Ecological
sustainability
Living in the real world shown and its omission is indicated by a and an explanation of the change is provided
CFS is seeking to reconstitute the relationship break in the graph. In the majority of instances, on CFS’ website.7
between its business activities and Nature. data for 2005 is presented for CFS, rather than
This is not being pursued for altruistic reasons, being separately identified to either CIS or the Assurance
but because there are physical limits to the Bank. In this, CFS’ third year of reporting, it has During 2005, CFS’ environmental management
resources of the Earth, both in terms of become increasingly apparent that, in relation systems were re-accredited to ISO14001
generating materials and absorbing wastes. to matters of ecological sustainability, it is more (page 23). CFS is the only major financial
Any business activity that exceeds Nature’s appropriate to report in relation to CFS’ business services institution to be certified across its
non-negotiable limits is, by definition, as a whole. In another development, the paper total business operations. The certified scope
unsustainable in the medium to long term. CFS’ and printing indicators are now reported within includes the complete range of operations,
Sustainable Development Policy (page 6) sets the chemicals (page 85) and reduce, reuse, activities, products and services (personal and
out the minimum conditions for ecological repair and recycle (page 88) sections. corporate banking, insurance, investments and
sustainability and is heavily influenced by an pensions) of CFS, the Bank, CIS and smile.
approach referred to as The Natural Step.1 Reporting guidelines Data and commentary throughout this Report
In 2001, the UK Government’s Department for is assured by justassurance in accordance
Normalisation Environment, Food and Rural Affairs (DEFRA) with the AA1000 Assurance Standard,8 which
CFS acknowledges that If CFS can control consumption of energy and
other resources, whilst at the same time
produced guidelines that set out how to produce
a good quality environmental report.4 CFS’
requires the Report to be considered in relation
to the principles of completeness, materiality
there are physical limits increasing the number of customer accounts it
operates, then real eco-efficiency gains can be
Sustainability Report 2005 is consistent with
the proposed ‘reporting process’, and covers
and responsiveness (page 98). An assessment
of the degree to which CFS succeeds in
to the resources of the achieved. For 2005, 9,996,0002 is taken to be both those indicators suggested as being delivering value to Partners in an ecologically
sustainable manner is provided by Jonathon
the total number of CIS and Bank accounts: a ‘relevant to all organisations’ and those
earth, both in terms of decrease of 4.1% on 2004. Some businesses indicators considered to be ‘additional extras’. Porritt, Founder Director of Forum for the
normalise their impacts on the basis of The guidance cites the Bank as one of seven Future (page 101). For further details, please
generating materials employee numbers. Therefore, to facilitate examples of good practice. CFS has also contact Chris Shearlock, Environment Manager
benchmarking, data is also presented on this followed most aspects of DEFRA’s reporting (chris.shearlock@co-op.co.uk).
and absorbing wastes. basis: taking 9,345 as the average number of guidelines for greenhouse gas emissions,
CFS staff during 2005.3 However, CIS’ Financial waste and water use.5 The degree to which 1 www.naturalstep.org.uk
2 6,640,000 CIS customer accounts, an 8.6% decrease during
Advisers (1,800 staff) spend most of their time CFS’ environmental reporting is consistent 2005 and 3,356,000 Bank customer accounts, a 6.2%
working away from the office; either operating with the Global Reporting Initiative is described increase during 2005.
from their homes, or working in customers’ on the website.6 3 Average staff numbers have been used for normalisation due
to the 20% decrease in staff numbers during the year, mainly
homes. As such, to avoid understating the as a result of the CIS modernisation programme.
normalised ecological impacts of CFS waste Benchmarking 4 www.defra.gov.uk/environment/business/envrp/index.htm
production and utilities use, CIS Financial CFS aims, as far as possible, to compare its 5 The DEFRA guidelines have been followed with two
exceptions. Haulage impacts are not fully declared, as many
Advisers have been excluded from average performance against that of other organisations. of CFS’ suppliers are unable to determine mileage for that
employee numbers in these instances. Benchmarks are provided to help contextualise proportion of business undertaken for CFS. CFS disagrees
the reported information, and this Benchmark that the CO2 emissions from Combined Heat and Power
(CHP) derived electricity should be taken as zero. Instead,
Developments symbol appears next to such comparisons. CFS has determined, in association with electricity suppliers,
CIS and the Bank have been reporting for a the CO2 emissions of a typical UK CHP plant.
number of years. Where more than five years’ Restatements 6 www.cfs.co.uk/sustainability2005/gri
7 www.cfs.co.uk/sustainability2005/restatements
data is available, data from 2002-2005 is Where a review of historical data has identified 8 www.accountability.org.uk
displayed and the original baseline data is inaccuracies, the information has been restated,
also retained. Any additional data is not the symbol R appears next to such datasets,
76
77
Materiality and strategy CFS aims to be a Carbon dioxide emissions As a result of the decrease in gas usage. Gas usage in the CIS electricity purchase agreement termed CFS has placed 19 micro-wind turbines on the
Energy world leader, amongst businesses of all types, increased use of renewable electricity, CFS’ District Offices was 1.4GWh lower than in 2004 ‘Merchant Wind’ was reached with ecotricity. roof of its 13-storey Portland Street office in
in its response to global climate change. The net CO2 emissions have decreased by 59% due to the phased closure of the office network This ensures that CFS has a guaranteed, Manchester, making it the largest commercial
consequences of climate change impact compared with a 2002 baseline. CO2 emissions (page 39). cost-effective green electricity supply, whilst application of micro-wind turbines in the UK.
Customers Staff Suppliers Society
uniquely on insurance companies, such as CIS, per customer account have decreased by 53% stimulating the construction of six new wind It is estimated that the wind turbines will
which are required to deal with claims arising over the same period.3 The target to progress a Energy sources During 2005, 96% of electricity turbines at Bambers Wind Park, Lincolnshire.8 produce 44MWh of renewable electricity each
60. Carbon dioxide emissions from increasingly prevalent flooding and reduction in the climate change impact of purchased by CFS for business accommodation These turbines now provide for 23.3% of year – almost 4% of the building’s electricity
61. Sulphur dioxide emissions storms. In the UK, climate change could emissions associated with the use of heating gas was derived from renewable sources. All but CFS’ current demand, (some 9GWh per year) needs – and will save 19 tonnes of CO2
62. Nitrogen oxide emissions increase the annual cost of flooding almost 15- was not achieved in 2005. This was due to a one of CFS’ 207 metered premises source and result in 3,870 tonnes of annual CO2 emissions each year.
63. Particulate emissions fold by the 2080s, leading to potential total delay in an appropriate product being available. electricity from renewable energy producers savings. Furthermore, the deal guarantees
64. Volatile organic compound emissions (the exception being Guernsey Branch, where
65. Energy usage
losses from river, coastal and urban flooding of
more than £22 billion.1 UK energy prices are Other emissions to air Since 2003, CFS a suitable supplier cannot be identified).5
that, however electricity prices shift in the
future, CFS will pay less than the market rate,
Investments, products
high and are one of the most important cost
issues facing British businesses. Prices are
has actively managed a shift in the balance
of its renewable energy portfolio. This saw a
Generation technologies utilised include hydro,
wind and biomass. To find out more about
saving CFS an expected £250,000 over the
life of the contract.
and services
Targets 2005 predicted to rise further in coming decades move from ‘mid green’ technologies, such as CFS’ selection criteria for electricity, visit the
• New generation – on-site In 2004, CFS
Engagement (climate change) – CIS The CIS
• Maintain CO2 emissions from energy use at less
due to the current reliance on gas and the landfill gas and combined heat and power, to website.6 All gas was provided by mains Ethical Engagement Policy (page 55) commits
announced that the CIS Tower in Manchester
than 0.5 tonnes per employee, and at less than rapid decline of UK gas reserves, at a time of cleaner technologies, such as wind and hydro. supply, and a small amount of light fuel oil was CIS to encouraging investees to reduce their
would become the UK’s largest solar energy
0.7kg per customer account. Target achieved increased volatility in global energy markets This contributed to a reduction in CFS’ emissions used in back-up power supply systems (less reliance on fossil fuels and increase their usage
• Complete the UK’s largest solar project by end
project. During 2005, the Grade II listed 25-
related to supply and security issues.2 CFS’ of sulphur dioxide (SO2), nitrogen oxides (NOx), than 0.1% of energy consumption). of renewable energies and energy efficiency.
December 2005. Acceptable progress storey building was reclad using photovoltaic
customers have indicated that they would like it particulates and volatile organic compounds During 2005, CIS:
• Design and deliver at least one additional panels,9 rather than the standard solutions
to be responsive to such issues. As part of the (VOCs) of 90%, 86%, 95% and 98% respectively, New generation CFS purchases renewable
renewable energy project by end 2006. Target of granite or steel. The panels are designed • opposed the re-election of ExxonMobil’s
achieved most recent Ethical Policy consultations, 70% of compared with 2002. Benchmark Since 2003, CFS electricity for almost all contracts; however, to
to convert daylight into electricity and will Chief Executive on the basis of the company’s
• Progress a reduction in the climate change impact the Bank’s customers signalled that they do has achieved the UK Government’s ‘Making a date, it has proven difficult to show that CFS’
of emissions associated with the use of heating
produce 181MWh of renewable electricity failure to adequately address its contribution
not wish to see their money invested in Corporate Commitment 2’ targets for emissions purchasing has resulted in the creation of ‘new’
gas. Target not achieved each year (equivalent to the annual electricity to global climate change (a stance that
businesses that extract fossil fuels, whilst 94% of SO2, NOx and VOCs.4 generation capacity. Just 4.8%7 of the UK’s
• Engage with the World Bank and question support consumption of 55 average UK homes).10 attracted significant media attention);
provided for fossil fuels and macro-hydroelectricity.
of CIS’ customers wish CIS to encourage electricity is currently derived from renewables.
The project has been recognised by the DTI
Target achieved businesses to reduce their reliance on fossil Energy usage During 2005, energy To this end, CFS has initiated three projects, • supported independent shareholders with
as one of the UK’s ten best green energy
fuels, increase renewable energy usage and consumption across CFS decreased by 3.7% each of which is designed to bring online new ten resolutions that called on Chevron,
projects of 2005.11 The Solar Tower project
promote energy efficiency. compared with 2004 and by 12.9% compared generation capacity. General Electric, ExxonMobil, Tokyo Electric
Target 2006 with a 2002 baseline. There was a 0.3%
was completed in May 2006.
Power and Dominion Resources to engage
• New generation – off-site In September
• Maintain CO2 emissions from energy use at less increase in electricity usage and a 10.1% more progressively on climate change
2004, an innovative £4m, eight-year green
than 0.5 tonnes per employee, and at less than related issues; and
0.7kg per customer account.
• wrote to 38 large UK energy users, urging
Performance them to consider long-term power purchase
agreements for renewable electricity (to date
Carbon dioxide emissions Other emissions Other emissions Energy usage nine have agreed to meet and take matters
Every year that a Net carbon dioxide emissions arising from energy Other emissions to air arising from energy Other emissions to air arising from energy Energy usage in operations (MWh) further).
consumption25 consumption (tonnes)25 consumption (tonnes)25
customer holds a
7,450 (69,840)
Investment property – CIS In 2003, CIS
(65,374)
14,000 8 Sulphur dioxide30 Particulates32
mortgage, the Bank
(63,216)
became the first institutional property investor
(11,306)
1997 73.51 1997 1.42
60,851
70,000
to transfer all contracts held for its £2 billion
pays climate care 2002 41.84 (46.58) 2002 1.07 0.86 (1.93) investment property portfolio to green electricity.
