Not just a pretty face.

In 2006 we declined investments in four businesses that were found to be testing cosmetic or household products on animals.

good with money

Ecological Impact

In line with the principles of our Ecological Mission Statement, we will not invest in any business whose core activity contributes to: global climate change, through the extraction or production of fossil fuels the manufacture of chemicals which are persistent in the environment and linked to long term health concerns the unsustainable harvest of natural resources, including timber and sh. Furthermore, we will seek to support companies involved in: recycling and sustainable waste management renewable energy and energy efciency sustainable natural products and services, including timber and organic produce the pursuit of ecological sustainability.

Customer support: For no investment in business whose core activity contributes to: global climate change 70% persistent chemicals 88% unsustainable harvesting 94%. For positive investments: recycling and sustainable waste management 98% renewable energy and energy efciency 98% sustainable natural products and services, including timber and organic produce 97% the pursuit of ecological sustainability 97%.

Background
There are currently more than six billion people on Earth and, for some time now, there has been compelling evidence of environmental destruction on a global scale, much of which can be put down to human activity of one kind or another.
The next 50 years will see the number of people on Earth increase 50% to nine billion1, and the combined economic activity of these individuals is set to increase by a factor of ve. Carrying on as we are, it is expected that environmental problems will get progressively worse. This is the background against which commerce and industry will have to conduct business in the future. An internationally-agreed environmental management tool The Natural Step2 forms the basis of the banks Ecological Mission Statement.

1 Vital Signs 2003 The Trends That Are Shaping Our Future, WorldWatch Institute, May 2003. 2 www.naturalstep.org.uk

Ecological Sustainability
There are three principle ways in which commerce and industry contribute to the progressive destruction of Nature and its ability to create resources. 1. We are extracting vast amounts of materials from the Earths crust which, after use, end up accumulating in Nature. For example, every year, millions of tonnes of fossil fuels, such as oil, gas and coal are burned producing large volumes of waste, such as Carbon Dioxide (CO2). The accumulation of CO2 in Nature has been identied as the primary factor behind global climate change. 2. Commerce and industry are generating volumes of waste that far exceed the capacity that Nature is able to deal with. Nature is unable to break down and render harmless some of the waste produced. The accumulation of such articial materials in Nature is particularly problematic, as they are destined to stay with us for a long time. Pollutants, such as dioxins, are linked to everything from cancer to abnormalities of the human reproductive system.

3. We are plundering Nature and its living resources at a rate which exceeds its capacity for renewal. As a result, natural resources are disappearing. For example, all major shing areas in the world have either reached or exceeded their natural limit for replenishment and sh stocks are, as a result, in decline.

On the basis of this policy, we will not invest in:

businesses involved in the extraction or production of fossil fuels businesses involved in the production of long lived substances that Nature has little capacity to break down (e.g., the plastic PVC and refrigerants such as HCFCs) businesses contributing to timber clearance or over-shing.

Do you realise?
Global climate change: the 1990s was the warmest decade since records began. Limiting the impacts of global climate change will require a reduction in greenhouse gas emissions of 60% on 1990 levels. Waste: between 1995 and 2004, household waste produced per person increased by 15%, with each person generating just over half a tonne on average per year3. Biodiversity: 65% of the major sh species are either fully or overexploited4. 24% of mammals and 12% of bird species are currently regarded as globally threatened5.

88% of customers do not support investment in persistent chemicals.

3 www.defra.gov.uk/environment/statistics/waste/kf/wrkf04.htm 4 www.fao.org/docrep/005/y7300e/y7300e04.htm#P5_111 5 www.unep.org/geo/geo3

Our mortgage product8

Our homes produce almost a quarter of the countrys total output of carbon dioxide one of the main gases responsible for global climate change. With this in mind, all bank mortgages are backed by an annual payment, for as long as the mortgage exists, to climate care9 an organisation working to reduce the impact of global climate change. This payment is used to offset 20% of an emissions that are created in the generation of the gas and electricity used in our homes.

Climate care has developed a range of projects to help offset these emissions, including the planting of new forests. One of their current projects supports rainforest restoration in Kibale National Park in Uganda one of the most important wildlife habitats in the world.
8 www.co-operativebank.co.uk/personal/mortgages.html 9 www.climatecare.org

Campaigning for change10 Safer Chemicals Campaign

In 2003, the bank launched its Safer Chemicals Campaign calling for the phase out of chemicals known to be persistent and bio-accumulative and for their replacement with safer alternatives. Visit our website and read the latest on our campaign.

Our Ecological Impact

In total, 98% of all of the banks electricity now comes from renewable resources, contributing to a 90% reduction in carbon dioxide emissions (per customer account) since 1997. For full details of the banks ecological impact, visit our Sustainability Report at www.cfs.co.uk

10 The bank campaigns on behalf of customers through its Customers who Care programme. For further information on this programme visit www.co-operativebank.co.uk/cwc

Case Study
The bank was approached to consider banking facilities for a furniture manufacturer. Unfortunately, on investigation it transpired that the company was using a particular hardwood which was considered to be harvested in an unsustainable manner. Decision: Acceptable. On certain occasions the bank has been able to work with prospective customers to move them on to a more sustainable path. The bank was able to offer this company banking facilities after successfully negotiating their move away from this particular hardwood and on to a more sustainable source.

Implementing the policy

For details of investment opportunities declined by the bank, please see the latest CFS Sustainability Report at www.cfs.co.uk