Red light if you're not green

By JO THORNHILL
Updated:

 

Co-operative Bank has admitted that it has to refuse one in five loan applications from businesses because they do not meet the bank's ethical and environmental policy requirements.

Co-op is one of the UK's only banks which has a statement of social responsibility - the term for green and ethical investment criteria. It refuses to provide banking facilities or loans to firms which do meet its policies even if they are creditworthy.

The bank screens all potential customers with a questionnaire which asks about activities.

Recent companies which were refused loans include one responsible for deforestation in South American and a communications company that sold surveillance material to China and Indonesia.

Most of the 150,000 business accounts on Co-op's books are small and medium-sized firms.

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