Acid Rain Most rainfall is slightly acidic due to carbonic acid (which is derived from the carbon dioxide content of the atmosphere). 'Acid rain' is produced by the conversion of pollutants sulphur dioxide and nitrogen oxides (derived from fossil fuels) to sulphuric acid and nitric acid respectively. Acid rain can harm forests, lakes and rivers, as well as buildings.

Biodiversity This term is an amalgamation of the term biological diversity, and describes the vast range of the world's plants and animals.

Bisphenol A An industrial chemical, used to manufacture polycarbonate and other plastic items. WWF and others have raised concerns that this chemical may affect the hormone system of humans and other mammals.

Carbon sequestration The ability of vegetation to take up gaseous carbon dioxide and convert it to solid organic matter is known as carbon sequestration.

Carbon Dioxide (CO₂) A colourless, odourless and non-poisonous gas that results from fossil fuel combustion or certain natural processes and is a normal part of the air on Earth. Excess CO₂, released by industrial activity, can disturb the climate on Earth (see 'Climate Change' below).

Chlorofluorocarbons (CFC) A class of chemical compounds commonly used as solvents, aerosol propellants, refrigerants and in foam production. The gases are usually chemically inert, but after release and entry into the stratosphere, where absorption of short-wave radiation takes place, chlorofluorocarbons decompose and release chlorine radicals, which lead to ozone depletion.

Climate Change / Global Warming When fossil fuels are burnt - such as coal, oil or gas - carbon dioxide (CO₂) and other gases are produced. This CO₂ is the 'greenhouse gas' considered to be the primary agent responsible for the warming of the global climate detected in the second half of the twentieth century. If climate temperature continues to rise, higher sea-levels and an increased frequency of droughts and serious flooding are expected.

Cluster Bombs Cluster bombs are one of the cheapest air-delivered weapons available. They consist of an outer dispenser containing hundreds of submunitions or 'bomblets' - explosive projectiles which, on release, separate and spread to achieve optimum ground coverage.

Co-operative A co-operative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.

Delivering Value The Co-operative Bank aims to deliver value to all its Partners in a balanced fashion over time, where 'value' is defined by the Partner, not the bank. Technically speaking, we are seeking to enhance the utility of each of those groups on whom our business is dependent. And this, we consider, is what makes our Partnership Approach more than a traditional social audit. True corporate sustainability relies not merely on delivering social responsibility and ecological sustainability, but also on satisfying the desires and needs of a range of Partners.

Disability Discrimination Act, 1995 This Act aims to help end the discrimination that many disabled people face. This Act gives disabled people rights in the areas of employment, access to goods, facilities and services and the buying or renting of land or property. The employment rights and first rights of access came into force on 2 December 1996. Further rights of access came into force on 1 October 1999. The final rights of access come into force in October 2004.

Ecological Sustainability The next fifty years will see the number of people on Earth virtually double. Furthermore, the combined economic activity of these individuals - the global Gross National Product - is set to increase by a factor of five. Unfortunately the Earth is unable to increase in size in order to accommodate such trends. Therefore, carrying on as we are, we can anticipate that environmental problems will get progressively worse. This is the background against which commerce and industry will have to conduct business in the future. It is a situation that is going to create many problems and many opportunities. Opportunities that can be best exploited by those enterprises who have an understanding of ecological issues.

Environmental Management System (EMS) The elements required for an EMS are embodied in the environmental quality standards ISO14001 and the Eco-Management and Audit Scheme (Regulation 1836/93). However, for a number of years the Co-operative Bank has been arguing that businesses should focus less on attaining independent certification for their ethical and environmental management systems, and focus more on developing independently verified sustainability reports which contain hard targets. This is contrary to many businesses and pressure groups which claim that the presence of certified environmental management systems is a robust proxy for good environmental impact, and that reporting of actual performance is an expensive additional cost that adds little value. However, research sponsored by the European Union has found that, in general, those companies with a certified environmental management system do not perform significantly better than those without. Indeed, in some cases they appear to perform worse! The authors of the report suggest that policymakers' attention should be focussed on encouraging and rewarding 'reporting', not merely 'management systems'. The presence of management systems alone is not sufficient to drive the desired improvements in environmental and ethical performance.

Ethics Ethical judgements are not true or untrue statements of fact, but rather judgements on what is morally good (i.e. what ought to be done or not done). Unlike ecological sustainability, there is little consensus regarding what constitutes a socially responsible business. Therefore, prior to addressing the question of 'what ethics to embrace', an organisation needs to decide 'whose ethics to embrace'. To seek an answer to this dilemma, the bank has repeatedly balloted customers on a series of ethical policy issues since 1992. The bank chose to ballot customers, not only because they are numerous (currently 2.24 million) and represent a good cross section of society, but also because it is generally their money that is being used, and they should have a say in how it is used.

