the green money blog

UK green and ethical investment hits record £11.3Bn high

2011-10-13T06:07:00.000-07:00

Figures released today by EIRIS show that the amount of money invested in Britain's green and ethical retail funds (i.e. those funds open to the general public) has reached a record high of £11.3Bn.

Launched in the run up to the UK's third National Ethical Investment Week (16 -22 October 2011), the latest figure of £11.3 billion* represents over three quarters of a million investors in green and ethical funds, up from around 250,000 investors in 2001 when £4 billion was invested ethically in the UK. Statistics from the Investment Management Association show that gross retail sales into UK Ethical funds were up by 25% in quarter two of 2011 compared with the same quarter in 2010.

Growing demand
Increased interest in ethical finance is backed up by the findings of EIRIS' latest Ipsos MORI national consumer survey which explores consumer attitudes to ethical finance in Great Britain. The poll surveyed 1,030 adults and finds that 38% of the British public with a financial product or service are interested in green or ethical financial products and services with more women than men (41% versus 34%) expressing an interest. Of those interested, 90% said they would be likely to switch to a different provider if it offered green or ethical investment products.

The poll also explores the extent to which consumers feel that many of the sustainability themes which green and ethical investment funds seek to address will impact upon the global economy. When asked 'What impact, if any, do you think each of the following will have on the global economy in the next 10 years':

61% of respondents said natural resource scarcity will have a negative impact on the global economy;
59% said growing population will have a negative impact;
57% said availability of global food supplies will have a negative impact;
56% said environmental damage will have a negative impact;
56% said ageing population will have a negative impact;
52% said water scarcity will have a negative impact;
49% said climate change will have a negative impact, and
46% said reduction in biodiversity will have a negative impact on the global economy.

Viva la difference?
Last week EIRIS also ran a national opinion poll survey with Ipsos MORI to mark National Ethical Investment Week in France. The survey found that 60% of the French public said they attach either 'great importance' or 'some importance' to incorporating environmental, social and ethical issues when selecting financial products. Click here for further details.

The last 10 years has seen a huge increase in the amount of money being invested ethically and this has gone hand-in-hand with the interest in ethical consumerism in general. EIRIS' survey shows that expectations around ethical finance are evolving. The public now agree that big issues like climate change, dwindling natural resources and population growth will have a negative impact on the global economy.

Since the credit-crunch, people are better informed about the impacts that their spending and investments can have, both positive and negative, and more of us are turning to ethical investment which takes a longer-term approach. By avoiding companies with a negative impact, or focusing investment on those providing positive products and services tackling key sustainability challenges, green and ethical funds offer the opportunity to both make money whilst tackling global problems.

Mark Robertson

Water must be at the core of ESG investment strategies

2011-07-19T05:09:00.000-07:00

Without doubt the world’s most essential commodity is water. But despite its critical importance to life on earth, water is taken for granted and the impending issue of water scarcity remains largely invisible and neglected. However, leading experts are in agreement that water scarcity is set to become the foremost global environmental challenge of our generation. If water is of interest to you as a consumer, you might want to think more about whether the companies that make the products you buy take it into account.

In the past, water has been taken for granted and its material and financial value remains poorly understood by the majority of companies and investors alike. This is mirrored in EIRIS’ recent study ‘A drought in your portfolio: are global companies responding to water scarcity?' which shows that less than 1% of companies exposed to water risks are adequately managing them. In contrast, UN Secretary General Ban Ki-moon has stated ‘Water stress threatens global economic growth’ and is an issue ‘as critical as climate change’.

As pressures on water supplies increase across the world companies will face increasing declines and disruptions to their water supplies. This will undermine the productivity and profit margins of operations as well as of suppliers. Under the predicted 40 per cent supply-demand gap there will not be enough water to grow the food needed to sustain population growth or to provide raw materials such as cotton or timber. The world could face annual losses of grain production equivalent to the entire grain crops of India and the US combined by 2025.

Water is also key to energy production. In 2003, France was forced to shut down 58 nuclear power stations responsible for supplying 75 per cent of the nation’s energy because of severe water shortages.

According to the World Economic Forum, 1.1bn people live without clean drinking water and 1.8m people die every year from inadequate sanitation. Companies that use water irresponsibly or pollute water sources will therefore increasingly come under attack from the public and civil society.

The physical and reputational pressures of water scarcity and water pollution will result in tougher regulation to protect water quality and caps on how much water businesses can withdraw, potentially limiting licences to operate. Water scarcity will also increase water prices.

Taking these risks into account, it is worrying that EIRIS analysis shows that less than 1% of companies are adequately managing their water risks. However, further analysis reveals more promise: 36% of companies have acknowledged water as an issue to be addressed; 22% demonstrate they monitor water consumption in relation to disclosure; 9.7% have set either short-term or long-term consumption targets and 9.7% have set water quality targets.

In comparison to climate change, companies have had five to ten years to understand and evolve their strategies. We are now seeing a handful of innovators within each sector beginning to get to grips with water scarcity, assessing their risks and beginning to plan for how they will mitigate these. However, the vast majority of companies – 94% – remain unaware of the issue or have not gone beyond the basic first step of acknowledging water is an issue to be addressed.

Investors should therefore seek a better understanding of potential water-related exposure in their portfolios by demanding more corporate water disclosure, encouraging companies to incorporate water issues into their environmental strategies and emphasising the opportunities of better water management.

- Randeep Sanghera

Some ethics with you ISA?

2011-04-01T07:56:00.000-07:00

ISA season is upon us again and with the April 5 deadline for using this year's tax free saving allowance fast approaching, banks are as eager as ever to get their hands on this last-minute cash.

