[ Introduction ]
We know from our last survey of attitudes to our Ethical Policy that 93% of our customers support the bank's stance on environmental matters. However, our Ecological Mission Statement commits us to going much further - not only in avoiding investment in potentially problematic areas, but also in supporting organisations and projects which provide solutions for today's environmental problems.

In this section we look at the range of ecological products and services we now offer customers.

3a) Providing environmental products and services

[ Existing commitment ]
Our Ecological Mission Statement commits us to "encouraging business customers to take a pro-active stance on the environmental impact of their own activities, and investing in companies and organisations that avoid repeated damage of the environment". It goes on to state that "we will aim to achieve this by supporting ecological projects and developing partnerships with businesses and organisations whose direct and indirect output contributes to a sustainable society".

[ Performance ]

i) New products and services
During 1997, the bank launched two new ecological products for customers, one in the corporate sector and one in the personal sector.

• April saw the launch of a Preferential Banking Package for environmental businesses and organisations. The package, available only to businesses complying with the criteria for ecological improvement as set out in our Ecological Mission Statement, features lower interest rates on loans and overdrafts, reduced bank charges and special rates on funds deposited. By the end of 1997, the package had attracted over 100 accounts, bringing £10m in deposits to the bank. Furthermore, a series of vendor programmes agreed in 1997 with producers of pollution control equipment are expected to lead to more than £10m in asset finance during 1998.

• In May, the bank launched the world's first biodegradable Visa card with Greenpeace. The Greenpeace Visa card generates donations for the environmental organisation on the basis of accounts opened and turnover generated. Over 7,000 accounts had been opened by the end of the year, and more than £60,000 raised for Greenpeace (for further details see Society).

ii) Existing products and services
Other environmental products and services include:

• Energy Efficiency Loans for personal customers: these loans have been promoted in conjunction with seven Local Authorities, providing a low interest loan for the purchase of energy efficient products in the home. Take up rates on this product have proved disappointing, generating very little interest despite significant promotional activity.

• The RSPB Affinity Visa card: this card now has 73,400 account holders. To date, almost £3m has been donated to the RSPB from the scheme, £487,000 of which was generated in 1997.

• The Co-operative Bank National Centre for Business & Ecology (NCBE): established in 1995 in partnership with four leading Universities, the Centre provides independent advice on a range of environmental issues (for further details see Society).

[ Comment ]
In 1997 we have seen the business case for continuing to develop innovative environmental products reiterated. As well as enhancing the practical application of our objectives as stated in the Ethical Policy and Ecological Mission Statement, our strategy appreciates the rapid expansion of the environmental business sector in the UK and the commercial opportunities that this affords. It is interesting to note the development of financial services for environmental initiatives elsewhere in the market since the launch of our package. The bank is committed to expanding its stable of environmental products and services to continue to meet the needs of like-minded individuals, businesses and organisations.

[ Future objective ]
To provide continued support for the existing range of ecological products and to create at least two new ecological products during 1998.