2003 (5.71) 2003 0.21 0.17 (0.38)
CIS believes it is still the only institutional
to offset a fifth of
17,384
9,527
2004 (5.49) 2004 (0.11) 56,000
16,546
Net carbon dioxide emissions arising
property investor to have done this. Electricity
from energy consumption (tonnes)
Net carbon dioxide emissions per
2005 4.71 2005 0.09
each household’s 0 25 50 75 0 1 2 from large-scale hydro and Climate Change
customer account (kg)
42,000 Levy-exempt sources is purchased. In 2004,
CO2 emissions.
30,404
16,697
15,200
a baseline for energy consumption was
(6,314)
Nitrogen oxides31 Volatile organic compounds33 established for contracts directly held by CIS.
37,156
(5,163)
1997 28.49 1997 0.76 28,000 During 2005, 13.6GWh (2004: 18.9GWh) of
4,536
2002 23.93 20.1 (44.03) 2002 21.55 1.79 (23.34) renewable electricity and 11.7GWh (2004:
11,230 20,240
10,068 21,918
10,150 21,143
18.6GWh) of gas were consumed, representing
3,203
2003 6.14 7.86 (14.0) 2003 3.61 2.9 (6.51)
4,582
2004 (7.14) 2004 (0.57) 14,000 a 28.3% and 37.1% decrease compared with
23,69534
2005 6.16 2005 0.44
33,232
2004. This is due to a reduction in the size of
0 25 50 0 15 30
the property portfolio.12 Energy contracts for
0
Bank CIS CFS (CFS Total) 1997 2002 2003 2004 2005 use in CIS’ investment property portfolio
13,195
26 27 28 29 Bank Fossil fuel Renewable energy resulted in net carbon dioxide emissions of
0 0 consumption consumption
1997 2002 2003 2004 2005 5,154 tonnes during 2005, a reduction of 44%
CIS Fossil fuel Renewable energy
Bank Bank consumption consumption compared with 2004. CIS does not monitor
CFS Fossil fuel Renewable energy energy use on sites where tenants are directly
CIS CIS consumption consumption
(CFS Total) responsible for utilities contracts. In 2005, CIS
CFS CFS
outsourced its investment property portfolio to a
(CFS Total) third party provider, AXA Real Estate Investment
Managers, with facilities management
transferring to Nelson Bakewell. AXA Real
Source: Sustainable Development Team 2006
78 79
Estate Investment Managers has been activity by the World Bank Group (WBG), it is a with the European Investment Bank (EIB) in • The second project funds a 0.8MW wind Tyndall Centre for Climate Change, University 16 Research was restricted to the IBRD and IFC because, within
the World Bank Group, these are the only institutions that are
instructed to maintain the utilities accounting matter of mounting concern that it has entered January 2003. The ‘Affordable Warmth’ Scheme turbine in Chitradurga, in the southern state of Manchester,24 to produce a research report funded, in the main, via financial institutions. Both sell bonds
systems developed in 2004 and to continue a period of retrenchment; increasingly engaged assists registered social landlords in the of Karnataka (India). This has displaced that would demonstrate how renewable on the financial markets and are rated high-grade investment
with the purchase of renewable electricity. in funding projects that conflict with the Bank’s financing of energy efficiency projects, via the energy previously produced by fossil fuels, technologies and energy efficiency measures opportunities. As such, they fall within the potential
investment universe of the Bank. IBRD is the main lending
Ethical Policy; in particular, with regard to fossil provision of leasing or loan facilities at preferential and it is estimated that it will generate 1.8GWh could deliver the necessary carbon dioxide arm of the WBG and operates on a not-for-profit basis,
Screening of finance – Bank The Bank’s fuel extraction. During 2005, the Bank reviewed rates. During 2005, the Bank provided £0.92m of renewable electricity per year (equivalent reductions by 2050, and, at the same time, providing low interest finance to developing country
Ethical Policy includes a commitment not to the recent investments of the WBG’s International of Affordable Warmth finance to Local Authorities to the annual electricity consumption of 550 address energy needs and security of supply borrowers. IFC operates on a commercial basis, providing
market rate finance for private sector investment.
invest in businesses that are considered to be Bank for Reconstruction and Development (2004: £3.89m). The decrease is due to the average UK homes). The life expectancy of concerns. The research was fully funded by 17 Between 1991 and 2005, 23 per cent of total IFC cumulative
integral to the extraction and/or production of (IBRD) and International Finance Corporation introduction of the Prudential Code,21 which has the turbine is 20 years. Each year, it will save the Bank (£40,000) and was published in commitments supported fossil fuel investment projects;
fossil fuels. During 2005, 18 finance opportunities (IFC)16 and concluded that, within the latter, meant that a larger residual value has to be 1,300 tonnes of CO2. September 2006. whereas two per cent of IBRD/IDA commitments, over the
same time frame, supported fossil fuel projects.
were referred to the Ethical Policy Unit in there was an unacceptable focus on fossil fuel invested by the Local Authority. An additional
• The third project aims to improve the energy 18 In the fiscal year 2005, $20 million of IFC finance went to
connection with these areas, of which six were technologies,17 to the extent that the IFC can £9.6m (2004: £3.2m) supported the installation Microgeneration Strategy In 2004, there support ‘new’ renewable energy and energy efficiency
efficiency of homes in the Yasin Valley in projects (www.brettonwoodsproject.org).
declined at an estimated cost of £664,500 in be considered the world’s largest multilateral of combined heat and power and related energy were approximately 82,000 microgeneration
Pakistan. This is one of the world’s most 19 The IFC is not party to the Bonn Commitment, wherein the
terms of gross income foregone. An exception financier of fossil fuel projects. Meanwhile, the efficiency measures, reducing CO2 emissions installations in the UK. Research suggests that,
inhospitable climates, and valleys in the area WBG committed to a target of at least 20 per cent growth in
to this general exclusionary approach was IFC devoted a mere four per cent of its total by approximately 20% by comparison to the by 2050, microgeneration could provide 30-40% renewable energy and energy efficiency commitments
are being deforested at an alarming rate, as
pursued in 2005. A £250,000 asset finance energy lending to renewables in 2004/05,18 and use of standard electricity and gas supplies. In of the UK’s electricity needs, thereby helping to (2005 - 09).
local people use the wood for heating and 20 The aim of this independent review was to produce a set of
facility, supporting the acquisition of bicycles has set no concrete goals to increase such addition, the Bank supported a successful reduce household CO2 emissions by 15% per
cooking. This project will improve household recommendations that would guide involvement of the WBG
for a ‘cycle to work’ scheme, was approved for financing.19 This is considered to be counter to Energy Savings Trust (EST) tender for a £30m annum. The DTI issued a consultation paper in the oil, gas and mining sectors. The discussion was within
living conditions by offering a range of energy
a business involved in the generation, distribution the recommendations of an internal Extractive Department of Trade and Industry grant on its Microgeneration Strategy in June 2005. the context of the WBG’s overall mission of poverty reduction
efficiency measures, including household and the promotion of sustainable development.
and retail of electricity and gas in the UK. Given Industries Review20 which concluded that, to scheme for energy efficiency projects. Proposals The strategy aims to create conditions under (www.eireview.org).
insulation, fuel-efficient stoves and water
that provision of the facility ensured that all combat climate change, the WBG should pull could include the development of low-interest which microgeneration becomes a realistic 21 www.cipfa.org.uk/pt/prudential_framework.cfm
heaters, whilst reducing unsustainable
monies supported bicycle use (and just two out of oil projects in five years, end the funding loan products, underwritten by the EST. alternative or supplementary energy generation 22 CO2 offset by Climate Care on behalf of the Bank’s mortgage
deforestation. Ten entrepreneurs have been customers has not been included within calculations of CFS’
per cent of people in the UK currently cycle to of coal mining and increase funding for source for homes and businesses. CFS
trained in servicing and selling energy CO2 emissions on page 78. For further information on
work) support was considered appropriate. renewables. In response, the Bank has Greener mortgages Mortgage customers are supported the British Wind Energy Association’s Climate Care see: www.climatecare.org
efficient products, and fifty artisans have been
The Bank is supporting Energy4All13 and the determined to withhold investments in the IFC offered a free home energy rating on house (BWEA) response: the BWEA welcomed the 23 www.foe.co.uk/campaigns/climate/big_ask/about.html
trained in manufacturing and installing these 24 www.tyndall.co.uk/general/about.shtml
planned establishment of a five-turbine Westmill until such time as there is a demonstrable purchases. This advises on how energy efficient Strategy as a means of tackling climate change,
products. During 2005, the project operated 25 All conversion factors are located on CFS’ website:
windfarm14 (much as it helped part-finance its realignment of investment strategy in support a property is and identifies potential areas of securing energy supplies and addressing www.cfs.co.uk/sustainability2005/conversions
in 25 villages and benefited 17,000 people.
precursor, the Baywind Energy Co-operative15). of renewable technologies. improvement. Additionally, every year that a fuel poverty. 26 Net emissions of 1,779 tonnes take account of 253 tonnes of
carbon sequestration undertaken by the Bank’s community
customer holds a mortgage, the Bank pays
International Finance Corporation After Energy efficiency finance – Bank The Bank Climate Care22 to offset a fifth of each household’s Sustainable Renewables Obligation During 2003, CFS
woodlands.
27 Net emissions of 1,778 tonnes take account of 289 tonnes of
what was considered a period of progressive formally launched a £20 million funding scheme CO2 emissions. During 2005, this equated to a appealed directly to senior Government carbon sequestration undertaken by the Bank’s community
total offset of 50,300 tonnes of CO2 (2004: 42,890 procurement Ministers – including Stephen Timms, Energy
woodlands.
28 Net emissions of 1,960 tonnes take account of 294 tonnes of
tonnes). Offset is realised via a process of Minister, and Elliot Morley, Environment carbon sequestration undertaken by the Bank’s community
In 2005, CFS’ energy suppliers were subjected
‘sequestration’ (whereby monies fund habitat Minister – to extend targets for the Renewables woodlands.
to a corporate profile and record screening. 29 Net emissions of 4,582 tonnes take account of 294 tonnes of
restoration and CO2 ‘absorption’) or ‘abatement’ Obligation beyond 2010. This scheme
One supplier was de-selected, at the tender carbon sequestration undertaken by the Bank’s community
Bank – Fossil fuels/energy related business declines, 2005 (whereby monies fund CO2 reduction initiatives). underpins the Government’s economic woodlands.
stage, for a gas supply contract (page 65). 30 (2002) Bank, 4.74 tonnes. (2003) Bank, 2.46 tonnes. CIS,
The Bank directs its contributions to specific framework for supporting renewable energy
3.25 tonnes. (2004) Bank, 1.72 tonnes. CIS, 3.77 tonnes.
Estimated income Climate Care projects on a case-by-case and long-term targets are an essential element 31 (2004) Bank, 2.89 tonnes. CIS, 4.25 tonnes.
foregone 2005 basis. In 2005, 40% of the Bank’s contribution Sustainability value of guaranteeing a viable market for renewables 32 (2004) Bank, 0.04 tonnes. CIS, 0.07 tonnes.
was used for reforestation in Kibale (page 93). in the UK. In December 2003, CFS received 33 (2004) Bank, 0.20 tonnes. CIS, 0.37 tonnes.
