The Co-operative has become the first major insurer to introduce ethically screened general insurance, meaning customers can rest assured that no money they pay is invested in corporations operating in areas they disagree with.
The Co-operative has announced that it’s general insurance business, which includes car insurance, home insurance and travel insurance, will no longer invest in businesses involved in activities that it considers to be unethical. These include the arms trade, fur, and fossil fuel extraction, as well as corporations based in countries with oppressive regimes. It’s Ethical Operating Plan has already seen the Co-operative pull out of investments linked to unethical operations, to the tune of £80 million.
Ethical banking and insurance, for a better society
Co-operative Financial Services chief executive Neville Richardson said: ‘From today our general insurance customers will know that the investments supporting their policies are ethically screened.
‘We have long recognised that the provision of ethical finance is crucial to the pursuit of sustainable development. This is why our ethical policy now includes the £1bn of assets which support our car, home and business insurance products so that our customers can be confident that their money will not be invested unethically.
‘Following the introduction of our bank Ethical Policy in 1992, we have withheld over £1bn of loans from business activities that our customers say are unethical, while at the same time increasing our total commercial lending sixteen fold to almost £9 billion. Our vision is to build a better society and our Ethical Operating Plan not only aligns with our vision, it stimulates and re-enforces the unique benefit of the consumer co-operative model.’
- Have your say on ethical finance with Which? Conversation’s discussion Time to put your money where your morals are?
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