One word dominates the debate about the role of the business community in delivering a more sustainable economy: trust. There's a lot of lip service paid by companies to the importance of trust, but few understand what it really means to build and retain high levels of trust at a time of such chronic scepticism and mistrust. So, it's a joy to read the Report of one company that really does.

To have produced a Report, such as this, at a time when The Co-operative Bank and CIS have been 'coming together' is, indeed, no small achievement. To have continued to win awards and make progress against such a backdrop once again demonstrates that Co-operative Financial Services richly deserves its prominent leadership role within the business community with regard to sustainable development. The Natural Step (a science-based sustainability initiative, for which Forum for the Future is the licensee here in the UK) has continued its relationship with Co-operative Financial Services. It is in my capacity as Chairman of The Natural Step in the UK, and Programme Director of Forum for the Future, that I have been asked to assess and comment on those elements relating to ecological sustainability.

The key to trust is transparency. In reporting, that means 'warts and all', as Mervyn Pedelty acknowledges in his overview. Though this is a predominately upbeat Report, it's not all good news on the performance front. In the ecological sustainability section of the Report, for instance, out of the 30 targets adopted for 2003, ten were achieved, 13 showed 'acceptable progress', and seven were not achieved. No surprise, perhaps, in that CFS has always liked to set genuine 'stretch' targets; and attention undoubtedly will have been tasked by the job of bringing the cultures of CIS and the bank together during 2003. But it demonstrates just how much vigilance is needed to deliver on some of the operational things, whilst simultaneously retaining the high ground.
On the whole, however, continuing progress is demonstrated in this Report in the reduction of principal environmental impacts. This is clearly shown in the impressive reductions in sulphur dioxide, nitrogen oxides, particulates and volatile organic compound emissions. There is further progress in the purchase of renewable electricity, and the project to clad the CIS Tower with photovoltaic cells is both bold and inspirational.

There are two transparency innovations in this Report that I commend: the effort made to benchmark CFS' performance against competitors or other exemplars of 'best practice' in different sectors; and the 'Influence and action' sections, which detail the public policy lobbying and campaigning carried out by CFS in that particular area. This addresses a major concern of NGOs today. There's still far too much corporate lobbying that is inconsistent with companies' stated policies and aspirations, and it would be good to see other companies following CFS' example here. But don't hold your breath: as you will see on page 23, only 5% of companies filling in Business in the Community's Corporate Responsibility Index are prepared to publish their submissions Ð leaving one to inevitably speculate about what it is they have got to hide.

The increasingly confident use by CFS of sustainability value analysis is also very important. Whilst this is still a fairly new area of reporting, increasingly, it has an important role to play in terms of demonstrating the business case for sustainable development. The fact that 30% of bank customers say that ethics is an important factor in their choice of products and services (and 17% say it is the most important factor) is a critical reinforcing factor.

As the integration between CIS and the bank deepens over the next couple of years, and pressure from external stakeholders and government departments grows, that leadership will be called on more and more
to inspire others and accelerate the process of change. I have often heard it said that all this stuff is "fine for 'the Co-op', but it just wouldn't work for us". With the new Operating and Financial Review coming fast down the track; and with the financial services sector under growing attack for being nothing like as consumer-led or transparent as it often claims; and with trust now an increasingly important strategic asset that all companies will have to work much harder to secure, I hope that dismissive comment will now be exposed for the sad excuse it really is.

Meanwhile, as the integration between CIS and the bank deepens, CFS continues to demonstrate its role as one of the clear leaders in this area.

Jonathon Porritt
Programme Director, Forum for the Future
Chairman, The Natural Step UK
11th May 2004

i www.forumforthefuture.org.uk
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ii www.naturalstep.org
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