Key Facts

• The Bill aims to support co-operative and community benefit societies in making environmentally sustainable investments.
• This initiative is part of broader efforts to combat climate change and promote renewable energy.
• The Bill aims to raise private investment for co-operatives.
• Co-operatives currently have a £100,000 threshold on fixed term withdrawable shares.
• Removing this limit would facilitate new capital in co-operatives without compromising their democratic structure.
• Dan McCallum from Awel co-op supports the Bill, stating it will help unlock finance and strengthen the model.
• Co-operatives UK expects there to be 1 million employee and worker owners in the UK co-operative sector by 2030.
• Legislation similar to the proposed Bill is already in place internationally, including Australia, Canada, Italy, and the Netherlands.
• The Bill aims to support projects such as Awel and Egni co-operatives, Brixton energy, Bristol energy co-operatives, OrganicLea, Dwr Cymru, and SHRUB co-op.
• The Co-operative and Community Benefit Societies Act 2014 reduced legal complexities for co-operatives.
• Since then, the co-operative movement generates more than £130 billion of income each year and employs over 230,000 individuals in the UK economy.
• The UK aims to hit net zero carbon emissions by 2050.
• In 2019, there was a 42% reduction in carbon emissions while the economy grew by two thirds compared to the G7 trend.
• The Bill could expose the co-operative sector to unintended risks.
• Investors must be aware that green shares carry risks similar to any other shares.
• There are concerns that the Bill might unintentionally create capital instruments similar to mini bonds.
• Co-operatives contributed £38 billion in turnover and provided work for almost a quarter of a million people last year.
• More than 72% of co-op start-ups continue to flourish compared to only 43% survival rate for companies after five years.
• There were more than 7,200 co-ops operating across the UK in various sectors in 2019.
• Progressive Agri near Coldstream helps farmers purchase machinery and equipment as a group.
• Scottish Borders Produce is a cross-border co-operative specialising in environmentally responsible growing of top-quality vining peas.
• Members can invest in a project through green shares.
• Redeemable shares are important for raising significant equity investment from individual and institutional non-user investor members.
• Co-operatives UK notes that redeemable shares provide a straightforward exit route for shareholders under the control of the society.
• The Bill aims to facilitate green jobs, skills development, cheaper greener energy, warmer homes, and locally sourced food.
• Safeguards include limiting voting rights to one vote per member, regardless of share value.
• The Bill aims to promote environmentally sustainable investment through green shares.
• A study commissioned by the Department for International Development found that 68% of UK savers want their investments to consider the impact on people and the planet alongside financial performance.
• Sustainable investments have grown by 107% annually since 2012.
• The UK has legislated to eliminate its contribution to climate change by 2050, making it a pioneer in this area.
• Coal power stations will be completely shut down by 2025 or earlier.
• The UK's co-op movement has 13.7 million members, representing over a fifth of the population.
• Co-operatives employ 233,000 people directly.
• Ethstat Ethical Stationery in Croydon is highlighted as an example of a community-focused and sustainable business.
• The Committee on Climate Change underlines the importance of creating conditions for green investment.
• The UK has only 0.5% co-operative-owned homes compared to Germany's 10%.
• Community energy schemes, e-car sharing co-ops, low-impact farming co-ops and low-impact community-led housing are examples of societies with clear environmental sustainability purposes.
• Primary legislation is needed to provide legal tools for co-operatives to thrive.
• Carbon emissions fell by 42% between 1990 and 2017.
• The UK Government committed to plant 40 million more trees, restore peatland, and create a community-led nature recovery network.
• Mutuals generate over £130 billion of income each year in the UK economy.
• The Bill aims to make associated provisions about restricting conversion to company status and the distribution of capital on winding-up.
• In the 2020 Budget, the Government announced legislation to allow credit unions to offer a wider range of products and services.
• The Conservatives have enacted the Co-operative and Community Benefit Societies Act 2014.
• Co-operatives UK supports the Bill's principles and spirit.
• The Bill aims to enable co-operative societies to raise capital through environmentally sustainable investment.
• Critics argue that the bill is impractical, lacks detail, and should be broader than just green shares.
• The Well-being of Future Generations (Wales) Act 2015 covers sustainable development.
• Co-operatives currently cannot legally guarantee 'common capital' will remain 'indivisible'.
• The Bill aims to enable co-operative and community benefit societies to raise external share capital for environmentally sustainable investment.
• The Bill refers to sustainable development goals covering various issues.
• Proposed new section 27A(6) includes a Henry VIII clause allowing the Treasury to revise subsections (4) and (5).
• The environmental sustainability goals in proposed new section 27A(5)(a) do not include economic development aspects from the Well-being of Future Generations (Wales) Act 2015.
• Changing co-operative rules to issue green shares can restrict member rights regarding share distribution and de-mutualisation.
