To Sustainable Banking

OCTOBER 2012 www.blueandgreentomorrow.com THE GUIDE to Sustainable Banking

"IT IS WELL ENOUGH THAT PEOPLE OF THE NATION DO NOT UNDERSTAND OUR BANKING AND MONETARY SYSTEM, FOR IF THEY DID, I BELIEVE THERE WOULD BE A REVOLUTION BEFORE TOMORROW MORNING." HENRY FORD About Blue & Green Tomorrow

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contentsWWW.BLUEANDGREENTOMORROW.COM 05 – FOREWORD 30 – THE CO-OPERATIVE By Alex Blackburne BANK With ethical policies manager, 06 – INFOGRAPHIC Barry Clavin By Ben Willers 33 – UNITY TRUST BANK 09 – MOVE YOUR MONEY With managing director, Richard With founder, Danielle Paffard Wilcox

14 – TRIODOS 36 – CREDIT UNIONS With managing director, Charles By Joseph Iddison Middleton 42 – ETHICAL IFA 18 – CHARITY BANK DIRECTORY With chairman, George Blunden 47 – WHERE NOW FOR 22 – RELIANCE BANK BANKING? With managing director, Trevor Smith

26 – ECOLOGY BUILDING SOCIETY With chief executive, Paul Ellis OCTOBER 2012 3

©BLUE & GREEN COMMUNICATIONS 2012 Every week thousands of people like you read our e-newsletter to catch up with the stories they may have missed, the trends they need to understand and the knowledge that allows them to create a more sustainable investment portfolio and lifestyle.

Join us at www.blueandgreentomorrow.com foreword THE GUIDE TO TO SUSTAINABLE BANKING p until this year, I banked with HSBC. structures that don’t filter in financial perfor- I’d done so since receiving a shiny red mance, their aggressive tax avoidance and their money box from them at the age of incredibly poor showing in any kind of customer seven. It wasn’t indoctrination; it was satisfaction survey, and the picture that’s painted Ujust a free money box to keep my pocket money is not pretty, never mind ethical. in. I opened an account with them, and all was But at the same time, I came across the alterna- well. tives, and this is where The Guide to Sustainable In fact, banking back then – The Dark Days, as Banking comes in. I now call them –was just an obligatory facet of A million miles away from the multinational life for me. Even up to the point where I was fin- investment banks that caused the financial crisis ishing university, I barely had any dealings with are hundreds of dedicated ethical, sustainable my bank. But we maintained a good relationship; and responsible institutions that consider the I earned money from my summer job at a call planet and its people as equally important as centre, and it kept hold of it until I needed to profit. buy the next edition of Football Manager. Again, They invest in industries that are making a real all was well. difference, as well as charities and local business- But things changed 12 months ago. es – all of which leave their mark on the planet, Until that point, switching banks hadn’t entered and not their footprint. my mind in my entire life. I was already snowed According to Move Your Money UK, half a mil- under from putting off university work until lion people have switched to these alternatives the last minute, so why would I need the extra since January, with the recent money laundering hassle? and rate-rigging scandals having a profound effect I’d never heard of an ethical bank before, let on the customers of big banks. alone what one was. Part of me – in The Dark So what I request of you is to read our Guide Days, this is – actually liked being a customer of and then ask yourself this question: am I with one of the biggest banks in the world, especially the right bank? If the answer is “no”, then do the supposed “world’s local bank”. something about it – switching is far easier than But after doing some digging for an article I was you might think. writing at the time for Blue & Green Tomorrow, I now open my wallet and see a shimmering blue my outlook changed. I learnt that my naïve Co-operative Bank debit card. The HSBC one is attitude – thinking that my money was simply no more, and the shiny red money box is stored sitting in the bank, waiting for me to spend it – away in a cupboard as a reminder of The Dark couldn’t be further from the truth. Days. Instead, the big banks were investing it in some I call this next chapter The Good Bit. of the most unethical industries imaginable – ones that contribute to environmental degrada- tion, resource scarcity, wars, pollution and even death. And industries that anyone with morals and ethics shouldn’t want their money to go OCTOBER towards. EDITOR, BLUE & GREEN TOMORROW Add this to their disproportionate executive pay 2012 5

©BLUE & GREEN COMMUNICATIONS 2012 IS IT TIME TO SWITCH? HOW DOES YOUR BANK PERFORM IN THE COM- PLAINT LEAGUE TABLE? THE MOST COMPLAINED ABOUT FIRMS AND PERCENTAGE OF COMPLAINTSIs it time CLOSED* to switch? How does your bank perform in the complaint league table? The most complained about firms and percentage of complaints closed* *Complaints opened and closed recorded over a six month period between 01 Oct 2011 and 30 Jun 2012, (see source for details). Complaints closed may exceed those opened as this may include complaints opened previously. *Complaints opened and closed recorded over a six month period between 01 Oct 2011 and 30 Jun 2012, (see source for details). Complaints closed may exceed those opened as this may include complaints opened previously.

Percentage of complaints closed within 8 weeks Percentage of complaints closed compaired to those opened

Example:

85% of complaints closed within 8 weeks 95% of complaints closed overall No. of complaints opened

0% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140%

Santander 157,165 Barclays Bank 152,372 National Westminster Bank 82,173 HSBC Bank 58,527 Bank of Scotland 56,368 MBNA Europe Bank 52,074 Lloyds TSB Bank 37,403 The Royal Bank of Scotland 36,793 Capital One 29,255 Santander Cards 22,791 Nationwide Building Society 17,269 Vanquis Bank 16,701 The Co-operative Bank 15,684 Tesco Personal Finance 10,383 Bank of Ireland 9,118 Marks & Spencer Financial Services 9,093 Shop Direct Finance Company 7,941 Clydesdale Bank 6,608 R. Raphael & Sons 5,583 Clydesdale Financial Services 4,010 Welcome Financial Services 3,731 Black Horse 2,505 CitiFinancial Europe 2,429 Ulster Bank 2,372 Yorkshire Building Society 2,298 Egg Banking 2,069 Sainsbury's Bank 2,015 HFC Bank 1,851 Sygma Banque 1,827 AIB Group 1,545 Volkswagen Financial Services 1,387 Northern Rock 1,249 Northern Rock (Asset Management) 1,083 Coutts & Company 1,015 Northern Bank 951 ING Direct N.V. 832 Family Equity Plan 787 Citibank International 785 Coventry Building Society 669 J.P. Morgan Europe 660 Secure Trust Bank 631 Newcastle Building Society 598 ICICI Bank 570 British Credit Trust Holdings 526 Skipton Building Society 479 West Bromwich Building Society 477 Firstplus Financial Group 238 Leeds Building Society 191 Liverpool Victoria Friendly Society 148 Everyday Loans 62 Nottingham Building Society 54 Principality Building Society 21 Sesame 8 Aviva Life Services 5 Future Mortgages 3 The Prudential Assurance Company 2 Openwork 2 Barclays Stockbrokers 1 Bradford & Bingley 1

Saints - 100% of complaints closed within 8 weeks Source: The FSA bit.ly/banking_b Sinners - Less than 85% of complaints closed within 8 weeks

The ten most complained about financial products (January to June 2012)

Other regulated home finance products Personal pensions and Free Standing Payment protection insurance Other general insurance Additional Voluntary Contributions (FSAVCs)

Credit cards Current accounts Savings (inc Cash ISAs) Unregulated Endowments Other decumulation, and other banking loans life and pensions

2,232,294 330,098 323,955 283,335 125,734 63,302 48,253 34,578 24,640 21,099 +129% +33% -13% -0.3% +2% +17% +7% -2% +7% +11%

Source: The FSA No. of complaints bit.ly/banking_a Percentage change in complaints opened between July-December 2011 and January-June 2012 Is it time to switch? How does your bank perform in the complaint league table? The most complained about firms and percentage of complaints closed*

*Complaints opened and closed recorded over a six month period between 01 Oct 2011 and 30 Jun 2012, (see source for details). Complaints closed may exceed those opened as this may include complaints opened previously.

Percentage of complaints closed within 8 weeks Percentage of complaints closed compaired to those opened

Example:

85% of complaints closed within 8 weeks 95% of complaints closed overall No. of complaints opened

0% 50% 60% 70% 80% 90% 100% 110% 120% 130% 140%

Saints - 100% of complaints closed within 8 weeks Source: The FSA bit.ly/banking_b Sinners - Less than 85% of complaints closed within 8 weeks

THE TEN MOSTThe COMPLAINED ten most complained ABOUT FINANCIAL about financial PRODUCTS products (JANUARY (January TO JUNE to 2012)June 2012)

Other regulated home finance products Personal pensions and Free Standing Payment protection insurance Other general insurance Additional Voluntary Contributions (FSAVCs)

Credit cards Current accounts Savings (inc Cash ISAs) Unregulated Endowments Other decumulation, and other banking loans life and pensions

2,232,294 330,098 323,955 283,335 125,734 63,302 48,253 34,578 24,640 21,099 +129% +33% -13% -0.3% +2% +17% +7% -2% +7% +11%

Source: The FSA No. of complaints bit.ly/banking_a Percentage change in complaints opened between July-December 2011 and January-June 2012

PCA market GROSS LENDING AND OUTSTANDING shares pre - and BALANCES, 2009 post - financial crisis, by number of customers

Saving accounts market shares pre-and postfinancial crisis, by number of customers

Survey on satisfaction results (%) for personal current account brands Write for us….

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Essential intelligence on sustainable investing and living USE YOUR POWER, VOTE WITH YOUR FEET AND MOVE YOUR MONEY THE GUIDE TO TO SUSTAINABLE BANKING

IN FEBRUARY THIS YEAR, DANIELLE public body like Move Your Money – one that can stand at the forefront of the movement to PAFFARD FOUNDED MOVE YOUR effect real change. MONEY UK – A CAMPAIGNING And that’s exactly what it has done. ORGANISATION THAT AIMS TO “What’s really interesting is that we have had PERSUADE CONSUMERS TO SWITCH banking scandals before in the UK, and we’ve TO ETHICAL BANKING OPTIONS. IN had outrage towards banks, but before it has just LESS THAN A YEAR, IT HAS BECOME been outrage”, Paffard explains. “What’s been incredible in the last few months ONE OF THE MOVEMENT’S BIGGEST is the huge shift in public perception about AND MOST RESPECTED VOICES. what can be done about it. It’s the first time that BLUE & GREEN TOMORROW anger has actually led to real tangible action and CAUGHT UP WITH PAFFARD, WHO SPOKE ABOUT ENCOURAGING PEOPLE TO BANK ON SOMETHING WE ESTIMATE BETTER. THAT SINCE JANUARY, HALF A here’s a campaign video on Move Your MILLION PEOPLE Money’s website that includes a scene Tfrom Mary Poppins. In it, the elder Mr HAVE MOVED TO Dawes is encouraging the aptly-named Banks children, Jane and Michael, to “invest �their� ETHICAL BANKS tuppence wisely in the bank”. Their father, who works with Mr Dawes, joins in: “Now, Michael, When you deposit tuppence in a bank account, Soon you'll see, That it blooms into credit of a generous amount, Semi- annually”, he sings. The video outlines to viewers that there are alternatives to these profit-driven high street banks, and encourages them to move their money – something that an overwhelming amount of people are doing in the UK. “The shift has been absolutely amazing”, describes Danielle Paffard, founder of the Move Your Money campaign. OCTOBER “We estimate that since January, half a million people have moved to ethical banks, and we’ve 2012 also seen a 15-fold increase in traffic to our website in the past few weeks.” Not bad for an organisation that is still in its Danielle Paffard founded Move Your Money UK infancy. But the fact is that the UK ethical in February 2012. banking community has longed for a uniting 9

