Ecological impact

Supporting a climate of change

Every year, millions of tonnes of fossil fuels, (such as oil, gas and coal), are burned, producing large volumes of carbon dioxide (CO₂). The accumulation of CO₂ in nature has been identified as the primary agent behind global climate change.

Our commitment to fighting climate change goes back to 1998 and in line with our customers concerns, we have had an Ethical Policy commitment not to invest in businesses whose core activity contributes to climate change through the production or extraction of fossil fuels.

Given the global imperative to deal with climate change, it is concerning that some businesses have now also begun to invest in "unconventional" fossil fuels, such as Tar Sands, whose extraction and production requires much more energy and subsequently has a much higher impact on climate change than even conventional fossil fuels.

The wider landscape: tackling other green issues

Climate change is the central green issue of our time, but we haven't lost sight of our customers' concerns about other environmental issues. For example, we're also taking a stand on the unsustainable harvest of the world's natural resources - timber and overfishing being specific areas of concern.

Genetic Modification and Nanotechnology under the microscope

Genetic Modification (GM), and to a greater extent Nanotechnology, are relatively new issues. Both are complex areas that have the potential to deliver social and environmental benefits. However, at the same time, there is uncertainty over particular GM and Nanotechnology applications (eg uncontrolled release of GM organisations into the environment). By nanotechnology we mean the use of nanoparticles - ie, those with a width of 1 to 100 nanometers.

Investing your money sustainably

The bank is also committed to funding renewable energy and has created a £400 million fund to support green initiatives.

We have a history of campaign on climate change. Throughout 2009, we're campaigning to raise awareness of Toxic Fuels, in partnership with WWF-UK. In 2006 and 2007, our Combating Climate Change campaign joined forces with Friends of the Earth's 'The Big Ask' for a strong Climate Change Bill.

Also, in 2003-4 we campaigned for Safer Chemicals, and in 1998, our Biodiversity campaign looked at the decline in bird numbers in the UK.

Our policy on ecological impact

We will not finance any business whose core activity contributes to:

• global climate change, via the extraction or production of fossil fuels (oil, coal and gas), with an extension to the distribution of those fuels that have a higher global warming impact (eg tar sands and certain biofuels);
• the manufacture of chemicals that are persistent in the environment, bioaccumulative in nature or linked to long term health concerns;
• the unsustainable harvest of natural resources, including timber and fish;
• the development of genetically modified organisms where there is evidence of uncontrolled release into the environment, negative impacts on developing countries, or patenting (eg of indigenous knowledge);
• the development of nanotechnology in circumstances that risk damaging the environment or compromising human health.

Furthermore, we will seek to support:

• businesses involved in recycling and sustainable waste management;
• renewable energy and energy efficiency;
• sustainable natural products and services (including timber and organic produce);
• the pursuit of ecological sustainability.