at establishing a dedicated team to study www.stophateforprofit.org/demand- algorithmic racial bias and taking action change against certain hate groups such as the right-wing extremist Boogaloo movement (demand 4). Despite these concessions, the campaign maintained that Facebook had “not yet approached the type of meaningful action that we want to see”. At the end of the July boycott, the campaign published a review of Facebook’s progress against its 10 demands graded on a traffic light system. Four demands were given ‘yellow status’, meaning “Facebook has attempted to address this issue, and has fallen short”, while six were ‘red status’: “Facebook has yet to meaningfully address this issue”. In no areas was

ethicalconsumer.org 45 NEWS Beyond consumerism FORAGING Our Beyond Consumerism page seeks Foraging yields some thrilling and onerous but can lead to some fine foraging out ideas big and small, for rethinking memorable finds. Each forager will have privileges. On public land, unless under economic systems or reducing reliance their own ‘pinnacle’ find; however, it is the control of specific byelaws that restrict on corporations and money. This time the more abundant, widespread species removal of plants or fungi from the land we hear from herbalist Jesper Launder that make up the bulk of most foragers’ (some National Trust sites and SSSIs in about autumn foraging. harvest. Foraging very rarely excludes the particular), foraging for personal use need to supplement wild finds with shop- (rather than commercial use) is allowed. bought additions, however it is possible The main caveat here is that the uprooting sk most seasoned foragers and to minimise one’s degree of dependency of any plant is illegal and, in addition, a they will talk of a profound sense on shops and lighten the impact of our small number of rare plants and fungi are of peace and purposefulness food needs. Foods harvested from the protected by law so may not be harvested when dropping into a foraging wild come without most of the ethical at all. Amindset. These rewards alone justify the considerations that need to be applied to The most fundamental of all foraging effort to forage. But then there are the shop-bought produce. rules is to simply not eat anything unless more tangible rewards of your labour, There are, however, some ethical issues 100% certain of identification. Deadly the edible flowers, leaves, fruit, nuts, with foraging. The most fundamental of foraging errors are very rare in the UK but roots, and fungi that act as the motivator, these is simply to harvest no more than they have happened. particularly at the start of most people’s you need, making sure to leave plenty By gaining familiarity with an increasing foraging journey. behind. I find it helpful to view foraging number of species and discovering wild An abundance can be noted especially as a role with responsibility, one where foods outside the main foraging windows at the end of summer and in early the forager is a steward of nature, and of spring and autumn, it becomes possible autumn when hedgerows bursting with where the future welfare of the species to find wild foods throughout the year. elderberries, hazelnuts, blackberries, harvested is of paramount importance. Many species are common, and widespread hawthorn berries, sloes, damsons, There are also some moral and legal enough that anyone with some basic skills and rosehips are a common sight. If considerations regarding foraging on in differentiating plants should be able to conditions are ideal, wild mushrooms can public and private land. Having the locate them. be found in huge amounts at this time of permission of a landowner before year. foraging on their land may seem

In Autumn you might find: HAWTHORN BERRIES HAZEL (CRATAEGUS SPECIES) (CORYLUS AVELLANA)

Best harvested when the skin has One of our most common hedgerow developed a deep red colour. The trees and, under good conditions, can flesh of the berries is somewhat pulpy produce bumper crops of nuts from and insipid when raw, but in spite of late summer. Young green nuts have a this they make an excellent hedgerow fresh nutty crunchiness to them that ketchup and provide a pectin-rich is quite unique and very different from base for fruit leathers with other more the mature nut we are more familiar PARASOL flavourful fruits added. with. As well as making a nourishing MUSHROOM snack, the nuts can be removed from their shells, dried, and ground for use (MACROLEPIOTA in cakes, crumbles, and curries. PROCERA)

On balance there are fewer dangerous species of fungi to be found in meadows than in the woods. This edible mushroom is more commonly seen in open unfertilised pastureland and along coastal paths. The delicate flesh makes probably the tastiest mushroom fritter imaginable. Dried and powdered it can be used to flavour pretty much any savoury dish.

46 Ethical Consumer Sept/Oct 2020 NEWS Campaigns Workers fired for talking about coronavirus on Spanish farms

s part of our ongoing work pressuring UK supermarkets to guarantee the rights of workers in their supply chains, we highlight the most recent violations of workers’ Arights in Almeria, southern Spain.