©BLUE & GREEN COMMUNICATIONS 2012 if you look at the coverage that the campaign has system and we think the only way to catalyse got and the exposure to this idea across all major the change that we really need is for people broadcasters, it’s a question that people are now to start voting with their feet and supporting asking themselves, and that’s a real shift, which these alternatives and making it a strong, viable is just brilliant and we expect to keep on going.” sector that caters to the needs of households, Representatives of the Move Your Money communities and the wider society.” campaign have appeared on television numerous Paffard is quick to point out, though, that the times – on Newsnight, The One Show and alternatives to mainstream banking stretch way Daybreak, to name a few programmes – and in further than individuals might think. As well national newspapers such as The Guardian, The as dedicated ethical banks, there are building Telegraph and The Daily Mail. It has a strong societies and credit unions that also form part presence on social networking sites such as of the alternative banking sector, because Facebook and Twitter, and thus, has developed they are owned by their members rather than an admirable reputation in the alternative shareholders, and only invest locally to support financial sectors as the voice of the citizen. community development. The need for such an organisation is quite clear. “I think the differences [between the big banks The financial power held by high street banks and the alternative sector] are so fundamental, means they’re often credited with causing both in the way their businesses are structured some of the biggest problems that the UK and the motivators. The ethical banking currently faces. Supporting local, mutual and sector is fundamentally different because it’s ethical alternatives is therefore seen as the only not exclusively profit-driven. And while it is sustainable direction – and in some countries in after profit, it has other drivers and there are the world, these alternatives make up over 50% other factors to it, so sustainability and social of the financial services industry. responsibility are taken into account. “Our current banking sector isn’t fit for purpose”, “HSBC has been investing in some of the most Paffard claims. appalling companies across the world and “We’ve seen the crash of 2008, scandal after scandal, horrendous misbehaviour and basically corruption from the big banks over the past few WE’RE ALL FED months, and the government and the regulators aren’t taking appropriate action to fix it and UP WITH THE BIG are absolutely toothless in the face of these big banks. BANKS; WE KNOW “Something needs to be done; we can’t go on THEY’RE NOT with this system that is costing citizens and society so much. We need a better banking WORKING THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE

OCTOBER 2012 10

©BLUE & GREEN COMMUNICATIONS 2012 laundering money which is absolutely obscene. get away with reckless spending, manipulation It’s therefore quite hard to pinpoint specific and poor service. differences between the two sectors because I “With the depth of public anger and the believe the differences are so fundamental and instability of the banks, I suspect the economic are determined by the very make-up, nature, system is going to be increasingly unstable and core principles and governance structure of the untrusted, and I think we could see a huge and bank itself.” unexpected escalation in the number of people It’s quite hard to comprehend what goes on moving”, predicts Paffard. THE GUIDE TO TO SUSTAINABLE BANKING behind the scenes at some of the big banks – “This change will eventually cause the big banks especially when you do compare them to the to change as well. We do believe in equality dedicated sustainable institutions – and they are in finance – we do need some big banking doing all they can to ensure regulation swings in institutions – but those wouldn’t necessarily their favour. A recent report from the Bureau of look like anything we’ve got today. Investigative Journalism showed that the British “The alternative sector is economically and financial services industry is spending almost socially responsible; it’s stable; it caters properly £100m a year on lobbying against banking to all sections of society; and it’s transparent, regulation in the City of London. accountable and effective. We’re all fed up with “We know that they’re not worried that the the big banks; we know they’re not working. regulators are going to come out and push some There is something that you can do, and it’s harsh criteria down, because they’ve pumped something you have to do. so much money into making sure that doesn’t “If you’ve ever dissatisfied by the state of happen”, says Paffard. banking in the UK, use your power, vote with “We’ve seen the report highlighting the your feet and move your money.” influence banks have on government and how much money goes into lobbying, so the banks aren’t worried about regulators. They’ll just be sitting tight and hoping it blows over. What’s SOMETHING NEEDS really exciting about citizen action is that they can’t do that, though. If the citizens start TO BE DONE; WE reacting, I imagine they must be quite scared.” CAN’T GO ON WITH In the last 12 months, one gets the impression that a real change is happening to the UK THIS SYSTEM THAT banking sector. Never before has the public felt so disengaged and disenchanted by their IS COSTING CITIZENS bank, but equally, never before has there been such an abundance of ethical, sustainable and AND SOCIETY SO responsible alternatives to switch to. MUCH Customer dissatisfaction, according to consumer group Which?, is rife amongst the biggest UK banks, with all the high street institutions scoring lower than average in a satisfaction survey. Another Which? survey found that two- thirds of people (67%) think that bankers will not lose their job if they lie or cheat – a sign of the tumultuous times if there ever was one. It remains to be seen how long the big banks can

OCTOBER 2012

www.moveyourmoney.org.uk 11

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Sustainable Investment Building on the success of our first Guide to Sustainable Investment we interview the thought leaders in this rapidly growing sector during National Ethical Investment Week Ethical Shopping In the build up to the busiest shopping period of the year, we explore what to buy for family and friends without costing the Earth Responsible Media Post-Leveson ,what does a media landscape look like that informs, educates and entertains? COMBINING SUSTAINABILITY WITH FINANCE FOR POSITIVE REWARDS IN THE DAYS AFTER THE LIBOR RATE-FIXING SCANDAL BECAME PUBLIC IN JULY THIS YEAR, TRIODOS BANK WITNESSED A 51% SURGE IN ACCOUNT APPLICATIONS. THE TIDE IS CLEARLY CHANGING IN THE UK, SO BLUE & GREEN TOMORROW SPOKE WITH THE BANK’S MANAGING DIRECTOR, CHARLES MIDDLETON, ABOUT PRESENTING WELL-MEANING PEOPLE WITH PRACTICAL AND ETHICAL BANKING OPTIONS.

Austrian thinker Rudolf Steiner could say the financial crisis has – it derives its name from the passed it by. Its customer base Greek word for a threefold has increased and its balance approach. sheet with it – but that’s not “It very much encompasses to say the bank has necessarily that awareness of society, the enjoyed being an onlooker to the environment and finance, and turmoil. we keep all three very firmly “Triodos has had a very good five aligned in all business positions”, years, but for a lot of individuals explains Charles Middleton, the and businesses, it’s been an bank’s managing director. incredibly traumatic time”, says “So from the very start, Middleton. Charles Middleton describes Triodos has had that very clear “I guess it does provide an Triodos as the “perfect solution” ambition to use money in opportunity to demonstrate a to his career, as it combines his that conscious way for social different kind of business model, experiences in banking with his and environmental purposes. so we’ve always been very clear personal morals and ethics. And whatever we do, and in that we will effectively run whatever form we are using a model that is about raising riodos Bank is a pioneer money, whether it’s for straight money from real people and in European sustainable debt financing or investment or using only that money to lend to THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE Tbanking. Founded in running funds to address certain real projects. So that means we 1980 in the Netherlands, it has issues in renewables or social didn’t get caught up in sub-prime grown to encompass Belgium, activity, then that is always the lending, derivative activity, and Germany, Spain and, since underlying premise.” all those things that effectively 1995, the UK. It forms part of a This places Triodos – and other caused the demise of many of growing number of banks that dedicated ethical banks and the mainstream banks. place sustainability and ethics building societies – in somewhat “Our business model was very at the centre of their business a privileged position. Since the robust which allowed us to ride model, and at a time when financial crisis began in 2007, our way through the financial OCTOBER customer satisfaction with the the biggest UK banks have had it crisis. At the same time, we’ve high street lot is low, its presence tough. But the primary cause of seen a lot of increased interest 2012 is wholly welcome. this recession was down to the in what we do, in terms of how Its background is interesting. reckless lending and borrowing we’re using money to good Set up with anthroposophical going on in these institutions. effect, and also the model that foundations – a philosophy And because Triodos prides itself we use. There’s been a huge 14 created by the well-known on being wholly sustainable, you increased interest in what we’re

©BLUE & GREEN COMMUNICATIONS 2012 doing and a lot of growth across back into school. Triodos was been central to Triodos’ meteoric the group throughout the crisis. part of a significant financing rise in the UK in recent years. So from that end, it’s been very package early on in the project’s But he hasn’t always worked in positive.” life, and has stayed in close dedicated ethical banking. In fact So what’s the key to Triodos’ contact throughout. until 10 years ago, he worked for success? Well, for one thing, “The other thing that is Barclays, as the bank’s regional it’s completely transparent. fundamental to our business is representative in India, Botswana THE GUIDE TO TO SUSTAINABLE BANKING Customers and investors can our approach to lending”, says and then the Caribbean. Given see exactly what their money Middleton. the recent media attention on is being used for – almost the “We look for activity that is Barclays for the misdemeanours complete antithesis of some social and environmentally of former chief executive Bob high street banks, who are often positive, but we also have very Diamond, Middleton offers an quite reticent to disclose which clear investing criteria that sit incredibly refreshing perspective industries they’re financially behind that. I phrase it that way on being the CEO of a bank. supporting. because I think what’s important “My reason for joining Triodos On the Move Your Money is that we are looking for was because I had an interest campaign website is a rundown initiatives, activities, projects that and desire to take what I’d done of some of the areas that the are doing positive things and are and use it in a different way, and UK’s big banks invest in, taken impacting those areas that need I really wasn’t sure how that from Ethical Consumer's 2012 some of the attention. would work”, he recalls. Banks & Building Societies “Some banks will say that they “I had a few conversations with Buyers-Guide. Barclays, for have policies around specific people in the charity sector, example, has investments in areas to screen out activity – but and what I realised was that I “everything from tar sands to again, it’s not as thorough as was looking for a way to use cluster munitions”, while HSBC we think it should be and at what I’d learnt at Barclays and is said to fund “the Arab Spring the same time it’s not nearly as a couple of experiences in India [and] the use of unconventional constructive as actually looking for instance, and I think Triodos fuel”. And Lloyds TSB, the Royal for interventionist things that was the perfect solution because Bank of Scotland and Santander could be done with money. I was able to carry on using the display similarly unethical “We will tend to target stuff I’d learnt but the underlying balance sheets. things that we think are intent of the organisation was By contrast, an example of a most challenging, and were entirely different and absolutely company that Triodos invests supporting small-scale renewable aligned to where I wanted to go. in is Jamie’s Farm – a project energy when it was very, very “It’s been a very interesting that looks to get young people unfashionable to do that, for journey for me as well in terms who are struggling to remain example, because we saw that of understanding more about part of the formal education as an important intervention. the area that Triodos works in, system reengaged with their We look for people and projects so I’ve had to really work at that schooling by allowing them to that are addressing that in a very and still do in fact. In that sense work on a farm for a while. Run professional and well thought I think it’s the motivation that is by Jamie Feilden, a graduate through manner and we will different – not to say that CEOs of the esteemed Teach First look to support them.” of commercial banks don’t have programme, the project has It helps that Middleton himself an interest in making a difference experienced a very positive is a passionate purveyor of this in the world through finance – success rate in getting pupils philosophy, and his influence has but for me it was the overriding interest, and I’ve been fortunate enough to find a bank that OCTOBER OUR BUSINESS MODEL WAS enables me to hold that ethic whilst still pursuing the use of 2012 VERY ROBUST WHICH ALLOWED finance because I’d spent a lot of time learning about it.” US TO RIDE OUR WAY THROUGH The day before Diamond handed THE FINANCIAL CRISIS in his resignation in the wake of 15

