Scottish lending grows at ethical bank Triodos

ETHICAL bank Triodos grew its Scottish loan book by 18 per cent last year as the environmental and social enterprise sectors it supports thrived in the difficult economic conditions.

Since opening an office in Edinburgh in 2006, Triodos Bank's lending in Scotland has grown from 14m to 44m, with most of its funding going to groups focused on renewable energy and the arts.

Social enterprises are businesses set up to help a certain section of society or with an environmental aim - examples include Jamie Oliver's Fifteen restaurants and the Big Issue. Last year Triodos' Scottish customers included the Wasps Trust in Glasgow and the Big Issue Foundation Scotland. Triodos has also funded a number of small-scale wind power projects in remote locations north of the Border.

Managing director Charles Middleton said the restriction of high street lending and problems in the wider economy had encouraged a "creative" way of thinking about enterprise, with alternatives to the private and public sectors gaining in popularity.

He said: "It's interesting how resilient and stable the sustainable industry has been. Many of our customers are driven not by the bottom line but by their desire to do something. They are more motivated to make it work, and if that means cutting back a bit themselves then they will do that."

He warned that the resilience of the social enterprise sector would be tested further as public sector cuts kicked in this year and beyond.

Middleton said Triodos was targeting a number of new sectors where it wanted to encourage growth, such as "care farms" - farms aimed at providing a therapeutic experience - and ventures seeking solutions to food waste.

Because of its business model, Middleton said Triodos was hardly affected by the credit crunch, and has benefited from people's changed attitudes to banking as some companies and individuals rejected mainstream banks.

He said deposits grew by 30m last year, "which we are very happy with because it's an incredibly competitive market at the moment".

Unlike those at the helm of high street banks, Middleton stressed he is not expecting a bonus - the bank sets aside just 2 per cent of its wage bill to reward "exceptional work".