But as we search around for last minute ISA deals, how many of us stop to think about the impacts our investments are having on the world around us? How many of us are, unwittingly, investing our ISAs in the arms industry, in needless polluters, oppressive regimes or other companies whose objectives are at odds with our own?

The answer is the vast majority of us, though this needn't be the case. The options for investing your ISA are multiplying all the time; and this needn’t mean sacrificing financial performance. There are now around 90 ethical funds available – the majority of which come with an ISA wrapper.

The old adage that investors have to "pay" to go ethical in terms of poorer financial performance no longer holds true. Over the last few years some ethical funds have outperfromed their non-ethical peers.

But what kind of companies do green and ethical ISAs invest in? This depends on the ISA’s ethical policy. Some may aggressively screen out heavy polluters, arms companies and animal testers. While others take a ‘best of sector’ approach and may invest in the oil and gas sector but will actively seek out companies that have a better record on the environment and human rights than others in their sector. This can include investment in dynamic green technologies, such as renewable energy, which have the potential to tackle huge global issues such as climate change whilst generating a very healthy. Additionally, some funds may also seek to improve the social and environmental performance of companies through a process of proactive engagement

EIRIS’ YourEthicalMoney.org webiste has a full list of all the various green and ethical ISA options available.

So, when choosing your ISA this year, think not only of the potential financial reward, but of the social, environmental and ethical return.

- Mark Robertson

Cool Brands versus Hot Brands? Top brands failing on climate change

2011-03-10T04:57:00.000-08:00

Two-thirds of the world's top 100 brands are failing on climate change, according to latest research from responsible investment research firm EIRIS.

The report Cool Brands versus Hot Brands? focuses on the world's leading 100 brands, as identified by Interbrand1, and finds that 69% of those with a high climate change impact lack adequate policies, management systems and reporting on climate change.

Companies risk eroding brand value by failing to respond to the climate change concerns and expectations of customers, investors, NGOs and other key stakeholder groups. EIRIS' analysis reveals surprising differences in the way efforts to tackle climate change are embedded within a company's culture. Research parameters include product impacts, long-term targets, executive remuneration and disclosure.

Leader of the pack?

Gillette (ranked 3rd in Interbrand's top 100) achieved the highest overall climate change rating in EIRIS' analysis. The brand has established long-term targets on emissions reduction and displayed strong reporting against those targets.

Porsche, on the other hand, (ranked 72nd in Interbrand's top 100) achieved one of the lowest climate change scores in EIRIS' climate change analysis. This contrasts with other leading brands in the automobile and parts sector such as Toyota.

Apple vs Dell

Big differences exist in the extent to which leading technology brands are tackling climate change. Dell (Interband rank 42) has linked executive remuneration to climate change performance, established both long and short-term targets and has improved product-related climate change emissions.

However, Apple (Interbrand rank 17) has failed to implement any of these measures. On the other hand, Apple has shown an improvement in reducing its GHG emissions whilst Dell's GHG gas emissions have increased. However, it should be noted that other factors such as new business acquisitions, fluctuations in turnover, etc, can account for increases/decreases in GHG emissions.

Pepsi challenged?

Coca-Cola is at the top of the Interbrand 100 list, while PepsiCo is positioned at number 23. However, when looking at their relative responses to climate change a different picture emerges. While Coca-Cola has an assessment of 'intermediate', with a number of unidentified or unmanaged risks, PepsiCo scores 'good' according to EIRIS' methodology. Unlike Coca-cola, PepsiCo is therefore considered to have adequately managed its climate change risks.

Cool Brands versus Hot Brands? forms part of a EIRIS' wider annual climate change tracker report which analyses the performance of the world's biggest 300 companies in tackling climate change. This year's analysis of the world's 300 largest companies finds that:

• 33% of companies have a significant climate change impact. Of this 33%, only 27% are adequately managing the climate change risks they face. In 2008, only 16% adequately managed climate change risks

• 60% have now established short-term targets (48% in 2008), but only 46% have set long-term targets (25% in 2008), leaving significant room for improvement

• In 2010, 31% of significant impact companies linked executive remuneration to carbon emissions, up from 14% in 2008

The potential reputational damage to brand value associated with a failure to respond to the risks from climate change can have a direct impact on a company's profitability. A lack of mitigation measures can also lead to the loss of business productivity and business interruption.

In the face of increased regulation, growing consumer expectations and greater investor awareness, climate change and other sustainability issues will become increasingly important factors in the determination of brand value. Investors in top brands need to consider the extent to which companies are safeguarding their brands by addressing both current and future climate change risks.

Mark Robertson

What’s the future for investment in sustainable business?

2011-02-15T04:10:00.000-08:00

You might think that governments and companies, under acute financial pressure and still recovering from a grim recession, would be quietly burying their commitments to sustainable business practices.

In fact, they're doing the reverse. Over the last few years major economies including the US, UK, China and Korea have announced detailed stimulus packages to support sustainable businesses as part of their recovery plans. In the UK the coalition government has announced plans for a green investment bank to support renewable energy businesses, (though these plans might be scaled back somewhat and replaced by an investment fund). Not only would this help to bridge short-term funding gaps of green technologies which might arise from the economic downturn, it would also pave the way for longer-term sustainable growth.

Climate change is financially significant to all companies. It presents a systemic risk: the threats posed to the economy and the financial impact of not addressing climate change are significant, as explained in the Stern Review. Increasingly, business are recognising that a long-term commitment is needed to address climate and other critical sustainability issues. Major companies such as M&S and Wallmart continue to invest in sustainability initiatives as they recognize the significant efficiencies to be gained in doing so.