©BLUE & GREEN COMMUNICATIONS 2012 a rallying cry to encourage customers to not just seriously think about the sustainable banking option, but act upon it too. Invest in “If you are somebody that is trying to do things in a more sustainable way – and that can encompass all sorts of activities, from whether you recycle, how you consume and what vehicle you drive – then what we do is provide an opportunity to think Triodos was part of a significant financing package for Jamie’s Farm, about finance in exactly the same a project that looks to get young people reengaged with education way. If you consider just how better by allowing them to work on a farm run by Jamie Feilden (left). fundamental finance is to our lives and our businesses, it almost the Libor rate-fixing scandal in we are genuinely committed to seems really quite ridiculous in July, Triodos opened three times wanting these sectors develop a way that the use of finance as many accounts compared to and grow. doesn’t form part of that overall an average day. Meanwhile, visits “That doesn’t mean we will not intent. to the bank’s website increased be challenging, and that we will “What I’d really like to think is by nearly a quarter in the last not question and argue through that people who do make that seven days, and phone enquiries the business case, but we do choice and do something with increased by over a fifth. have a fundamental common Triodos get that same level of Middleton says that the biggest interest. We also go out our way, content as they do in other banking shift in behaviour for Triodos for example target businesses sustainable aspects of their life. has been witnessed in the that are making a real impact and That’s something we really try Netherlands and Belgium, where seeing what we can do to help.” hard to do – to make people customers are acting upon So what about the future? It’s feel that experience, and we Triodos Bank, a world leading sustainable bank is now their dissatisfaction with the clear that people in the UK are work really hard to connect offering you the chance to invest in our sustainable future. mainstream banks and actively speaking up against unethical finance with the projects. We let seeking ethical options. Whilst techniques that are being used by people see them, visit them and there has been a clear increase the mainstream banking sector. we let them talk at our annual • Become a co-owner of Triodos Bank NV in awareness in the UK, he adds, Investment in the sextet of sin meetings, so there really is that * the second and most important (alcohol, tobacco, pornography, sense of engagement so that • A solid investment with an average historic return of 4.2% step – firm action in moving your gambling, armaments and people can think that they’re

THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE • Play a part in changing banking forever money to sustainable institutions nuclear energy) and the putting their money with a bank, – is often at a premium. lucrative fossil fuel industries, getting paid interest, the bank is “Our challenge is to provide combined with excessive and looking after it as a bank should options to people so they can disproportionate executive pay, do, and at the same time is decide in a more conscious way have left customers feeling deploying it in ways that people what they do with their money disengaged. can really relate to and enjoy. It and do something about it”, Institutions like Triodos Bank should be fun. Middleton explains. exist to reignite power into “People should move to Triodos To find out more and to see our full Follow your heart “Customers will come to your finances. After all, it’s if they want to get a decent OCTOBER us because we have a lot of your money – you should want financial return whilst genuinely range of ethical savings accounts Use your head expertise about what they do, to know what it’s funding. experiencing their money being 2012 and we’ll be able to work with Middleton concludes by offering used in a positive way.” visit www.triodos.co.uk or call us them to talk about the financing free on 0800 328 2181 aspects. We also understand the nature of the sector and there is a fundamental understanding that 16 *Average Return on Investment (RoI) per year in euro over the 5 years to 31.03.2012. Euro return is calculated by VWD Group, an external group www.triodos.co.uk which provides an independent calculation of our RoI and is based on a pro rata share of net asset value and assumes reinvested dividends. Past performance is no guarantee of future results. Investing in Depository Receipts is not the same as investing money in a bank account as your capital is at risk and you may not get back the full ©BLUE & GREEN amount that you invested. Depository Receipts are denominated in euro, and dividends are paid in euro. The return on investments you make in COMMUNICATIONS 2012 sterling is therefore also subject to movements in the exchange rate between euro and GB pounds. Triodos Bank NV (incorporated under the laws of the Netherlands with limited liability, registered in England and Wales BR30120). Authorised by the Dutch Central Bank (DNB) and regulated by the Financial Services Authority (FSA) for the conduct of UK business. Registered office: Triodos Bank, Deanery Road, Bristol BS1 5AS. Invest in better banking

Triodos Bank, a world leading sustainable bank is now offering you the chance to invest in our sustainable future. • Become a co-owner of Triodos Bank NV • A solid investment with an average historic return of 4.2%* • Play a part in changing banking forever

To find out more and to see our full Follow your heart range of ethical savings accounts Use your head visit www.triodos.co.uk or call us free on 0800 328 2181

*Average Return on Investment (RoI) per year in euro over the 5 years to 31.03.2012. Euro return is calculated by VWD Group, an external group which provides an independent calculation of our RoI and is based on a pro rata share of net asset value and assumes reinvested dividends. Past performance is no guarantee of future results. Investing in Depository Receipts is not the same as investing money in a bank account as your capital is at risk and you may not get back the full amount that you invested. Depository Receipts are denominated in euro, and dividends are paid in euro. The return on investments you make in sterling is therefore also subject to movements in the exchange rate between euro and GB pounds. Triodos Bank NV (incorporated under the laws of the Netherlands with limited liability, registered in England and Wales BR30120). Authorised by the Dutch Central Bank (DNB) and regulated by the Financial Services Authority (FSA) for the conduct of UK business. Registered office: Triodos Bank, Deanery Road, Bristol BS1 5AS. A CHARITABLE BANK THAT IS OF THE SECTOR, FOR THE SECTOR

CHARITY BANK’S project expenditure of £353m. customers is happening. GEORGE BLUNDEN This, in turn, is estimated to “I think people have got angrier have improved the lives of some and angrier about the traditional DESCRIBES HIMSELF AS 3.5m people across the UK. banks and the traditional “EITHER THE STUPIDEST “We’ve consciously built banking system. They feel OR THE NICEST ourselves slowly, making sure alienated and unwanted by CHAIRMAN OF ANY that we lent sensibly and only their bank, and they want to go BANK”. HIS REASONING? into the charitable or social somewhere different. BECAUSE HE DOES HIS sectors”, says Blunden. “We talk about the community “And we’ve been building the of Charity Bank, and invite all JOB WITHOUT BEING bank up gradually over that our depositors to open days and PAID A PENNY. HE SPOKE period of time, taking what to events, and will take people WITH BLUE & GREEN other banks would think of as out to visit projects. We want TOMORROW ABOUT considerable risk, so lending the people who deposit money HOW HIS ORGANISATION to those that they think are with us to know what their HAS BECOME ONE OF unbankable that we consider to money is doing.” be a good risk. So our bad debts Although it doesn’t run THE PRIMARY LENDERS have been astonishingly low – current accounts, individuals TO THE UK CHARITABLE less than 0.5% over the period – can deposit money in savings AND SOCIAL SECTORS. and in turn the bank has grown accounts with Charity Bank sensibly.” in order to help fund the The ethic displayed by Charity charitable and social sector ne of the earliest signs Bank’s chairman is a far cry organisations that it provides in our interview with from the commercial banks, loans to. It doesn’t partake in OGeorge Blunden that which are often accused of suggests Charity Bank isn’t your possessing a ‘growth at any average financial institution is cost’ philosophy. This is shown his reticence to use the word clearly by the recent Libor THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE ‘profit’. Instead, the bank’s rate-fixing scandal that took chairman conveys delight in place at Barclays – the latest in announcing his organisation a long line of misdemeanours had achieved its first ever involving the high street ‘surplus’ last year, after a decade institutions. of steady growth. Between January 1 and June The bank has come a long way 30 this year, Charity Bank since being launched by then- welcomed 440 new customers chancellor of the exchequer – a figure 300% more than the OCTOBER Gordon Brown at Downing same period in 2011. When the Street in 2002. Since then, and Libor scandal was at its most 2012 up until May this year when public, visitors to the bank’s its 2011 Annual Review was website and the number of published, Charity Bank has savings account enquiries both George Blunden has been issued 1,006 loans, valued at a doubled. This, Blunden says, is chairman of Charity Bank since 18 total of £165m and supporting proof that action amongst UK 2010.

©BLUE & GREEN COMMUNICATIONS 2012 any commercial lending and, as its name suggests, is a bank specifically designed to aid the growth of charities. “We are of the sector, for the sector”, describes Blunden. So how does Charity Bank’s model work then? Well, it will THE GUIDE TO TO SUSTAINABLE BANKING make a loan to an organisation for a set number of years. It will then charge a rate of interest that will generally be much lower than the organisation would receive if it went to a high street bank. “We work with them to begin with to ensure that they are in Country Holidays for Inner City Kids (CHICKS) received a £300,000 the right state to take on that loan from Charity Bank in February 2006. sort of financial commitment”, says Blunden, describing the process. hydroelectricity in Cumbria, “We have depositors who want WE WANT which was loaned just under their money to do something £200,000 by Charity Bank useful, but do actually want to THE PEOPLE to help fund the purchasing be able to get it back at the end of a turbine in order to turn of the day, so it’s not grant- WHO DEPOSIT water from a nearby river into giving to charities; it’s helping MONEY WITH electricity. charities fund projects earlier. When Blunden became Then they will repay the loan US TO KNOW chairman of the bank two-and- that we’ve made to them over a a-half years ago, he recalls how number of years. WHAT THEIR people were still wondering “Banks generally find it very whether a bank that lent money difficult to work out how they MONEY IS into the potentially difficult lend to the third sector and to DOING charitable sector was a realistic charities, because most charities business model. But, multiple are not profit-orientated. They industry awards later, it has don’t understand them, they with.” more than proved its viability. can’t see a commercial return The example Blunden mentions Perhaps the most interesting coming out of them, and they’re – providing holidays to inner- and admirable facet of not attuned to the motives by city children – is just one of Blunden’s role, though, is that which people run charities, and over 1,000 projects that Charity he is completely unpaid. To also things like almshouses or Bank has helped fund. Country put that into context, Marcus housing associations and the Holidays for Inner City Kids Agius – the former Barclays building of community centres. (CHICKS), a registered charity chairman who quit amidst the “Very few banks in this that runs holidays in Devon Libor rate-fixing scandal in July– space are geared to the sort and Cornwall for disadvantaged was reportedly paid £750,000 of understanding that we children from London and other a year. The two institutions are bring when we are talking to cities, received a £300,000 loan clearly worlds apart in terms of OCTOBER someone who wants to borrow in February 2006 to help buy a turnover and principles, but it’s money to provide holidays for permanent base. the very fact that a chairman of 2012 inner-city children to Devon Another example is the an established bank can operate or somewhere. That’s not community renewable energy without a salary that sets the something that you’d expect an project at Heron Corn Mill two on such contrasting sides of ordinary bank to be able to cope – a water mill that produces the spectrum. 19

©BLUE & GREEN COMMUNICATIONS 2012 depositors – who get the list of everyone who’s borrowed – to go and visit the places where their money is working to do something useful. “There are banks out there that are trying to use finance as a tool to make the world a better place. Charity Bank is one of those and I think statistically, people are more likely to get divorced than they are to move their bank account, and actually, taking money away from banks hurts them. So if you really want to change banks’ behaviour, then being a Charity Bank provided a loan worth just under £200,000 to Heron little choosier about whom you Corn Mill, a Cumbrian water mill that produces hydroelectricity. deposit your money with might put the message across.” According to the Move THERE ARE BANKS OUT Your Money campaign, an estimated half a million people THERE THAT ARE TRYING TO have switched to ethical or USE FINANCE AS A TOOL TO sustainable banking options in the UK since January. And it’s MAKE THE WORLD A BETTER a common misconception that switching is an arduous process. PLACE. CHARITY BANK IS It’s not – especially given the technological advances that ONE OF THOSE now allows customers to “I started life running children’s almost 200,000 charities in switch online with the click of adventure playgrounds, I was the UK alone, added to the a button. a community worker and I’ve thousands of businesses and To that end, Charity Bank’s also chaired a couple of large projects in the social sector, George Blunden is wholly housing associations”, Blunden the scope for Charity Bank’s optimistic for the future. says, looking back over a work is huge. But it’s down “I think that there is a growing THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE career that also encompasses to depositors and investors to trend, and it’s not just in the investment banking and fund ensure that its longevity and UK, of banks realising that they management. impact remains. need to work with and for “I’ve always had a desire to “The people who deposit with their customers rather than just make sure that I put into the us are generally people who themselves. That is a change communities that I live in have a little bit more cash than that is occurring and that people more than I take out. But I they have on a deposit account should encourage.” have worked in the financial with a bank”, Blunden says. sector and in the investment “They are absolutely clear that OCTOBER world, and Charity Bank they want their cash to do was a wonderful opportunity something useful rather than 2012 to combine my financial pay the bonus of some arbitrage background and skills with trader in a big bank. We publish some of the things that I love a list every year of all the the most.” people we’re lending money When you see that there are to, and we encourage our bank 20 www.charitybank.org

©BLUE & GREEN COMMUNICATIONS 2012 DISACharityDVANTAGED Bank (advertThe cash ISA that 1) is used to help those who need it most.

