Posted on 5-5-2002

UK Bank Won't Invest In GE

LONDON - Britain's ethically-minded Co-Operative Bank said yesterday it
would not do business with biotech companies involved in genetic
modification (GM) or cloning. The bank, which reported record annual
profits last month as it reaps the rewards of ethical investment, said the
decision reflected a change in its stance following consultation with its
customers. "Our stance in genetic modification, which received widespread
support amongst those polled, reflects our customers' genuine concerns,"
said Simon Williams, director of corporate affairs. "They are not
fundamentally opposed to it but they worry about the potential impacts that
could arise from the application of GM technology."

The bank, whose roots date back to 1872, is part of the Co-Operative Group,
one of Britain's oldest mutual societies whose services range from grocery
shopping to funerals. The society was set up in northern England,
originally to enable low income households to buy good food at reasonable
prices and to boost the purchasing power of the working class. Co-Op Bank
has aimed to differentiate itself from its publicly-listed rivals through
its ethical policy - a growth area in the UK - though it remains a
relatively small player. It has three million customer accounts,
contrasting with Barclays Plc for example which has over 10 million UK
current accounts.

Co-Op Bank's ethical policy, adopted 10 years ago, states it will not
invest in or provide financial services to organisations dealing in areas
like the arms trade or blood sports, or organisations whose policies it
feels may harm the environment. It will refuse services to biotech
companies involved in uncontrolled release of genetically modified
organisms into the environment, terminator technologies - these prevent
crops from reproducing seeds - or cloning. Those it will do business with:
firms that take a responsible approach to labour rights, those involved in
recycling and promoting renewable energy, as well as charities.

A spokesman for the bank said it would not have to give up any of its
existing biotech customers as a result of its new approach to the sector.