Pinto told Ethical Consumer that medics informed one worker that he probably had coronavirus based on his symptoms. He circulated a photo of his

© SAT Almeria © SAT medical report to colleagues as they Managers in southern Spain told workers had worked together in a big, enclosed they are not allowed to speak about factory and he worried they might be coronavirus – or they will be fired. infected. Pinto said when the manager Ethical Consumer spoke to a worker found out he shared his medical report, who wished to remain anonymous. he was reprimanded and workers were “I worked at the strawberry company told they would be fined 600 euros if they “Social distancing means nothing here.” Workers are crowded together as they enter Cuna de Platero. I had virus symptoms discussed it because it was “confidential the Surexport warehouse each day.

and was unwell for 27 days and stayed information”. worker. an anonymous sent from Photo in quarantine at home. When I returned Pinto commented, “We’ve been to work, HR asked me to please not tell contacted by workers from three of the rights union SAT Huelva expressed anyone I was unwell with coronavirus largest red fruits companies in Huelva, scepticism that there hasn’t been a single symptoms. They said if I told my frightened because businesses prohibit outbreak among workers. colleagues they wouldn’t look at me the them talking about coronavirus. They “If there have been cases of same.” believed colleagues were getting infected coronavirus, they have been censored “They told me to say I had been ill with and the business was hiding it.” and not come to light. It’s a ‘miracle’ that depression, and not tell the truth. I went Workers from companies Grufesa in not a single shantytown, lacking water, back to work and an hour and a half later and Surexport have also spoken out basic essential services, and rubbish they called me back to the office and fired anonymously. collection, there hasn’t been a single me.” Jose Antonio Brazo of the workers’ case.” Ana Pinto used to work on the farms and is now part of workers’ rights collective Jornaleras de Huelva en Lucha. Over 7,000 Moroccan women were stranded in Spain due to coronavirus travel Since she began denouncing conditions restrictions for over a month after their contracts ended. for workers, no companies will hire her. The soft fruit harvest can be an opportunity for the women to earn four times as much as they would in Morocco. However, at the end of this season women could not return home as Morocco enforced a strict border lockdown in mid-March. Many women whose contracts ended in mid-May or June faced dismal prospects: spend earnings on subsistence in Spain and return to Morocco empty- handed, or send earnings to their families and try to survive in Spain without money for an unknown length of time. The women lived in shared accommodation provided by the farms, with several women crowded into rooms with bunk beds. One woman described it as “like living in hell” because the accommodation was so hot and not built to withstand Spanish summer temperatures. The women were finally repatriated to Morocco at the end of July on a series of ferries. British supermarkets have not acknowledged responsibility for the workers who were stranded, despite these workers likely being part of UK supermarket supply Many workers live in makeshift chains. shantytowns, without running water. © Colectivo de Trabajadores Africanos. de Trabajadores © Colectivo

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48 Ethical Consumer Sept/Oct 2020 ETHICAL CONSUMER Letters

Amazon included in your ratings system? E.g. Diversity in staff, in marketing and BBC Response: While we appreciate alternatives websites, cosmetic products suitable for your concerns about references to I believe that all ethnicities/ skin tones etc. Amazon Prime here, we would explain one of the many Jitender that advertising is very specifically negatives about defined by broadcasting regulator Ofcom Amazon shopping Ed: We certainly want to incorporate as being “any form of announcement is that they charge matters of race and diversity into our broadcast ... in order to promote the disproportionately rating system and it is something we supply of goods and services ... in high fees to the are currently examining. We’re also return for payment”. Under the terms small vendors who working to integrate these issues of the BBC Royal Charter & Agreement, sell goods on their across our content and guides. In July, advertising is not allowed in programmes platform. Given that the most obvious we published, in collaboration with made for BBC licence-fee funded alternative for many buyers to Amazon researcher Leah Gordon, a guide to ‘The services. is to use eBay, I felt it was a notable best make-up brands for darker skin’, However, it must be recognised that omission from your report on online which can be found on our website the world in which we now live contains shopping that there was no coverage – www.ethicalconsumer.org/health- many brands and logos and the BBC of eBay e.g. on the terms they apply to beauty/best-make-brands-darker-skin. has a duty to reflect the world as it is. small vendors. We encourage readers to get in touch if This means our reports will sometimes Bob they have suggestions for other guides include references to commercial brands or features that they would like to see. or services, but this does not amount to Ed: In the Ethical Online Retailers advertising. product guide we wanted to focus on We hope this helps to explain our retailers that were geared specifically Ethical Consumer approach, but we appreciate you may towards ethics and we would encourage continue to feel that the references consumers to buy from them as an complaint to the BBC to Amazon in this report were alternative to Amazon. See also page 43 Ethical Consumer recently submitted inappropriate. for more on Amazon’s latest dodgy fees the following complaint to the BBC Please rest assured your complaint has increase. about what we felt was the promotion been shared with the BBC News team However, you make a good point and we of Amazon, a company we believe and senior management on our audience know that a lot of consumers buy from should be boycotted due to the plethora feedback report. These reports are eBay to avoid Amazon. We last rated of criticisms against it, from workers’ among the most widely read sources of eBay in mid-2018 and it received an rights abuses to tax avoidance. feedback within the BBC and help inform Ethiscore of 8.5. Don’t forget to check “On Thursday 30th July in the evening our ongoing work. reviews of sellers for complaints of I watched the BBC News, and the last item ‘dropshipping’, ie eBay sellers fulfilling was presented as if it was a light story, I your order by buying and delivering it believe it was about a woman who could through Amazon! remember long strings of numbers. The We welcome readers’ letters. Letters ‘newsreader’ then said that a film of the may be edited for reasons of space or clarity. If you do not want letters story was coming out the next day on or emails to be published, please Black Lives Matter Amazon Prime. It went on to show clips mark them ‘Not for publication’. Our with the Amazon logo on screen – I was address is on page 3, or email us at In light of recent events re: Black Lives shocked. An Amazon advert within the [email protected] Matter, will diversity in companies be BBC news ....? Please explain.”