An investment in a cash ISA from Charity Bank will not just secure you a competitive 2.05%pa* return on your money. It will also help us lend money to any number of charities and social enterprises, such as Community Wise, a community centre in Eastbourne who required funding to buy and then upgrade their building. MK 4.10.12 MK 4.10.12 In fact, since 2002, Charity Bank has made a real difference to more than 3.5 million people by lending over £175m to ethical and community projects across the UK. 46498-1 Proof 1 Proof 2 Proof 3 Proof 4 Proof 5 Proof 6 Proof 7 Proof 8 Proof 9 Proof 10 We are also responsible about how we lend money. Check our website for full details of the organisations to Reader Account Director Creative Director Designer Job No: whom we have lent money. www.charitybank.org

When you invest in an ISA with us, you can be assured A different bank for people you are also investing in changing people’s lives. who want a different world

Important information: *Interest rates are variable and subject to change with 60 day written notice. All repayments, or transfers to another ISA provider, will be subject to the full notice period of 33 days. Registered Office: The Charity Bank Limited, 194 High Street, Tonbridge, Kent TN9 1BE. Registered in England and Wales (No. 4330018). Registered charity (No. 1091648). Charity Bank is authorised and regulated by the Financial Services Authority (No. 207701) and a member of the Financial Services Compensation Scheme (FSCS). CHARITY, ETHICS, MORALITY AND BANKING: A MATCH MADE IN HEAVEN BORN OUT OF THE FOUNDATIONS OF THE SALVATION ARMY IN 1890, RELIANCE BANK ABIDES STRICTLY BY CHRISTIAN, ETHICAL PRINCIPLES. SPEAKING TO BLUE & GREEN TOMORROW, ITS MANAGING DIRECTOR TREVOR SMITH URGES PEOPLE NOT TO SIMPLY ACCEPT THE STATUS QUO, AND TO INSTEAD OPT FOR A BANK THAT IS COMPETITIVE, EFFICIENT AND ABOVE ALL, RESPONSIBLE: CHARACTERISTICS THAT ARE CENTRAL TO HIS BANK’S BUSINESS MODEL.

that time, its main concern was they pursue growth for growth’s to fight heavily for the rights sake, so it is steady growth and of the underprivileged and it is sustainable growth”, says support the working classes in Smith. Victorian England. By 1890, it “We have a balance sheet of just was already active in over 20 a few hundred million pounds, countries, and so its founder so we know that we can’t William Booth realised that even pursue the mass market because though its balance sheet was we don’t have the resources, relatively tiny, by setting up the but we concentrate on the niche charity’s own bank, he could church charity sector. harness the profits that would “Our business is growing very otherwise go elsewhere, and in nicely, particularly in the last a responsible way, use the funds two years, through charities and to help finance its growth. individuals who are frankly very And so, The Salvation Army disenchanted by the high street Reliance Bank’s managing Bank was born. banks.” THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE director Trevor Smith worked Since the turn of the 20th Smith is almost embarrassed to for a high street bank for nearly century, it has operated as prefix the “few hundred million 20 years, but left because Reliance Bank, and is at a point pounds” on his bank’s balance the “immoral pressure” to sell now where 75% of its operating sheet with the word “just”, products irresponsibly. profits are transferred through but when compared to the big Gift Aid to support The Salvation players on the market – the he Salvation Army is Army’s charitable work in the HSBCs, the Lloyds TSBs and so something of an institution community in the UK and on – the figure becomes almost Tin the British charitable overseas. Current managing insignificant. OCTOBER sector. Once described as director Trevor Smith – who has A recent study by consumer “Christianity with its sleeves 30 years’ experience in banking group Which? found that the 2012 rolled up”, its popularity has – explains how its workings are biggest banks have an 80% burgeoned during its almost underpinned by conservative market share of accounts held 150-year lifespan. Christian ethical ownership. by the general public. At the When it was established in “We don’t want to follow the same time, though, customer 22 1865, like many charities at pattern of other banks where satisfaction on the high street is

©BLUE & GREEN COMMUNICATIONS 2012 at a premium – something that has not been aided by the recent spate of financial scandals such as I JOINED BANKING Libor rate-fixing and excessive executive pay. Former Barclays chief executive Bob Diamond, MANY YEARS AGO who resigned amidst the Libor saga, took home WHEN THE BUZZ almost £21m in 2011, much of which was through the bank’s remuneration scheme. This couldn’t be WORDS WERE further from the truth at Reliance Bank. THE GUIDE TO TO SUSTAINABLE BANKING “A significant factor for us is that our total bonus PROBITY AND pool for the last two years has averaged no more than £500 per employee”, explains Smith. INTEGRITY. WE’VE “Staff work here because of the feel-good factor. GONE AWAY FROM They feel they are not just providing a banking service, but believe they are providing a banking THAT NOW service that helps fund the community work of The Salvation Army. the small print in terms and conditions. It’s a “We pay a reasonable salary – not an outrageous win-win situation for The Salvation Army and our salary – we benchmark against the median salary customers.” of other small banks in the City, but we don’t pay The vast majority of Reliance’s 2,000 plus personal outrageous bonuses, they’re very modest. Staff customers will have empathy with The Salvation aren’t driven by sell, sell, sell and targets. We’re Army, Smith says. here to provide a service.” “They know it’s a force for good for work in the This customer-driven philosophy is central to community, and our customers like our personal Reliance’s business model, and can be attributed service, our simple range of products, and most back to the bank’s Salvation Army origins, which of all, that feel-good factor from knowing that we famously provides support to people who are don’t rip off our customers.” downtrodden and have been ostracised because of For Smith, being managing director of a bank such their age, sex, religion, nationality, disability and as Reliance is a far cry from how he spent the so on. majority of his professional career. He spent nearly The bank offers accounts and products to both 20 years working for one of the major high street personal and business customers. Firms in the banks but decided to take on a job as regional service industry, social housing providers and also finance director at The Salvation Army, of which building companies are amongst some of Reliance’s he was a longstanding member, in 1998. business clients. However, shops that sell alcohol “I joined banking many years ago when the buzz or tobacco wouldn’t be able to open an account words were probity and integrity. We’ve gone because of the inconsistency with Reliance’s away from that now”, Smith says. Christian ethical principles. At the same time, “One of the reasons I left the high street bank Smith adds, his bank wouldn’t take on a large I was at was the immoral pressure to sell, for corporate customer that turned over hundreds of example, endowment mortgages irresponsibly millions of pounds. because the bank received high commissions. “Our only large corporate customer is The “There was an increasing conflict between what it Salvation Army, and the primary purpose of was asking me to do and how it was asking me to Reliance Bank is to serve that, and provide it with treat customers, and that didn’t rest easily with my efficient, modern, up-to-date banking services. own personal Christian beliefs and practices.” “But equally, we provide fair, competitive, honest, After three years working for The Salvation Army, open banking services to non-Salvation Army he was asked to move to Reliance Bank and was customers at a competitive price and the modest appointed to his current role, managing director, in margins we make on those customers helps fund 2006. OCTOBER The Salvation Army’s community work. “When I left the high street bank, I thought I’d “A personal customer would typically be frustrated left banking for good and that I was going to work 2012 by the frankly unreasonable charges that they faced for a charity and a good cause. But over the three on the high street, the lack of communication, and a half years as regional finance director at The the call centre approach that doesn’t really treat Salvation Army, I got a very detailed knowledge people as individuals and can be frustrating, and of the finances of an international charity, which 23

©BLUE & GREEN COMMUNICATIONS 2012 hundred million pounds on it – or, and it sounds silly to say it, but just the odd billion, which in banking terms is not a lot – you have to be responsible.” So what needs to be done in order for the UK and global banking communities to be classed as wholly responsible, ethical and sustainable? “There needs to be more competition and we need morality bringing back into banking, but equally, there has to be a partnership with the community and a partnership The Salvation Army has been described as “Christianity with its with government that provides sleeves rolled up” fair, reasonable banking services”, Smith says. unbeknown to me and to a lot US dollar and euro accounts, “Governments looked the other of people, had already had its overdrafts and loans, house way while banking was going own bank for more than 100 mortgages and ISAs. down a very reckless route, and years. Possessing strict ethical policies now we’re all paying. OK, the “At the high street bank that has meant that, while the high banks made very poor lending I was at, I worked in head street banks have experienced decisions, but equally, a lot of office, in the provinces and a somewhat tumultuous five bank customers borrowed very in the internal audit and years since the financial crisis recklessly, so it’s an issue in investigation department, so I began in 2007, Reliance has society and we all have to learn had a good grounding in retail remained profitable. Its biggest that this can’t continue. It’s just and corporate banking. Marry challenge in recent years, not sustainable.” that with a detailed knowledge though, has been coping with A close relationship with The of the international Salvation the regulatory backlash brought Salvation Army has ensured Army’s finances, and I became a on by the recession. Reliance Bank maintains proper good candidate to work in and “In the City of London, there ethical principles. It is absolute eventually lead its own bank.” is getting on for 200 banks”, proof that seeking profit at all And lead it he did; with Smith says. “When people think costs doesn’t have to form the excellent results to boot. In of the banking community, they basis of your business model. THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE recent years after scandal upon tend to think of all the names The beauty of its business is scandal on the high street, that roll off the tongue – the top that customers know exactly non-Salvation Army business 10-20, certainly the major high what their money is going at Reliance has grown 10% street banks. towards. And this transparency year-on-year, as more and “But there is a very strong is a refreshing change to the more people begin to see the and vibrant small banking mainstream bank ethic of proverbial light in the shape community in the UK – which shadiness, small print and of sustainable, ethical and is largely, dare I say it, very financial recklessness. responsible banking. moral – and it has had a rough OCTOBER Unlike some specialist banks, time in the last few years, Reliance is the only Christian because if you’ve got a small 2012 ethical bank in the UK to offer balance sheet with just a few a full range of services and products, including current accounts, its own debit card, deposit and savings accounts, 24 www.reliancebankltd.com

©BLUE & GREEN COMMUNICATIONS 2012 COME AND JOIN US!

