Guide To UK Ethical Banks

Ethical Banking Specialists: Current and Savings Accounts

Charity Bank

Described as the world’s first not for profit bank, Charity Bank was established in 2002 by the Charities Aid Foundation, which provides credit to charities and other civil society organisations who can find funds difficult to find. The bank is a registered charity itself.

The Charity Bank’s mission statement is about tackling marginalisation, social injustice and exclusion, and facilitating social change through investment, emphasising a responsible and transparent use of money.

With a big focus on helping charities with specific needs, Charity Bank is not a full service bank, more of a funding development bank, financing projects and organisations considered to be viable, but which are not always commercially bankable, or where the organisation has been offered terms that are not always appropriate to its situation.

No branches. Pay in by cheque or transfer. Accounts include Instant Accounts, Savings Accounts, Mini ISA.

Tridos

Triodos Bank only finances enterprises which create social, environmental or cultural value. Key sectors include organic food and farming, renewable energy, social housing and fair trade.  Transparency is a core value: customers are informed about the bank’s lending and can target their savings to particular areas of investment.

A range of personal savings accounts is offered and full banking services are available for businesses and charities.

Triodos Bank is an independent bank founded in the Netherlands in 1980. Its principles and independence are protected through a special shareholding trust. The UK office opened in 1995 and is

based in Bristol.

No branches. Pay in by cheque, transfer. Wide range of services including ISAs, savings accounts, etc.

Smile

Smile is the Uk’s first Internet-only bank and has been a big success since it was launched by the Co-operative Bank in 1999. In 1992 The Co-operative Bank launched its ethical policy after feedback from customers seeking their money to be invested ethically. As such Smile’s ethical policy reflects ethical concerns of customers. Smile customers were invited to take part in an Ethical Policy vote and had their say on the ethical and environmental issues that matter to them such as human rights, animal welfare, fair trade and climate change. Almost 80,000 Smile and The Co-operative Bank customers took the time to participate in the consultation. Since 1992, The Co-operative Bank and Smile have withheld over £1 billion of their customers’ money from businesses whose activities conflict with the policy. The company has rejected hundreds of million of pounds of loans to businesses that conflicted with customer’s environmental concerns, ethical concerns for animal welfare; as well as human rights and international development. Especially good record on fairtrade and labour rights. Advantages of Smile include 24 hour telephone back up, postage free envelopes for cheques, services at Post Offices. Good range of savings, student accounts, ISAs, etc.

Ecology Building Society

Small mutual building society which offers savings accounts that only funds projects that are considered to be green. A building society dedicated to improving the environment by supporting and promoting ecological building practices and sustainable communities. Ecological lending is governed by the principle of sustainable development, defined as improving the quality of human life while living within the carrying capacity of supporting ecosystems. Overall this allows the bank to engage in activities that promote, encourage or support the saving of non-renewable energy or other scarce resources, growth of a sustainable housing stock, low ecological impact building projects, etc. The lending programme also includes sustainable housing practices, recycling, organic farms, local shops, co-operative living, and sustainable forestry and nature reserves.

Is also committed to being a truly sustainable bank seeking to use items that come from renewable sources. They use exclusively green electricity, have offset carbon emissions since creation in 1981, and have committed to an on-going programme with local environmental groups to account for future emissions.

They may actually ask you what your green or environmental credentials are before you open an account. There are no branches but you can pay by transfer or cheque. Offers cash mini ISAs, instant and savings accounts.