Oil terminal operation £20 million contribution to a syndicated loan for a supplier of
services to the oil and gas sector. Services included the operation of deep-water storage
£640,000 The remaining 60% was committed to three analysis confirmation that the Renewables Obligation
34 CFS fossil fuel consumption comprises 22,259MWh gas,
1,402MWh electricity and 34MWh oil.
terminals, distribution links and the management of oil refineries. Such activities are
abatement projects. targets would be extended to 15% of electricity
• Compared to the cheapest alternative offer,
considered intrinsic to the production of fossil fuels. to be supplied from renewable sources by
• Ranthambhore National Park (North West annualised additional cost of ‘standard’
2015. The Government’s Energy Review,
Oil exploration £1million asset finance facility supporting the acquisition of manufacturing £9,500
India), is an area considered to be one of the green electricity purchase, £138,700.
published in Summer 2006, states the intention
equipment by the wholly-owned subsidiary of an oil company. Parent engaged in the most important tiger reserves in the world.
• Annualised saving arising from ‘Merchant to extend targets further – to 20% of electricity
exploration and production of oil around the Philippines and Indonesia. The project, delivered by a local organisation,
Wind’ green electricity contract, £85,600 to be supplied from renewable sources by 2020.
involves the construction of household level
Conglomerate £1 million asset finance facility supporting the acquisition of refuse £7,500 biogas digesters, which provide renewable • Annual cost of energy monitoring activities
collection vehicles for subsidiary of global conglomerate. Oil, coal and gas exploration 1 Association of British Insurers (June 2005) Financial Risk of
energy from cow dung. The system is much (including third party contracts), £34,600. Climate Change.
accounted for 26 per cent of conglomerate’s total turnover. Held licence interests for oil
cleaner than an open fire, and results in 2 The Times (16 April 2006) ‘Keeping Britain warm with the gas
exploration in Azerbaijan, Russia, Gabon and Oman, and coal extraction in the • Saving (during 2005) arising from 9GWh turned down’.
United States. improved indoor air quality. The biogas 3 Net emissions of 4,582 tonnes take account of 294 tonnes of
reduction in energy use since 2002, £323,100.
digesters enable local people to cook without carbon sequestration undertaken by the Bank’s community
Gas storage £315,000 mortgage facility for gas storage facility. Business planned to £6,000 further depleting the reserve’s wood stocks, woodlands and see www.co-operative-woodlands.co.uk
build gas terminal, which would be linked by an undersea pipeline to underground
storage facilities. Such activities considered intrinsic to the production of fossil fuels.
which provide a natural habitat for tiger Influence and action 4 www.macc2.org.uk
5 CFS also consumes fossil fuel generated electricity at sites
populations. 80 households have benefited where utilities are provided by the landlord.
Climate Change Campaign In December 6 www.cfs.co.uk/sustainability2004/energy
Offshore pipeline support £50,000 asset finance facility supporting the acquisition of £1,000 from the scheme since funding started in 2004.
computer equipment by offshore pipeline service business. Involved in the design,
2005, the Bank launched its latest Customers 7 www.dti.gov.uk/energy/energy-sources/renewables/index
The digesters also provide organic fertiliser 8 www.ecotricity.co.uk/mwp/coop.html
construction, inspection and maintenance of oil and gas pipeline systems. Such Who Care campaign: Combating Climate
in the form of slurry, which is proving to be a 9 Photovoltaic panels convert light energy into electrical energy.
activities are considered intrinsic to the production of fossil fuels. Change. In addition to the Bank mobilising its 10 www.cis.co.uk/solar
better and cheaper alternative to commercial
customers to take action on climate change, 11 www.gnn.gov.uk/environment
Contract hire company Provision of banking facilities declined to a business involved £500 fertiliser. The construction and maintenance 12 CIS’ Investment Property portfolio comprises of 180
the Co-operative Group’s membership teams
in supply of contract personnel exclusively to the coal-mining industry. Such services of the biogas energy plants provide properties. CIS monitors electricity and gas use at 52 and 23
considered to be of strategic importance to fossil fuel production.
and regions have also encouraged members properties respectively.
employment for skilled masons and other
throughout the country to get involved and to 13 www.energy4all.co.uk
skilled workers. 14 www.westmill.coop
Total £664,500 support the Big Ask.23 Early in 2006, the Bank
15 www.energy.co.uk/baywind.php
and Friends of the Earth commissioned the
Source: Sustainable Development Team 2006
80 81
Transport Materiality and strategy CFS aims to be a
world leader, amongst businesses of all types,
reported mileage reduced by 36.3% in 2005.
Since 2000, overall business mileage
Company vehicles The number of vehicles in
CFS’ company fleet decreased by 3.6% during
insurance and servicing to staff who travelled
more than one thousand business miles per
whilst biodiesel production takes place in the
North West of England, there are currently
in its response to global climate change. The (excluding FAs) has reduced by 27.3%, or 5.1 2005, and has fallen by 16.4% since 2003. year. There were no environmental restrictions insufficient suppliers in close proximity to CFS’
consequences of climate change impact million miles. The reduction in business mileage Concerned about the emissions of particulates on the 425 vehicles in the scheme. main offices.
Customers Staff Suppliers Society uniquely on insurance companies, such as CIS, (excluding FAs) during 2005 is partially due to from diesel vehicles, in 1998 the Bank introduced
which are required to deal with claims arising the decline in staff numbers as a result of the a ‘petrol-only’ policy (this was despite generally Freight CFS’ freight activity consists principally Car parking During 2003, the Bank sought
66. Business mileage from increasingly prevalent flooding and storms. CIS modernisation programme (page 39). higher CO2 emissions). In 2001, the policy was of external mail, cheques and cash. Royal Mail planning permission for two car parks: one at
67. Carbon dioxide emissions In the UK, climate change could increase the However, irrespective of reducing staff amended when diesel vehicles fitted with a (external mail) can provide environmental impact the Pyramid, Stockport; and, one at Olympic
68. Sulphur dioxide emissions annual cost of flooding almost 15-fold by the numbers, the number of miles travelled per particulate trap (FAP) became available. The data for that proportion of their business derived House, Salford. Both sites are poorly served by
69. Nitrogen oxide emissions 2080s, leading to potential total losses from river, employee has fallen by 6.1%.4 Travel patterns trap works by destroying particles before they from CFS.7 CO2 emissions arising from external public transport. In 2004, planning permission
70. Particulate emissions coastal and urban flooding of more than £22 may have been affected by the substantial leave the engine, thus virtually eliminating mail freight increased by 2% during 2005. was granted for 95 additional car park spaces
71. Volatile organic compound emissions billion.1 Fuel consumption is a major contributor degree of organisational change during the year. particulate emissions, which are a major at Stockport; however, it was resolved that CFS
of carbon dioxide (CO2) – the primary agent of In particular, there has been a reduction in air contributor to various lung ailments. During Car hire Since 2003, CFS and the Co-operative should consider further green transport options
global climate change – and the small reduction travel (28.8%) and employee car usage (20.7%). 2004, the Bank revised its company car offering Group have had a supplier relationship with prior to commencement of any car park solution.
Targets 2005 in CO2 emissions per mile in new vehicles is far to include the new Peugeot 307 and 407 diesel Hertz. As part of this contract, CFS aimed to At Salford, a proposal to extend the car park by
• Maintain the downward trend in the environmental outweighed by the number of additional vehicles Carbon dioxide emissions Across CFS, CO2 FAP ranges, which, respectively, have 6.5% restrict staff use of more polluting vehicles. In a further 70 spaces, using adjacent wasteland,
impact of CFS’ transport activities, with reference and the extra distances driven. To date, travel emissions connected with transport (excluding and 13.7% lower CO2 emissions than the models 2004, Hertz was unable to make the low also received planning permission in 2004. The
to both operations and products and services. continues to increase: an extra 55 billion miles FAs) have decreased by 13.9% during 2005. they replaced. A petrol vehicle, the Honda Civic emission vehicles available. Efforts to reduce proposal involved the development of youth
Target achieved were travelled by road vehicles in 2004, Since 2000, (excluding FAs), CO2 emissions IMA Executive Saloon has also been added to the emissions of vehicles hired continued, and recreation facilities, including a football pitch
• Transfer the CFS van fleet to biodiesel by the end
compared with 1990.2 CFS’ customers have have reduced by 16.9%, or 1,088 tonnes. CO2 the fleet. With 10% lower CO2 emissions than in 2005, average CO2 emissions per mile of car and skate park. It is envisaged that work will
of 2005. Target not achieved
indicated that they would like it to be responsive emissions arising from FAs’ travel reduced by the most efficient Peugeot 307, the Honda hire decreased by 9.9%. However, this still commence during 2006.
to such issues. As part of the most recent Ethical 30.9% (to 6,709 tonnes) during 2005. CO2 uses hybrid technology to store excess energy represents a net increase of 2.4% since 2003.
Target 2006 Policy consultations, 70% of Bank customers emissions per customer account decreased in a battery that is used to power the vehicle at
Products and services
do not wish to see their money invested in by 10.2%. low speeds.5 The range enjoys low fuel and Alternative fuels Biodiesel is produced from
• Launch a new eco-insurance motor product.
businesses that extract fossil fuels, whilst 94% benefit-in-kind costs, and is exempt from the vegetable oils. As plants, from which the oils Car loans In 2003, the Bank relaunched its
of CIS customers wish CIS to encourage Other emissions During 2005, sulphur dioxide London Congestion Charge. The Peugeot are ultimately derived, absorb CO2 during their personal car finance loans with a new package
businesses to reduce their reliance on fossil fuels. (SO2) emissions reduced by 19.8%. The models performed well in Ethical Consumer growth cycle, biodiesel has lower net carbon of benefits. For each car loan taken out, the
combined emissions of transport-related Magazine’s ‘greenest vehicles’ assessment dioxide emissions than fossil fuels, such as Bank pays Climate Care8 to offset a fifth of a
Business mileage During 2005, CFS’ business nitrogen oxides and volatile organic compounds with the Honda model topping their list.6 During standard petrol or diesel. During 2003, CFS typical car’s annual CO2 emissions for the
mileage (excluding CIS Financial Advisers’ (FAs) decreased by 22.5%. Particulate emissions 2005, CIS operated a car scheme, which, in identified that the majority of its diesel van fleet lifetime of the loan. In 2005, this money paid for
business mileage)3 decreased by 13.9%. FAs’ also decreased, by 12.0%. return for a salary sacrifice, provided vehicles, could be converted to run on biodiesel. However, 260 tonnes of carbon offset, which supported
Performance Business travel (000s miles) Transport carbon dioxide emissions (tonnes)10
(8,571)
(2,346)
(7,999)
(7,895)
Business travel (000s miles) Business travel (000s miles)
(7,427)
(2,202)
(2,203)
9,000 2,500
(7,129)
(7,281)
(2,180)
(7,067)
(2,132)
(excludes freight 9 and Financial Advisers) (CIS Financial Advisers)
(1,908.5)
(6,235)
(1,940)
(1,941)
20,000 (18,795) 55,000
(1,863)
During 2005, CFS’ (17,569) (
17,085)
(15,878)
(1,671)
(1,620)
business mileage
4,644
decreased by 13.9%. 4,000 1,600
10,000 27,500
13,031
10,387
11,918
532
12,076
4,037
518
(CFS Total) (CFS Total)
4,422
1,143
CIS CIS
37,106
23,648
13,673
53,318
38,811
3,389
5,764
5,651
5,009
5,491
489
Bank Bank
0 0
CFS CFS
2000 2002 2003 2004 2005 2002 2003 2004 2005
Transport carbon dioxide emissions10 Carbon dioxide emissions (tonnes)10
1,070
1,116.5
9
(includes freight, excludes Financial Advisers) (CIS Financial Advisers)
(6,446) (6,365) (6,226)
6,500 (6,094) 1.5 20,000
934
5,404
3,321
3,766
Carbon dioxide emissions arising from
3,413
3,522
6,516
(1,362)
Carbon dioxide emissions per
(1,331)
(1,315)
1,670
(1,229)
(1,220)
customer account (kg)
(1,182)
(1,109)
transport (tonnes)
5,911
1,727
6,898
(974)
1,842
3,250 0.75 10,000
1,828
(282)
(260)
(259)
601
683
(227)
692
629
N N
(132)
(129)
(127)
N
(118)
10013
2004 281 901
2000 249 860
1,060
764
16,002
10,939
210
9,708
6,709
201
2,572
2,599
5,358
2,813
3,125
178
2000 3,927
3,244
3,005
2,846
5,622
5,655
1,629
224
1,554
1,483
1,156
1,725
2000 1,503
1,345
1,409
1,980
2000 1,203
1,464
1,131
2000 997
870
792
737
2000 304
453
360
533
2000 591
679
639
2005 842
2005 185
714
0 0 0 CIS
0 0
2000 2002 2003 2004 2005 2002 2003 2004 2005
2002
2003
2004
2005
2002
2003
2004
2005
2002
2002
2003
2002
2003
2004
2005
2002
2003
2004
2005
2002
2003
2004
2005
2000
2002
2003
2004
2000
2002
2003
2004
2005
2003
2004
2005
Bank CIS CFS CFS Bank
Company cars, Employee cars Air 11 Rail Freight mail Company cars, Employee cars Air 12 Rail12
(CFS Total) CIS
82 hire cars and vans (excluding FAs) hire cars and vans (excluding FAs) 83
reforestation in Kibale (page 93). The car loan ordinarily have been expected to pay. All used 7 Other freight providers, such as Securitas, Sunwins and
Securicor, have not, to date, provided comparable
‘welcome pack’ includes advice on greener parts are ‘cosmetic-only’ (e.g. no suspension information to CFS.