• Co-operatives employ nearly a quarter of a million people across the UK.
• There are more than 7,000 independent co-operatives serving over 14 million members in the UK.
• According to Co-operatives UK's annual assessment, 76% of co-operative start-ups remain operational after five years.
• The Bill aims to invest capital in maintaining a biodiverse natural environment with healthy functioning ecosystems.
• The Government have invested £3 billion in developing renewable technologies by 2022 to 2023.
• A £2 billion green homes grant is being rolled out this month to support house retrofitting across the UK.
• Robin Hood Energy collapsed, resulting in a loss of about £38 million and causing job losses for 230 people.
• The Co-operative Bank faced financial and governance issues leading to its acquisition by hedge funds.
• The Financial Conduct Authority prohibited the promotion of speculative mini-bonds in January.
• The collapse of London Capital and Finance left 11,600 members at risk of losing nearly £240 million.
• The Bill aims to support environmentally sustainable investment but faces criticism for its broad definition which could include controversial industries like nuclear or fracking.
• A co-operative society runs for the mutual benefit of its members based on their common economic, social, and cultural needs or interests.
• A community benefit society is primarily run for the broader community's benefit with an overarching community purpose.
• Credit unions are member-owned institutions that accept deposits and make loans at reasonable rates to provide a safe place to save and borrow.
• Credit unions in the UK have collective assets of around £4 billion.
• Environmentally sustainable investments aim to support an innovative, low-carbon economy and maintain biodiversity.
• Impact investments prioritise impact over financial return but may be perceived as risky.
• Co-operatives generate over £130 billion of income each year.
• The MP’s constituency, Darlington, has a strong history of Quaker-influenced co-operative ethos.
• Green bonds have a tried and tested track record.
• The Government committed to developing a nature recovery network in the 25-year environment plan.
• A £640 million nature for climate fund will support community-led tree planting schemes in England.
• Over 40 million trees are planned to be planted to bolster carbon capture.
• The Bill aims to allow co-operatives and community benefit societies to raise finance through redeemable green shares.
• It includes safeguards to prevent undermining of a society’s conversion into a commercial company.
• Robin Hood Energy collapsed in Nottinghamshire, leading to over 200 job losses.
• Grant Thornton's report on Robin Hood Energy failure highlighted inadequate governance and risk management.
• Co-operatives have been part of British society since 1844.
• There are approximately 7,000 co-operatives operating in the UK with a combined turnover of around £38 billion.
• The Bill seeks to create a new class of share that is restricted to environmentally sustainable investment and protects the mutual model of ownership.
• The Minister congratulates Anna McMorrin for securing the private Member’s Bill.
• Significant contributions from multiple Members are acknowledged.
• Treasury officials hosted an innovative mutuals workshop last year to drive practical changes.
• The Co-operative and Community Benefit Societies Act was passed in 2014.
• Investment limit for members increased from £20,000 to £100,000.
• The Treasury worked with HMRC to ensure companies converting to co-operatives are treated fairly.
• The Chancellor announced a £3.05 billion package for housing decarbonisation in July.
• A green finance strategy was published last year aiming to align private sector financial flows with clean growth.
• The Bill proposes shares that may have characteristics similar to high-risk mini bonds, raising concerns about consumer protection.
• The lack of clarity about the promotions regime and regulation of underlying instruments poses challenges.
• Dame Elizabeth Gloster’s review will report in November.
• Co-operatives UK noted that the Bill would be impractical and counterproductive, restricting rather than expanding scope for societies to take on mission-aligned investment.
• Anna McMorrin is the Member of Parliament (MP) for Cardiff North.
• The Co-operative and Community Benefit Societies (Environmentally Sustainable Investment) Bill aims to encourage co-operatives to invest in environmentally sustainable projects.
• Steve Double acknowledges the importance of environmental sustainability but argues against polarizing the debate on climate change.
• The speaker is concerned about people being put off from supporting environmental initiatives due to recent events.
• Acknowledging achievements and commitments can make more progress in green technologies investment.
• There are unanswered questions regarding the Bill's proposals.
• The UK is fourth in the climate change performance index produced annually by Germanwatch.
• There are currently around £4 billion worth of assets under management through credit unions in the UK compared to £4.7 trillion in the US and £2.4 trillion in Germany.
• Cerberus, a private equity house, bought £16 billion-worth of high-risk assets from Northern Rock and uses complex vehicles to avoid paying corporation tax.
• The speaker introduced a private Member’s Bill five years ago.
• Midcounties Co-operative is mentioned as an example of a co-operative business.
• There is concern about potential financial risks associated with narrow investment legislation.
• The Bill aims to provide a legislative blueprint for communities to work together towards creating a more sustainable green society.
• McMorrin expresses hope that discussions will continue to create legislation that can make a difference.
• She withdraws the motion and the Bill.