Mandatory carbon reporting, the increased roll-out of emissions trading (once the EU's security issues are resolved) and a growing recognition amongst US policy makers that America needs to reduce its reliance on foreign imported oil without relying on existing stocks of polluting coal means will further boost demand for renewable energy, increase energy efficiency and encourage other industries to adopt more sustainable business practices.

It’s likely that governments, companies and investors will continue to provide the long-term support that’s needed to build a more sustainable global economy. This will continue to create opportunities for investors to both make money and make a difference by supporting businesses involved technologies.

- Mark Robertson

Failing to invest ethically creates big risks for charities

2011-01-28T02:47:00.000-08:00

The UK public expect charities to hold true to their ethical values when making investments, according to new research.

At a time when UK charities face a particularly tough funding environment, What Is The UK Public's Opinion of Charitable Investments? by the EIRIS Foundation and the Holly Hill Charitable Trust, set out to gauge current opinion regarding charitable investments.

The survey found that 78% of the UK public would think worse of a charity if they found out it had invested funds in activities that ran contrary to its specific work and values.

Mark Robertson, head of communications at EIRIS, said: "Our survey provides clear evidence that the British public expect charities to be fully transparent and to think more about the environmental and social impacts that their investments have."

Charities are under increasing pressure to be accountable and transparent in all that they do. In 2011 UK registered charities held nearly £78 billion in investments.

The survey results show that the public are as keen as ever to see charities make investments that match or stand up to their charitable aims. Three out of four respondents (74%) agreed that large charities should adopt ethical investment policies and four out of five (84%) felt charities should be fully transparent about their investments.

Charities that fail to invest ethically therefore run the risk of alienating supporters which, in turn, could result in a reduction in donations. This is something few charities can afford to do, particularly when figures published following last year's comprehensive spending review by the Association of Chief Executives of Voluntary Organisations (Acevo) suggested that charities could face a reduction of up to a £4.5 billion in funding as Government cuts continue to take effect.

The majority of those surveyed (87%) either donated to charities and/or worked for a charity, and of these 89% were not familiar with the investments or investment policies of the charities they worked for/donated to.

The survey coincides with the Charity Commission consultation on investment guidance for trustees, and others who make decisions on behalf of trustees, about a charity's investments. The proposed revised version of Charities and Investment Matters (CC14) explains the legal framework for how ethical investment, mission connected investment and programme related investment can sit alongside standard investment approaches.

Robertson added: "The multiple benefits of ethical investment are well documented. Our survey results, coupled with the Charity Commission's new draft investment guidance, are perhaps the strongest signals yet that charities could be missing a trick by not broadening their investment strategy by linking investment activity directly with charitable aims."

A survey published last year, by the Charity Finance Director's Group and the EIRIS Foundation, found that 60% of charities with investments over £1 million had an ethical investment policy, and 32% of those that that did not currently invest ethically were planning to discuss the issue in the coming year.

Mark Robertson

Public want banks to lend ethically, survey finds

2010-11-12T03:03:00.000-08:00

73% of the British public think that banks should have ethical lending policies in place to prevent them from investing in, or lending to, companies involved in controversial areas such as arms manufacturing, or companies with poor records on the environment and human rights, according to new research released today.

The national online consumer survey, conducted by Ipsos MORI on behalf of EIRIS, explores current consumer attitudes to green and ethical finance. The survey launched as EIRIS figures show that the amount of money invested ethically in the UK has risen 289% over the last decade.

The survey identifies clear evidence of the need for change in all investment and lending practices. 66% of the survey respondents think that banks and other financial institutions have not learnt the lessons needed to prevent a future financial crisis but instead have reverted to 'business as usual'.

In the wake of the BP oil spill, many consumers recognise the impact that green and ethical issues can have on a company's bottom line. 82% of the British public think that it is important for financial product providers to pay more attention to environmental, social and governance risks when deciding which companies to invest in or lend money to, as part of ensuring a good financial return.

Survey respondents were presented with a list of ways that banks or financial institutions could offer more to their customers. Ranked most highly was the disclosure of information on how and where banks lend to or invest their money, with 77% thinking that banks or financial services providers should have this.

Other key findings

When asked what might encourage them to switch to an ethical financial product or service:

- 38% would be more likely to change if more information was available on the high street about ethical/green products
- 43% said they would be more likely to switch to an ethical financial product if its green and ethical credentials were externally verified so that it was easier to trust the claims made
- 41% would be more likely to change if a greater choice of ethical/green products was available
- 37% would be more likely to change if there was more information available on how green/ethical products make a difference in the world

Mark Robertson, Head of Communications at EIRIS said "It's clear that there's a lot more that financial institutions can do to build trust and persuade us that they have switched away from short-term, unsustainable investing and lending practices. Our survey shows that there's a huge appetite for a more intelligent approach to finance which places a greater emphasis on society and environment as part of a path towards a more sustainable financial future".

In order to assist people looking for ethical financial products, EIRIS has launched http://www.yourethicalmoney.org/ - the UK's first consumer website dedicated to providing free, independent and unbiased information on all aspects of ethical finance.

The survey is launched to mark the UK's third National Ethical Investment Week which aims to raise the profile of green and ethical investment in the UK.

- Mark Robertson

Can the finance sector restore its reputation?

2010-10-28T04:59:00.000-07:00

Not if you believe Steve Cummins, Chief Executive of TheCityUK, the body focussing on promoting and developing the UK finance sector who spoke at the UKSIF Annual Lecture last week.

In presenting the case for maintaining the UK's role as a key centre for sustainable and responsible finance, he made a particularly interesting claim that once you have lost public trust and confidence you cannot recover or restore the same trust and confidence. Instead you have to find a new basis on which to gain fresh trust and confidence.