motoring, and contains information on buying or brake parts are involved). Recognising the 8 www.climatecare.org
a new car and fuel-efficient driving tips. Due to increased administration involved in sourcing 9 Freight is excluded from the ‘Business travel’ graph, but is
included in the ‘Transport carbon dioxide emissions’ graph,
poorly performing sales, the car loan product is recycled parts, Appointed Repairers are as CO2 emissions per item are considered to be more
to be withdrawn in 2006. Existing customers incentivised: CIS pays them 65% of the retail relevant than business mileage.
will continue to receive their benefits until the cost of the equivalent new part. 10 Conversion factors located at
www.cfs.co.uk/sustainability2005/conversions
loan has been repaid in full. 11 Business travel (000s miles): Air – 2002: Bank 210, 2003:
Motor insurance CIS is one of the UK’s major
Sustainability value Bank 169.
12 Carbon dioxide emissions arising from transport (tonnes):
Air – 2000: Bank 58, 2002: Bank 49, 2003: Bank 36, 2004:
providers of motor insurance, providing cover
for over 800,000 vehicles. In 2002, CIS launched
analysis Bank 72. Rail – 2000: Bank 57, CIS 61; 2002: Bank 69, CIS
58; 2003: Bank 66, CIS 66; 2004: Bank 62, CIS 67.
an initiative to encourage the repair, rather than • Annual cost of providing interest-free season 13 Carbon dioxide emissions from rail have decreased, despite
an increase in rail mileage, due to a change in conversion
the replacement, of damaged vehicle parts, ticket loans totalling £266,530 (based on a factors. See www.cfs.co.uk/sustainability2005/conversions
with a particular focus on plastic bumpers. In discount rate of 8%), £11,550.
support of the project, in 2003, a financial
incentive was introduced to improve uptake 1 Association of British Insurers (June 2005) Financial Risks of
Climate Change.
amongst CIS’ Appointed Repairers. When a 2 Department for Transport (2006) Transport Trends 2005.
part is repaired that would otherwise have been 3 The accounting systems connected with the business
replaced, CIS pays the repairer half the retail mileage of Financial Advisers (FAs) are based on estimates
and therefore are not consolidated within total business
price of the equivalent new part. In 2005, parts mileage. The reported impact of FAs’ mileage is extrapolated
with a replacement value of £109,000 were from the 17% (2004: 31%) who supplied an estimate of miles
repaired (2004: £305,000), realising cost savings travelled in 2005 whilst undertaking CIS business. This
approach was developed in 2002, in co-operation with
to CIS of approximately £54,000. In a separate Usdaw, the trade union that represents many of CIS’ FAs.
initiative, customers whose vehicles are at Usdaw has supported the shift to a mandatory approach to
least three years old, and so badly damaged data capture; however, significant business change has led
to delays in the implementation of a new accounting
that it would not be economically viable to repair approach.
them using new parts, are given the option of 4 Based on average staff numbers during 2005 of 9345.
having the vehicle repaired using recycled parts. 5 An explanation of hybrid technology is available at:
www.transportenergy.org.uk/cleanervehicles/cleanerfuels/
As a financial incentive, CIS waives any policy hybrids
excess (typically £150) that customers would 6 www.ethical consumer.org/magazine/news/news93.htm
Company vehicles
Total number of company vehicles
1997 26% 74% 366
Bank Diesel Petrol
2002 73% 220 Diesel Petrol
CIS
2003 75% 54% 46% (746)
2004 80% 54% 46% (647) CFS Diesel Petrol
2005 70% 30% 624
(CFS Total)
0 900
Other emissions to air
Cars (kg)10 Rail (kg)10 Air (kg)10
Sulphur dioxide Sulphur dioxide Sulphur dioxide Total (kg)
2000 96 157 167 265 915
2002 41 190 159 223 814
2003 39 95 180 181 180 1,128 (1,799)
2004 40 81 169 183 300 960 (1,733)
2005 82 412 896 1,390
Nitrogen oxides/Volatile organic Nitrogen oxides/Volatile organic Nitrogen oxides/Volatile organic
compounds compounds compounds
2000 8,801 521 555 250 862
2002 4,302 560 530 198 767
2003 3,393 13,671 599 602 170 1,063 (19,498)
2004 4,204 11,695 563 610 282 904 (18,258)
2005 11,939 1,370 844 14,153
Particulates Particulates Particulates
2000 39 36 39 N/A
2002 61 44 37 N/A
2003 45 385 42 42 N/A (514)
2004 87 324 39 43 N/A (493)
2005 338 96 N/A 434
0 1,000 2,000 3,000 4,000 5,000 18,000 0 700 1,400 0 650 1,300
Bank CIS CFS (CFS Total) Source: Sustainable Development Team 2006
84
CIS to encourage businesses to end the on water, ammonia, lithium bromide or
Chemicals production of chemicals that Nature cannot hydrocarbons are introduced. In all cases, the
easily breakdown and which build up and global warming and ozone depletion potential
contaminate plants and animals. of these chemicals is substantially less than
Customers Staff Suppliers Society that of organohalogens, such as HFCs. All
72. Toxics Sustainable HFCs and HCFCs removed are passed to third
parties for recycling or destruction.
73.
74.
PVC
CFCs/HCFCs/HFCs
procurement • The Global Warming Potential (GWP) of CFS’
75. Print and paper, by type air conditioning systems reduced by 0.4% in
Toxics Since 2000, designated Bank supplier
2005, and is now equivalent to 5,809 tonnes
contracts have been screened against a range
of CO2 (2004: 5,835 tonnes). It has reduced
of toxic chemicals, based on the OSPAR List of
Targets 2005 Chemicals for Priority Action,2 together with
by 3.7% since 2002. During 2005, ten HCFC
systems, containing gas with a GWP of 39.7
• Ensure that, wherever feasible, preferred
Bisphenol A and PVC. In 2003, screening was
tonnes of CO2, were removed from CFS’
ecological options are utilised across CFS for all extended to CIS. During 2005, work continued on
main offices. In the branch network, seven
replacement air conditioning systems in business the ‘Green Branch’3 refurbishment programme.
and investment property. Target not achieved
HCFC/HFC air conditioning units were
Approved fixtures, decorating materials and
• Extend the phase-out of HFC-chilled water upgraded, leading to the removal of gas with
furnishings were used in the five Bank branches
dispensers. Target not achieved a GWP of 37.9 tonnes of CO2. At six branches,
• Given the impending phase-out of PVC from Visa
refurbished, and included: PVC-free carpets with
new hydrocarbon systems were installed
credit cards, consider further areas for recycled content (five premises); ecologically-
(with a GWP of just 64kg of CO2), whilst at
substitution. Target not achieved screened paint (five premises); and PVC-free
• Evidence further progress in the replacement of
one further site, the existing system was
wallpaper (three premises). In 2005, for the
mineral oil-based ink with vegetable oil-based ‘regassed’ with hydrocarbons (eliminating
first time, ‘Green Branch’ refurbishment
inks. Target achieved the equivalent of 5.5 tonnes of CO2). During
specifications were applied to the CIS Regional
2005, and in breach of CFS’ Policy, 27.2kg of
Sales Offices. During 2005, 13 offices were
Materiality and strategy CFS aims to be a the HFC R410a was introduced to systems
refurbished, and included: PVC-free wallpaper
world leader, amongst financial services at Cardiff Branch (with a GWP of 51.4 tonnes
(13 offices), PVC-free wastewater plumbing
businesses, in its approach to persistent and of CO2), as part of a refurbishment.
(ten offices); and ceiling tiles made from recycled
bioaccumulative chemicals. Over sixty thousand
materials (three offices).
synthetic chemicals are now in regular use Fire control Prior to 1998, the majority of the
worldwide. A report commissioned by the US Bank’s fire control systems utilised halons, which
Plastic cards Virtually all credit and debit cards
State of New Jersey found that minimal or no are potent ozone depletors. A halon replacement
in the world are made of PVC. It is also used in
toxicity data existed for: 66% of pesticides and
the manufacture of a wide range of items,
their supposedly inert ingredients; 84% of
including food packaging, cabling and electrical
cosmetic ingredients; 64% of drugs; 81% of
goods. If PVC is burned, it can release toxic Performance
food additives; and 88-90% of commercial
chemicals, including dioxins. These chemicals Air conditioning
chemicals.1 CFS’ customers have indicated
can build up over time in the bodies of living Refrigerants by type (kg)
that they would like it to be responsive to such
things, and contribute to problems in
issues. As part of the most recent Ethical Policy
development, reproduction, growth and CFCs
consultations, 88% of Bank customers do not
behaviour. In 2001, the Bank sourced an 1999 471
wish to see their money invested in businesses
alternative to PVC, based on the plastic glycol-
whose core activities contribute to the 2002 00
modified polyethylene-terephthalate (PETG), 2003 00
manufacture of chemicals that are persistent in
which does not contain chlorine, or use it in its 2004 00
the environment and linked to long-term health 2005 0
production. Chemicals, such as lead chromate
concerns, whilst 95% of CIS customers wish
and DEH Phthalate, have been removed from HCFCs
the inks of some cards. All the Bank’s credit, 1999 1,813
Work continues on debit and savings cards are now PVC-free. A
2002 1,255 1,725 (2,980)
small number of PVC cards are still in use by (2,869)
the ‘Green Branch’ the Bank’s Electron customers; however, these
2003
2004
1,144
1,110
1,725
1,737 (2,847)
will be phased out during 2006. In 2005, 2005 2,809
refurbishment discussions progressed with CFS’ Security and HFCs12
programme. Major Investigations Department regarding the 1999 24
phase-out of PVC from employee ’ID cards’. A
2002 419 (601)
suitable alternative has not yet been identified, 2003 450 (618)
despite much investigation. 2004 465 (621)
2005 640
Air conditioning Prior to 2000, CFS’ air Natural 13
conditioning systems were dominated by 1999 12
chlorofluorocarbons (CFCs),
2002 756
hydrochlorofluorocarbons (HCFCs) and
2003 824
hydrofluorocarbons (HFCs). These 2004 845
organohalogens are either potent ozone 2005 884
depletors or greenhouse gases, and, in some 0 1,000 2,000 3,000
cases, both. As air conditioning systems are Bank CIS CFS (CFS Total)
replaced, it is preferred that systems based
85
programme began in December 1997 and took CFS’ premises during 2005. A significant paper commissioned by CFS utilised vegetable Ethical Policy Unit in connection with these Engagement (reporting on REACH) – CIS in the case of ICI, following a meeting, CIS now
just over one year to complete. All halon systems proportion of emissions originated at CIS’ Chief oil-based inks (2004: 14%). This increase is areas, of which one was declined to a business Proposed European legislation known as considers that the company takes a proactive
were replaced with Inergen (a mixture of nitrogen, Office in Manchester, where 140kg of R22 was primarily due to printing provided through the involved in the manufacture of PVC at an REACH – Registration, Evaluation and stance on environmental issues.