ethicalconsumer.org 49 INSIDE VIEW Labelling the problem

As the carbon crisis intensifies, growing numbers of companies are now starting to label their products with their carbon footprint, says SIMON BIRCH.

hat do you think the carbon to understand what the carbon label is point, is 0.41kg CO2e/kg a high or low impact is of your weekly food actually saying. figure? shop? For example the Oatly carbon label What would be more helpful is if The chances are that you’ve says that the carbon footprint of each the information in the carbon label Wno idea, but the good news is that the carton of oat milk is 0.41kg CO e/kg, was framed in a way that was easier 2

move to carbon label everyday products is where CO2e/kg is the greenhouse gas for shoppers to understand, such as booming. emissions per kilogramme of product, the traffic light system that’s used for Everybody from multinational giants converted to an equivalent amount communicating nutritional information L’Oréal and Unilever to smaller companies of carbon dioxide (carbon dioxide on packaging.

such as Brewdog beer and Quorn are equivalents or CO2e). This is the standard Of course this isn’t the first time now busily adding carbon labels to their unit for measuring carbon footprints so that carbon labelling has been tried on products. that they can be compared. consumer goods. The main driver behind these moves is But how many It was back in 2008 that that the global food system now accounts shoppers would carbon labelling was first for around a whopping 25% of the world’s know this and, rolled out with the likes of greenhouse gas emissions. more to the Tesco and Walkers Crisps And whilst there’s rightly been a push eager early adopters. to cut the carbon emissions from highly These first moves soon polluting sectors such as housing and petered out though, not transport, there’s perhaps been less focus least because of the on the food and drink sector. Until now. complexity and cost of “We want to raise awareness around calculating a product’s the massive effect our food choices have carbon footprint. on the climate,” says Linda Nordgren from So will carbon Oatly, the Swedish plant milk company labelling succeed this which began putting the carbon footprint time? of their oat milk on their cartons last year. Certainly Hugh “Carbon labelling is a way to easily Jones from the see and compare the climate impact of Carbon Trust, which different food products before buying a is a major player in product. With the right information we the carbon footprint can help people make better food choices industry, is upbeat that reduce their climate impact,” added about the future: Nordgren. “The process is Ethical Consumer researcher Josie becoming less onerous Wexler welcomes the moves towards for companies and carbon labelling: equally important is “Putting carbon footprinting on that consumers are packaging is a really good idea and we starting to care more hope that it starts to happen across the about climate change board,” says Wexler. and the scale of public Phil Korbell from the Carbon Literacy action is accelerating,” Project, which raises awarness on climate says Jones. change, is equally enthusiastic: Linda Nordgren “As a simple way for a lot of people to from Oatly is similarly nudge the market in the right direction, optimistic: then carbon labelling has got huge “We’re not certain potential.” that carbon labelling So far, so good. will succeed this time, However, for carbon labelling to really but to do nothing is take off it’s got to address two key issues. not an option,” says The first is that there’s no standardised Nordgren. system for measuring the carbon footprint “The climate crisis of products. demands change. “It’s important to have some agreed Right now. And standardised methodology because, everyone needs to do Oatly is one of the depending on how you do the sums, you growing number of what they can.” can often come up with answers that differ companies to put by orders of magnitude,” says Wexler. carbon labelling on their packaging.

The other issue is that it’s a struggle © Oatly

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