The performance results of one of the Uk’s main ethical investment companies, The Co-operative Group, adds further evidence that ethical investing is growing in the UK.

The company which operates as the world’s largest consumer-owned business, and has a strong record of safeguarding customers’ investments from anything which is not strictly ethical, saw astonishing results for 2009—2010, experiencing 31 per cent group growth and a third successive year of double digit growth in Group sales and profit.

Highlights from a company point of view include the acquisition of Somerfield to make the Co-op the UK’s fifth largest food retailer and the Co-operative Financial Services merger with Britannia creating the UK’s first ‘super mutual’.

On the figures there was also a 38 per cent growth in bank current accounts; and a 30 per cent uplift in life and savings new business premiums.

The Co-operative Group underlined its commitment to ethical investments, community, charity, social investing and the environment with a total of £11.3m invested in communities in 2009 and £6.7m raised for charity.

The Co-operative Group was also voted Responsible Retailer of the Year – for the third year running.

Other highlights include:

• CFS voted Best Financial Provider by Which? Magazine
• Re-launch of The Co-operative Bank’s customer-mandated Ethical Policy
• 250,000 young people benefited from Group community projects covering renewable energy and recycling
• CFS Toxic Fuels campaign raising awareness of the impact of tar sands extraction
• The Plan Bee campaign raising awareness of honeybee decline, funding research, and encouraging people to help bees and plant bee-friendly wildflowers
• 15 per cent reduction in packaging target met a year ahead of schedule

Peter Marks, Group Chief Executive, explained:

“These are record results in what has been an historic year for The Co-operative Group. Our business has continued to thrive in spite of economic pressure, and I am pleased to report that we are on track with the integration of both Somerfield and Britannia.

“And, it seems, our business model has never been quite so relevant! Whilst we have expanded and evolved as an organisation, we have stayed true to our core principles and we continue to do what we do best: serving customers with excellent products and services, and bringing solid values and trust to the communities in which we operate.

“Our food business continues to go from strength to strength following the acquisition of Somerfield. We now run almost 3,000 community food stores and we have a store in every single postal area in the UK bar one! Each week, we serve 21 million customers.

“That means that we are the retailer best placed to deliver great savings to customers, without the need to travel to big superstores. This was exemplified in our Great Deal Locally campaign and over £200m of price cuts and deals over Christmas which helped customers buy what they actually needed.

“Our Financial Services business has continued to flourish in spite of the global recession, taking us closer to our vision of being the UK’s most admired financial services provider. The historic merger of The Co-operative Financial Services and Britannia Building Society has created the most diversified mutual in UK financial services, uniquely positioned to present a member-owned, customer-led and ethically-guided alternative to the shareholder-owned or government-owned model.

“It is no coincidence that our business model is in vogue with the mainstream political parties who see consumer and employee-owned co-operatives as a potential solution to some of the issues faced by the public sector.

“This is great news and I wholeheartedly welcome it. If these plans are to work, however, they must be underpinned by an unswerving commitment to investing in the people who can deliver the renaissance that public sector services so badly need. Without the right leaders, managers and staff to drive change, and create first class businesses, the benefits of co-operative ownership will be lost.

“I am keen to ensure that the Group plays its part in fostering new forms of co-operative ownership, and where better than within the world of education. We are supporting Co-operative Academies in Manchester and Stoke to help develop the creative talent of tomorrow. This is part of a wider vision of ours to broaden the involvement of parents, pupils, teachers and the community in the provision of education through the establishment of Co-operative Trust Schools which we expect to number 200 by the year end.”

Looking ahead, The Co-operative Group expect the economic pressures to continue until the end of this year or the first half of 2011. Sustaining the level of success will not be easy in such a competitive market, but the evidence of the success of the company as well as its management policies and innovatory business ideas also indicate that UK consumers do want to deal with companies with a strong ethical track record; and are willing to seek them out.

It also suggests that co-operative businesses instead of being a thing of the past are firmly part of the future.