If that is true, it means that the path to the rehabilitation of the finance sector needs to be a new one. One, perhaps, in which financial firms position themselves as the eyes and ears of investors looking for, and dealing with, forthcoming problems in the marketplace: protecting the interests of all rather than simply seeking to avoid disaster themselves (with mixed success) and trying to stay one step ahead of the regulators.

That would mean seriously addressing issues like climate change and biodiversity and ways in which globalisation could fail to benefit everyone, each of which themes contain the seeds of mass value destruction for the world's investors if not properly addressed.

It might also involve asking what culture and leadership is appropriate for a finance sector playing its part in long term sustainable wealth creation for the benefit of society as a whole.
All of this adds up the kind of new approach that might indeed generate fresh public esteem for the finance sector and all who work in it.

And while may all of this may sound like something of a challenge the significance of Steve Cumming’s remark is that anything less than a radical break with the past might simply not do the trick in rebuilding trust and confidence.

So if TheCityUK is willing to set out on such a radical new approach it will be down to its backers (who include many of the big names in UK finance) to rise to the challenge and to make good use of all that UKSIF and others can bring to that journey.

A transcript of Steve Cummins speech is available here

- Peter Webster

Britain investing more money ethically than ever before

2010-06-01T06:11:00.000-07:00

EIRIS has today released new figures which show that the amount of ethical investment in the UK has reached an all time high of £9.5 billion.

The £9.5 billion represents approximately three quarters of a million investors in ethical funds, up from around 200,000 investors in 1999 when around £2.4 billion was invested ethically in the UK.

The world is changing fast and many of the issues targeted by green and ethical investment funds such as the need to tackle ageing populations, reduce levels of obesity, address the global power shortage, tackle water scarcity and climate change are creating attractive business opportunities, which in turn can create great investment opportunities which green minded investors can take advantage of.

2010 is a critical year for rebuilding public trust in UK financial institutions. It is encouraging that increasing numbers of consumers are turning to those financial institutions which offer financial products that make money whilst making a positive difference to the world.
The signs are that growing consumer interest in issues like climate change, human rights, fairtrade and poverty is set to drive demand for green and ethical investment and will hopefully encourage more of us to think about how we can make a positive difference with our money throughout the rest of 2010 and beyond.

- Mark Robertson

ConocoPhillips and ExxonMobil next to be questioned on oil sands risk

2010-04-23T07:56:00.000-07:00

Following on from BP's annual general meeting last week at which 15% of the share register withheld support from management over an investor campaign for better information on economic and environmental risks associated with BP’s tar sands project in Canada, American and British investors are now questioning additional oil companies on their investments in Canadian oil sands.

Over 6% of BP shareholders voted in favour of a resolution – co-ordinated by campaign group FairPensions UK - for further disclosure on carbon and oil price assumptions at the company's planned $2.8bn Sunrise SAGD development, a 50/50 venture with Canada’s Husky Energy. A further 9.2% of shareholders abstained from voting – which is generally seen as a warning sign of disgruntlement with the company’s approach.

Investors from both sides of the Atlantic have now filed resolutions for ConocoPhillips and ExxonMobil's annual general meetings – in addition to those already filed for BP and Shell - which ask the companies to report on the financial, environmental and social risks associated with their oil sands investments.

FairPensions UK, the California State Teachers Retirement Fund (CalSTRS), and Boston-based Green Century Capital Management (Green Century) are amongst those coordinating the shareholders' efforts.

The campaign continues to attract international support from NGOs, faith groups, politicians and celebrities, including Radiohead's Thom Yorke. Institutional investors associated with the United Nation's Principles for Responsible Investment (PRI), such as Boston Common Asset Management, Calvert Asset Management Co., Inc., Co-Operative Asset Management, Ethos Foundation, Unison Staff Pension Scheme, and Walden Asset Management, have expressed public support for BP's and Shell's oil sands resolutions.

Click here for more information on the FairPensions Tar Sands Campaign.

Mark Robertson

Get peace-of-mind knowing you’re insured by an ethical provider

2010-03-01T05:40:00.000-08:00

We all have a choice as to who we bank with, get or insurance cover from or where we invest our money. However, these choices are not always informed by green or ethical considerations, as many financial products such as insurance policies tend not to be viewed in the same light as other consumer products.

But the very same principles that might make you buy organic food or recycle your household waste - principles based on caring about other people and the environment - can be just as relevant when it comes to where you get your insurance from.

If you’re looking for insurance for your home, holiday, car, bike, pet or even for your business, a quick search online reveals that there are a bewildering array of different product available from a large number of different insurance companies.

These companies supply insurance services to a wide variety of customers, from everyday consumers to large corporations. But do they have guidelines or policies as to who they will and won't insure? Do green and ethical considerations feature in insurance companies' risk assessments? Might they, for example, offer coverage to munitions factories or companies with significant operations in countries with oppressive regimes? Or might they insure others with poor labour or environmental records?

http://www.yourethicalmoney.org/ provides answers to these and other questions relating to green and ethical finance. You can use the website to search for your existing, or intended, insurance provider to see how it measures up against a set of specially-developed green and ethical criteria. If you aren’t happy with what you find, you can also search for an alternative which more closely matches your green and ethical concerns.

The good news is that for home, motor, travel, life and health insurance, there is a small but growing number of green and ethical products available such as insurance products which offset carbon emissions associated with holiday travel, or discounted insurance for greener cars.

So next time you’re looking for insurance, take a moment to consider the questions you should be asking of your current or prospective insurance provider. It’s not difficult to give your insurance policies a green and ethical makeover and you don't have to tackle everything at once.

In the same way that you might drink Fair Trade coffee some of the time, by choosing even one green insurance product, you are proving that doing something is better than doing nothing.