CO2 and argon, all of which naturally occur in released, and at premises in Nottingham, where APS supply relationship. estimated cost of £284,000 in terms of gross Authorisation of Chemicals – aims to put the
the atmosphere). At CIS, Inergen was also
introduced for all halon replacement activities,
29kg of R407c was released. In total, the GWP
of the gases released was equivalent to 298 Paper type CFS aims to optimise the use of
income foregone. In contrast, facilities were
approved for three manufacturers of more
onus on businesses to show that the chemicals
they use are safe. It is also intended to lead to the
Sustainability value
with removal completed in 2001 (prior to the
introduction of detailed accounting systems).
tonnes of CO2, an increase of 64% compared
with 2004. CFS has a commitment to offset the
totally chlorine-free paper (TCF). The
manufacturing process for TCF paper prohibits
benign chemical products. A £750,000 asset
finance facility was approved, which supports
replacement of hazardous chemicals with safer
ones and to encourage chemicals companies
analysis
climate change emissions arising from air the use of chlorine gas or chlorine dioxide as the acquisition of computer equipment by a to research and develop alternative products. • Additional cost associated with the carbon
Water dispensers CFS is seeking to remove conditioning in its business accommodation. bleaching agents, with the aim of minimising business engaged in the provision of a range As part of a wider project to encourage Social, offset of air conditioning greenhouse gas
HFC-chilled water dispensers from its premises. To this end, a payment has been made to the release of harmful organochlorines and of naturally occurring hydrocarbon refrigerants Ethical and Environmental (SEE) risk reporting emissions, £1,600.
A model has been identified,4 which uses butane Climate Care.5 related dioxins. In 2005, the proportion of TCF (isobutane, ethane, propylene, and propane). in accordance with the Association of British
• Additional cost associated with the use of
as a refrigerant gas, and this is now in use papers utilised by CFS increased to 54.5% (up These gases act as alternatives to HCFCs and Insurers’ guidelines,9 in 2005, CIS challenged
preferred air conditioning systems, £11,100.
at 14 locations in the Bank’s Head Office in Printing Printing is the UK’s sixth largest 4.6 percentage points on 2004). In March 2006, HFCs, have very short atmospheric lifetimes, four chemicals companies (Croda International/
Manchester. The system utilises mains water manufacturing industry, but has the lowest a new agreement was reached with APS for all have limited GWP and are not harmful to the Delta/Dyson Group/ICI) regarding their plans for
supplies (i.e. does not involve the transportation take-up of environmental policies of any major coated papers used by CFS to be TCF papers. ozone layer. A £300,000 asset finance facility disclosing the risks resulting from the REACH Influence and action
of bottled water) and incorporates ultra-violet business sector.6 In relation to the commissioning In July 2006, this agreement was extended to was approved, which (although ultimately not proposals and their actions in response. In one
Safer chemicals campaign In 2003 and 2004,
filtering techniques (i.e. sanitation is not of printed materials, CFS aims to phase out include all uncoated papers. It should be noted progressed) would have supported the case (Delta), having voted against acceptance
the Bank campaigned for safer chemicals in
chemical-based). The use of HFC-free water OSPAR chemicals, increase the use of vegetable that 6% of paper purchased by CFS is acquisition of production equipment by a of the Annual Report and Accounts (ARA) at
partnership with WWF-UK.10 The campaign
dispensers is also a feature of the ‘Green oil-based inks and reduce water use by governed by APACS Standards that require manufacturer of ferric sulphate (an inorganic the 2005 Annual General Meeting, CIS was able
called for a more precautionary approach to
Branch’ refurbishment requirements. CFS did adopting waterless print processes. The elemental chlorine-free feedstocks to be used.7 compound used in the treatment of water and to vote in support of the subsequent year’s ARA
form the basis of chemicals legislation: one that
not extend the phase-out of HFC-chilled water majority of CFS’ paper use (89%) is accounted wastewater). Furthermore, a £100,000 asset on the basis that SEE risk reporting – including
phases out chemicals known to be persistent
dispensers in 2005, as its incumbent supplier
was unable to procure the preferred HFC-free
for by external printing contracts. In 2004, CIS
outsourced the majority of its printing operations
Investments finance facility was approved, which supports
the acquisition of computers by a manufacturer
REACH – was considered to be much improved.
In one instance (Croda International), CIS
and bioaccumulative and prescribes their
replacement with safer alternatives. The Bank
model. An alternative HFC-free model and to APS, which now manages a small hub of Screening of finance – Bank The Bank’s of polyethylene-terephthalate (PET). PET’s registered an abstention on acceptance of the
extended its support for this issue in 2005 by
supplier has now been identified and this print subcontractors on CIS’ behalf. As part of Ethical Policy includes a commitment not to base constituents are neither persistent nor ARA at the 2006 AGM, on the basis that its
funding a new piece of research11 into the links
model, which uses hydrocarbons as refrigerant the outsourcing process, a requirement was invest in businesses that are considered to bioaccumulative and Greenpeace lists PET concerns over reporting on REACH had not
between chemicals in the environment and
gases, will be purchased for CFS in future. made by CFS for prioritisation to be given to contribute to the manufacture of chemicals that within the third tier of its five-layer pyramid of been addressed. Dyson Group responded to
breast cancer. The Bank donated £3,000 that
the use of vegetable oil-based inks; and, as a are persistent in the environment and linked to problematic plastics.8 the effect that they do not consider that REACH
helped to secure an additional £11,000 funding
Emissions 182kg of refrigerant gases (including result, the majority of subcontractors now have long-term health concerns. During 2005, nine will have a significant impact on their business;
for the project (European Environmental
177kg of organohalogens) were released at such printing capability. In 2005, 61% of printed finance opportunities were referred to the CIS is considering this response further. Finally,
Network, UNISON, and Scottish Breast Cancer
Coalition), which contributed to the development,
production and widespread distribution and
media coverage of the research report in the
UK, EU and USA.
Global warming potential (GWP) of refrigerant gases Plastic cards Print25, by type (percentage) Paper, by type (percentage) and
GWP of refrigerant gases in use (CO2 tonnes equivalent)14 Plastic cards in circulation (000s) weight (tonnes) 1 Institute of Occupational Medicine (2000).
PVC 2 www.ospar.org/eng/html/sap/Strategy_hazardous_
Mineral oil Totally chlorine-free (manufacturing process) substances.htm# Annex2
1998 26,56515
1999 2,431 3 www.cfs.co.uk/sustainability2003/greenbranch
2003 100% 1998 49.7% 828 tonnes
2002 2,424 3,607 (6,031) 100% 4 www.cooler.co.uk
2002 994 5 www.climatecare.org
2003 2,214 3,657 (5,871) 2004 97% 76.8% 1,136
2003 908 22 2002
2004 2,134 3,701 (5,835) 75% 70.1% 1,382 6 Green Futures (January/February 2002).
2004 4.7 2003
2005 5,809 30.5% 737 7 APACS is the Association of Payment Clearing Services, see
2005 2 2005 39.1%
74.6% 1,386 www.apacs.org.uk
0 10,000 20,000 30,000 2004
29.6% 668 8 www.archive.greenpeace.org/toxics/pvcdatabase/bad.html
PETG Vegetable oil
Bank CIS CFS (CFS Total) 54.5% 1,929 9 www.abi.org.uk
2005
2001 411 2003 0% 10 www.co-operativebank.co.uk/safer
0% 25% 50% 75% 100%
2002 1,307 0% 11 UK Working Group on the Primary Prevention of Breast
2003 1,69123 2004 3% Bank CIS CFS Cancer (2005). Breast cancer: an environmental disease; the
25% case for primary prevention.
Refrigerant gas ‘leaks’ and net global warming potential 2004 2,52024
2005 60.9% 12 Includes 17kg housed within water dispensers and vending
2005 2,500
Refrigerant ‘leaks’ (kg) machines.
0 1,275 2,550 0% 25% 50% 75% 100%
13 Hydrocarbons, ammonia and lithium bromide.
1998 99
Bank CIS CFS 14 Conversion factors located on CFS’ website:
Bank
2002 56 ww.cfs.co.uk/sustainability2005/conversions
2003 76 88 (164) Bank – Chemicals related business declines, 2005 15 Includes 3.47 tonnes of Halon 1301 removed from the Bank’s
fire control systems at the end of 1998.
2004 106 (119)
2005 182 16 Bank emissions (equivalent to 96 tonnes of CO2) negated as
Estimated a result of carbon offset undertaken by Climate Care.
Net GWP (CO2 tonnes equivalent) income 17 Bank emissions (equivalent to 123 tonnes of CO2) negated
foregone as a result of carbon offset undertaken via Climate Care.
1998 168 18 CIS emissions (equivalent to 150 tonnes of CO2) negated as
2005
a result of carbon offset undertaken via Climate Care.
2002 016 19 Bank emissions (equivalent to 8 tonnes of CO2) negated as a
2003 017 018 Polymer manufacture £8 million contribution to syndicated loan facility to a business involved in £284,000 result of carbon offset undertaken by Climate Care.
2004 019 020 the manufacture of PVC foams and compounds. Conflicts with the Bank’s position on the 20 CIS emissions (equivalent to 173 tonnes of CO2) negated as
2005 021 manufacture of chemicals that are persistent in the environment and linked to long-term health a result of carbon offset undertaken by Climate Care.
0 175 350 concerns. The manufacture, use and disposal of PVC results in the release of toxic chlorine based 21 CFS emissions (equivalent to 298 tonnes of CO2) negated as
chemicals that have been linked to a range of health impacts, including cancer. PVC is situated at a result of carbon offset undertaken by Climate Care.
Bank CIS CFS (CFS Total)
the apex of Greenpeace’s five-layer pyramid of problematic plastics .8 22 Includes 31,000 cards associated with CIS products.
23 Includes 71,000 cards associated with CIS products.
Sources: Sustainable Development Team 2006 24 Includes 69,000 cards associated with CIS products.
Property and Facilities 2006 Source: Sustainable Development Team 2006 25 Third party printing only.
