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The Co-operative Bank*
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Social Responsibility |  Indicators |  Partnership Report 2002 |  Our Performance |  Home
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Introduction
Ethical Policy
Finance: Ethical and Ecological Screening
Suppliers: Ethical and Ecological Screening >>
Suppliers: Attitudes Towards the Bank's Ethical and Ecological Policies
Finance: Tailored Ethical Products and Services
Diversity: Staff
Diversity: Customers
Health and Safety
Community

Delivering Value
Ecological Sustainability

Financial Statements 2002

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Social Responsibility : Suppliers: Ethical and Ecological Screening
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ethical and ecological screening
  1. Ethical and ecological screening
Suppliers Society

  • Develop an ecological purchasing guide for use throughout the bank. TARGET ACHIEVED*
performance
Ecological Screening of Suppliers, 2002
(via assessment of ecological impact of products and services)
Ecological Screening of Suppliers, 2002
(Source: Ecology Unit 2003)
Ethical Screening of Suppliers, 2002
Areas of Conflict with Ethical Policy, 2002
commentary
Background The bank's Ecology Unit assesses the ecological impact of a given product or service, whilst the bank's Ethical Policy Unit assesses the ethical and environmental profile of the company making the product or service.

Ecological screening In addition to activity relating to paper and recycled waste, the Ecology Unit managed the screening of 265 products and/or services during 2002 (these had a contract value of £2.044 million). Of these ecological assessments, the vast majority related to persistent bioaccumulative chemicals and energy. In 98% of cases, ecological assessment led to an improvement in the ecological impact of products and services. In the following six instances it was considered necessary to contract a service deemed unsatisfactory from an ecological perspective, and where it was considered a technical alternative existed. As described on the persistent bioaccumulative chemicals page, due to technical problems, 3,000 debit cards were printed on PVC. The bank failed to source renewable electricity for two branches and utilised standard fossil fuel suppliers. During refurbishment of the bank's Manchester branch, a small area of carpet containing PVC was purchased. The bank purchased an HFC chiller and, lastly, the bank sourced a polyester-based window film for Head Office, but was unable to source the product without PVC based ink.

Toxics During 2000, the bank's Ecology Unit began screening all referred supplier contracts against a range of toxic chemicals as described on the persistent bioaccumulative chemicals page. In comparison to some other methodologies, the bank affords a much higher rating to 'toxicity', and a much lower rating to energy efficiency, when undertaking ecological analysis. A variation of the Building Research Establishment's (BRE) profiling system for building materials and components is utilised by the bank.i The relative importance rating attributed to factors is adjusted as the BRE rates toxicity at just 14% and energy matters as high as 50%. Where renewable energy is utilised (as on the bank's premises), then net carbon dioxide emissions are negligible. Therefore, 'energy' should be heavily discounted in assessments - as is the case with the bank's air conditioning systems which is detailed on the persistent bioaccumulative chemicals page.

Ecological purchasing tool The bank has now developed an ecological product specification guide. It explains the principles and reasoning behind the bank's ecological purchasing policy, alongside recommended suppliers and explanations of the relevant issues. The guide includes the following sections: an explanation of the BRE profiling system and its application; a sample contract for specifying Forest Stewardship Council ii certified wood products; guidance on approved refrigerants and fire control systems; and a hierarchy of environmentally preferable plastics when replacing PVC. The project is actively sourcing products with a high recycled content, and seeking assurances from suppliers that when products are removed they are either reused or recycled. Appendices to the ecological purchasing tool will cover all current ecologically recommended products and services. The ecological purchasing tool was made available to relevant staff in 2003, and was heavily used in the refurbishment of Manchester Branch. Follow this link for details of the 'green branch' concept.iii

Ethical screening The total value of contracts screened on the basis of ethics was £9.5 million, of which contracts with a value of £1.7 million were considered unacceptable. During the year, the bank reviewed the provision of water coolers to its branch network. As part of that review, it was decided to move away from its existing supplier to Aqua Aid. As part of the bank's supplier acquisition programme, two construction firms were ruled out of a tender process for an electrical supply contract - one for the construction of police stations in an oppressive regime and another as part of a conglomerate involved in the construction of mega-dams.

Sound sourcing In 2002, the bank and CIS, working with the Co-operative Group, designed and agreed a 'Sound Sourcing Policy'. The Policy, based on the Ethical Trading Initiative iv, provides assurances on a range of areas, including trade union rights, hours of work and pay. The bank is currently seeking to determine any areas of non-compliance.
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ethical and ecological value analysis
  • Estimated additional cost of pursuing ethical/ecological best practice compared with the lowest cost option of similar quality (excluding paper purchase) £168,000
  • Annual costs relating to ethics and ecology external research, audit and commentary £325,000
  • Internal annual overhead associated with maintenance and development of ethical and ecological management and performance £430,000
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new target
  1. Continue the development of the bank's ecological purchasing tool and distribute to relevant staff.
    Jos Mister, Ecological Analyst
  2. Determine areas of non-compliance with the Sound Sourcing Policy amongst key suppliers and consider remedial action.
    Barry Clavin, Ethical Policy Manager
Continue to: Suppliers: Attitudes Towards the Bank's Ethical and Ecological Policies Back To Top

The above data and commentary has been audited by ethics etc...

Data, commentary and performance assured in accordance with AA1000as.