Five good reasons to bank with Reliance Bank

l Minimum 75% of profits gift aided to The Salvation Army l Extremely competitive mortgage and ISA products l Christian, ethical banking with a responsible lending policy l Choose to pay in through a High Street Bank l Internet banking with a full range of personal banking services

Tel 020 7398 5440 or visit www.reliancebankltd.com for more information Reliance Bank reserves the right to withdraw any product with immediate effect. Your home is at risk if you do not keep up repayments on a mortgage or other loan secured on it. Reliance Bank Limited is authorised and regulated by the Financial Services Authority. Registered in England. Registration number 68835. BANKING ON SUSTAINABILITY ECOLOGY BUILDING SOCIETY MIGHT BE – AS ITS NAME SUGGESTS – A BUILDING SOCIETY, AND A DEDICATED ETHICAL ONE AT THAT. BUT AC- CORDING TO ITS CHIEF EXECUTIVE, PAUL ELLIS, ITS FUNDAMENTAL DNA CONTAINS ENVIRONMENTALISM AND SUSTAINABILITY. HE SPOKE WITH BLUE & GREEN TOMORROW.

illions of people in activity that is rooted in general state of the economy the UK have accounts sustainability. And because and the housing market, our with building societies of that, we’re able to attract proposition is finding favour – alternatives to funding from our members with those who are interested Mmainstream banking that don’t which gives us less exposure in some of the things that we’re have shareholders, but instead, to the mainstream banking interested in such as energy members. One of the youngest system.” efficiency, the impact of housing but increasingly popular choices The fundamental difference on the environment and so on. for consumers is Ecology between Ecology and the “In the early part of the crisis, Building Society – which, by mainstream banking sector we found ourselves in effect its own admission, goes a step is its overall focus. Ecology making exceptional profit further, by putting people and takes a long-term the planet ahead of profit. view in everything It was formed at a Green Party it does – with the conference in Yorkshire in 1980, ultimate aim being to after a member struggled to encourage a greener find a mortgage for a renovation society – whilst the project. Thirty-two years later, high street banks look its founding principles remain notoriously short- fully intact, it hasn’t succumbed term. And whilst the to the neon lights of London profit-driven sector (its only office is in Keighley, West Yorkshire) and some of its original supporters continue to THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE hold accounts to this day. FOR EVERYTHING THAT WE DO, “For everything that we do, we must be able to point back to WE MUST BE ABLE TO POINT a sustainability gain”, explains BACK TO A SUSTAINABILITY GAIN Paul Ellis, Ecology’s chief executive since 1995. has floundered in the past few because we had money to “Clearly, the majority of banking years, Ecology’s ethic has helped lend into the market. Some activity in the mainstream it come through the financial of the organisations were banking world has drifted a long, crisis unscathed. dependent on wholesale money OCTOBER long way away from that, with “The overall picture is that and we weren’t, because the the vast majority of action trying we’ve continued to grow fundamental nature of Ecology is 2012 to make a short-term gain and throughout that period”, Ellis that all our funding comes from trying to trade away risk. says. our members.” “We just don’t operate in “An indication of that is that Ecology’s mere existence is that way. We see ourselves as last year, we had record growth proof that there is a need for a 26 supporting genuine economic lending, so even despite the green mortgage provider in the

©BLUE & GREEN COMMUNICATIONS 2012 also to the likes of housing how to achieve financial stability co-ops and community land and competition in the UK’s trusts and so on. What we banking sector. These were don’t do is just have this as an collated in a report, released in additional product, and the September last year. rest of the time operate on The report’s main general financial business. We recommendation was to exclude any lending to projects ring-fence high street banks THE GUIDE TO TO SUSTAINABLE BANKING where we don’t see that gain from their investment arms in sustainability, so by that – but critics have questioned way, we’re not negating our whether this goes far enough, support of sustainability and the and indeed fast enough, in environment.” achieving widespread banking Although he has been chief sustainability. executive since 1995, Ellis has “I definitely think that the been part of Ecology in some current plans for implementation Ecology’s primary focus as a capacity for more or less all its really don’t give us a mindset or building society is on the built existence. He joined simply as the tools to address the current environment. an investor in 1980 after being crisis”, Ellis says. involved with the Green Party, “We met the publication of UK. But it’s more than that. It before joining the building the report with some dismay offers ethical savings accounts society to work in marketing and when we realised how long it and invests in businesses IT in 1992. Three years later, he would take to enact some of and projects that it deems was one of the firm’s top names. the things discussed in it. It beneficial to the environmental “My prime motivation is an doesn’t go far enough to tackle or sustainability movement. interest in the environment”, he the fundamental problems in the From companies involved in says of his reasons for working at system. It’s focused on protecting organic farming, horticulture, Ecology. banks from contagion and recycling and energy efficiency, “Being involved in the Green causing the cost of that to come to those businesses that provide Party was what got me involved back to the taxpayer. That’s all environmental management, or in Ecology originally. I knew well and good, but it doesn’t deal in fair trade products – the some of the first directors, so really address other aspects of list of loans Ecology has provided I followed its progress from its problems in the banking system might as well be the FTSE 100 very early days, and it always such as the overreliance on of sustainability innovators. made sense to me that we ratings agencies and so on. “Our particularly emphasis as a needed to look at money not just “The pace of regulatory change building society is on the built as a store of value but as a store at the moment is very, very environment”, Ellis describes. of values. And its deployment slow and that’s reflected in the “Within that building society, our mattered – it wasn’t some kind attitude to the implementation of first emphasis must be on the of neutral force. The conscious the Vickers Report.” housing stock. So what we’re decisions we took with our A number of multinational concerned with is the creation money could make a difference banks have recently announced of sustainable housing stock to create the kind of world that relatively big sustainable steps within the context of sustainable we want to see.” in their business, such as the communities. So if we’ve got a Things have changed since Bank of America committing highly energy efficient property, he took on the role as chief $50 billion to invest in clean then that will attract our better executive, though. And there are energy and Morgan Stanley mortgage pricing. In effect, we more big changes expected in Smith Barney launching a values- OCTOBER reward those who put effort the near future. driven investment platform for into reducing the environmental In 2010, British economist Sir investors. 2012 impact of their property – be that John Vickers was appointed chair Ellis is reticent to get completely new properties or existing ones. of the Independent Commission behind these announcements, “We’ll apply that kind of thing on Banking – a unit set up to though. to ordinary borrowers, but deliver recommendations as to “I’d like to think these were 27

©BLUE & GREEN COMMUNICATIONS 2012 examples of banks changing, Values found that banks that and I think there some instances have sustainability themes at where mainstream banks are their core perform better than sensitised to the issues. It’s very those that are solely out for hard, though, to think anything profit. The research compared other than this is about creating the performance of 17 values- perceptions and allowing other driven institutions against 29 activity to carry on underneath. of the largest, most influential A $50 billion investment in mainstream ones, and came to clean energy is all well and the conclusion that the more good, but if that is dwarfed by ethical banks delivered better investments into hydrocarbon returns than the high street industries that we’re failing to behemoths. address the consequences of, So by choosing an ethical then it doesn’t really amount to banking option – and Ecology very much other than putting a Building Society falls under green badge on. Paul Ellis first got involved that banner – you’d not only “Nevertheless, I think there with Ecology Building Society be getting a decent return, but is some of the thinking going as an investor in 1980, before your money would also be on there. What then needs joining to work in marketing actively helping to push the to happen, is that we take a and IT in 1992. He became chief green economy. Your money conscious decision as a political executive three years later. would be making a difference. community to reorient the “Sometimes we say that whole function of banking and he says, demonstrated a Ecology Building Society is an make sure that it’s embedded lack of understanding of the environmental organisation that this is essential rather than fundamentals of how interest, sat within a building society”, just a side initiative.” profit and money were declares Ellis. But there is a shift happening, generated. “The building society model though – particularly at a To tackle one of the sectors is what we deploy to achieve consumer level – as Ellis biggest misconceptions, our ends, but our fundamental describes. investing in sustainability isn’t an DNA is that we’re in the “We obviously see the growth inherently low-return option. sustainability and environment and interest in avowedly ethical “Clearly”, Ellis says, “if you’re movements. Individuals should banks in this country, but it’s going to forgo certain types of move their money to Ecology even more pronounced in profitable activity – investing in Building Society because they other countries across Europe. gambling businesses and so on can first of all be completely From our experience talking – then there must be constraints clear about how we’re applying to partners, banks that place on your ability to just create the money, and secondly, they THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE sustainability at the core of their profit, and there’s never any can indeed influence the way in values have experienced a quite questioning of how those high which we apply that money by significant increase in interest interest rates could be sustained, becoming actually engaged as and account shifting. I think that and no questioning therefore members.” is set to continue. of whether the business model So, what are you waiting for? “We certainly get more of the organisation was in itself The time to move your money questioning on the fundamentals financially sustainable.” is now, and Ecology Building of how we operate, which we A study earlier this year by the Society would be an irrefutably welcome because it provides a Global Alliance for Banking on intelligent option. OCTOBER challenge to us.” Ellis adds that people used 2012 to approach Ecology to say that they’d like to invest, but would go elsewhere if they could get a better interest rate on the high street. This, 28 www.ecology.co.uk

©BLUE & GREEN COMMUNICATIONS 2012 Stay in touch with us on your favourite social network.

blueandgreentomorrow.com Join us at www.blueandgreentomorrow.com NOT YOUR STEREOTYPICAL HIGH STREET BANK THE CO-OPERATIVE BANK IS A HIGH STREET BANK WITH A DIFFERENCE, IN THAT IT IS THE ONLY ONE TO HAVE A CUSTOMER-DRIVEN ETHICAL POLICY. BARRY CLAVIN IS THE ORGANISATION’S ETHICAL POLICIES MANAGER, AND HE BEGINS HIS CONVERSATION WITH BLUE & GREEN TOMORROW BY OUTLINING WHAT HIS ROLE ENCOMPASSES.

he Co-operative INSTITUTIONS models to PLCs have had more Bank’s ethical FEATURED IN THIS exposure and for us resulted policy is mandated GUIDE, BUT HOW HAS IT in new customers joining the by customers and bank in an apparent ‘flight BEEN COPING THROUGH dictates where the to trust’. So whilst we’ve Tbank will, and more pertinently THE FINANCIAL CRISIS not been immune from the where it will not, either lend OF THE LAST FIVE inter-connected nature of the its customers money or even YEARS? market, The Co-operative Bank provide any sort of banking The financial crisis and has grown. services to businesses that our subsequent downturn have Because we stuck to basic customers don’t want their thrown the spotlight on the principles in how we fund money to support. industry, its behaviours and ourselves and how we manage In order to deliver it, what banks do with their our balance sheet, our support we have a team that customers’ money. It’s caused for customers has been oversees development and a loss of faith in some banks. consistent. The majority of implementation. I head up that It has meant that alternative our funding has always come team of specialist people whose THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE responsibilities are to oversee the development of the policy, and to make sure that over time WE’RE OWNED BY SEVEN the policy remains reflective of what issues customers want MILLION MEMBERS OF THE the policy to cover, and then secondly to put in place the UK GENERAL PUBLIC, AND systems and processes, and OUR AIM TO OPERATE FOR provide advice so that the bank OCTOBER can function and deliver on its THEIR BENEFIT RATHER 2012 ethical policy commitments. THAN FOR THE BENEFIT OF ➭THE CO-OPERATIVE SHAREHOLDERS IN THE WAY BANK IS THE BIGGEST PLC ORGANISATIONS DO 30 OF ALL THE FINANCIAL

