Ethical rules cost the Co-op Bank more than £14m in 2007 after it rejected a succession of deals involving oppressive regimes, military hardware – and sporrans.
The bank said strict rules on how customers treated their workers and the environment also led to record numbers of accounts being turned away or closed.
Reasons for rejection included the sourcing of hardwood flooring and use of child labour. Kilts by Lindsay, a traditional Scottish dressmaker based in Livingston, was turned down for a business account because some of its sporrans are made from seal skin.
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Animal welfare accounted for 30% of the income forgone by the bank. Cosmetics manufacturers using animal testing were top of the list and there were several firms selling fur products. Firms considered to damage the environment made up a quarter of the lost income.
Corporate banking profits increased by 11.7% last year from £49.3m to £55.1m. The bank said it uses external auditors to check its policies and verify their cost.
No arms, no oppression … and no sealskin sporrans, says Co-op
