Ethical Finance

The public is becoming increasingly concerned over the issues surrounding the money they spend and invest. Between October 2014 and February 2016, Co-operative News explored the questions and...

The public is becoming increasingly concerned over the issues surrounding the money they spend and invest. Between October 2014 and February 2016, Co-operative News explored the questions and options around ethical finance, with support from Ecology Building Society.

  • Co-op Bank: Should I stay or should I go?

    At the end of last year, news emerged that the Co-operative Bank was closing the accounts of many campaigning and solidarity groups that have links to Palestine, Cuba or Nicaragua. In response to the closures, Save Our Bank launched a campaign asking The Co-operative Bank to reconsider their decision. So far, the campaign has attracted more than 6,000 signatures. But for some, the move was ...

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  • Weighing up the ethical options for insuring your co-op

    Insurance is a necessary part of any business. Researching insurance providers is never going to be on your top ten list of enjoyable activities, so it can be tempting to go with whatever deal you’re offered. But you may have important ethical considerations. The Your Ethical Money website provides ethical ratings for most of the larger insurance providers. While the ratings are based on ...

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  • Investing in the co-operative movement

    If you are looking to support the wider co-operative movement, you could join the ranks of co-operatives who choose to invest some of their profits in other co-ops and community benefit societies. While perhaps not as straightforward as other forms of ethical investment, there are nevertheless various ways to do this, from share capital to loans and bonds. According to Lisa Ashford, CEO of ...

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  • Member economic participation: turning co-operative supporters into co-operative investors

    The path to member economic participation, one of the core co-operative principles, never did run smooth. In the International Co-operative Alliance's definition, co-op members allocate surplus capital "for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible; benefiting members in proportion to ...

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  • Desjardins, Montreal (Image: Simon Villeneuve)

    What an ethical bank looks like

    The word ‘ethical’ in relation to banking tends to mean different things to different people. Some are primarily concerned with the level of customer involvement, while some are more concerned with how their money is invested, and others with how communities benefit from any profits. Unsurprisingly, many of the organisations that make it onto list of ethical banks are co-operatives. ...

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  • Is renewables investment making ownership more democratic?

    Along with many, I celebrated the announcement last month that the applications for fracking in Lancashire had been rejected. The decision was made following significant protests and a petition signed by 50,000 people. Daisy Sands, Greenpeace UK energy and climate campaigner, called it “a triumph for local democracy”. But was it? The decision was made by 14 people on a council committee. ...

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  • Finding Capital the Ethical Way

    Co-operatives have often struggled to access capital, as routes available to other business models are not always appropriate. The International Co-operative Alliance’s Blueprint for a Co-operative Decade states: “Co-operatives need access to capital if they are to be established, grow and flourish. The aim is to secure reliable co-operative capital while guaranteeing member control.” It ...

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  • Innovations in ethical investment

    It wasn’t so long ago that businesses and consumers wanting to invest ethically had just a few funds to choose from. Now there are hundreds, and other investment opportunities, such as peer-to-peer lending, mean that investors really do have more choice than ever before. According to the research body EIRIS, more than £13.5bn was invested in UK green and ethical retail funds in 2014. Concern ...

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  • The ethical options for a co-op company pension

    In 1901 there were ten people of working age for every person who’d retired. A hundred years later, the ratio was three to one – and by 2050 the Department for Work and Pensions estimates that there will only be two people of working age for every person receiving a pension. Given that not every person of working age will be working, the message is simple: you need to provide for your own ...

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  • What does 2015 hold for ethical finance?

    As we enter 2015, we speak to a number of experts from within the ethical finance sector to find out what’s important this year and how these issues will affect co-operatives ... Ian Rothwell, development manager, Co-operative and Community Finance: Many of the social lenders and ethical banks are having to scale up their operations for reasons of sustainability. Their capital and ...

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  • Ethical finance updates: credit unions, mutual insurers and employee ownership

    To Your Credit campaign The Archbishop of Canterbury, Justin Welby, has launched a new website, www.toyourcredit.org.uk, to support his campaign for a fairer financial system. A well-known supporter of credit unions, the site features case studies and ways to find credit unions. www.toyourcredit.org.uk Mutual insurers grow through the crisis New research from the Association of Financial ...

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  • The finance heretic: how a more co-operative finance system can be created

    Brett Scott is an activist and author whose work challenges financial norms. What does he think is wrong with the financial sector, and how can a more co-operative and democratic financial system be created? Originally from South Africa and currently based in London, Brett Scott has just returned from a trip around Europe, visiting Greece to support new co-operatives, Berlin to help a ...

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  • AltGen and Co-operatives UK announced the Young Co-operators Prize

    Ethical Finance updates (18 November)

    New £30 million loan fund for social enterprises Social and Sustainable Capital has launched a new £30m loan fund. Partnering with Santander, Big Society Capital and the Social Investment Business Foundation, it offers a range of loan finance options to social enterprises and charities. Santander’s contribution is thought to be the largest pot made available to social enterprises and ...

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  • Ethical finance: co-operatives and investment

    This year, the government passed proposals to allow people to invest up to £100,000 in a co-operative. An increase in the withdrawable share capital limit (originally set at £20,000) is one of the main ways for a co-op to secure capital, in line with the third co-operative principle. Co-operatives UK estimated this increase would be particularly useful for agricoops, and could generate an ...

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  • The Building Societies Association’s members include the Nationwide and Skipton building societies

    Time for the building society sector to stand up and be counted

    Robin Fieth is a year into his role at the head of the Building Societies Association (BSA), and has looked at the changes needed in governance, financing and regulation. These, he said, would help the sector in its crucial role – to help creating a more diverse banking sector and enable more people to save and buy homes. Mr Fieth joined BSA in late 2013, after a career working at PwC, in ...

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  • Ecology’s purpose-build eco-building in Silsden, West Yorkshire

    Why Green isn't only the colour of money

    Ecology Building Society has been conducting a campaign against the supermarket discounter, Aldi. On the last week of the campaign, Co-operative News visited their head office – a purpose built eco-building in West Yorkshire to find out more. The proposed site of Aldi's new store, next to Ecology’s offices, was home to a 250-year-old tree. Ecology objected to the retailer removing the tree ...

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  • Member events included a harp performance at the Saxmundham branch

    Building society shows difference between members and customers

    Ipswich Building Society has grown its mortgage, savings and membership base over the past five years. It boasts Net Promoter Scores of +65 and retention levels of 90%. But it has identified that 66% of its members feel more like a customer than a member. Michelle Monck, general manager, marketing, says Ipswich needs to tackle to this to protect it from the growing competition of new, ...

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  • Sunart Community Hydro

    Ethical finance updates

    Latest community shares Sunart Community Hydro A 100kWh hydro-electricity scheme to generate income for the local community. Shares available: £850,000. Visit: www.microgenius.org.uk/project/sunart-community-hydro-24   The Low Carbon Hub  This community share raise will put local power in the hands of local people and bring renewable energy to 18 local schools and ...

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  • What is ethical finance?

    What organisations do with their money is being increasingly caught on the public radar, bringing ethical issues to the forefront. From dodgy tax decisions to questionable investments, businesses are being highlighted more and more for what they do with their customers’ money. Ethics and values are at the core of co-operatives and mutuals, meaning they can offer more examples of sensible ...

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