©BLUE & GREEN COMMUNICATIONS 2012 from deposits so it’s roughly £1 ➭WHAT NEEDS TO is the money they’ve entrusted in, £1 out, which left us less CHANGE IN ORDER FOR to us. That’s come to the exposed to the markets. fore even more so recently as UK BANKING TO BE consumers and commentators MORE ETHICAL? ➭WHAT’S THE are asking more searching THE GUIDE TO TO SUSTAINABLE BANKING DIFFERENCE BETWEEN We’ve argued for a long questions about what the time that consumers and the banks do with their customers’ THE CO-OP BANK AND economy would benefit from money. THE REST OF THE HIGH greater diversity within the We’ve always been open and STREET BANKS? marketplace. The options for honest in what we do with We’re a co-operative. Our the consumer are limited. For it, and over and above that, ownership structure is different 140 years, we’ve delivered in allowing customers to than the high street banks. banking in the UK in a way that actually have a say in where We’re owned by seven million is about being open, transparent their money is and isn’t members of the UK general and honest about what we do used – which is quite unique. public, and our aim to operate with customers’ money which Ultimately, allowing customers for their benefit rather than for the benefit of shareholders in the way PLC organisations do. TO BE SUCCESSFUL, IT IS That means our profits ESSENTIAL THAT WE ARE are divided between real investment within the business, ABLE TO COMPETE ON WHAT investment in our communities, dividends to our members and CUSTOMERS WANT FROM colleagues. THEIR BANK

OCTOBER 2012 The Co-operative Bank struck a deal in July to buy 632 Lloyds TSB and Cheltenham and Gloucester branches in the UK, in what it called the “biggest shake-up in high street banking in a generation” (Photo: Karen Bryan). 31

©BLUE & GREEN COMMUNICATIONS 2012 to have an influence on your strategy and your approach is FOR 140 YEARS, WE’VE quite brave, but it has served us very well. DELIVERED BANKING IN THE UK IN A WAY THAT IS ABOUT ➭IT WAS RECENTLY ANNOUNCED THAT THE BEING OPEN, TRANSPARENT CO-OP BANK WOULD AND HONEST ABOUT WHAT BE TAKING ON ALMOST FIVE MILLION LLOYDS WE DO WITH CUSTOMERS’ TSB CUSTOMERS MONEY WHICH IS THE MONEY ACROSS THE COUNTRY. AND AFTER SCANDAL THEY’VE ENTRUSTED TO US UPON SCANDAL THIS YEAR ALONE, DO consumerism isn’t as easy to INDIVIDUALS IN ORDER YOU THINK THAT WE pin down as people might TO INSPIRE THEM TO ARE WITNESSING expect it to be, though. There SWITCH TO THE CO- WHOLESALE SHIFTS isn’t a stereotypical ethical OPERATIVE BANK? TOWARDS RESPONSIBLE consumer – it increasingly cuts across all age groups and In switching to the Co- BANKS, THOUGH? socioeconomic profiling, so operative Bank, there is We’ve certainly seen an there isn’t a simple answer to a unique opportunity to increased interest from that. actually own the business customers wanting to join us. To be successful, it is essential that you’re prepared to trade In June and July when issues that we are able to compete with or prepared to put your beset some of the larger banks on what customers want money with. You can own we opened 100,000 new from their bank. That means the business and have a say accounts. providing top quality service in what the business does We launched our ethical policy and good products that meet with your money. And in the two decades ago and it was customer needs. People current climate, that level quite a radical thing to do at shouldn’t expect to have to of two-way trust between that time, to say that going compromise for their ethics. a customer and a bank is a forward, regardless of legal and You must provide great fantastic opportunity. When financial risks, we would look customer service too. you combine great service and at social and environmental products, it means we can THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE risks, as defined by our ➭FINALLY, WHAT offer customers a compelling customers. WOULD YOU SAY TO alternative. ➭HOW WOULD YOU DESCRIBE THE TYPICAL CO-OP BANK CUSTOMER? Obviously we appeal to OCTOBER ethical consumers. Ethical 2012

32 www.co-operativebank.co.uk

©BLUE & GREEN COMMUNICATIONS 2012 THE UNSTOPPABLE SHIFT TOWARDS ETHICAL BANKING THE GUIDE TO TO SUSTAINABLE BANKING a reasonable return on shareholders’ capital for UNITY TRUST BANK IS ONE prudent reserve, would be devoted to purposes OF THE UK’S TRULY SOCIALLY related to the higher interests of the community.” RESPONSIBLE BANKS. ITS MANAGING DIRECTOR IS RICHARD ➭HOW HAS UNITY TRUST BANK WILCOX, A MAN WITH OVER 25 FARED THE FINANCIAL STORM IN YEARS EXPERIENCE IN THE FIELD. THE PAST FIVE YEARS OR SO? We continued with business as usual really. Our business is a relatively simple one; we take fter working at Natwest and the Co- deposits and we lend them to UK businesses operative Bank from the age of 18, he within the social economy. So that hasn’t Ajoined Unity in 1989, staying for six years. changed, but inevitably some of our clients have In 1995, he moved back to the Co-op (the parent suffered during those five years, and we’ve had company of Unity) and then in January this year, to take some provisions for the losses in 2010, was appointed to his current role. but we almost recognise that as an inevitable He took some time out of his busy schedule to consequence of doing business. If anything, it’s speak with Blue & Green Tomorrow about the made us more determined to carry on doing what potential wonders of ethical banking. we’re doing.

➭WHAT IS UNITY TRUST BANK’S ➭WHO ARE YOUR CUSTOMERS? BACKGROUND AND WHAT ARE ITS We only provide banking services to the social economy, so that would be the voluntary sector, PRINCIPLES? community sector organisations, co-ops, mutuals, We were formed relatively recently in 1984, with credit unions, CDFIs, charities and small and some quite strong grounding medium enterprises. principles, and we’ve never We have a unique really moved away from those. WE HAVE A UNIQUE understanding of that If you take a look at them, you social economy because can see how we’re different UNDERSTANDING we’re part of it. It’s not from the high street banks: “An OF THE SOCIAL like we’re an outsider organisation identified with and looking in – we’re part embracing the philosophy of ECONOMY of that economy. So the common good”, “Given the we design products will, the movements can foster BECAUSE WE’RE and services that fit the directly the role of enterprise, needs of the customers not principally influenced by the PART OF IT. IT’S rather than the needs maximising of the profit motive, NOT LIKE WE’RE of us. We’re part of the but who can produce something movement, and we OCTOBER equal in efficiency yet superior AN OUTSIDER understand what it is in principle”, and “As a simple that they want because 2012 objective, excessive profit LOOKING IN – we want the same would not be part of a trade things. union bank philosophy. Profits WE’RE PART OF We lend money to in excess of those required for THAT ECONOMY the social economy; 33

©BLUE & GREEN COMMUNICATIONS 2012 Unity Trust Bank’s managing director Richard Wilcox has worked in ethical banking for the bulk of his career.

I THINK WE we don’t make any equity organisations to help develop investments; nor do we their services. ARE MOVING have any funds under We’ve recently lent money MUCH MORE management – we operate to a charity that’s involved in in simple terms the way a provision of care for people BACK TO A traditional bank has always recovering from drug and done, which is taking alcohol abuse. Any loans that MODEL WHERE deposits off customers and we make must also have a lending those back out to social outcome attached to it. ETHICAL other customers. BANKS, We also provide wholesale ➭WHAT KIND OF funding to community ORGANISATIONS BECAUSE OF development financial AND BUSINESSES institutions (CDFIs) – which THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE THE TRUST are like credit unions but BANK WITH UNITY for small business and TRUST BANK? THAT PEOPLE social and voluntary sector. Obviously a lot of trade HAVE IN THEM, Whereas a credit union is unions bank with us, but primarily involved in lending also I think we’re one of the WILL START TO to individuals, a CDFI is largest provider of banking primarily there to support services to the credit union PLAY A MORE small business or voluntary sector, to the CDFIs and MAINSTREAM sector organisations. smaller community groups, OCTOBER Wholesale lending to CDFIs charities, voluntary sector PART IN THE UK is a great way of supporting organisations. We can and do 2012 the social outcomes that bank with some of the larger we’re looking to achieve. charities, but typically our Another function would relationship would be with be lending to a charity, or the medium-sized regional or 34 lending to voluntary sector smaller charities, voluntary

©BLUE & GREEN COMMUNICATIONS 2012 sector groups and community STREET FOR THEIR YOUR BANKING groups. ➭ BANKING NEEDS? CAREER STARTED AT I think the high street banks no NATWEST. WOULD ➭MANY IN THE longer relate the old-fashioned ETHICAL BANKING concept of providing a banking YOU EVER CONSIDER SECTOR CLAIM TO service. I quoted our founding MOVING BACK TO A principles, and I think if you HIGH STREET BANK HAVE WITNESSED A THE GUIDE TO TO SUSTAINABLE BANKING BIG INCREASE IN THE view us now with those NOW? principles in mind, you would I see no attraction at all in NUMBER OF NEW still recognise our institution. PEOPLE SWITCHING IN moving to a high street bank. I Could you say the same thing like the idea of ethical banking RECENT TIMES. HAVE about the high street banks? because I like the fundamental YOU NOTICED THIS I’ve been in commercial retail routes of what a bank should SHIFT? banking since I was 18, and it be, and I think the ethical Comparing the leads we are was always a case of your word banks – not just ours – still receiving this month compared was your bond. People trusted stick to what it is they will to the same period last, we you. You have to have that do. I like working in that have a very considerable fundamental relationship of environment. increase. We don’t provide a trust with your bank, and what What would you say to traditional personal account, the Libor scandal seems to say encourage or inspire readers to so our support tends to be to is that trust is perhaps that switch to Unity Trust Bank? the voluntary sector, credit trust is sometimes potentially We bank exclusively those unions and CDFIs. But we have misplaced. organisations that are involved noticed that those who bank in the social economy. So if with the high street banks are ➭WHAT COULD you’re working incredibly hard now increasingly starting to OR SHOULD THE within the social economy enquire about us and others GOVERNMENT BE to generate social value in as to whether they should be DOING TO MAKE whatever way that you are putting their money to better doing that – be it a charity, a use. If you think that they’re BANKING MORE CDFI or a credit union – you working tremendously hard ETHICAL? should be confident that the to generate some social value I think from a government and bank that you bank with in what they do, you would from a regulatory perspective, is doing the same. Unity expect the bank that they bank if they can start accepting absolutely does that, and it’s with to do the same, and I that there is a fundamental the fundamental purpose of think we do that. difference between what what we do. Generally, it feels to me like mutuals do and what PLCs do, we’re in a bit of a watershed and not try to tar us all with the moment in the banking sector. same brush, that would help. I think we are moving much I think the idea of increased more back to a model where regulation is important but you ethical banks, because of should make sure that you’re the trust that people have in not overburdening those that them, will start to play a more have done no wrong to try and mainstream part in the UK. The capture those that have. shift towards ethical banking will be slow, but I think it’s unstoppable. OCTOBER 2012 ➭WHY DO YOU THINK PEOPLE ARE MOVING AWAY FROM THE HIGH www.unity.co.uk 35

