
With the UK reportedly spending over £83bn on ethical goods annually, there is an increased demand from customers for products and services that support people and the planet.
With this in mind, entrepreneurs and businesses are expanding and developing new ethical and sustainable goods. Whether it’s an eco-friendly tourism business, a company selling organic beauty products or a restaurant focused on locally sourced, sustainable food, there are thousands of enterprises across the UK focused on offering consumers an ethical alternative.
These values-driven businesses are operating with missions not just to pursue profit, but to prioritise working for the social and environmental good. For example, B Corporations are certified to voluntarily meet rigorous standards of social and environmental performance, accountability and transparency. Or community organisations, where we are seeing people working tirelessly to take back control of their local assets and improve their surroundings.
Start asking questions
If an organisation has a core value of sustainability, this needs to be reflected in all areas of its operation. In considering its environmental and social impact, an SME may well think about everything from energy provider and recycling to travel and workplace wellbeing — but what about banking and finance?
When looking for finance — whether that’s to grow, help cash flow or develop property — it’s important to remember that this is a procurement process, just like any other. We want to encourage organisations to question their bank, not just about interest rates and borrowing fees, but also to find out whether its objectives and values align with what the organisation does.
By and large, traditional banks have chosen to lend the money that has been invested with them to the person or organisation that will maximise the bank’s profits — this could include companies that work with heavy polluting industries, GM crops or other harmful activities. We want to invite values-led SMEs to question their bank around its lending policy and put pressure on them to prioritise transparency.
SMEs are uniquely placed to make an impact
SMEs are well placed to challenge the status quo of banking. While one SME’s financial choices may not have the same impact as a large corporation’s, the collective sum of these organisations can send a message out to the business and banking community that planetary and social considerations must be taken seriously in daily operations.
At Triodos Bank, our mission is to make money work for positive social, environmental and cultural change, and that’s why we provide finance to values-driven SMEs to help fulfil their potential. Our team of relationship managers have in-depth and broad sector expertise. The impact of these kind of entrepreneurs and social enterprises is more than purely economic. Their innovative solutions and business models can start changing lives, protecting the environment and building strong communities from the ground up.
As a conscious business, it’s not enough to just recycle any more. If you want to join a strong and growing community of people and organisations working for a better world, it’s time to consider your finances, too. Every investment creates an impact on society: the business community should not wait for governments and policymakers to force its hand towards sustainable choices.
-
Temenos partners with ClearBank for cloud payments
Banking software company Temenos has formed a strategic relationship with ClearBank to provide banks with a faster route to market for real-time cloud payments...
-
Unity Trust Bank registers 34% rise in profits
Unity Trust Bank increased profits by 34% in 2019...
-
Believe the hype – why explainable AI is a trend that’s here to stay
Technology has become a ubiquitous part of our day-to-day lives...
-
Piloting tech updates: ‘The bigger the bank, the harder it is to get anything done’
In the latest Medianett filmed roundtable session, we discussed how important technology is in the banking space, and what impact the industry expects it to have on its businesses in the future...
-
What banks need to know about cloud security
One of the most common perceived concerns when adopting the cloud is the issue of security...
-
OakNorth sees 95% increase in pre-tax profits
OakNorth Bank has announced a 95% rise in pre-tax profits in 2019 to £65.9m, up from the £33.9m recorded in 2018...
-
Redwood Bank signs up to Women in Finance Charter
Redwood Bank has announced that it has signed up to the Women in Finance (WIF) Charter...
-
Masthaven launches digital Women in Leadership programme
Masthaven Bank has launched a new Women in Leadership digital development programme for female senior leaders...
-
Protecting against supply chain disruption and the domino effect
Disappointingly, many UK SME business owners don’t understand their supply chains...
-
Confused about which Isa to choose? Hopefully this mini-guide will help…
We are now firmly in Isa season, so you’re likely to read multiple articles about the most competitive Isa products in the market and how best to make the most of your Isa allowance before the end of the tax year...
-
Garden shed entrepreneurs contribute £16.6bn to the UK economy
Entrepreneurs who run their businesses from garden sheds contribute £16.6bn annually to the UK economy, according to a recent study...