Mark Robertson

Shareholder group calls on BP and Shell to rethink oil sands projects

2010-02-09T08:23:00.000-08:00

Responsible investment campaign group FairPensions, working with a coalition of investors and NGOs, has succeeded in co-ordinating shareholder resolutions on tar sands to be discussed at the 2010 shareholder meetings of both Royal Dutch Shell plc and BP plc.

The resolutions call on the companies to answer questions about their involvement in tar sands (also known as oil sands). Signatories to the resolutions include groups and individuals concerned about environmental and human rights problems and investors who question the financial wisdom of tar sands projects.

Tar sands make up the world's second largest oil reserves, but the damage they can cause to the climate is even worse than that of conventional oil: the greenhouse gas emissions of converting tar sands into fuel is 3 times higher. Roughly three barrels of natural gas are consumed to create one barrel of oil.

Financial concerns include questions about whether future oil prices will be high enough to outweigh the high costs of producing tar sands, installing carbon capture and storage and expected carbon-emissions costs. Investors working with FairPensions think that BP and Shell's financial assumptions may be too optimistic.The resolutions have support from a large coalition of investors, including pension funds, fund managers, foundations, faith groups and individuals.

While shareholder resolutions are usually non-binding, campaigning groups increasingly use them to raise the profile of their cause. In 2008 Hugh Fearnley-Whittingstall, the celebrity chef, used a resolution to campaign for better treatment of chickens by supermarket giant Tesco.

The Church of England has also recently announced that it had sold its stake in mining company Vedanta Resources, over failure of the FTSE-100 company to reassure it about the impact of a controversial aluminium project in India.

- Mark Robertson

Big businesses fail to protect the rights of workers in their global supply chains

2009-12-18T08:58:00.000-08:00

EIRIS' latest research identifies corporate breaches of the International Labour Organisation's (ILO) conventions on child labour, forced labour, trade union rights and equal opportunities in the supply chains of some of the world's biggest companies.

Based on EIRIS' Convention Watch research, the report A Risky Business? Managing core labour standards in company supply chains finds that 45% of companies analysed have no policy or management systems in place to protect labour standards in their supply chain and fail to report on the issue.

However, some companies appear to be responding to pressure from investors, NGOs and consumers on supply chain labour standards. 13% of developed world large and mid-cap companies are assessed by EIRIS as high or medium risk for supply chain labour standards and 66% of those companies are from the consumer industry. This industry demonstrates not only the most advanced response to breaches themselves, but is also the most likely to have been accused of such breaches and to respond to such allegations.

Two consumer industry case studies of supply chain allegations are also examined in this report, in relation to Gap and Primark.

- Mark Robertson

Government outlines measures to stimulate green economy

2009-12-10T03:14:00.000-08:00

Labour’s Pre-Budget Report has outlined a series of green measures the government will take to assist the move towards a low carbon economy.

These include support for carbon capture and storage, increased investment in low-carbon schemes, tax breaks to promote electric cars and domestic renewable energy schemes and capital allowance for electric vans.

Green highlights of the Pre-Budget Report include:
- A doubling in government commitment and finance for carbon capture and storage demonstration projects
- £160m investment in low-carbon and renewable projects
- Additional £200m for energy efficiency schemes, with extra 75,000 households helped by the warm front scheme - Tax rebate for installation of wind turbines and solar panels
- New scrappage scheme to help up to 125,000 homes replace inefficient boilers, and changes to be made to the climate change levy, company car tax and fuel benefit charge.

Read the Pre-Budget Report

- Mark Robertson

Tories announce plans for Green ISAs

2009-11-24T06:22:00.000-08:00

Savers could receive tax breaks for investing their money in environmentally conscious companies under plans unveiled by the Conservative Party today.

Shadow chancellor George Osborne told an audience at Imperial College, London that the Conservative Party would introduce green ISAs: tax-free savings vehicles where all the funds invested go to green companies and environmental technologies.

Osborne has also pledged that a Conservative government will:

• Create Britain's first green investment bank, to concentrate funds drawn together from disparate micro-government initiatives. They hope this will win the UK a bigger share of the $3tn (£1.8tn) global market in green technologies than its current 5%. They would also encourage the private sector to finance green technology start-ups.
• Expand the City's green trading market.
• Ban the export credit guarantee department from underwriting risky investment in foreign fossil fuel projects.

Read George Osborne’s speech in full

- Mark Robertson

Ethical Finance: Does Britian Care?

2009-11-19T04:18:00.000-08:00

A third of investors are likely to consider ethical issues when buying their next financial product, according to an Ipsos MORI/EIRIS consumer survey published today.

Banks and financial institutions should prioritise protecting human rights, tackling climate change and investing in fair trade, the 1,073 respondents to the survey said.

Consumers said banks and other financial institutions should prioritise concerns such as protecting human rights, investing in fair trade, protecting the environment and tackling climate change. Avoiding ‘sin’ stocks such as companies in alcohol, gambling or armaments – which have traditionally been the focus of ethical investors - was of far less interest.

However, awareness of ethical financial products is low as is trust, with more than a third of consumers not believing claims made by financial providers. But only 15 per cent thought ethical products were likely to underperform similar standard products.

The survey provides firm evidence of growing interest in ethical finance, suggesting that the message that it is possible to both make money and make a difference when investing ethically is starting to get through to consumers. But levels of awareness, trust and confidence in ethical finance are low. The industry must respond with greater transparency and provide more information on how saving and investing can make a positive difference.

Last week, National Ethical Investment Week highlighted the growing number of green and ethical financial products which are available. EIRIS' newly launched one-stop-shop consumer website – http://www.yourethicalmoney.org/ will increase the visibility of ethical financial and provides consumers with all the tools and resources they need to choose ethical options as part of their financial planning.

