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How the big five banks are learning to reap rewards from going greener

070817_guardan_banks.jpgWhether it’s tracing the provenance of the shirt on our backs or asking about air miles required to deliver our coffee, UK consumers are increasingly demanding environmental and ethical awareness from the companies they use. And the same goes for banks and their products. UK banks are making a concerted effort to prove they have as many ethical and environmentally friendly credentials as the companies in the next sector. In fact, they are doing better than several other sectors, according to research by Covalence, a Geneva-based company that tracks the ethical reputation of multinationals. In its 2007 banking industry report, which covers 25 of the largest banks in terms of market capitalisation, Covalence says banks show the second best “ethical quote” reputation score from June 2006 to June 2007 compared with nine other industries, including mining and metals, chemicals, pharmaceuticals and oil and gas. Antoine Mach, a Covalence director, attributes the good results partly to the fierce competition within the sector. Ethical standing, he says, “is becoming more and more important for banks as a way for them to differentiate themselves from each other, and so it is used as a competitive factor”. And strong competition may have led to Britain’s strong performance in the Covalence survey in comparison with its European counterparts. Among the 25 banks analysed by Covalence, HSBC came top, and Barclays and Royal Bank of Scotland came fourth and ninth respectively. Lloyds TSB were also rated in the top 20. Image source: hippyshopper.com. > Continue.

Publication: Covalence in the News | Country: UK | Companies: HSBC, Barclays, Royal Bank of Scotland, Lloyds TSB, HBOS | Source: The Guardian

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