WORLD FIRST AS CIS SEEKS CUSTOMERS' VIEWS ON SOCIALLY RESPONSIBLE INVESTMENT

Co-operative Financial Services [REMOVED GRAPHICS] News Release WORLD FIRST AS CIS SEEKS CUSTOMERS' VIEWS ON SOCIALLY RESPONSIBLE INVESTMENT Investor power received a massive boost today (1 March, 2004) when Co- operative Insurance Society (CIS) became the first insurance company in the world to invite all its customers to have a say in the development of its Socially Responsible Investment policy. CIS, which is a major investor in shares, property and bonds, will devise a unique Socially Responsible Investment policy based on the results of a consultation with its five million policyholders later this year. In a detailed questionnaire, customers will be encouraged to express their views on a wide range of corporate governance, social, ethical and environmental issues. Issues expected to be covered include whether a company's involvement in countries with oppressive regimes, such as Burma, helps or hinders the advancement of human rights in that area. Or should CIS focus more attention urging companies to reduce their contribution to global climate change by becoming less reliant on fossil fuels? What about human rights - are there basic minimum standards, which should apply all over the world and should CIS increase or reduce its current level of engagement with companies' boards over such issues? CIS is already firmly established as one of the pioneers of responsible shareholding in the UK and in 2002 became the first institutional investor to publish its UK voting record on the Internet. The production of a customer mandate for CIS' socially responsible investment mirrors the process that has existed at The Co-operative Bank for more than a decade and which helped to produce its famous Ethical Policy. In 2002, The Co-operative Bank and CIS were brought together under common leadership when Co-operative Financial Services (CFS) was formed. Mervyn Pedelty, Chief Executive of CFS said: "Since 1999, CIS has operated a responsible shareholding programme whereby it seeks to improve the corporate governance and the social, ethical and environmental performance of those companies in which it is a shareholder. "In the best traditions of the co-operative movement, we believe CIS' customers have a right to have a say in that policy. These are not easy subjects and we think that the social, ethical and environmental issues on which we engage should reflect the values of our customers. Customers will vote on the substance of the policy in a detailed poll in Autumn 2004 but, between now and then, CIS policyholders will be actively encouraged to register to have their say and to let CIS know whether they agree with the development of a Socially Responsible Investment policy and which issues are currently of most concern to them. For further information contact: 1 March, 2004 Dave Smith/Carolyn Hicks Co-operative Financial Services Press Office Tel: 0161 829 5397/5091 Fax: 0161 829 4590 e-mail : DaveA.Smith@co-operativefinancialservices.co.uk ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/03/01/20040301BIT00270/wkr0001.doc http://www.waymaker.net/bitonline/2004/03/01/20040301BIT00270/wkr0002.pdf