- Mark Robertson

New website launched to help women get more from their money

2009-11-19T04:00:00.000-08:00

A new money website, called http://www.savvywoman.co.uk/, aims to help women get more from their money and make smarter decisions about their finances.

It’s the brainchild of Sarah Pennells, a well known personal finance journalist, TV reporter and author, who believes that much of the financial information that is currently available is either aimed at men or not written with women in mind. According to Sarah “SavvyWoman is different because it will approach money-related topics from a female perspective. There’s been a lot of research over the years that shows that men and women often make different decisions about money, but there’s very little information and advice available that speaks directly to women.”

Sarah continues: “Research shows that women retire on less than men, have more debts charging a high rate of interest than men and invest less than men. SavvyWoman isn’t about switching from one short-term deal to another, but will help women make the best decisions for their circumstances.”

The site has around 150 user-friendly articles on a wide range of topics from getting the best from your credit card to paying for childcare and green and ethical money. Sarah explains: “It was important to include information about green and ethical savings accounts and investments as women are more interested in ethical investing than men and most finance websites ignore this topic or have very limited information about it.”

SavvyWoman also has a panel of experts to answer specific money-related questions, including Julia Dreblow from SRI consultants taking questions on green and ethical money issues, and there are budgeting tools and calculators to help you pay off your mortgage early or draw up a budget.

- Mark Robertson

Who's Invested in Newsweek's Least-Green Companies? (Maybe You)

2009-09-22T02:01:00.000-07:00

By Joel Makower @ Greenbiz.com, 21st Sept 2009

"One aspect of Newsweek's just-released rankings of 500 leading companies' environmental policies and performance is to view the list from an investor perspective. Specifically: Who are investors in the worst-ranked companies?

You might be surprised to find that it's you."

See full story: http://www.greenbiz.com/blog/2009/09/21/whos-invested-newsweeks-least-green-companies-maybe-you

New ACCA report suggests pension funds are ignoring climate risks

2009-09-22T01:37:00.000-07:00

Pension fund trustees ignore the impact of climate change on their pension funds at their peril, says a new two-part report from ACCA (the Association of Chartered Certified Accountants) and the ESRC (Economic Social Research Council) called Pension Fund Trustees and Climate Change.

The study looks at pension fund trustees’ attitudes to climate change and its impact on pension fund investment.

The author of the research, Professor Jill Solomon from King's College London, explains how the research was done: “Interviews with trustees were conducted in two phases. The first phase involved interviewing 20 trustees between October 2007 and May 2008. They were asked about their roles and responsibilities in relation to climate change to discover whether they are harnessing their power to effect change in corporate behaviour. In the second phase, 10 of the original trustees were interviewed again in early 2009, to see if their attitudes had changed, especially in the wake of the global financial crisis.”

See full report

New EIRIS report reveals that one-third of world's biggest firms not addressing climate change

2009-08-12T01:23:00.000-07:00

Building on last year’s analysis, EIRIS reviewed the 300 largest global companies by market capitalisation listed on the FTSE All World Index to assess the current state of corporate responses to climate change. This report highlights the direction companies are taking with regard to the issue and examines its implications for investors.

The report found that 33% of companies have unmitigated climate change risk (down from 34%in 2008), 55% have short-term targets on climate change (48% in 2008) and 91% of high and very high impact companies disclose absolute CO2 or GHG emissions data (73% in 2008).

For full details of the report's findings see:
http://www.eiris.org/files/research%20publications/ftse300climatechangepaper09.pdf

First there was greenwashing, now greenbashing

2009-08-06T02:47:00.000-07:00

Greenbashing -- Greenwashing's More Evil Twin
By Shari Shapiro, August 5, 2009, GreenBiz.com

By now, everyone has heard of greenwashing - a term used to describe the practice of companies disingenuously spinning their products and policies as environmentally friendly. The new wave of anti-environmental action is more devious, and potentially more destructive. I call it greenbashing.

What is greenbashing? The use of seemingly reasonable arguments about catastrophic costs or unforeseen dangers to undermine progressive environmental programs. There have been lots of examples of greenbashing lately. Here are a few choice ones... (read more)

New Friends Provident survey reveals importance of green and ethical finance to British consumers

2009-07-01T02:46:00.000-07:00

Twenty-five years after the launch of the Stewardship ethical funds, Friends Provident has conducted new research into consumer attitudes to green/ethical investing. Its findings reveal that nearly three quarters of British people (74%) agree it is important that companies take social, ethical and environmental issues seriously. Over half (54%) think ethical investing is far more important than it was 25 years ago when the UK was emerging from a recession.

Some of the top concerns identified by the survey were environmental ones, including pollution of land, sea and air (35%), energy conservation (30%), and climate change (33%) .

High street banks 'ripping charities off by £20m a year' - Guardian

2009-06-25T02:07:00.000-07:00

This article looks at how charities are increasingly turning away from the dominant high street banks and giving their business to growing ventures like CAF Bank (Charities Aid Foundation)

http://www.guardian.co.uk/society/2009/jun/23/charities-high-street-bank-accounts

Ethical Finance on Money Box Live

2009-06-25T02:04:00.001-07:00

If you missed yesterday's show on the green and ethical banking and investment options out there, you can catch it on iPlayer at: http://www.bbc.co.uk/iplayer/episode/b00l5hdx/Money_Box_Live_24_06_2009/

Ethical Finance on Money Box Live - Wednesday 24th June

2009-06-23T07:49:00.000-07:00

Green and ethically-minded listeners might want to tune in to Money Box Live at 3pm, Wednesday 24th for a panel discussion on ethical investment:
http://www.bbc.co.uk/programmes/b00l5hdx

You can submit your questions to the panel here:
http://news.bbc.co.uk/1/hi/programmes/moneybox/8104926.stm

China sets 20% renewable target for 2020

2009-06-12T04:27:00.000-07:00

The Guardian reports that China is planning a huge increase in wind and solar energy use over the next ten years with the intention of matching European targets.

