Why You Should Rethink Your Bank Account?
Rethink Your Bank Account, Invest in the Planet (Inspired by Chris Packham)
One of the most impactful yet often overlooked ways to live more sustainably is to reconsider where your money is stored and how it’s used. Traditional banks often invest heavily in industries like fossil fuels, deforestation, and large-scale industrial agriculture—sectors that significantly contribute to climate change and environmental degradation.
I cannot emphasise how significant this point is, hence have expanded and broken it down a little.
The Problem
Most major banks prioritise profits over sustainability (you could argue most corporations!), channeling customers’ savings and investments into industries with high returns but significant environmental costs. These include financing coal, oil, and gas extraction, supporting deforestation for agriculture or mining, and funding large-scale infrastructure projects that harm ecosystems. This focus on short-term profit often comes at the expense of long-term environmental health.
Even if you live a sustainable lifestyle, the money in your bank account might be working against your values by enabling environmental harm.
To spot greenwashing in financial institutions, look for transparency in how they invest, with clear examples of sustainable projects and third-party certifications like B Corp. Be wary of vague claims, over-reliance on carbon offsets, or continued funding of fossil fuels. Check their history of environmental advocacy and verify that “green” products are genuinely impactful.
Here are some resources that provide further information and transparency on the banking sector, the status of your current bank and many other insights that are generally overlooked:
BankTrack: https://www.banktrack.org/banks
Rainforest Action Network: https://www.ran.org/the-understory/banking-on-biodiversity-collapse-2024-banks-and-investors-continue-to-finance-deforestation-while-governments-are-asleep-at-the-wheel/
Banking On Climate Chaos: https://www.bankingonclimatechaos.org/?bank=JPMorgan%20Chase#fulldata-panel
Some solutions
Ethical banks and credit unions are financial institutions that prioritise environmental, social, and governance (ESG) factors when deciding where to invest, such as renewable energy projects, community-focused development, sustainable agriculture and conservation efforts.
Look for institutions certified as B Corps, or those listed under sustainability watchdogs like BankTrack. Some examples include Triodos Bank, Aspiration, and Ecology Building Society.
To spot greenwashing in financial institutions, look for transparency in how they invest, with clear examples of sustainable projects and third-party certifications like B Corp. Be wary of vague claims, over-reliance on carbon offsets, or continued funding of fossil fuels. Check their history of environmental advocacy and verify that “green” products are genuinely impactful.
Changing where you bank might seem like a small action, but it has a ripple effect. The more people demand ethical banking, the more pressure it puts on traditional banks to shift their practices.
Here are some resources that highlight greener financial institutions:
MyMotherTree: https://www.mymothertree.com/
Bank.Green: https://bank.green/
Switch It Green: https://www.switchit.green/about
Your money has power—use it to invest in the world you want to see. I know it sounds like a lot; it might be, but it helps.
A shift in mindset is needed.
Vote with your money.