Card Development Team 2006
86 87
Reduce, reuse, Materiality and strategy CFS aims to be a
world leader, amongst financial services
CFS’ customers have indicated that they would
like it to be responsive to waste and recycling
passed to Alcan and EMR for recycling. Plastic
bottles are passed to Materials Recovery Ltd and
Paper volume Global paper demand – the
single largest use of wood fibre – has increased
Investments, products
repair and recycle businesses, in its approach to waste
minimisation and recycling. Every year, over six
issues. As part of the most recent Ethical Policy
consultations, 98% of Bank customers wish to
reprocessed into general plastic goods.7 Plastic
cups are passed to Save-a-Cup who use them in
five-fold since the 1950s, and is expected to
double again over the next fifty years.14 During
and services
tonnes of waste is generated for every person see their money supporting businesses the production of items such as pencils, rulers, 2005, paper consumption decreased by a further Screening of finance – Bank The Bank’s
in the UK, the equivalent weight of a fully-grown involved in recycling and sustainable waste coasters and garden furniture.8 Fluorescent 14% (574 tonnes). Paper purchased per customer Ethical Policy includes a commitment to
Customers Staff Suppliers Society male elephant.1 Industrial and Commercial management, whilst over 90% of CIS tubes are passed to Mercury Recycling Ltd,9 account decreased by 10.4% to 0.354kg. support businesses involved in recycling and
(I&C) waste totals some 70 million tonnes per customers wish CIS to encourage businesses where light components are separated for reuse sustainable waste management. During 2005,
76. Waste minimisation annum. In 2002/3, for the first time, I&C recycling to reduce pollution and their environmental and toxic mercury is distilled from the phosphor Paper type In order to relieve pressure on the ten finance opportunities were referred to the
77. Reuse and recycling and reuse (45%) overtook landfill (44%) as the impact and to consider more sustainable natural powder. Electrical equipment is transferred to environment and reduce the amount of paper Ethical Policy Unit in connection with waste
78. Paper, by type most common method of waste management.2 products and services. Tier 1 Asset Management Ltd.10 If hardware is of waste going to landfill, CFS aims to use management, of which one was declined at an
However, this success is being undermined by sufficient quality, it is resold, following the removal increasing amounts of recycled paper.15 Using estimated cost of £10,000 in terms of gross
the continued growth in I&C waste, which is Reduce, reuse, repair and recycle During of data. Where this is not possible, reusable recycled paper is considered to be an efficient income foregone. It is currently standard practice
Targets 2005 projected to rise to 86 million tonnes by 2020.3 2005, the proportion of waste reused and components are harvested and heavy use of resources and protects old growth for the Bank to decline support for incineration
• Achieve a 70% recycling/reuse rate across CFS’ recycled at CFS’ main offices increased by four components and magnetics are recycled. forests from logging. Compared with virgin where mixed municipal waste acts as a
main offices. Target achieved There are both environmental and financial percentage points to 71%, the vast majority of Precious metals are assayed and recovered, paper, using recycled paper substantially feedstock and/or community ‘buy-in’ is absent.
• Maintain the downward trend in total waste imperatives driving waste minimisation and which (84%) is accounted for by paper. Benchmark and any hazardous components removed and reduces water consumption, energy use, air Small biological feedstock units and landfill
arisings (excluding one-off disposals associated recycling. The Government’s Waste Strategy Environment Agency statistics indicate that an sent for specialist disposal. Batteries are sent pollution and water pollution.16 During 2005, operators are currently considered acceptable,
with office closure). Target achieved (2000) has pointed out that, in parts of the average office recycles just 7.5% of its waste.4 to the SNAM recycling plant in France.11 Mobile the proportion of recycled papers used providing that adequate environmental controls
• Review the Bank’s Ethical Policy implementation
protocols with regard to waste management, in country, especially near to large urban centres, In parallel, CFS’ total waste arisings fell by 19% phones are passed to Shields Environmental increased by ten percentage points to 48% (or are in place. Four finance opportunities were
light of the increasing prevalence of materials there is simply not enough space to continue (376.6 tonnes), mainly due to a 14% reduction Ltd12 with monies raised donated to the charity 1,703 tonnes). However, the proportion of 100% approved for more sustainable waste operations.
reclamation and biological treatment facilities that using land for waste disposal. As a in paper purchased. Benchmark On average, WaterAid.13 In 2005, 39% of toner cartridges post-consumer waste recycled paper decreased A £15 million contribution to a syndicated loan
utilise a combination of disposal strategies. consequence, waste disposal costs have employees within the UK financial services purchased were remanufactured (a reduction by five percentage points (to 581 tonnes). It facility for the construction of a coastal
Acceptable progress
increased substantially over the last decade. In industry generate 496kg of waste per annum,5 of five percentage points), mainly due to a should be noted that 6% of paper purchased wastewater treatment plant was supported,
• Increase the use of ecologically-sound paper in
priority areas during 2005. Acceptable progress 1997, landfill gate fees were £8 per tonne; now, (cf.251kg at CFS’ main offices). combination of product failure (toner leakage) by CFS is governed by APACS Standards that which ended the practice of direct discharge to
subsequent to the introduction of the landfill and restricted product availability. CFS is working require non-recycled feedstocks to be used.17 sea. A £2 million asset finance facility, which
tax escalator, they are £30-£35, and rising. Recycling – end of life fate The majority of with its supplier, Cygma Manufacturing Limited, In 2006, a new agreement was reached with supported the acquisition of two waste-to-
Targets 2006 There is also a growing appreciation that waste CFS’ paper is reprocessed into Co-op 100% to resolve these issues. The number of toner APS – CFS’ preferred printer – for all papers to energy combined heat and power plants by a
• Maintain a 70% recycling/reuse rate across CFS’ is often a resource – one that can be used recycled toilet tissue and Co-op 100% recycled cartridges recycled decreased by 15 percentage be produced on recycled paper. fertiliser manufacturer was approved. A landfill
main offices. again and again. kitchen towels, for sale in Co-op stores.6 Cans points to 54%, with approximately 1,400 fewer operator and a fish hatchery were also
• Maintain the downward trend in total waste are segregated into aluminium and steel, and cartridges being recycled at CIS premises. provided with asset finance of £30,000 and
arisings (excluding one-off disposals associated
with office closure).
Performance
General waste produced End of life fate, all wastes (tonnes) End of life fate – recycling End of life fate – recycling Toner cartridges
Re-used/Recycled Paper recycled (tonnes) Fluorescent tubes recycled (items) Purchase by type (percentage)
850 0.1 and volume (items)
345 (690)
1999 423 1998 364 1998 6,812
303 (657)
Waste leaving CFS (tonnes)
2002 79% 2,492
221 (578)
customer account (kgs)
2002 699 903 (1,602) 2002 657 862 (1,519) 2002 5,354
Waste generated per
2003 66% 34% 32% 68% (6,667)
2003 511 R 954 (1,465) 2003 484 R 855 (1,339) 2003 5,762 9,327 (15,089)
61% 39% 30% 70% (6,506)
In 2005, CFS increased
469
2004
2004 577 772 (1,349) 2004 544 682 (1,226) 2004 4,020 3,438 (7,458)
2005 39% 61% 5,645
425 0.05 2005 1,160 2005 978 2005 7,872
the proportion of waste 0 1,500 3,000 4,500 7,000
406
0 1,000 2,000 0 8,000 16,000
357
Landfill
354
345
Bank Remanufactured Virgin
reused or recycled to 71%. 1999 375 Bank CIS CFS (CFS Total)
CIS Remanufactured Virgin
R 2002 267 221 (488) Items of electronic equipment disposed of in an Furniture reused (items)20 Remanufactured Virgin
0 0 CFS
2003 273 345 (618) ecologically conscious manner19
1997 2002 2003 2004 2005 2005 679
2004 306 R 261 (567)
2005 436 1998 764 0 350 700
Bank CIS CFS (CFS Total)
Bank
2002 510 780 (1,290) CFS Recycled (items)
CIS Incinerated
2003 663 670 (1,333) 1998 1,878
CFS 2001 93 2004 955 808 (1,763)
2002 90 2005 2,222 2002 72.8% 2,492
2003 72 2003 64% 80.84% (6,390)
2004 0 1,500 3,000
(90) 2004 67.8% 69.5% (6,506)
2005 33 (CFS Total) 5,672
Bank CIS CFS 2005 54% 46%
0 800 1,600 0 3,300 6,600
Bank CIS CFS (CFS Total) Bank Recycled Not recycled
CIS Recycled Not recycled
CFS Recycled Not recycled
(CFS Total)
Source: Sustainable Development Team 2006
R : Restated historical data
88 89
£100,000 respectively, in support of the 1 Biffa Corporate Responsibility Report 05/06.
2 UK Defra e-Digest Environment Statistics.
acquisition of wastewater treatment plants. 3 ENDS report (May 2006). Issue 376.
4 Green Officiency Guide (2002) ETBPP .
Motor insurance Details of CIS’ initiatives to 5 Rethinking waste management to reap rewards (2004).
Waste Watch.
encourage the repair of plastic bumpers (as 6 www.co-op.co.uk
opposed to their replacement) and the use of 7 www.materialsrecovery.co.uk
recycled parts in accident-damaged vehicles, 8 www.save-a-cup.co.uk
9 www.mercuryrecycling.co.uk
are described on page 84. 10 www.tier1.com
11 www.snam.com
Sustainability value 12 www.shields-e.com
13 www.wateraid.co.uk
14 Forests for Life (2001). WWF.
analysis 15 www.cfs.co.uk/sustainability2004/paper
16 Product Report on Paper (October/November 1997). Ethical
Consumer Magazine.
• Annual cost of recycling activities (including 17 APACS Standards govern payment systems for institutions
third party contracts and capital investment), delivering payment services to customers.
£98,000. 18 Excludes costs associated with 26 tonnes of electronic
equipment and fluorescent tubes, the recycling of which is
• Additional annual cost arising from utilisation mandatory.
19 Majority of items are monitors, PCs, laptops and printers.
of preferred ecologically-sound paper, 20 Majority of items are tables, desks, chairs and soft seating.
£79,400. Other items include drawer units, cabinets and pedestals,
door frames, cupboards and screens.
• Saving arising from the reuse/recycling of
waste, £238,000.18
• Saving arising from the reuse of furniture,
£124,000.
• Saving arising from the use of remanufactured
toner cartridges, £106,800.
Paper purchase Bank – Waste related business declines,
Total (tonnes) 2005
1998 1,666
2002 1,479 Estimated
2003 1,972 2,416 (4,388) income
2004 1,858 2,256 (4,114) foregone
2005 3,540 2005
0 2,500 5,000
Waste management £10,000
£500,000 loan facility for business
providing service to the waste sector
By type (percentage) and weight (tonnes)
and heavily involved in waste-to-energy
Recycled, minimum 50% recycled content
projects. Insufficient consideration
1998 19.7% 328 given to the segregation and extraction
of recyclable material.