China has come under increasing pressure to address its carbon emissions in the lead up to the Copenhagen climate change summit at the end of the year. Together, China and the US account for almost half of the planet’s emissions.

Triodos Bank wins FT Sustainable Banking Awards

2009-06-12T03:47:00.000-07:00

The Netherlands’ green and ethical savings and investment provider, Triodos, has been named ‘Sustainable Bank of the Year’ by the Financial Times and the International Finance Corporation.

Now in its fourth year, the award seeks to recognise the leadership and innovations of financial institutions in incorporating social, environmental and corporate governance considerations into their operations. The awards judging panel included leading figures involved in sustainable finance and development.

This year, there were 165 entries from 117 institutions across 42 countries. Runner up in the ‘Sustainable Bank of the Year’ category was the UK’s Standard Chartered, while ‘Emerging Markets Sustainable Bank of the Year’ was named as Itau Unibanco, Brazil.
Another UK institution, MicroEnsure, clinched the top spot in the category of ‘Achievement in Basic Needs Financing’, while the ‘Sustainable Investor of the Year’ was named as the Global Environment Fund in the US.

Triodos Bank offers a range of savings and investment products to UK customers including personal banking (ethical savings accounts and investments), affordable housing finance, the Triodos Renewable Energy Bond, Microfinance Fund and the Triodos Sustainable Real Estate Fund, which is the first real estate fund to invest exclusively in sustainable buildings.

- Elizabeth Evers

25 Years of Stewardship

2009-06-08T07:00:00.000-07:00

by Julia Dreblow
Launching the UK’s first ever ethical fund in 1984 cannot have been easy. In many ways it was ahead of its time. Yet, with EIRIS (Ethical Investment Research Services) set up a year earlier and busy researching companies for the developing fund range, and a diverse group of business, investment and ethics experts drafting the early policies, all the right elements were in place. The fund was also supported and marketed by Friends Provident Life Office, a company that well understood the need for such a product, having recently shifted away from its Quaker management principles... since then the Stewardship funds have never looked back.

However, the success of the funds should not be taken to mean that they carried on without controversy and disagreements. Running an ethical fund is, as one of the founding fathers of Stewardship, Roger Morton, described it, like ‘a blunt tool’. A company is either ‘approved’ or ‘excluded’ from a fund. In or out - no in-betweens. And when issues are highly nuanced, complex and often controversial it can be difficult to get a room full of highly specialised, intelligent, passionate and very persuasive senior people - who happen to have very different opinions - to agree! As such, some policy areas took years to approve and almost all continue to evolve to this day.

The work of the founding fathers was well worth it. Many of the funds’ early ethical views have now become mainstream and the role of investors has often been crucial. The South African Apartheid regime, which the fund so strongly objected to, has gone and the standards to which companies must adhere have changed dramatically. Corporate Responsibility has hit the mainstream and few well-run companies dare ignore ethical, social or environmental issues that risk upsetting the investing public.

Yet there remains much to achieve over the next 25 years. Stewardship and the 100 or so other UK-based green and ethical funds that have launched since 1984 have much work to do - continuing to use their power as shareholders to influence company behaviour, and offering a haven to caring investors. The dynamics of the ethical sector and the extent to which it crosses over with green funds will no doubt continue to evolve. And if the reasonable expectations of investors are to be met, the soul-searching and continual improvement of ethical policies must continue apace - as must the effort to raise their profile in order to improve investor access.

- Julia is an SRI Consultant and former SRI Marketing Manager Friends Provident

Has the downturn killed green investing?

2009-06-02T06:40:00.000-07:00

You might think that governments and companies, under acute financial pressure in the midst of a grim recession, would be quietly burying their commitments to cutting carbon emissions and waste.

In fact, they're doing the reverse. At the recent G20 summit in London, leaders pledged to ‘make the best possible use of investment funded by fiscal stimulus programmes towards the goal of building a resilient, sustainable, and green recovery’.

Major economies including the US, UK, China and Korea have announced detailed green stimulus packages as part of their recovery plans. Clean energy and efficiency make-up around 14% spending as outlined in the American Recovery and Reinvestment Act of 2009. Not only will this help to bridge short-term funding gaps of green technologies which might arise from the economic downturn, it will also pave the way for longer-term sustainable growth.

Climate change is financially significant to all companies. It presents a systemic risk: the threats posed to the economy and the financial impact of not addressing climate change is significant, as explained in the Stern Review. Increasingly, business recognises that a long-term commitment is needed to address climate and other critical sustainability issues. Despite the economic downturn major companies such as M&S and Wallmart are sticking with green initiatives as they recognize the significant efficiencies to be gained in doing so.

The short-term fall in commodity prices, particularly in fossil fuels, is unlikely to affect the economic viability of renewable energy sources. As massive growth is set to continue in emerging markets like China and India, global demand for commodities will pick-up pace pushing energy prices further upwards.

Mandatory carbon reporting, the increased roll-out of emissions trading and a growing recognition amongst US policy makers that America needs to reduce its reliance on foreign imported oil without relying on existing stocks of polluting coal will further boost demand for renewable energy.

Despite the financial crisis and economic recession, renewable energy continues to attract significant interest from investors. A recent survey of institutional investors, representing over $1 trillion in assets, found that 49% are ‘more likely’ or ‘much more likely’ to increase their exposure to green energy now than they were a year ago.

It’s likely that governments, companies and investors will continue to provide the long-term support for green industries needed to mitigate climate change and build a more sustainable global economy.

