Why should you change your banking provider?
Where you keep your money has a significant impact on the environment. That’s because the bank you use could invest your money in unsustainable businesses. The Banking on Climate Chaos report (2022) found that the world’s top 60 banks had provided USD $4.6 trillion in the fossil fuel industry in the six years after the Paris Agreement was signed. USD $743 billion of that financing came happened in 2021 alone.
Furthermore, the big five banks in the UK, HSBC, Barclays, Santander, NatWest and Lloyds, channelled USD $368 billion into the fossil fuel industry between 2016 to 2021
By moving away from the Big 5 banks, you are sending a strong message that you do not want your money to be used in the investment of fossil fuels or other unsustainable practices. If you are planning on changing banking providers, let them know why you’ve left by reaching out to them on social media or sending them an email. Make My Money Matter also have a great open letter on their website you cud sign.
Now you know why choosing a sustainable bank is essential in reducing the impact of the climate crisis, here are some of the UK’s top sustainable banks and building societies.
Monzo
Launched in 2016, Monzo has no physical branches (apart from their offices), so their environmental impact is automatically reduced. However, Monzo has also set out four clear environmental targets:
- To reach net-zero emissions across their entire value chain by 2030.
- To measure and report their carbon footprint annually and publicly share the results.
- To have strong governance for environmental policies, including regular reporting to executives and the board.
- They are not investing in fossil-fuel-based energy companies, arms or tobacco companies.
Monzo also discusses their investment and social policies, as well as their gambling protection and mental health support initiatives, on their website.
Nationwide Building Society
Nationwide building society is different from traditional banks. That’s because, as a building society, they are not run by shareholders but are owned by their members.
Nationwide Building Society is a member of the Net Zero Banking Alliance and the UN’s Principles for Responsible Banking Initiative. Since April 2020, Nationwide has been classed as carbon neutral in their operational greenhouse gas emissions. Furthermore, Nationwide do not invest in fossil fuels. They state on its website that its active strategies do “not involve lending to, or investing in, businesses which have a negative impact on society and the environment, such as fossil fuels”.
Triodos Bank
Triodos Bank is a certified B Corp, that only offers investments that create positive change. A current account at Triodos funds things like renewable energy, sustainable farming, education and charities and commits to not financing fossil fuels, fast fashion, weapons or tobacco. The bank also offers amazing transparency on what your money is used for and users can see what their money is investing via Triodos’s investment map. You can read more about the sectors Triodos fund here.
They have also won awards for being the Best Sustainable Investment Fund in 2019 and for the Best Sustainability Reporting by an asset or fund manager in 2020.
Starling
Starling Bank is the UK’s first fully digital bank and has been paperless and branchless since its launch. The bank is committed to reducing its environmental impact and is currently working towards becoming carbon neutral. They also state on their website that they “do not invest directly in fossil duels, which includes new fossil fuel extraction.
Other environmental initiatives Starling Bank offers are their debit and credit cards made from recycled plastic, their commitment to greener officers and the launch of their own climate action group, TechZero.