Consumers look to make green the colour of their money

The political desire to tackle climate change is being matched by consumers according to a recent study by Co-operative Financial Services (CFS).

The research found that more than eight in 10 (82 per cent) UK consumers would choose to buy an eco-friendly product in favour of a non-eco friendly product in order to do their bit to combat climate change.

CFS provides a range of competitive financial products which come with environmentally friendly features at no extra cost to the customer. These include:

Green mortgages

For every mortgage on its books the Co-operative Bank makes a donation to an organisation dedicated to combating climate change. This year the amount donated since it launched green mortgages in 2000 will reach almost £1.5million.

For house purchases, customers will also receive a free Home Energy Report with their valuation which provides advice on making their home more energy efficient.

Ethical investing

Co-operative Insurance offers customers a socially responsible investment (SRI) which invests in the companies that are having a positive impact on society and the environment. The Co-operative Insurance Sustainable Leaders Trust recently became the first ever SRI fund to top the UK All Companies Sector, proving that investors don’t have to sacrifice profits for principles when investing in such schemes.

In addition, all its UK equities are covered by a unique Ethical Engagement Policy based on the views of customers, which it uses to improve the social, environmental and ethical performance of companies it invests in.

Eco-Motor Insurance

Co-operative Insurance was the first provider to launch a green motor insurance product with environmentally friendly features right through from the underwriting to claims stages. As well as offsetting the equivalent of 20 per cent of the CO2 from every vehicle insured under the Eco-Insurance scheme there are premium discounts for ‘greener’ cars.

Credit cards

Customers can support a charity of their choice through a wide range of Co-operative Bank affinity credit cards. The Bank makes a donation to the selected organisation on opening an account with further contributions made depending on the usage of the card. Customers can choose from a wide range of leading charities including Oxfam, Greenpeace and Amnesty International.

Child Trust Fund

Co-operative Insurance was the first to offer an ethical stakeholder Child Trust Fund, in association with The Children’s Mutual. The scheme invests in FTSE4Good index which measures the performance of companies that meet globally recognised corporate responsibility standards.

Ethical Policy

All Co-operative Bank customers have the opportunity to take part in its regular consultations that determine its Ethical Policy. It uses the policy to decide the businesses it will and will not support based on the views of its customers on a range of issues from human rights and animal welfare to arms trade and ecological impact. The Bank is the only high street bank to have a clear ethical policy.

David Newman, Marketing Director, at CFS, said: “Research shows that ethical consumerism is growing and is already worth more than £29.3bn to the UK economy. We have been aware of the growing influence of ethics in consumer choice since we launched our ethical policy 15 years ago, and it is now become more mainstream.

“Customers that choose the Co-operative Bank and Co-operative Insurance can be safe in the knowledge that their finances are being used positively for the environment”.