Fair Trade The Fair Trade Foundation exists to ensure a better deal for marginalised and disadvantaged third world producers. Set up by CAFOD, Christian Aid, New Consumer, Oxfam, Traidcraft and the World Development Movement, the Foundation awards a consumer label, the Fairtrade Mark, to products which meet internationally recognised standards of fair trade. Currently more than 100 coffee, tea, banana, chocolate, cocoa, juice, sugar and honey products carry the Fairtrade Mark. Fairtrade production conditions include: small scale farmers participating in democratic organisations; plantation/factory workers being allowed to participate in trade union activities and receive decent wages; housing and health and safety standards; no child or forced labour; and programmes for environmental sustainability.

Genetic Modification (GM) This is defined by the Royal Commission on Genetic Modification as: the deletion, change or moving of genes within an organism; or the transfer of genes from one organism to another; or the modification of existing genes; or the construction of new genes and their incorporation into any organism. Genetic modification is an incredibly complex development, which brings with it a range of ethical issues for society. There are a wide range of issues surrounding GM such as the credibility of the technology, how it is controlled and owned, the use of patenting, the potential impacts on ecology and society, and also its potential impacts in the developing world. The Bank will not invest in businesses involved in the development of genetically modified organisms (GMOs), where, in particular, the following issues are evident: uncontrolled release of GMOs into the environment; any negative impacts on developing countries; in particular, the imposition of 'Terminator' technologies; patenting; (in particular, of indigenous knowledge) cloning (in particular, of animals for non-medical purposes).

Global Warming Potential (GWP) The concept of GWP has been developed to compare the ability of each greenhouse gas to trap heat in the atmosphere relative to another gas. The index was developed by the Intergovernmental Panel on Climate Change, and lists atmospheric pollutants and associated GWP relative to 1kg carbon dioxide.

Hydrochlorofluorocarbons (HCFC). A group of cooling agents that are used as alternatives to the ozone depleting CFCs. HCFCs contribute to the greenhouse effect and to a lesser degree to ozone depletion. For example HCFC R22 has 1,700 times the global warming potential of CO₂. New bans will be imposed on the use of HCFCs in most new air conditioning equipment produced after July 2002, although some smaller air conditioning systems (under 100kW) are exempted until 1.1.2003 and reversible heat pump systems until 1.1.2004. A ban on the use of virgin HCFCs for top up and maintenance of all existing refrigeration and air conditioning equipment will apply from 1.1.2010.

Hydrofluorocarbons (HFC) HFCs were virtually unused before 1990 but, since then, consumption has risen in response to the phase out of CFCs and HCFCs under the Montreal Protocol. HFC-23 has 11,700 times the global warming potential of CO₂.

Human Rights The bank avoids investment in businesses and governments who fail to uphold the core principles of the Universal Declaration of Human Rights. This represents the most widely accepted statement on human rights.

Hydrocarbons Organic compounds containing the elements carbon and hydrogen. There are many groups of different hydrocarbon compounds, but the three commonest in fossil fuels are paraffin's, napthenes and benzene-type compounds.

Money Laundering By definition money laundering involves hiding, moving, and investing the proceeds of criminal conduct. It has been estimated by the International Monetary Fund that such financial flows are equivalent to between 2 and 5% of global Gross Domestic Product.

Nitrogen oxides (NOx) Nitrogen oxides is a collective term for various compounds of nitrogen and oxygen. NOx can arise from the combustion of fossil fuels. NOx contributes to acidification (acid rain) and together with organic solvents and ultraviolent radiation, creates photochemical smog. Furthermore, NOx contributes to the eutrophication of rivers and lakes.

Organochlorines Include insecticides, aerosol propellants, PCBs, PVC DDT and endosulfan. Organochlorines are characterised by persistence, mobility and high biological activity. They have very long half-lives: that for DDT is ten years or more.

OSPAR The name given to the Convention for the Protection of the Marine Environment of the North-East Atlantic. The OSPAR Convention entered into force on 25 March 1998. In 1998 a Ministerial Meeting of the OSPAR Commission adopted strategies to direct its future work in the following four main areas: protection and conservation of ecosystems and biological diversity; hazardous substances; radioactive substances; and eutrophication. The Bank is seeking to phase out across its operations the original OSPAR list of chemicals for Priority Action. These are: polychlorinated dibenzodioxins (PCDDs); Polychlorinated dibenzofurans (PCDFs); Polychlorinated biphenyls (PCBs); Polyaromatic hydrocarbons (PAHs); Pentachlorophenol (PCP); Short chained chlorinated paraffins (SCCP); Hexachlorocyclohexane isomers (HCH); Mercury and organic mercury compounds, Cadmium, Lead and organic lead compounds; Organic tin compounds; Nonylphenol/ethoxylates (NP/NPEs) and related substances; Musk xylene; Brominated flame retardants and certain phthalates - dibutylphthalate and diethylhexylphthalate.

