Ethical Consumerism Report 2009 By The Co-operative Bank (excerpt)

UK HOUSEHOLDS SLOWLY GOING GREEN SAYS THE CO-OPERATIVE BANK Embargoed: Not for Publication or Broadcast before 00:01 11 December 2009 As world leaders thrash out a deal on climate change in Copenhagen, latest figures from The Co-operative Bank published today (11 December) show that UK households are slowly greening their lifestyles. Despite the recession, spending on sustainable products and services over the past year has increased by five per cent with each UK household now spending on average £251 per annum on green items. The data from The Co-operative Bank’s annual Ethical Consumerism Report, which will be published later this month, highlights that expenditure on environmentally friendly products and services such as energy efficient appliances, green energy and carbon offsetting now amounts to more than £6,400m. Tim Franklin, Chief Operating Officer at The Co-operative Bank, said: ” This report acts as a timely reminder to political leaders that many people in the UK are working hard to adopt a greener lifestyle. “However, whilst ethical consumers are playing a vital role in the early adoption and development of environmental products and services and now spend more than £6bn per annum, this still accounts for less than one percent of total household expenditure. “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. “The leadership of ethical consumers and the innovation of business work best when backed up by thoughtful government intervention. This has happened with white goods, boilers and lightbulbs – where inefficient laggards have been phased out. We now need to see such initiatives in a raft of new areas, such as transport and electronic goods.”

TOTAL SPEND Ethical spend to address climate change, 2004 – 2008, £ millions Energy efficiency Energy efficient appliances Energy efficient boilers Energy efficient light-bulbs Rechargeable batteries Transport Green transport Responsible travel Green mortgages Renewable energy Micro-generation Green energy Total

2004 2,352 1,523 782 17 30 1,587 439 1,148 357 59 21 38 4,355

2005 3,080 1,661 1,366 18 35 1,707 478 1,229 385 80 26 54 5,252

2006 3,363 1,824 1,471 26 42 1,624 473 1,151 396 159 32 127 5,542

2007 3,798 1,888 1,794 41 75 1,642 698 944 404 244 32 212 6,088

2008 3,957 1,893 1,942 43 79 1,672 741 931 455 333 36 297 6,417

SPEND PER HOUSEHOLD Ethical spend to address climate change, 2004 – 2008, £ per household Energy efficiency Energy efficient appliances Energy efficient boilers Energy efficient light-bulbs Rechargeable batteries Transport Green transport Responsible travel Green mortgages Renewable energy Micro-generation Green energy Total

2004 94 61 31 1 1 64 18 46 14 3 1 2 175

2005 123 66 55 1 1 68 19 49 15 3 1 2 209

2006 133 72 58 1 2 65 19 46 16 6 1 5 220

2007 149 74 70 2 3 64 27 37 16 9 1 8 238

End notes Figures used for calculation: •

25.7 million households in 2008 (based on ONS projections).

•

£877.8 billion total UK domestic household spending in 2008 (ONS Consumer Trends Q2 2009).

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2008 155 74 76 2 3 65 29 36 18 13 1 12 251