Ensure good financial stewardship of our investments and donations

We balance our desire to lend to marginalised communities with the element of risk involved. Our prudential lending limits are set by the Board and specify the proportion of Share Capital, which can be lent by commodity, country risk category, region and product.

This year, we introduced a new limit for stock facility lending of 15%, and also created a new set of limits when lending to likeminded organisations that, although follow Fairtrade principles, are not certified Fairtrade.

The majority of our £36.4m in Share Capital is deposited in GBP in fixed rate deposit accounts. The funds lent to our customers in foreign currency (GBP, USD, EUR and AUD and Kenyan Shillings) are from currency loans secured against the deposited Share Capital. We have therefore naturally been impacted by the currency fluctuations since the referendum decision to leave the EU.

At 30 September 2016, the Co-operative Bank was our main banking partner but we continued to review alternatives, as well as its own strength and ethical performance under new ownership. Shared Interest Society and Shared Interest Foundation have prepared their financial accounts this year under new UK Generally Accepted Accounting Principles (UK GAAP), reporting under FRS102.

You can view the full version of our Impact Report here

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