- Mark Robertson

Best Green Companies of 2009 announced

2009-05-30T09:14:00.000-07:00

Last week the Sunday Times published its list of the UK’s top 60 green companies. But only two financial services companies made the grade. The RSA Group ranked 31st in the poll while AXA PPP Healthcare came 43rd. Interestingly, last year’s top scorers, the Co-operative Financial Services (3rd place) and HBOS (6th place), failed to appear on the 2009 list.

RSA Group (31st)
According to the newspaper, RSA reduced its gas consumption by 23% and its electricity use by 20%, against targets of 5% in 2008. It reduced its water consumption by 34% in 2008 against 2007 volumes, beating its 10% in-house target. In 2008, the firm cut the amount of waste going to landfill by 38% and increased recycling by 35% against 10% targets in both areas for the period. RSA has been carbon neutral since 2006.

AXA PPP Healthcare (43rd)
At its healthcare call centre in Tunbridge Wells, AXA now harvests solar power to supply electricity to the offices and car park, reducing carbon emissions by 5.7 tons a year. Other measures it put in place include the introduction of faster hand dryers using up to 80% less energy and eliminating the need for paper towels, and beginning a switch to zero emission vehicles for its postal service. Its measures to reduce energy consumption, including fitting time clocks to service equipment, has cut some £9,000 (17,000kW) from its electricity bill across the Tunbridge Wells premises.

Click here for full details of each company’s performance and a complete list of the 60 Best Green Companies.

- Elizabeth Evers

BankTrack’s updated bank profiles are live

2009-05-14T08:13:00.000-07:00

BankTrack* has made the first 16 of its updated bank profiles available online. The profiles look at top international banks' policies in areas such as the arms trade, mining, nuclear energy, oil and gas, biodiversity, climate change and human rights. In addition to this, the profiles carry information on banks’ performance on issues of accountability and transparency. A bespoke rating system is applied to all key areas.

BankTrack also captures key facts including banks’ total assets, the regions they operate in and which voluntary standards and initiatives they have signed up to.

Profiles online so far include Barclays, Bank of America, BNP Paribas, ING Group, Deutsche Bank, Credit Suisse, Citigroup, RBS and Santandar. More will be available on BankTrack’s website later this year.

The soon-to-launch YourEthicalMoney.org will also feature green and ethical profiles of the UK’s biggest banks. The new site's indicators will focus more on customer-centric concerns like responsible lending, financial exclusion, operational environment and carbon control policies and equal opportunities as well as ethical lending and investment policies.

*BankTrack is a global network of civil society organisations and individuals tracking the operations of the private financial sector (commercial banks, investors, insurance companies, pension funds) and its effect on people and the planet. www.banktrack.org

- Elizabeth Evers

Green banks continue to defy credit crunch trends

2009-05-13T09:36:00.001-07:00

While high street banks struggle to survive, others with a green or ethical remit continue to buck financial trends, seeing significant increases in customers, lending activity and profits.

Green savings and investments bank, Triodos, saw rapid growth last year with savings deposits increasing by £39m to £315m. As it only uses money from deposits to make loans, the bank was able to increase its lending to charities and social enterprises by 32.3% to a record £93m within the last financial year.

Meanwhile, over at the Co-operative Bank, there was a marked increase in new accounts, largely attributed to customers seeking a safer, more trustworthy provider. In April 2009 the bank reported a 123% rise in customers switching to it, primarily from large high street banks such as HBOS and Lloyds. There was a massive seven-fold annual increase in customers switching from the Royal Bank of Scotland (RBS) to the Co-operative.

Elsewhere the Unity Trust bank, which provides services to charities, trade unions, credit unions and other social enterprises, reported record growth in 2008. Its pre-tax profits increased by 18.2%, while its lending and advances increased by 56.3%. The Charity Bank also increased its lending by 39.2%.

- Elizabeth Evers

Students Vs RBS: The Latest

2009-05-13T08:42:00.000-07:00

Students and other lobby groups have called on the Treasury, as a major shareholder, to curb the Royal Bank of Scotland’s financing of the fossil fuel industry. For a number of years now students from across the UK have been protesting about what they see as the bank’s contribution to global climate change.

Back in February, students at the University of Manchester staged an ‘eviction’ demonstration at the college branch of the bank to insist that its lease not be renewed next year. The Student’s Union (UMSU) has given its full backing. This protest is part of a country-wide student initiative to boycott the bank from autumn 2009 to coincide with the beginning of the academic year, when many new students open bank accounts for the first time.

Background
According to groups including BankTrack, PLATFORM, Friends of the Earth, nef (new economics foundation) and student organisation, People & Planet, emissions embedded within oil and gas projects financed by RBS reached 36.9 million tonnes in 2005 – the equivalent to one quarter of UK households. Additionally the 30 oil and gas project finance deals the bank signed between 2001 and 2006 locked in future emissions of 655 million tonnes over the next 15 years. This is more than equivalent to the UK’s entire annual emissions.

The bank is involved in controversial oil and gas projects including the Baku-Ceyhan pipeline in Tiblisi, Georgia, and others in countries like Nigeria, Angola and Wales. In March 2009, the bank granted a $100 million loan to Ireland's Tullow Oil to continue its contentious operations in the midst of a conflict zone on the Congo-Uganda border. That same month the bank helped to finance exploration work in Greenland’s arctic region.

Each year the vast majority of new bank accounts are opened by young people starting their academic or work careers. With its continued investment in oil and gas industries, including highly controversial tar sands, RBS runs the risk of alienating a generation of new customers. While the figures of lost custom may be small now, as momentum and resentment grows, students and young people may increasingly look elsewhere for their banking needs.

- Elizabeth Evers