06 June 2023
Donore and ESG: It’s Easy as 1 2 3
Firstly, I have a confession to make.
I watch love Island at 9pm every night. I live for that reality tv gossip. Who will ‘couple-up’ with who? Will she ‘crack on’ with the newest bombshell? Or, more importantly… are her lips real? While we’re on the subject of confessions, yes, I have fallen into the fast fashion ‘Black Friday’ trap, and I may have made some impulse buys spurred by the latest TikTok trending product. Trust me to fall for a Gen Z savvy marketing campaign.
At this point, you’re probably wondering what on earth does this have to with Donore Credit Union and ESG. Well, unlike those aesthetic social media campaigns ‘talking the ESG talk’, Donore ‘walk the ESG walk’. When it comes to Donore, there is no ‘catch’ to ethical decision making. So, if you’re like me with some of those impulse purchase confessions to make, read on to see how Donore is ‘cracking on’ with their ESG agenda.
What is ESG?
As our world is learning to transition from a linear to circular economy, ESG is stepping forward as the ‘BFF’ of big corporations. We’ve all seen the glossy ‘Going Green’ ads, made to keep investors happy. But… what does it all mean? When we hear the term ‘ESG’, we may be reminded of our carbon footprint, or it may even conjure images of Greta Thunberg getting carried by police at an environmental protest. Put simply, ESG represents three different pillars of ethical, organisational decision making:
In a large commercial bank (no name-dropping here) ESG can be profit driven to secure capital, but what does that actually do for you and me? What if there’s an organisation out there who sees that profit isn’t everything? An organisation that can make tangible positive impacts in your local community. Spoiler alert… it’s your local credit union. Unlike one of those longwinded corporate sustainability reports (que yawn), this blog breaks down Donore’s ESG agenda into three simple steps. That’s right, it’s easy as 1 2 3.
1. Environment
The model with which Donore conducts business, is rooted in sustainable finance. It reflects the premise of the circular economy. This is summarised by the president of the ILCU:
"Credit unions provide communities with the infrastructure to circulate again and again local resources, which is the very essence of sustainability"
However, can a small credit union really impact the environment? in Donore’s case, yes it can. Donore offer cheaper loans for electric vehicles, including e-bikes (like the one that got a Deliveroo spice bag to your door last week). Alternate rates are also offered on Green Home improvement loans. Beyond physical products, investments with green targets are a priority for Donore. On a smaller scale, Donore physically demonstrate to the commuters of the South Circular Road, what it is to care for the environment, by adding rooftop solar panels and a green garden to the Rutledge Terrace yard.
2. Social
Let me set the scene. It’s the morning after a Thursday night out. Your wallet got left behind on the dance floor, so it’s ‘bye-bye’ to your bank card. Your next step is to report your card as lost, so you ring your bank. Half an hour later, and your head is spinning from the repetitive ring of the music-on-hold soundtrack. The experience leaves a bad taste in your mouth (on top of your 2am kebab).
To contrast, the ethical values of your credit union include honesty; openness; social responsibility; and caring for others. Rather than an automated ring tone, Donore Credit Union can personally facilitate your query over the phone, face-to-face, or even via the Donore Credit Union App. As well as supporting the financial needs of members themselves, Donore provide funding for social, sports, residents, arts, and culture organisations in the community.
The effect on the community includes a sense of belonging, increased income, the ability to manage money, and even improved standard of living. Donore go a step further in measuring the benefit of these values in the Social Return on Investment study. In 2022, this revealed that for every €1 equivalent invested into Donore Credit Union, in the region of €10 of social value was created.
3. Governance
I don’t know about you, but I used to think the credit union was where the local grannies stashed their hard-earned bingo cash winnings. Well, the credit union is actually an organisation that was always far ahead of its time. When some organisations were slow to add women to their board of directors, it was the three Byrne sisters that established Donore Credit Union in 1958. Even in 2021, while there was 28% female representation on the board of commercial banks, credit unions had 36% [3] [4]. That’s right, your local credit union says yes to girl power.
Governance in credit unions is defined in the core values of co-operatives: self-help; self-responsibility; democracy; equality; equity; and solidarity. Becoming a member, means becoming a shareholder, which means having a voice. To add to this, the board at Donore is made up completely of volunteers. This means that time and expertise is solely put toward helping members and benefitting the local community. It is this level of localisation that puts Donore in a unique position, relative to other profit driven, financial institutions operating on centralised decision making.
What Should I Do Now?
If you haven’t got the memo by now, ESG is in Donore’s DNA. This blog has shown how sustainable finance can deliver sustainable communities, but to do this, communities must ensure they sustain their local credit union [2]. That means, that if you’re sick of getting fooled by hollow marketing campaigns, want to make a positive impact on your locality, and be able to have a financial service provider that you can trust, then it’s your local credit union that you should ‘couple-up’ with.
