Divestment as consumer activism and how to maximise our impact
Steve Onyett
This briefing note was stimulated by an extremely helpful meeting with one of our key supporters in divestment, who has asked not to be identified for reasons of protocol. It seeks to capture the key points that I think informs our interactions with the public and how we think about the campaign more broadly.
Divestment as consumer activism
The divestment movement looks like a consumer activism challenge, and much of the learning from fair-trade is applicable. Moving your money sends a message and is therefore valuable in it’s own right.
However, moving personal accounts has little impact on banks when compared to moving one’s savings. The reason is that banks really see personal accounts as a way to attract people to save or take credit. They are a sort of loss leader for them. Credit and savings are where banks obtain profit and resource to invest in areas that will attract more profit. So if we really want to make an impact then getting people to save or borrow from ethical institutions is key. I was pointed towards this banking league table which would be good to have reproduced at the Redland Fair unless something even more current appears on http://moveyourmoney.org.uk/good-money/:
http://www.ethicalconsumer.org/ethicalreports/ethical-finance/moveyourmoneyscorecard.aspx
One way for comsumers to really see where their money is going is to campaign for all financial institutions to “publish their loan book”. Triodos is an example of a bank that does this at the moment. See this ‘map of lending projects’. www.knowwhereyourmoneygoes.co.uk. Campaigning for this level of transparency from all banks would be a significant move forward.
This leaflet for the Church of Scotland on fair finance contains ten calls to action and a range of links to signpost people to do more.
Herzberg’s two factor theory differentiates hygiene factors and motivators. Although aimed at job satisfaction in the workplace it also translates in an interesting way into consumer activism. Hygiene factors concern the basics for survival such as enough income, security, and decent conditions. Motivators invoke higher order values such as a sense of doing the right thing, being part of something bigger, being recognised as a good person etc. It seems that people are likely to address their hygiene factors as a priority, e.g. by choosing a middle range interest rate for their savings so that they do not feel like a “mug” in trying to be ethical, but once that is covered doing good in the world is a powerful motivator. Compare this with the “Practical Wisdom” described by Barry Schwartz which also highlights how incentives and rules and regulations fail to motivate and engage but rather it is the opportunity to do the right thing that makes a difference to people (see https://www.ted.com/talks/barry_schwartz_on_our_loss_of_wisdom). This is where BTW I think the Green Party campaign is spot on with it's messages.
Being good is not the same as just not being bad.
All ethical banks are not the same. Negative screening describes what an institution won’t do. However, bear in mind that “whatever is not forbidden is permitted” (which is probably why apparently ethical corporations like Unilever and Nestle can have exemplary CSR policies while at the same time doing truly horrible things).
There needs to be a positive place for people to go: exemplars that are an explicit ‘opposite’ to the problem institutions.
A quick run through of screening types can be found at http://www.yourfaithyourfinance.org/banking/ethical-banking/. Essentially, it asks the question of the individual ‘What activity am I trying to achieve by moving my account?’: avoidance of bad things, support of good things, etc. The ‘what can I do section’ provides a personal and campaigning structure that would be equally applicable to FFB. In drawing up a list of activities we would just replace ‘church’ with ‘organisation targeted for change’.
Focusing on positive alternatives- the investment in renewable energy.
See this great article stressing the need to invest in the renewable energy infrastructure. http://colour-of-money.co.uk/fossil-fuel-divestment/ It is interesting to read this first on the same day that Holly has shared a new report which says that we have the resources (wind,sun,waves etc) in the south west to be completely renewable energy independent! See
http://mollymep.org.uk/2015/04/17/power-to-transform/
Our approach with APF
FFB would never be in a position to advocate where a pension fund invests as this will depend on what kind of investment it is. The issue should be instead on influencing where they get their advice on this from and what informs the decisions. One suggested route is to go to the Ethical Investment Association (EIA) which includes members based in the southwest such as Martin Stewart http://www.stewartinvestmentplanning.co.uk/. I note the Martin Stewart site also mentiones membership of the Sustainable Investment and Finance Association (UKSIF).
It would be worth repeating our presentation to the AFP committee in it’s new configuration as a guarantee to keep it on the agenda may lose much of the context, or the passion in which it was delivered. More dialogue is always good.
I hope this is helpful, and thanks again to my coffee mate.
Comments really welcome.
Have a great weekend.
Steve
Onyett Entero Ltd
Aligning head, heart and hand for a better future.
Web: www.onyett.org Mob: 07771 908812
The information in this email is confidential and is intended solely for the addressee.Access, copying or re-use of information in it by anyone else is unauthorised. If you are not the intended recipient please contact Onyett Entero Ltd. Onyett Entero Ltd is registered in England No. 6516971.
P Before you print think about the ENVIRONMENT
Richard Lawrence
--
You received this message because you are subscribed to the Google Groups "Fossil Free Bristol" group.
To unsubscribe from this group and stop receiving emails from it, send an email to fossil-free-bri...@googlegroups.com.
To post to this group, send email to fossil-fr...@googlegroups.com.
To view this discussion on the web, visit https://groups.google.com/d/msgid/fossil-free-bristol/CAB5Ps854%2Bnke1DFzw3zEEK1vg8scG3T7AmRAmnbShKs5o3SVFQ%40mail.gmail.com.
For more options, visit https://groups.google.com/d/optout.