2002 53.8% 796
2003 48.6% 958
14.3% 345
2004 49.8% 925
28.9% 652
2005 48.1% 1,703
Recycled, 100% post-consumer waste
1998 13.4% 223
2002 38.4% 568
2003 34.5% 680
10.6% 256
2004 30.2% 561
13.4% 302
2005 16.4% 581
0% 25% 50% 75% 100%
Bank CIS CFS
Source: Sustainable Development Team 2006
90
Water Investments, products was renewed in 2005 and extended to 20108
(the previous commitment applied until 2007).
and services The broad provision of flood and storm cover
in the UK, without Government support, is
Customers Staff Suppliers Society Flood claims CIS is a large-scale provider of currently unique in Europe. In October 2004,
household buildings and contents insurance, the Environment Agency launched a new flood
79. Water consumption with some 1.4 million policies in force at the end mapping system which identified 2.2 million
of 2005. The UK Climate Impacts Programme homes in England and Wales as being at risk
estimates that winter rainfall could increase by from serious flooding, a 15% increase in
Target 2005 as much as 20% by 2080.5 This may double comparison to 2001.9 To deter further building
• Reduce water consumption across CFS’ main inland flood risk, with the consequence that on floodplains, during 2004, the ABI wrote to all
offices to 9,000 litres per employee by 2007. many riverside towns would breach the 1.3% UK local authorities and highlighted the fact
Acceptable progress annual probability limit, beyond which insurers that future insurance cover would not necessarily
would not normally guarantee cover. Flooding be available for new developments on land
Target 2006 is already making an impact on the insurance
industry: as a percentage of CIS’ total payouts,
falling within the Environment Agency’s new
‘1 in 1000’ flood risk category.
• Reduce water consumption across CFS’ main claims arising from environmental flooding have
offices to 9,000 litres per employee by 2007. increased almost 400% over the period 1984- 1 Association of British Insurers (June 2005) Financial Risks of
Climate Change.
2005, and now exceed £1.1 million per annum. 2 The Independent (28 February 2006) ‘World’s most precious
Materiality and strategy CFS aims to be a commodity is getting even scarcer’.
world leader, amongst businesses of all types, in Investment property In addition to water used 3 Department of the Environment, Transport and the Regions
its response to global climate change. Climate (2000) Guidelines for Company Reporting on Water.
in its own operations, in 2005, CIS purchased 4 The Environment Agency (May 2006) Drought prospects
change could increase the frequency and 23,166,000 litres of water ( R 2004: 32,631,000 2006 – spring update.
severity of extreme weather events, for which litres) on behalf of tenants at its water-metered 5 UKCIP (2000) Climate Change Scenarios.
home insurance, provided by businesses like 6 In 2005, CIS outsourced its investment property portfolio
investment premises – a 29% reduction (page 53). CIS does not monitor water use on sites where
CIS, offers some financial protection. Every compared with 2004.6 This is due to a reduction tenants are directly responsible for utilities contracts.
year, the UK insurance industry pays out between in the size of the property portfolio. 7 www.wateraid.org
£500 million and £1 billion in weather-related 8 Association of British Insurers (11 November 2005) ‘Insurers’
new pledge on flood insurance could benefit up to 100,000
claims, and it is predicted that climate change WaterAid credit cards7 In November 2002, more homeowners at risk of flooding.’
could increase the cost of flooding almost the Bank launched a range of WaterAid credit 9 www.environment-agency.gov.uk/
15-fold by the 2080s, leading to potential total subjects/flood/763964/763 974/?version=1&lang=_e
cards. WaterAid seeks to ensure that the
losses from river, coastal and urban flooding of world’s poorest people have access to clean
more than £22 billion.1 At the other extreme, it is drinking water and safe sanitation, and looks to
estimated that one third of the world’s population change hygiene behaviour. In 2005, sufficient
lives in water-stressed conditions2 and that, by monies were raised to rehabilitate 50 boreholes Performance
2025, this figure will increase to two-thirds of in Zambia – providing access to clean water for
the world’s population.3 The UK is not immune 12,500 people, and to construct 700 pit latrines
to water scarcity. Following a second dry winter in Madagascar – providing facilities for 8,400
in 2005, the South East of England faces the people. Monies also provided hygiene
possibility, if there is a hot, dry summer in 2006, education for 10,000 people in rural Nepal. Water consumption
of seeing the most severe drought of the last
hundred years.4 Against this background, 75,318 (115,735)
74,427 (114,885)
Sustainability value
63,156 (107,943)
CFS seeks to reduce water consumption at its
own premises.
analysis 120,000 30
Water consumption per customer account
Water consumption In 2005, CFS consumed • Saving arising (during 2005) from a 11.8
103,934,000 litres of water (2004: 107,943,000), million litre reduction in water use at metered
Water consumption
a 3.7% decrease compared with 2004 and a 80,000 20
sites since 2002, £11,700.
(litres 000s)
10.2% decrease compared with a 2002 baseline.
(litres)
This decrease is mainly attributable to the • Annual cost of water monitoring activities
closure of District Offices (page 39). Despite across CFS operations (including third party
this absolute reduction, water consumption per contracts), £12,900. 40,000 N
10
N N
customer account has increased by 4.3%
Influence and action
103,934
compared with 2002 (following further decreases
40,458
59,752
44,787
40,417
in customer account numbers). Water usage
Flood risk In 2003, the Association of British 0 0
per employee was 11,878 litres, a 5.4% increase 1999 2002 2003 2004 2005
compared with 2004. Benchmark Performance is Insurers (ABI) reached an agreement with the
Bank Bank
substantially better than the Environment Government to guarantee that, contingent
Agency’s benchmark of 18,250 litres per upon sustained Government expenditure on CIS N N CIS
employee, but is worse than the Building flood defences, the vast majority of the 10% of CFS CFS
Research Establishment’s best practice target domestic and small business properties (CFS Total)
of 9,000 litres. already situated in floodplains would continue
to have full access to a competitive market for
insurance; albeit, on terms that reflect the
different levels of flood risk. This agreement
Source: Sustainable Development Team 2006
91
Biodiversity Materiality and strategy Around one in ten
bird species and a quarter of mammals are
of 74% to 960.5 hectares compared to 2004)
and progress in the enhancement of Ugandan
Forest stewardship In 1995, the World Wide
Fund for Nature (WWF) established the Forest
to a garden furniture manufacturer were
approved, given both demonstrated utilisation of
oil plantations destroy biodiversity, as rainforest
is cleared to make way for them, and are
listed as being threatened with extinction, while tropical rainforest (an increase of 55% to 148.3 Stewardship Council8 (FSC), which acts as an timber certified to the FSC standard. Following associated with human rights violations and
up to two-thirds of other animal species are hectares compared to 2004). As at 20 December independent assessor of good forest the evolution of the Bank’s guidelines on fish worker exploitation. Demand for palm oil is the
Customers Society endangered.1 More fundamentally, as explained 2005, the footprint of CFS’ premises5 had management. FSC certification ensures that farming, the provision of banking services most significant cause of rainforest loss in
on page 7, almost two-thirds of the natural reduced by 1.4% compared with 2004. A total forests of all types are managed in ways that are (ultimately not progressed) was approved for a Malaysia and Indonesia. For example, the area
80. Biodiversity enhancement machinery that supports life on Earth is being of 28 locations were disposed of (principally 22 environmentally appropriate, socially beneficial firm of aquaculture consultants. Previously, all of land occupied by palm oil plantations in
81. Land occupied degraded by human pressure.2 CFS aims to be District Offices), and 17 new Regional Sales and economically viable. This is the only approaches for financial services from this Indonesia has doubled in the last ten years and
a world leader, amongst financial services Offices were acquired (page 40). During 2005, sustainable forestry management standard sector had been rejected on the basis that the is threatening species such as the Orang-utan
businesses, in its management of biodiversity a total of 257 premises were occupied by CFS. recognised by CFS. During 2005, CFS purchased industry utilised inappropriate levels of pesticides and the Sumatran tiger. Based on current
Targets 2005 impact and enhancement. Business in the In the majority of instances these are leased; 117 tonnes of paper containing FSC-certified and growth hormones (a consequence of trends, the palm oil industry is set to continue
• Erect a nesting ledge on the external facade of the Community has rated the Bank’s performance however, 13 are owned by CFS, and these fibres (2004: 102 tonnes), an increase of 14.7%. excessively high farming densities) and there its growth to meet increasing global demand.
CIS Tower to optimise the opportunities for nesting and impact in the area of Biodiversity as 100%, accommodate some 49% of office-based staff.6 FSC timber and wood products were utilised in was evidence that these routinely found their Recently, the Roundtable on Sustainable Palm
by peregrine falcons. Target achieved compared with a sector average of 87%.3 the refurbishment of 13 CIS Regional Sales way into the wider environment and damaged Oil (RSPO) was established to develop a
• Raise, through the RSPB credit card, over £3.5 The most recent Ethical Policy consultations Peregrine falcons In 2004, the Greater Offices and five Bank branches. wild fish populations. However, the advent of globally acceptable definition of sustainable
million for Britain’s threatened wetlands over the
(page 48) revealed that: 94% of Bank customers Manchester County Bird Recorder noted that lower density farming, coupled with concerns palm oil – covering legal, economic, technical,
period 1999-2005 inclusive. Target achieved
• Update the Bank’s community woodlands website
with the latest biodiversity audit findings. Target
do not wish to see their money invested in
businesses whose core activities contribute to
up to four peregrine falcons were regularly
utilising CIS’ Chief Office in Manchester, as a
Investments, products around the increasing pressures on wild
populations, has led the Bank to reconsider
environmental and social aspects of its
production – and to promote the sustainable
achieved the unsustainable harvest of natural resources;
and 95% of CIS customers wish CIS to
feeding station. The birds were thought to be
juvenile and looking to secure a possible
and services and conclude that each case should now be
assessed individually.
production and use of palm oil. CIS expects
companies to come under increased pressure
Target 2006 encourage businesses to end the exploitation
of Nature, and consider more sustainable
nesting site. UK peregrine falcon populations
have recovered in recent years, from near
Screening of finance – Bank The Bank’s
Ethical Policy includes a commitment not to Engagement (palm oil) – CIS Palm oil is an
to ensure their palm oil comes from sustainable
sources. In August and December 2005, CIS
• Raise, through the RSPB credit card, over £4 natural products and services. extinction in the 1960s. Ideally, the birds would invest in businesses whose core activities important and versatile raw material for both wrote to over fifty consumer product
million for Britain’s threatened wetlands over the nest on crags or other rock faces; however, contribute to the unsustainable harvest of food and non-food industries and is present in manufacturers, retailers, chemicals and oil
period 1999-2006 inclusive.
Total biodiversity enhancement 4 The area of habitat destruction means that these are in natural resources. During 2005, 73 finance one in ten supermarket products, including companies urging them to consider membership
land subject to biodiversity enhancement, as a short supply, and some birds are turning to opportunities were referred to the Ethical Policy chocolate, bread, detergents and toiletries. of the RSPO. To date, seven companies
result of Bank donations, increased significantly large inner city tower blocks as an alternative.7 Unit in connection with this area, of which three Palm oil production, which totals thirty million (Boots, BP Marks & Spencer, Northern Foods,
,
during 2005 (66%), and is now 85 times greater In 2005, a nesting ledge was affixed to the were declined at an estimated cost of £508,500 tonnes per year worldwide, contributes to the Reckitt Benckiser, Sainsbury’s, Uniqema (ICI))
than the land occupied by CFS’ premises, which building for use by the peregrines. A web camera in terms of gross income foregone. In contrast, economic development of the producing have responded positively and have joined the
totals 13.6 hectares. There was a renewed focus was also installed, with a view to broadcasting a £10 million refinancing facility for a leading countries. However, current methods of palm roundtable. A further ten companies stated
on the enhancement of UK wetlands (an increase ‘live images’ should nesting progress. DIY retailer and the provision of banking services oil production are largely unsustainable: palm either that their suppliers are RSPO members or
that they are reviewing their suppliers in response
to CIS’ enquiries. Nine of the companies stated
that they do not use palm oil and CIS has
Performance accepted these responses. Engagement is
Land occupied (hectares) Land with significantly enhanced biodiversity as a result of Bank donations continuing with the remaining companies.
