It is so easy to feel powerless today. Profits continue to drive moral and ethical decisions in the corporate landscape. How can our voice be heard and what difference can we make individually? Well, we do still have some power. Where we choose to bank and invest is one of the most impactful ways, we can influence change. By consciously choosing institutions that prioritize sustainability over profits, we can collectively redirect the flow of capital to businesses that care about the environment, social equity, and ethical governance. If the old adage, “Money Talks”, still holds then let it shout what you stand for! Let’s take some pride in the companies we support.

“Every time you spend money you’re casting a vote for the kind of world you want.”

-Anna Lappé

Why Choose Sustainable Banking and Investing

The real question is why not? Sustainable banking and investing is simply placing your money in financial institutions or investment funds that prioritize environmental, social, and governance (ESG) criteria. These institutions actively invest in businesses that are committed to reducing carbon footprints, promoting fair trade, improving labor conditions, and developing renewable energy technologies, among other eco-friendly practices.

Why does this matter?

Hopefully most people understand at this point that their money does not just sit in the bank when they deposit it. The banks use your money for investments and loans so they can make a profit.

I wonder what would happen if you decided to call the owner(s) of you bank and talk to them about how you would like them to use your moolah. Do you think they would listen?

By banking with institutions that value sustainability, you directly support efforts to combat climate change, promote social justice, and build a more equitable, greener economy. You are also voting for a healthier and more sustainable future this way. If you really want banks to listen, this is a great way to get their attention.

How to Discover What Your Bank is Doing with Your Money

If you’re unsure what your current bank is doing with your money, here are a few steps to find out:

• Check the Bank’s Website
  Look for sustainability or CSR (Corporate Social Responsibility) sections that outline their commitment to eco-friendly initiatives. Some banks provide annual reports that include breakdowns of where customer deposits are allocated.
  
• Ask Directly
  Call or email your bank to inquire about their policies regarding lending to industries like fossil fuels, mining, or deforestation. A responsible bank should be willing to provide this information.
  
• Use Third-Party Resources
  Several websites and non-profit organizations track the sustainability practices of banks. For example, The Rainforest Action Network regularly publishes reports on how banks contribute to environmental destruction, while Good With Money provides rankings of the greenest banks.

How to Identify Sustainable Banks

Discovering what banks are doing with your money is crucial to ensuring their beliefs align with your own. Here are key steps to identify sustainable and ethical banks:

1. Research Ethical Banking Institutions

Some banks are explicitly committed to sustainability and make it easy for you to understand how they use your deposits. These banks might emphasize loans for renewable energy projects, green buildings, or small businesses committed to environmental stewardship.

For example, Aspiration, an American digital bank, promises that customer deposits will never be used to fund fossil fuel projects. Similarly, Triodos Bank, a pioneer in ethical banking, is known for financing only sustainable projects and is transparent about where customers’ money goes.

2. Investigate a Bank’s ESG Commitments

A good place to start is by reviewing the bank’s ESG (Environmental, Social, and Governance) policy. Many financial institutions publish ESG reports detailing how they manage these issues. These reports provide insight into how seriously a bank considers sustainability in its operations, lending, and investment practices. They should highlight efforts like financing green projects, reducing internal carbon footprints, and supporting social equity programs.

3. Look for B-Corp or Green Certifications

Certifications are another way to gauge a bank’s commitment to sustainability. Look for institutions that are certified B Corporations or those that have received green certifications such as the Global Alliance for Banking on Values (GABV). These certifications signal that a bank is held to high standards of social and environmental performance.

4. Scrutinize Investment in Fossil Fuels

One of the easiest ways to determine whether a bank aligns with your sustainability goals is to see if they invest in fossil fuels. Many of the world’s largest banks still finance oil and gas extraction, even as the climate crisis worsens. Organizations like BankTrack provide tools to check how much a bank is investing in fossil fuels and other unsustainable practices.

Investing in Sustainable Companies

Just like with banks, it’s essential to vet the companies and funds in which you invest to ensure they prioritize sustainability over short-term profits. Here are a few ways to get started:

1. Opt for ESG-Focused Funds

Many investment firms now offer ESG funds that focus on companies with strong environmental, social, and governance track records. These funds screen for companies that are leading the way in climate-friendly innovation, fair labor practices, and sustainable resource management.

2. Check Company Transparency

When investing in individual stocks, make sure to research the companies’ sustainability reports. Look for transparency regarding environmental goals, such as carbon neutrality targets, waste reduction programs, and supply chain ethics. For example, companies like Patagonia and Unilever are often cited as examples of corporations that are committed to sustainability.

3. Use Ethical Investment Platforms

There are also investment platforms specifically designed to help individuals invest ethically. For example, platforms like Ethic and EarthFolio allow users to tailor their portfolios to align with their personal values, including environmental and social sustainability.

Wrapping Up

Bank and invest in institutions that support causes that align with your values, rather than contributing to industries that damage the environment. Whether you’re shifting to an ethical bank, choosing an ESG-focused investment fund, or holding companies accountable for their environmental impact, taking control of where your money goes is a powerful way to drive positive change in the world.