Ethical Sales Grow 3-Fold in Decade Says The Co-Operative Bank

MANCHESTER, England, December 30 - Expenditure on ethical goods and services has grown almost three-fold in
the past 10 years according to The Co-operative Bank's Ethical Consumerism
Report published today (30 December).

The report, which has been acting as a barometer of ethical spending in
the UK for a decade, shows that overall the ethical market in the UK was
worth GBP36 billion in 2008 compared to GBP13.5 billion in 1999.

The authoritative report analyses ethical sales data for various sectors
including food, household goods, eco-travel and ethical finance. Whilst most
sectors have outstripped the market, which has seen overall consumer spending
increase by 58 per cent in the 10-year period, Fairtrade has enjoyed
phenomenal success with sales up 30 fold.

Sales of Fairtrade goods and produce, that give a premium to growers and
producers in developing countries, were just GBP22m back in 1999 but last
year that figure had grown to GBP635m and it is expected that during 2010
Fairtrade purchases will break the GBP1 billion barrier for the first time.

The data also shows that sales of energy efficient electrical appliances
and boilers, which have grown 12 fold and nine times respectively, have also
seen exceptional growth while the mature financial services market has seen
ethical banking and investments triple over the course of the decade.

Neville Richardson, Chief Executive at The Co-operative Financial
Services, said: "This annual report gives a unique insight into changing
consumer trends. It is clear that UK shoppers have grown accustomed to
supporting growers in developing countries by buying Fairtrade an initiative
pioneered by the Co-operative.

"Although the report shows that the idea of ethical purchasing is now
well established amongst many consumers there is still a long way to go if we
are all going to adopt the low carbon lifestyle needed to avoid cataclysmic
climate change.

"The growth in energy efficient products such as boilers, white goods and
more recently light bulbs, has been underpinned by Government intervention.

"In order for the UK to reduce its carbon emissions by 30 per cent by
2020 there will need to be a step-change in take-up of low carbon
technologies, and this will need a new contract between business, government
and the consumer."

Consumer spending in 2008 totalled GBP891,290 million, an increase of 58
per cent from GBP562,915 million in 1999 (Source, ONS Consumer Trends Q1 2001
and Q2 2009).

The Co-operative itself has been largely responsible for the success of
Fairtrade, having been the first major supermarket to support the concept 15
years ago. Through an ongoing strategic approach including product
development, innovation and campaigning, The Co-operative has convinced the
food industry to follow its lead and engage in Fairtrade support. Ends

About The Co-operative Financial Services

The Co-operative Financial Services (CFS) is part of The Co-operative
Group, which is the world's largest consumer co-operative with around five
million members, over GBP14 billion turnover, and core business interests in
financial services, food, travel, pharmacy and funeral care. The Co-operative
Group has over 5,000 retail trading outlets.

Following the merger with Britannia Building Society on 1 August 2009,
the new organisation is one of the largest and well diversified mutual
businesses operating in both retail and corporate markets.

As part of The Co-operative Group, the new business will be characterised
by its unique ethical and member reward policies and very high levels of
customer advocacy.

The combined business has GBP70 billion in assets, 12,000 staff and nine
million customers. It has over 300 high street branches, 20 corporate banking
centres and a major presence in Manchester, London, Leek, Bristol, Plymouth,
Skelmersdale and Stockport. There are also 1,000 face-to-face financial
advisers throughout the UK.

It is the only mutual organisation that enables its members to earn
financial rewards for the products they hold, as well as giving them the
opportunity to have a say in how the business is ran.

    For further information please contact: 

    Russ Brady
    Head of Public Relations
    The Co-operative Financial Services Press Office
    Tel: +44-(0)-161-827-5856
    Email : russ.brady@co-operative.coop

    Duncan Bowker
    Public Relations Manager
    The Co-operative Financial Services Press Office
    Tel: +44-(0)-161-903-3819
    Email : duncan.bowker@cfs.coop

    Notes to Editors:
    ISDN facilities available for broadcast interviews. ISDN telephone number
    is +44(0)161-833-3079.

For further information please contact: Russ Brady, Head of Public Relations, The Co-operative Financial Services Press Office, Tel: +44(0)161-827-5856, Email : russ.brady at co-operative.coop; Duncan Bowker, Public Relations Manager, The Co-operative Financial Services Press Office, Tel: +44-(0)-161-903-3819, Email : duncan.bowker at cfs.coop