FROM MARCH 2011, CREDIT UNIONS Lyonette, chief executive of the Association IN ENGLAND, SCOTLAND AND of British Credit Unions Limited (ABCUL), WALES ADDED 77,000 MEMBERS IN highlighted that credit unions are now able to pay fixed interest on deposits. 12 MONTHS, BRINGING THE TOTAL “In terms of saving, for those people who are NUMBER OF PEOPLE IN CREDIT trying to make the most of their money, being able UNIONS IN BRITAIN (EXCLUDING to know what rate your credit union is going to NORTHERN IRELAND) PAST ONE pay you is actually really important”, he said. MILLION FOR THE FIRST TIME. “This is going to put us on a level playing field IN THE US, THE FIGURES ARE AS with other institutions in the UK.” Credit unions often describe themselves as not-for- REMARKABLE, WITH ONE AND A profit, as they are ultimately created to serve their HALF MILLION PEOPLE MAKING THE members and are not to maximise profit. However, SWITCH BETWEEN THE START OF they must return a small amount (known as 2009 TO MID-2010 – THE NUMBER OF ‘surplus’), as without it, they could not continue NEW MEMBERS USUALLY EXPECTED serving members. IN A 14-YEAR PERIOD. HERE, JOSEPH According to the World Council of Credit Unions (WOCCU), a credit union’s revenues (from loans IDDISON UNCOVERS THE CREDIT and investments) must exceed its operating UNION OPTION. expenses and dividends (interest paid on deposits) in order to maintain capital and remain solvent. Credit unions then use this surplus finance to offer higher returns on savings, more affordable loans, s uncertainty and scandal continues lower fees and new products and services. to surround our banking systems, and By putting your money into a credit union, not with further restrictions on public only will you have more of a say as to where that spending recently announced, it is little money goes (unlike major banks) but you will Awonder why some are choosing credit unions over also be helping others in your community. Several multinational banking institutions. of the largest credit unions are now providing THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE Credit unions differ significantly from banks. mortgage finance, too, and many will offer loans of Generally, it operates with the purpose of providing tens of thousands of pounds in value. prudent financial planning, credit at competitive But one of the most appealing aspects of credit rates and other financial services, only to its unions is their willingness to make small loans members. In having these members, as opposed to customers, their wellbeing is put first, giving them a share of the profit at the end of the year in the form of a dividend. Members also have the authority THERE IS MORE OF AN to elect the board of directors, which is run in a EMPHASIS ON MUTUAL OCTOBER democratic one vote per person system, regardless of the amount of money invested, meaning SATISFACTION FOR 2012 members have a say in the day-to-day activities. In the event that a credit union goes bust, all THE MEMBERS AND members’ money is protected up to £85,000 by the Financial Services Compensation Scheme. COMMUNITY IT MAY BE 36 And speaking to the BBC earlier this year, Mark TARGETED TOWARDS

©BLUE & GREEN COMMUNICATIONS 2012 of as little as £50 (and up to £7,500, with larger the outgoing Labour government. institutions offering much more) to their members The UK’s involvement in credit unions only really – something high street banks won’t do. Also unlike began after witnessing their progress in other banks, when taking out a loan from a credit union, countries, particularly Ireland, Canada and the US. there are no penalties or charges if you pay the loan In Ireland, over 70% of the population belongs to off early. Life cover is included in the loan at no a credit union. In the US and Canada, the figure is extra cost, meaning, in the event of your death, the around 43%. Credit unions are also growing fast in THE GUIDE TO TO SUSTAINABLE BANKING credit union’s insurer will repay the loan on your Eastern Europe, parts of South America, Africa and behalf. the Far East. “I save here because I feel it is very community- Nowadays in the UK, many small-scale credit based. It is brilliant”, Vernella Dyer, a member of unions are established to offer a financial the London Community Credit Union based in community, as many, such as the Police Credit Hackney, told the BBC. She has been a member for Union, intending to support common benefits. over a year, and supports the decision to build up Many also support community development, such the reserves of her local credit union. as localised projects and investment. Whilst credit unions have become more popular in There is more of an emphasis on mutual satisfaction recent years, with constant doubt and austerity in for the members and community it may be targeted national and global banking systems, they are not a towards. For example, a credit union might be able recent movement. According to the London Mutual to offer support to someone struggling to qualify for Credit Union, credit unions and societies were or access general bank services and products. Larger created in Germany in 1852, where the principals credit unions are at times able to offer better interest and democratic beliefs of today’s institutions began. returns than some high-street firms. Before 1979, however, no legal structure for credit What appears the most remarkable, though, unions existed in the UK. Some of the early credit is, while big banks cut lending in 2009, credit unions chose to register under the Companies unions granted more loans, and since January, UK Act and some under the Industrial and Provident institutions have been able to lend to businesses. Societies Act. There were many who played a key “Our members are borrowing for productive role in getting a legal structure for credit unions on purposes, so we have continued to lend”, Kellie the statute book, and eventually, in April 1979, the Terhune Neely told the Huffington Post. She’s Credit Unions Act was the last Act to be passed by vice president of Hughes Federal Credit Union,

OCTOBER 2012

Thursday, October 18 is International Credit Union Day – an event to celebrate an increasingly popular banking option across the world. 37

©BLUE & GREEN COMMUNICATIONS 2012 which serves low-income rates in the immediate future. meant people connected to the neighbourhoods in Tucson, US, For now there appears to be no same employer. But today, more where in 2009, loan volume imminent change. than three-quarter of all credit was up nearly 5%, supported by “Each credit union has a choice unions define that shared bond a 6.5% growth in membership on whether or not it wants to by location, so anyone who and a 19% gain in deposits. offer the guaranteed interest lives in the community can Back home, and speaking to rate. So they would have become a member. the BBC, David Braithwaite, to vote on that procedure”, If you’re interested in joining financial adviser with Citrus explained Jo Everest, a credit union, visit www. Financial Management, community relations manager findyourcreditunion.co.uk, described a potential problem for the London Community which has details of all the for credit unions trying to attract Credit Union. credit unions around the new customers. Almost everyone is eligible to country and lists which ones “A lot of people in this join at least one credit union. you might be eligible to join. economic climate are looking By law, they must limit their Thursday, October 18 is for somewhere safe to put their membership to people who International Credit Union Day, money. Now there is nothing share a particular common meaning there isn’t a better wrong with a credit union, but bond. In the past, that has often time to move your money. a lot of people do prefer a high street brand, well-known names that they can trust”, he said. At the beginning of the year, a BY PUTTING YOUR MONEY new law passed, allowing credit unions in England, Scotland INTO A CREDIT UNION, NOT and Wales to offer fixed savings ONLY WILL YOU HAVE MORE rates. Most credit unions have not set their interest rates OF A SAY AS TO WHERE THAT yet; however, one has already offered 4% on a cash Individual MONEY GOES, BUT YOU WILL Savings Account (ISA). But most credit unions will not be ALSO BE HELPING OTHERS IN offering guaranteed interest YOUR COMMUNITY The total number of people in credit unions in England, Scotland and Wales passed one million for the first time in March 2012. THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE

OCTOBER 2012 38

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Reliance Bank Ð A3 poster campaign Ð month 6.indd 1 31/08/2012 16:25 ethIcAl IfA dIrectory

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BromigeFirm: Bromige Contact: Benjamin Walter or Lee Smythe Contact: BernardContact: Lovesey,Bernard Tim Lovesey, Bradford Tim or Bradford or Contact: ChristianContact: Thal-JantzenChristian Thal-Jantzen Contact: Jeremy Newbegin Coverage: London & Kent nerGy Address:Coverage: BarchesterWiltshireAddress:Coverage: House BarchesterWiltshire House Address:Coverage: 22EastAddress:Coverage: Hartfield Sussex 22East Road Hartfield Sussex Road Address: 180 Woodlands Road Andrew FaulknerAndrew Faulkner Contact: Benjamin Walter or Lee Smythe Contact: 45-49BernardContact: Catherine Lovesey,45-49Bernard Street Tim Catherine Lovesey, Bradford Street Tim or Bradford or Contact: ForestChristianContact: Row Thal-Jantzen ForestChristian Row Thal-Jantzen Woodlands Address: 2nd Floor Berkeley Square House Address: BarchesterAddress: HouseBarchester House Address: 22Address: Hartfield 22Road Hartfield Road Address: 180 Woodlands Road SalisburyAndrew Faulkner SP1SalisburyAndrew 2DH Faulkner SP1 2DH East SussexEast RH18 Sussex 5DY RH18 5DY Southampton SO40 7GL Berkeley Square London W1 6BD 45-49 Catherine45-49 Street Catherine Street Forest Row Forest Row Woodlands Address: 2nd Floor Berkeley Square House Phone: 08456 123 411 Phone: 020 7887 1989 Phone:Address: 0800BarchesterPhone:Address: 328 6818 House0800Barchester 328 6818 House Phone:Address: 0134222Phone:Address: Hartfield 826 703 0134222Road Hartfield 826 703 Road Southampton SO40 7GL Berkeley Square London W1 6BD ean e Salisbury SP1Salisbury 2DH SP1 2DH East Sussex EastRH18 Sussex 5DY RH18 5DY Website: barchestergreen.co.uk45-49Website: Catherine barchestergreen.co.uk45-49 Street Catherine Street Website: bromige.co.ukForestWebsite: Row bromige.co.ukForest Row Website: www.the-ethical-partnership.co.uk Website: smytheandwalter.co.uk Phone: 0800Phone: 328 68180800 328 6818 Phone: 01342Phone: 826 70301342 826 703 Phone: 08456 123 411 Phone: 020 7887 1989 Email: [email protected]: [email protected] 2DH SP1 2DH Email: [email protected]: [email protected] RH18 Sussex 5DY RH18 5DY Email: [email protected] Email: [email protected] Website: barchestergreen.co.ukWebsite: barchestergreen.co.uk Website: bromige.co.ukWebsite: bromige.co.uk Website: www.the-ethical-partnership.co.uk Website: smytheandwalter.co.uk Phone: 0800Phone: 328 68180800 328 6818 Phone: 01342Phone: 826 70301342 826 703 [email protected] Email: [email protected]: [email protected] Email: [email protected]: [email protected] Email: [email protected] Email: [email protected] Website: barchestergreen.co.ukWebsite: barchestergreen.co.uk Website: bromige.co.ukWebsite: bromige.co.uk [email protected] Email: [email protected]: [email protected] Email: [email protected]: [email protected] Firm: EthicalFirm: FuturesEthical Futures Firm: EquityFirm: InvestEquity Invest Firm: Stewart Investment Planning Coverage: EdinburghCoverage: Edinburgh Coverage: WimbledonCoverage: Wimbledon Coverage: Bristol & North Somerset Firm: EthicalFirm: FuturesEthical Futures Firm: EquityFirm: InvestEquity Invest Firm: Stewart Investment Planning Contact: JulianContact: ParrottJulian Parrott Contact: RichardContact: HunterRichard Hunter Contact: Martin Stewart Coverage: EdinburghCoverage: Edinburgh Coverage: WimbledonCoverage: Wimbledon Coverage: Bristol & North Somerset Firm: EthicalFirm: FuturesEthical Futures Firm: EquityFirm: InvestEquity Invest Contact: JulianContact: ParrottJulian Parrott Contact: RichardContact: HunterRichard Hunter Contact: Martin Stewart Address:Coverage: EdinburghCoverage: Edinburgh Address:Coverage: WimbledonCoverage: Wimbledon Address: 1 The Courtyard o LimiTLess C L 9 Address:Mansfield 9Place Mansfield Place 60Address: High Street 60 High Street Contact: EdinburghJulianContact: Parrott EH3EdinburghJulian 6NB Parrott EH3 6NB Contact: WimbledonRichardContact: Hunter VillageWimbledonRichard Hunter Village Leigh Court Address: 9 Address:Mansfield 9Place Mansfield Place Address: 60Address: High Street 60 High Street Address: 1 The Courtyard London SW19London 5EE SW19 5EE Bristol Edinburgh EH3Edinburgh 6NB EH3 6NB Wimbledon VillageWimbledon Village Leigh Court Phone:Address: 08459Phone: Address:Mansfield 612 5505 08459 PlaceMansfield 612 5505 Place Phone:Address: 02060Phone:Address: High 8879 Street 127302060 High 8879 Street 1273 Phone: 01275 371900 London SW19London 5EE SW19 5EE Bristol Website: ethicalfutures.co.ukEdinburghWebsite: EH3ethicalfutures.co.ukEdinburgh 6NB EH3 6NB Website: equityinvest.co.ukWimbledonWebsite: Villageequityinvest.co.ukWimbledon Village Website: stewartinvestmentplanning.co.uk Phone: 0845Phone: 612 55050845 612 5505 Phone: 020Phone: 8879 1273020 8879 1273 Phone: 01275 371900 Email: [email protected]: [email protected] Email: [email protected]: [email protected] 5EE SW19 5EE Email: [email protected] Website: ethicalfutures.co.ukWebsite: ethicalfutures.co.uk Website: equityinvest.co.ukWebsite: equityinvest.co.uk Website: stewartinvestmentplanning.co.uk Phone: 0845Phone: 612 55050845 612 5505 Phone: 020Phone: 8879 1273020 8879 1273 Email: [email protected]: [email protected] Email: [email protected]: [email protected] Email: [email protected] Website: ethicalfutures.co.ukWebsite: ethicalfutures.co.uk Website: equityinvest.co.ukWebsite: equityinvest.co.uk THE GUIDE TO TO SUSTAINABLE BANKING SUSTAINABLE TO TO GUIDE THE

