Bank makes a stand on tar sands

Ethics-driven bank funds campaign to halt tar sands extraction

The Co-operative Bank, a major ‘ethical’ bank in the UK, has donated over C$200,000 (£104,000) to a legal campaign to stop the extraction of tar sands in Canada, which it says could cause an environmental catastrophe.

The donations are just one outcome of the bank’s ethical engagement policy, adopted in 2005. The policy contains a commitment to reduce reliance on fossil fuels, supported by 94% of its customers.

The Co-op is supporting a legal campaign brought by the Beaver Lake Cree against the province of Alberta and the federal government of Canada, to prevent grants of any further licenses to exploit tar sands. Alberta’s Superior Court will decide whether the action can go ahead in January. Tar sands are a mix of clay and bitumen which can be pumped using steam or mined to extract oil. But the extraction process is highly energy intensive. According to Paul Monaghan, Head of Social Goals and Sustainability at the Co-op, the extraction of Canada’s tar sands would dramatically raise the amount of CO2 in the earth’s atmosphere, from 430 to 445 parts per million by 2050: “That would take us right to the brink of runaway climate change”. Drew Mildon, a solicitor working on the case at Woodward & Company, estimates that the battle could cost up to C$15 million and take five years. “The Co-op’s support has given us hope that more international funders will come forward,” he adds. Since the launch of its ‘customers who care’ campaign in 1994, the Co-op has taken stands on a wide range of issues, including landmines and safer chemicals in commercial products. – Mark Jansen

18 November 2009

Mark Jansen