(cumulative hectares)
2000 6.8 Tropical rainforest Mortgages (in support of tropical rainforests)
In 2005, the Bank once again extended its range
2002 6.7 7.8 (14.5) 2000 3.1
2003 6.7 7.7 (14.4)
of greener mortgages.9 These account for the
2002 10 vast majority of CFS’ carbon offset programme.
2004 6.7 7.1 (13.8)
2003 27.5
2005 13.6
2004 95.9 Every year that a customer holds a mortgage,
0 5 10 15 2005 148.322 the Bank pays Climate Care10 to offset a fifth of
Bank CIS CFS (CFS Total) each household’s carbon dioxide (CO2)
Community woodlands
emissions.11 In 2005, £104,000 was spent in
2000 30 support of the reforestation of 53 hectares in
Bank – Biodiversity related business declines, 2005
2002 42.7 Kibale National Park, Uganda. It has always
Estimated 2003 48.5 been the Bank’s intention that sequestration
income 2004 49.5
2005 49.5
projects should, as a proportion of total offset
foregone
2005 programmes, diminish over time. In 2005, offset
Wetlands programmes accounted for 40% of mortgage
International cardboard manufacturer £15 million finance facility supporting the merger of two £452,000
paper, board and packaging businesses. One party derived wood fibre from 34,000 hectares of fast 2000 303 offset spend (down from 100% in 2001 and 50%
growing monoculture plantations (pine, eucalyptus and gmelina) in Venezuela and from some in 2004). In the long term, reforestation can
Monies raised in 2005 62,000 hectares of pine plantation in Colombia. At both locations, old growth rainforests had been
2002
2003
365
550 only be a small part of the solution to climate
removed and local communities had been denied access to agricultural land. Furthermore,
by the RSPB credit card management of plantations was not subject to independent sustainability verification.
2004
2005
550.5
960.5
change and it is therefore intended that offset
programmes will further reduce to 20% by 2007.
Peat extraction £2.1 million loan facility for peat producer. Sites operated included rare UK lowland £56,000
facilitated the restoration raised bog habitats. Unsustainable peat extraction has lead to the irreversible destruction of such Total Ultimately, carbon offset programmes need to
habitats, which, in the UK, are estimated to have declined by 94 per cent. Operations of business realise reductions in fossil fuel consumption,
of 410 hectares of have been the subject of ongoing criticism by a number of conservation groups.
2000 336.1
as outlined in the projects described on page 80.
2002 417.7
Timber merchant £70,000 asset finance facility supporting the acquisition of vehicle fuel efficiency £500 Since 2001, mortgage customers have funded
reedbed at four RSPB equipment. Such activity would normally be viewed positively; however, the beneficiary was a timber
2003
2004
626
695.9 the restoration of 147 hectares of rainforest. The
merchant actively sourcing Teak hardwood from Burma, and other vulnerable species from West
nature reserves in the UK. Africa. Association with such adverse biodiversity impacts was considered more significant than 2005 1158.3 planting process begins in the nursery, where
the marginal climate change benefits that would derive from the anticipated fuel efficiency gains. 0 600 1200 30 species of local trees and shrubs are
Total £508,500 Bank tended until large enough to plant out. A major
Source: Sustainable Development Team 2006
92 93
barrier to the natural regeneration of the forest In 1997, the UK’s population of breeding biodiversity audits were posted on the community
is the rapid growth of elephant grass, which Bitterns was estimated at just eleven. In 1994, woodlands’ website.21 This concluded that,
needs to be hand cut at least three times a the UK Government established a target to as yet, there has been no further significant
year. Whilst the areas planted on behalf of the increase the booming Bittern population to enhancement in biodiversity beyond that
Bank are too young to have attracted primates, 50 by 2010. In 2004, this was surpassed detected in the 2001 audits. The 2001 audits
chimpanzees and baboons have begun to some six years ahead of target, when the highlighted that the woods are home to over 50
migrate into adjacent reforested areas. Securing number of calling/booming males heard in bird species of Conservation Importance, with
the involvement of local communities is central the country reached 55. The Bank and the six UK Priority Species (Bullfinch, Grey Partridge,
to the project’s success. The reforestation RSPB have now agreed to work towards a Linnet, Reed Bunting, Song Thrush and Skylark)
programme in Kibale, and its sister programme new target of 100 booming males by 2020. In already sighted. The 2004 research found that
in Mount Elgon, provide work at times of the 2006, the Bank sponsored the RSPB’s Gala species that prefer open grassland, such as
year for up to a thousand people. The project Charity concert for the fourth time. This was the Skylark and Reed Bunting, have declined,
area has attained certification from the Forest held at The Sage in Gateshead and was such that insect and plant species have
Stewardship Council.8 Further details of CFS’ broadcast live on national radio. benefited. Amberswood in Wigan, for example,
work in Kibale are available on its website.12 is now regionally important for its population
Bonus account (in support of animal of dragonflies, with 15 species recorded. In
RSPB13 credit cards (in support of UK welfare and conservation) In 2003, the Bank particular, the Emperor dragonfly was recorded
wetlands) Between 1999 and 2005, almost developed a relationship with the Born Free – a species listed in the North West’s Biodiversity
£3.5 million has been raised for Britain’s
threatened wetlands via the Royal Society for
Foundation19 for the relaunch of its youth
account. To date, donations of £55,000 have
Audit Plan as very rare within the region. The
increase in orchid population at Brookhouse
Eleven finance
the Protection of Birds (RSPB) credit cards
(£467,000 during 2005 and over £6 million since
been made to the foundation, which provides
project information and conservation-related
Wood in Salford is also impressive with ‘spikes’
increasing from 239 to 1,032 between the 2001
opportunities
1989). The RSPB receives £18 for every account gifts to account holders. and 2004 surveys. were declined to
opened, and a further £2.50 if the card is still
being used six months later. In addition, the
• The first project, as described in the CFS
Sustainability Report 2003, was an
1 The Royal Society (2003). Measuring Biodiversity for
Conservation.
businesses in relation
RSPB receives 25p for every £100 spent using
the card. Monies raised in 2005 facilitated the
‘elefriends’20 initiative in Sri Lanka. 2 Millennium Ecosystem Assessment (MA) Synthesis Report.
See www.millenniumassessment.org
to ecological impact
restoration of 410 hectares of reedbed at four
RSPB nature reserves in the UK.
• Other projects supported include an anti-
snaring/poaching team in Kenya (£5,000),
3 www.bitc.org.uk/programmes/key_initiatives/corporate_
responsibility_index/index.html
4 The Bank has reported on its land footprint and biodiversity
at an estimated cost
• At Ham Wall in Somerset,14 200 hectares of
and conservation projects for basking sharks
(£5,000 - UK), turtles (£16,000 - Tanzania),
enhancement initiatives since 2000, and, in 2003, accounting
systems were extended to capture the space occupied by all
of £1,467,000.
reedbed have been created or restored. The car parks and CIS premises.
chimpanzees (£10,000 - Uganda and 5 CFS classifies rented/owned premises as either occupied,
reserve was created from worked-out peat
Cameroon) and tigers (£10,000 - India). vacant, or wholly sub-let. Occupied and vacant premises
diggings. Marsh harriers, Garganeys and count towards CFS’ land footprint. Premises that are sub-let,
Reed buntings breed here and water voles, or have been disposed of during the year, do not.
otters and dragonflies can be seen on the Community involvement 6 As at December 2005, CIS owned two main offices (CIS
Chief Office, Manchester and Portland Street, Manchester).
open water. The Bank owned three main offices (the Pyramid, Stockport;
UK community woodlands – Bank In 1997, the
Olympic House, Salford; and Pennylands House,
• At Minsmere in Suffolk,15 the stronghold of Bank committed £300,000 to the development Skelmersdale) and eight branches.
the Bittern in the UK, 157 hectares of reedbed of four community woodlands in Greater 7 www.rspb.org.uk/birds/guide/p/peregrine/index.asp
have been enhanced. Work has focused Manchester. The four woodland sites were all 8 www.fsc-uk.org
9 www.co-operativebank.co.uk/mortgages
on re-profiling existing ditches and clearing formerly landfill sites or opencast mines. The total 10 www.climatecare.org
old reedbed to create areas of open water, area under management amounts to more than 11 www.co-operativebank.co.uk/mortgages/environment
which promote better feeding conditions for 250 hectares (approximately one square mile). 12 www.co-operativebank.co.uk/ecology/mortgages
13 www.rspb.org.uk
the Bittern. The North West of England has one of the lowest 14 www.rspb.org.uk/reserves/guide/h/hamwall/index.asp
ratios of tree cover in England, and the Bank’s 15 www.rspb.org.uk/reserves/guide/m/minsmere/ index.asp
• At Titchwell Marsh in Norfolk,16 31 hectares of 16 www.rspb.org.uk/reserves/guide/t/titchwell/index.asp
sponsorship has led to the creation of 48.5
reedbed have been enhanced. Work has 17 www.rspb.org.uk/reserves/guide/n/northwarren/index.asp
hectares of new woodland; principally Birch, 18 www.ukbap.org.uk/SpeciesGroup.aspx?ID=7
focused on the re-profiling of reedbeds to
Alder, Oak and Ash. These new woodland areas 19 www.bornfree.org.uk
increase and improve the fish habitat, which 20 As farming land encroaches on elephants’ traditional ranges,
are beginning to mature, with pioneer species,
enables the Bittern to feed more easily. The they often turn to crops for sustenance and are driven off the
such as Alder and Birch, now reaching over six land by farmers causing young elephants to be separated
first pair of breeding Bitterns in 18 years has
metres tall in places. In 2002, the Bank launched from their parents. In 1990, there were 12,000 elephants in Sri
been recorded at the reserve. Lanka, now there are fewer than 4,000. An Elephant Transit
a website,21 to provide information on the habitats
Home (ETH) has been established for young elephants at
• At North Warren in Suffolk,17 22 hectares of and species found within the community Udawalawe National Park to provide medical attention, food,
reedbed have been enhanced. The reserve woodlands. To mark its launch, visitors to the shelter, and the companionship of other elephants. Once
consists of grazing marshes, reedbeds, website were asked to nominate their preference they are grown, young elephants are returned to the wild in
Udawalawe National Park.
heathland and woodland. Bitterns, Marsh for the planting of a further 10,000 native trees in 21 www.co-operative-woodlands.co.uk
harriers, Nightjars, Woodlarks and the region (Birch, Oak, Hazel, Rowan and Ash). 22 In addition to the mortgage portfolio, carbon offset is
Nightingales breed on the reserve, which is This work was finally undertaken by Groundwork purchased in connection with CFS’ air conditioning leakages
(page 85) and the Bank’s personal car finance loans (page
also home to many species of butterfly and during the winter of 2004/05 at playing fields, 83). In 2005, the offset associated with these initiatives
dragonfly. In 1997, the Bank became ‘Species community parks and local nature reserves in facilitated the reforestation of 1.3 hectares of rainforest.
Champion’ for the Bittern,18 which is one of the Bury, West Cumbria, Blackburn, Rochdale,
ten most endangered animal species in the Oldham, Manchester and Salford. In total, an
UK. In connection with this, a contribution area of just over one hectare was planted.
of £11,750 was made to the RSPB in 2005. During 2005, the findings of a second round of
95
94