Ozone depletion The Earth's ozone layer is vital to modern lifeforms because it is extremely good at absorbing and screening ultra-violet (UV) radiation. UV is absorbed by molecules of DNA, which it disrupts, inducing genetic mutation. A 5% decrease in the layer would result in an extra 100,000 cancer deaths in the US alone. Smaller creatures are simply killed by UV (already reports that the lichen on which Scandinavian reindeer feed is in decline). That CFCs could damage the ozone layer has been known since 1972; but it was thought at no more than 15% over 100 years. However, the ozone over Antarctica dropped dramatically after the mid-70s. By 1985 it was down to 1% of normal levels, and in 1998 swelled to a record 10.5 million square miles. The impact of ozone depletion at even mid-latitudes in the southern hemisphere is evident from measurements of ultra-violet radiation intensities during the New Zealand summer. In 1998/99, peak sunburning UV radiation was 12% above levels at the beginning of the decade, while larger increases occurred in both DNA - and plant-damaging UV radiation.

Partner The Co-operative Bank is committed to serving the interests not just of shareholders or of customers, but of all seven Partner groups involved in the bank's activities. The seven partners are: customers, staff and their families, suppliers, local communities, national and international society, past & future generations of co-operators and shareholders.

Partnership Approach The bank seeks to deliver value (as defined by the Partner, not the bank) to all Partners in a socially responsible and ecologically sustainable manner. Of course, conflicts of interest can arise: situations where giving to one Partner will mean taking away from another. Therefore, alongside 'profitability', which is absolutely vital to the bank's continued existence, the pursuit of 'balance' is a key concept within the Partnership Approach.

Persistent bio-accumulative chemicals These are chemicals that do not readily break down or decrease in potency after they are released into the environment, even if released in legally permitted quantities. Over time the chemicals can accumulate in soils, and other environmental media, and subsequently be absorbed or ingested by plants or animals. There they can accumulate in animal and plant tissue, pass through the food chain, and potentially cause long-term human health or ecological problems (such as cancers). For this reason such chemicals are a cause for national and international concern. Examples of such chemicals include, dioxins, arsenic, mercury and zinc.

Polyethylene-terephthalate (PETG) PET is generally used in packaging (e.g. bottles) and often contains additives such as UV stabilisers. PET recycling rates are high compared to other plastics.

Polyvinyl chloride (PVC) A thermoplastic polymer which can be softened for shaping without any chemical change taking place. Various materials used in the production of PVC and PVC formulations have given rise to health concerns, such as ethylene dichloride (a carcinogen), PVC dust (which might cause miners' disease, pneumoconoiosis), and plasticisers.

Renewable Electricity A replenishable power source, such as solar energy, tidal power and wave and wind power.

Socially Responsible Business Socially responsible business concerns an optimum combination of business interests and social considerations. Even small businesses have a large social impact collectively. Social responsibility includes: how the business uses human resources; extent of community involvement; and environmental impacts. The terms 'people', 'planet' and 'profit', the 'triple bottom line', form the three criteria on which businesses will be judged.

Sulphur Dioxide (SO₂) Sulphur oxides occur naturally from sources such as volcanoes and sulphur springs. Man-made sources are principally: the combustion of fuels which contain sulphur; brickworks; and spontaneous combustion within coal mine heaps. The effects of sulphur dioxide on man begin at concentrations of 300 - 500ug/m3. SO₂ is also a contributor to acid rain: with the effects on property being corrosion; and in aquatic ecosystems, the alteration of pH.

Sustainable Development Originally developed by the World Commission on Environment and Development (the Brundtland Commission) in its report, Our Common Future, in 1987. Our Common Future defined sustainable development in general terms as 'development that meets the needs of today whilst not affecting the ability of future generations to meet their own needs', suggesting that global resources (including environmental resources) should be measured, with the objective of ensuring that they are not depleted over time.

Volatile Organic Compounds (VOCs) Organic compounds (e.g. ethylene, propylene, benzene, styrene, and acetone) which evaporate readily and contribute to air pollution directly or through chemical or photochemical reactions to produce secondary air pollutants, principally ozone and peroxyacetyl nitrate. VOCs embrace both hydrocarbons and compounds of carbon and hydrogen containing other elements such as oxygen, nitrogen or cholorine.