Why are Banks NOT Eco-friendly?
Once upon a time, back in 2016 a load of world leaders met in Paris. The Paris agreement was put together to try and stop our world heating up too much, and you know causing choas, breakdowns etc. But did you know since then, 6 years later our banks, using our money have financed the fossil fuels industry with $3.8 trillion. Makes you pretty angry ey? Yeah me too.
Five of the UK’s most popular high street banks were found in the top 60 unethical banks who finance the fossil fuel industry, meaning banks are one of the key players in the climate crisis not being dealt with and overall not eco-friendly or sustainable.
We often wonder how we, just us ordinary individuals can make a difference in the fight against climate change, because surely just recycling correctly, buying our veg loose and switching our lights off when we leave a room isn’t going to change the world right? Well changing our bank to one that has the environment in mind is one of the biggest ways we can put our money where our mouth is and make sure the right investments are being made for the future.
How can banks use our money for the fossil fuel industry?
Of course your wondering how your bank has anything to do with the environment?
Put simply when you put money in your account it doesn’t just sit there in your own vault. Banks use this money to invest and make more money. Unfortunately many UK high street banks are investing in fossil fuel industry which is not helping us cut emissions.
And it’s not just environmental, HSBC, Barclays, RBS and Lloyds have all loaned to companies dealing in arms to Israel. We think our everyday actions and spending isn’t in anyway political but unfortunately that is not the case.
Which is the most sustainable bank in the UK?
Triodos is the most ethical bank operating in the UK. Not only do they not invest in fossil fuels they only lend your money to businesses committed to having positive social, environmental and culture impacts. They also publish all their investment for transparency. (It is the only UK trading bank to have done this annually.)
Though a fairly new bank set up in the Netherlands in 1980 by Rudolf Steiner, (also behind Steiner Schools) Triodos seems to be giving all it promised rated 4.9 out of 5 overall by the Smart Money People.
A nice added extra to banking with Triodos is a bio degradable bank card made from plant based materials however having a current account with them will cost you £3 a month so be aware of this before signing up. Though this is counter by the fact they will not let you go into an unarranged overdraft and charge you for the privilege.
Which UK high street banks are the worst climate offenders?
A 2021 report found 5 British high street banks on their 60 most unethical banks worldwide. Barclays being the worst climate offender funding over $144 Billion to the fossil fuel industry. Closely followed by HSBC, Santander, Natwest and Lloyds.
Barclays who I have sadly banked with for most of my life were 7th on the list of 60.
Which UK high street bank is the most sustainable?
The Nationwide comes out top in the British high street for ethical and sustainable banking. It’s actually a building society not technically a bank which means it is not on the stock market and not accountable to shareholders who want to make the most amount of profits.
While I think Triodos is the best option for putting your money in and who I personally have now chosen to bank with after a lot of research, if you want to go with something more well known to you The Nationwide is a great option.
Yorkshire Bank, Metro Bank and Clydesdale Bank also scored high with The Ethical Consumer.
How easy is it to switch to an ethical bank?
I recently switched to Triodos and the process could not have been simpler. I simply downloaded the app which walked me through the process step by step and used video to help confirm I was who I said I was. I only needed one form of ID (a passport or drivers license and a national insurance number. I then waited for confirmation which took about an hour and I was sorted.
Of course the most annoying bit of switching your bank account isn’t the setting up but changing all your direct debits and payments. My advice if this seems a little over whelming is to do one a month. You don’t have to close your old bank account straight away. Then change your the account with your employer (if you have one last).
Now more than ever we need to hold huge companies to account, profit can no longer go before the plant and the people living on it. Switching to a more ethical and eco-friendly bank is one way to do this. Good luck switching.
