Tailored ecological
products and services

Commentary

Products and services During 2003 and early 2004, the following ecological products and services were introduced or significantly enhanced.

European Investment Bank (EIB) Energy Efficiency Loan Scheme The bank formally launched a £20 million funding scheme with the EIB in January 2003. The Scheme assists Registered Social Landlords in the financing of energy efficiency projects, via the provision of leasing or loan facilities at preferential rates. During 2003, the bank agreed facilities with Local Authorities in Aberdeen, Midlothian, Oldham and Great Yarmouth. A related transaction indicates the social and environmental benefits that accrue from such projects. In 2003, the bank provided a £1 million finance package to Aberdeen Heat and Power Limited. This financed the installation of a combined heat and power (CHP) unit and energy efficient boilers in connection with 288 high rise flats. Residents have seen their weekly fuel bills fall from as much as £18.48 per week to £7.44 per week. Furthermore, the project will lead to carbon dioxide (CO2) savings of some 22,000 tonnes per annum.

Green mortgages In 2003, CFS widened its Green Mortgage portfolio to include new discount rate and tracker products. Customers are offered a free Home Energy Rating on all house purchases, enabling them to better understand how energy efficient a property is, and how to make improvements. Additionally, every year that a customer holds a mortgage, the bank pays Climate Care to offset a fifth of each household's CO2 emissions - so helping the UK attain its target on greenhouse gas reductions of 20% by 2010. During 2003, this equated to a total offset of 17,131 tonnes of CO2. Following customer consultation in 2003, 60% of offset monies were used for reforestation in Kibale, and 40% were committed to a new project in Bangladesh, which trains local people to build energy efficient stoves. Follow this link for details of reforestation in Kibale. The introduction of these stoves, which are made from local materials, will help to reduce emissions of CO2 and pressure on local forestry resources. Additionally, as the stoves burn more efficiently, there is an improvement in indoor air quality, which it is hoped will lead to a decline in respiratory illnesses. A third project on micro-hydro electricity generation in Bulgaria was presented to mortgage customers for approval. This project will be initiated in summer 2004.

Car loans In May 2003, the bank relaunched its personal car finance loans with a new package of benefits. For each car loan taken out, the bank pays Climate Care to offset a fifth of a typical car's annual CO2 emissions for the lifetime of the loan. In 2003, this money has paid for 82 tonnes of carbon offset and supported reforestation in Kibale. The car loan welcome pack includes advice on greener motoring, including advice on buying a new car and fuel-efficient driving tips.

smile During 2003, smile entered into a partnership with the green domestic electricity supplier, ecotricity. To date, more than 500 smile customers have taken up the green electricity offer.

RSPB solar loans In June 2003, the bank launched a new low interest loan in partnership with RSPB and solarcentury. Loans were promoted to RSPB supporters for the acquisition of domestic solar hot water and solar electricity sytems.

Wildlife Trusts The bank is promoting CIS Home and Motor Insurance products to the 416,000 members of the UK's 47 regional Wildlife Trusts. Since the scheme was launched in May 2003, the bank has donated over £12,000 to appropriate regional Wildlife Trusts in relation to the scheme.