Awards 2011 Big Tick Logo - Climate Change
Awards 2011 Big Tick Logo - Climate Change

Environmental Impact, Example of Excellence

The Co-operative Group: Combating climate change

Bank of America Merrill Lynch Climate Change Award
Example of Excellence 2011

The Co-operative Group has focused on reducing its own emissions as well as the provision or withholding of finances, reducing the impact of the products and services offered. 

The aim is to help UK communities take action on climate change and campaigning for the strong regulation that is necessary to bring about a low carbon economy. 

The Co-op’s gross direct greenhouse gases have reduced by 21% since 2006, while a third of The Co-operative Bank’s customers have cited ethics or the environment as a reason for opening and maintaining an account.

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Process

In 2011 the Co-operative Bank committed to lend £1b to the UK”s renewable and energy efficiency sectors, representing roughly 10% of its commercial lending book. Whilst at the same time it continues to withhold finance to the extraction and production of fossil fuels.

It has a wind farm in Cambridgeshire and two more wind farms under development (to be built  in 2012). It also owns the UK's largest photovoltaic system, on one of its head office buildings in Manchester. It has also supported the installation of two community owned hydro power systems where it also purchases the electricity. In 2011, The Co-operative Enterprise Hub expands on this and has committed £1m to help communities around the UK develop their own, co-operatively owned renewable energy projects.

The Co-operative Group started offering green mortgages in 2007 which enables customers to install energy efficiency or renewables on their homes. Additionally it offers credit cards which offer a low rate of interest on certain ethical products, protect rainforest in South East Asia or contribute funding to Friends of the Earth or Greenpeace.

It has purchased 98% of its electricity from wind or hydro power since 2005  for their 5000 UK sites and as a result are one of the largest purchases of renewable energy in the world.

Through their Green Schools Programme, The Co-operative has installed solar panels, small wind turbines, biomass boilers and ground source heat pumps in 188 schools.

Impact

Environmental

  • The co-op’s gross direct greenhouse gases have reduced by 21% since 2006 dropping from 1 414 686t to 1111981t in 2009. The figures provided do not count the green electricity purchased as zero carbon ( in accordance with DEFRA accounting rules). However if this electricity was counted as zero carbon the net greenhouse gas emissions in 2009 would be 588,802t Co2
  • The co-op bank lending to 40 renewable energy projects across the UK has enabled the saving of 140,000t CO2 each year.

Cost Savings

  • The Cooperative Group's energy efficiency measures have saved them £35m over 5 years

Brand and Reputation

  • The Cooperative Group's work in combating climate change has had a positive effect on how consumers perceive the company. The Coop is ranked in the top two organisations which combat climate change within the food, retail and financial services.
  • Positive TV, Radio and press coverage for the co ops environmental initiatives in 2010 was valued at 4million.

Retaining and Acquiring Customers

  • A third of The Co-operative Bank’s customers have cited ethics/environment as a reason for opening and maintaining an account.
  • Their new products and services which have been developed ahead of competitors have given them a unique competitive advantage.

See also

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