The Guide T Email: [email protected]: [email protected] Email: [email protected]: [email protected] Firm: TheFirm: GAEIA PartnershipThe GAEIA Partnership Firm: LighthouseFirm: ImpactLighthouse Impact Coverage: ManchesterCoverage: Manchesterand Stockport and Stockport Coverage: DerbyshireCoverage: Derbyshire Firm: TheFirm: GAEIA PartnershipThe GAEIA Partnership Firm: LighthouseFirm: ImpactLighthouse Impact Contact: HelenContact: TandyHelen Tandy Contact: AshContact: Rawal Ash Rawal Coverage: ManchesterCoverage: Manchesterand Stockport and Stockport Coverage: DerbyshireCoverage: Derbyshire Firm: TheFirm: GAEIA PartnershipThe GAEIA Partnership Firm: LighthouseFirm: ImpactLighthouse Impact Contact: HelenContact: Tandy Helen Tandy Contact: AshContact: Rawal Ash Rawal Address:Coverage: 1Manchester Address:Coverage:The Arcade 1Manchesterand The Stockport Arcade and Stockport Address:Coverage: 132DerbyshireAddress:Coverage: Station Road132Derbyshire Station Mickleover Road Mickleover Contact: 829HelenContact: Wilmslow Tandy829Helen Road Wilmslow Tandy Road Contact: DerbyshireAshContact: Rawal DE3DerbyshireAsh 9FN Rawal DE3 9FN OCTOBERJULY Address: 1 Address:The Arcade 1 The Arcade Address: 132Address: Station Road132 Station Mickleover Road Mickleover Manchester ManchesterM20 5WD M20 5WD 829 Wilmslow829 Road Wilmslow Road Derbyshire DE3Derbyshire 9FN DE3 9FN 2012 Phone:Address: 01611Phone: Address:The 434Arcade 468101611 The 434Arcade 4681 Phone:Address: 01332132Phone:Address: Station 517 120Road01332132 Station Mickleover 517 120Road Mickleover Manchester ManchesterM20 5WD M20 5WD Website: gaeia.co.uk829Website: Wilmslow gaeia.co.uk829 Road Wilmslow Road Website: ethicalinvestments.uk.comDerbyshireWebsite: DE3ethicalinvestments.uk.comDerbyshire 9FN DE3 9FN Phone: 0161Phone: 434 46810161 434 4681 Phone: 01332Phone: 517 12001332 517 120 Email: [email protected]: [email protected] 5WD M20 5WD Email: [email protected] Email: [email protected] Website: gaeia.co.ukWebsite: gaeia.co.uk Website: ethicalinvestments.uk.comWebsite: ethicalinvestments.uk.com Phone: 0161Phone: 434 46810161 434 4681 Phone: 01332Phone: 517 12001332 517 120 4042 Email: [email protected]: [email protected] Email: [email protected]: [email protected] Website: Website: gaeia.co.uk Website: ethicalinvestments.uk.comWebsite: ethicalinvestments.uk.com gaeia.co.uk © Blue & Green© Blue Communications & Green Communications 2012 2012 © Blue & Green Communications 2012 Email: [email protected]: [email protected] Email: [email protected]: [email protected] 29 30 ©©BlueBLUE & & GREEN Green © Blue & Green Communications 2012 COMMUNICATIONSCommuniCations 2012 © Blue & Green© Blue Communications & Green Communications 2012 2012 29 29 30 © Blue & Green© Blue Communications & Green Communications 2012 2012 29 29 Ethical IFA Directory Ethical IFA Directory investingethically Firm: The Ethical Partnership Firm: Smythe & Walter chartered The Guide T

Coverage: New Forest and Channel Islands financial planners THE GUIDE TO TO SUSTAINABLE BANKING Firm: The Ethical Partnership Firm: Smythe & Walter chartered Contact: Jeremy Newbegin Coverage: London & Kent Coverage: New Forest and Channel Islands financial planners Contact: Benjamin Walter or Lee Smythe Contact: Jeremy Newbegin Coverage: London & Kent Address: 180 Woodlands Road Contact: Benjamin Walter or Lee Smythe Woodlands Address: 2nd Floor Berkeley Square House Address: 180 Woodlands Road Southampton SO40 7GL Berkeley Square London W1 6BD Woodlands Address: 2nd Floor Berkeley Square House Phone: 08456 123 411 Phone: 020 7887 1989 Southampton SO40 7GL Berkeley Square London W1 6BD

Website: www.the-ethical-partnership.co.uk Website: smytheandwalter.co.uk o LimiTLess C L Phone: 08456 123 411 Phone: 020 7887 1989 Email: [email protected] Email: [email protected] Website: www.the-ethical-partnership.co.uk Website: smytheandwalter.co.uk [email protected] Email: [email protected] Email: [email protected] [email protected]

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Firm: The Ethical Partnership Firm: Smythe & Walter chartered Coverage:Firm: TheNew Ethical Forest Partnershipand Channel Islands Firm: financialSmythe & plannersWalter chartered Contact:Coverage: NewJeremy Forest Newbegin and Channel Islands Coverage: Londonfinancial & Kentplanners Contact: Jeremy Newbegin Coverage:Contact: BenjaminLondon & WalterKent or Lee Smythe JULY OCTOBER Address: 180 Woodlands Road Contact: Benjamin Walter or Lee Smythe 2012 Address: 180Woodlands Woodlands Road Address: 2nd Floor Berkeley Square House 2012 WoodlandsSouthampton SO40 7GL Address: Berkeley2nd Floor Square Berkeley London Square W1 House 6BD Phone: Southampton08456 123 411 SO40 7GL Phone: 020Berkeley 7887 Square 1989 London W1 6BD Website:Phone: 08456www.the-ethical-partnership.co.uk 123 411 Website:Phone: smytheandwalter.co.uk020 7887 1989 4143 Email:Website: www.the-ethical-partnership.co.ukjeremyn@the-ethical-partnership.co.uk Email:Website: [email protected] © Blue & Green Communications 2012 Email: [email protected] Email: [email protected]@smytheandwalter.co.uk 30 © Blue & Green Communications 2012 ©©BlueBLUE & & GREEN Green [email protected] COMMUNICATIONSCommuniCations 2012 30

Firm: Stewart Investment Planning Firm:Coverage: StewartBristol & InvestmentNorth Somerset Planning Coverage:Contact: BristolMartin &Stewart North Somerset Contact: Martin Stewart Address: 1 The Courtyard Address: 1Leigh The CourtCourtyard LeighBristol Court Phone: Bristol01275 371900 Phone:Website: 01275stewartinvestmentplanning.co.uk 371900 Website:Email: stewartinvestmentplanning.co.uksip@stewartinvestmentplanning.co.uk Email: [email protected]

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RETAIL BANKS AND BUILDING SOCIETIES PLAY A VITAL ROLE IN OUR ECONOMY. OUR SALARIES AND WAGES CAN BE PAID FROM AND INTO A SAFE PLACE AND PAYMENTS CAN BE SETTLED EASILY IN PERSON OR AUTOMATICALLY. THEY LEND, OR USED TO LEND, TO ALLOW INDIVIDUALS AND BUSINESSES TO BUY THINGS vital that retail divisions AND PAY US A RETURN IF WE SAVE OR INVEST. must be separated from their BANKING IS NOT THE ENEMY, OR IT SHOULD NOT investment arms and then BE, IF OPERATED SUSTAINABLY. broken into smaller players to stimulate even greater competition. Despite the Whatever we are told about First Direct), Barclays and recommendations of the the failings of previous Santander hold 85% of Vickers Report to separate the governments, our current personal current accounts. investment divisions from the economic woes have at their In mortgages, this share is retail ones, under current plans core an investment banking 76%; in savings accounts 61% by the government, this will crisis. Speculation on a and in personal loans 64% not happen quick enough or go property bubble, with sub- (Houses of Parliament, 2010). far enough to have the impact prime assets wrapped into A reasonable person could say consumers need. financial instruments rated that an oligopoly, a market as prime, led to a collapse in dominated by a few players, But this is where personal confidence and a catastrophic operates in personal current responsibility comes in. There market failure from which we accounts. are 110 banks and building have still not yet recovered. societies in the UK, meaning Governments, central banks This huge concentration an enormous choice for and regulators with both left of power is damaging for individuals and businesses. and right tendencies failed to competition and therefore Moving your current account predict or prevent this crisis. damaging for customers. and savings to an organisation While the sale of 632 Lloyds outside the big five sends a Retail banks risked failure TSB branches to the Co- strong market signal to the because their investment operative slightly decreases major players that they need arms massively over-stretched their dominant market to improve their game and themselves. position, it is a long way from behave more responsibly. the dynamic sector and more We’ve presented several strong There is a huge concentration perfect competition we need. candidates in this report. of market share in the five Concentration in market power OCTOBER major banking groups. Between always leads to abuse, as we Most banks and building them, Lloyds Banking Group saw with payment protection societies offer a straightforward 2012 (Lloyds and HBOS [Halifax, and insurance miss-selling. switching service, so shop Bank of Scotland]), Royal around and move your money Bank of Scotland Group (RBS, The role that retail banks today. The future of banking is, Natwest), HSBC (HSBC, play in an economy is so in part, in your hands. 47

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november 2012

october 2012 december 2012

Sustainable Investment Building on the success of our first Guide to Sustainable Invest- ment we interview the thought leaders in this rapidly growing sector during National Ethical Investment Week Ethical Shopping In the build up to the busiest shopping period of the year, we explore what to buy for family and friends without costing the Earth Responsible Media Post-Leveson ,what does a media landscape look like that informs, educates and entertains?