Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Assessing sustainability efforts pays dividends, says Filene study
MADISON, Wisc. (2/12/14)--A new study has concluded that credit unions still have room to improve when it comes to social responsibility and sustainable practices--and that they can potentially improve their bottom lines doing it.
 
The research, which was published Monday by the Filene Research Institute, compared nine credit unions to 15 "independently held, sustainably focused banks," and found that credit unions studied "have yet to make significant progress toward improving their measurable social and environmental performance."
 
Ryan Honeyman, a sustainability consultant and author of the report, scored both sets of financial institutions on governance, workers, community and environment. While credit unions had higher scores in the first two categories, their comparative weakness in the latter dragged down the overall score. The banks' total was 62.9, while credit unions' aggregate score was 62.
 
Honeyman said that the credit unions studied outperformed "sustainable banks" in certain "important categories," such as employees' salaries and recycling practices. "Nevertheless," he found, "there's room for improvement."
 
"Despite scores that outperform banks on numerous scales, sustainability-oriented credit unions can still improve on issues like writing environmental and social stewardship goals into policy, increasing support for child care and maternity/paternity leave, and incorporating sustainability goals into employee reviews," Honeyman wrote.
 
He concluded that improved sustainability practices can attract potential younger members and create loyalty. It could also create "innovative loan growth opportunities." So-called green loans, he said, "have been shown to be profitable; and can attract financially strong borrowers, spur membership growth, and lead to new growth in solidly performing loans on the balance sheet."
 
The nine credit unions that participated in the study had assets ranging from $80 million to $12 billion.
 
The report used the "B Impact Assessment" gauge, which measures social and environmental impacts of a business. The assessment takes into account governance, mission, structure, engagement, job flexibility, management communication, community engagement, and environment.
Other Resources

Filene Research Institute
RSS





print
News Now LiveWire
Maine credit unions put Food Mobile on the road to relieving hunger in rural areas http://t.co/R0xpt6BAZE
9 hours ago
.@TheNCUA's Matz: PALS should be exempt from Military Lending Act proposal #NewsNow http://t.co/Vy9uNhOIEr
9 hours ago
#NewsNow Iowa loan growth 3 times national bank rate http://t.co/fUvudPLg5d
12 hours ago
.@ICBA tallies its Home Depot data breach costs: $90M, 7.5M cards http://t.co/iJgRDC2AKZ
13 hours ago
.@icul's Jury elected treasurer of @WOCCU exec committee http://t.co/HEF1UChN8f
14 hours ago