Is Metro Bank ethical?
Our research highlights several ethical issues with Metro Bank, including limited policies on human rights and possible funding of factory farming.
Below we outline some of these issues. To see the full detailed stories, and Metro Bank’s overall ethical rating, please sign in or subscribe.
Lending policies
Metro Bank does not lend directly for arms manufacture or military activities. Many banks are major financiers of arms companies, supplying weapons for military use in Gaza, Sudan and elsewhere – making Metro Bank’s policy a positive step towards addressing its impacts on human rights.
However, its ethical lending policy overlooks other important issues. For example, it does not mention companies’ track records on workers’ rights, or exclude loans to companies linked to oppressive regimes. It scored fairly poorly for its lending policies overall.
Environment and climate
Metro Bank also has a mixed record when it comes to the environment.
The company has an ethical lending policy that states: “As an ethical community bank, we do not lend directly for: metal ore mining, coal mining, peat, oil or gas extraction, fossil fuel power generation, activities that cause deforestation, arms manufacture or military activities." Many banks still finance the fossil fuel sector, locking us into their use for many years to come. Metro Bank has therefore taken positive steps to address this and other environmental problems through its policy.
The company also reports on all its emissions, including its emissions from its lending and investments. However, it does not appear to discuss ways in which it can reduce these emissions from its financing activities – for example through engaging with companies and strengthening its exclusion policies. Metro Bank scored poorly in Ethical Consumer’s climate rating overall.
Animals
The company does not appear to have any ethical lending policies related to animal rights – meaning that it could still be lending to companies involved in factory farming or other animal welfare issues.
In December 2023, the animal rights group World Animal Protection published a report titled ‘Banking on Welfare: Why your money matters for animals’, which criticised the company. It stated: "The absence of a dedicated animal welfare policy in a bank raises concerns, as it suggests that our funds, including pension investments, insurance premiums, and bank deposits, may inadvertently support animal cruelty through the companies these banks finance."
Politics and finances
Metro Bank scores very badly in Ethical Consumer’s tax conduct rating. The Ultimate Holding Company of the group was registered in the British Virgin Islands – a tax haven – even though its primary officers were elsewhere, making it high risk for use of tax avoidance strategies.
The text above was written and most of the research was conducted in February 2025.