Making money matter

We often forget that our money is one of the most powerful tools for making a stand on environmental sustainability (see UN Sustainability Goals). Whether you have a small amount in your current bank or savings account, or thousands in your pension pot, using your finances to cut your carbon emissions is more significant than giving up flying or going vegetarian. So why not take stock on how you use your money.
Who do you bank with? Where are your savings, pension or investments deposited? Making the right choices can significantly reduce the size of your carbon footprint as well as helping to protect the natural world.

How green is your bank?

Personal banking, savings and investment can all contribute positively to a more sustainable planet; making the wrong choices can have significant negative effects.

When you put your money into a current account or savings, it doesn't just sit there; substantial sums are used to support individuals and businesses and generate profit. Some of these investments benefit the environment; others cause substantial harm. Though they would have you believe otherwise, the ’ big five’ high street banks are variously still financing coal, oil & gas, supporting nuclear weapons (see:dontbankonthebomb), are involved in human rights  abuse and/or facilitating wetland or rainforest destruction. The number of greenwashing instances in 2023 (misleading sustainability-related claims to investors or consumers) involving UK banks rose by 70%, much of it related to claims about fossil fuels.

‘Banking on Climate Chaos’ reports how since the Paris Climate Agreement in 2015, the world 60 biggest banks have financed fossil fuels to the tune of $38 trillion. Indeed our present UK Government continues to press ahead with new fossil fuel investments boosting research and extraction and extending offshore drilling in the massive new Rosebank oilfield.  Worse still the public are effectively subsidising more than 90% of the costs (£2.8 billion) through a deliberate loophole in its windfall tax.  2023 was the hottest year on record with freak weather events across the globe and global carbon emissions at an all-time high and the UK Government appears to be ignoring the stark warning from its own Climate Change Committee that it is not on track to meet its declared targets and is losing its position as a former global leader on climate. 

Ethical banks or building societies avoid investing in environmentally harmful or otherwise unethical industries enabling you to have a say in how your money is used and often to support causes important to you. This might involve reducing the impact of climate change, or avoiding gambling or animal testing. ‘Good with Money’ lists the top 7 ethical accounts in 2024. Consider changing to one of the ethical banks (Triodos, Starling, Monzo, Charity Bank, or Nationwide and other building societies); for more details visit this posting on  'Good with money'.

How green is your pension?

We know that greening your pension cuts your carbon footprint 21 times more than going veggie, stopping flying and changing your energy provider combined. But which scheme is the greenest?  After the hottest year on record ‘Make my money matter’  recently produced what they claim is the first ever ranking of pension providers. Even top ranking Aviva and Legal and General still only score just over 5 out of 10! Why not check up how your pension company uses you money and then visit Ethical Investors.

Your money has power; plan to use it wisely to make a positive contribution to the health of the planet.