How Your Financial Choices Impact the Environment and Society
Did you know your choice of bank could significantly impact the environment? Many of us are unaware that our money might be supporting practices harmful to our planet. Choosing the right bank provider can impact our environment massively but it can also impact other areas of concern across our world such as cheap labour, weaponry funding and more.
Unethical Banking Practices
There are many banks that have a history of links to the arms trade, oil, and gas industries, and more. These are things that the majority do not support, and we often do not realise that our money is being used to support them.
We are facing a climate and ecological emergency and a lot of banks are using our money to fund climate threatening practices and invest in environmentally destructive businesses under our noses. When we deposit money into our bank, the bank unfortunately does not sit on that money, instead, they use it to lend money to businesses, in some instances including fossil fuel producers. And the worst banks for this are more often the ones you pass by on the street daily.
What to Look for in a Sustainable Bank
There are two main points to look out for when it comes to finding the right and most sustainable bank. How do they invest? And do they pay their share of taxes fairly?
First, look for a bank with full transparency. Transparency is key when it comes to analysing the ethical thinking of a company, and most often than not the business should disclose this on their website.
Secondly, unsustainability can be determined if the company appears to avoid tax, this is not something that directly impacts our environment, but it can create long term problems economically and environmentally.
How can I tell if my bank is ethical and sustainable?
Zero Smart ranked banks based on how they score in ethics and environmental action and investment, unfortunately, this showed many high street providers are low on the list. It is important to know what to look for when it comes to choosing or switching banks. Which.co.uk also shared a table that displays a list of unethical banks and the reasons behind this.
The best option is those who are transparent about their work and investments. Most often the best banks disclose this visibly and accessibly on their website.
A website, Green Eco Friend, claimed that a few of these points should be covered and listed on their website for full transparency: a sustainability statement, a modern slavery statement, carbon emission and reduction target, and investment transparency.
There are many well-known banks that conform to these requirements and prove themselves to be ethical and sustainable. These are Tridos, Co-operative, Monzo, Starling, Nationwide and more and you can find out more about each bank on the Zero Smart website.
The above image shows what statements the top banks are transparent about.
Most of us feel powerless and sometimes oblivious to what is happening with our money, but taking time to research and understand what your bank provider is investing your money can open your eyes to the many possibilities. It is worth considering switching you a new bank that way you can reduce the impact you are your money has on our environment.
Make sure you know what is happening with your money. Think, choose, and act smart when it comes to where your money goes and is invested. You will be contributing to a better environment for future generations.
