June 2023

While trying to adopt a sustainable lifestyle, people often forget about their finances as it is a complex subject. So, let us break it down into easy-to-digest subtopics and start making our money green!

Let’s start to shed light on ‘green banking’, a financial approach prioritising environmental sustainability.
But why should you care?

This article delves into the importance of awareness of green banking, provides insights on ensuring your money is invested in eco-friendly projects, and directs you to reliable sources for further information on embracing a greener banking experience.

WHAT IS GREEN BANKING?

Green banking follows the rules of sustainable banking. It aims to drive public and private investments towards clean energy projects and fight climate change. The financial institutes practising this type of banking are called green banks.

WHY SHOULD YOU BE AWARE OF GREEN BANKING?

Because ultimately, it's your money that your bank uses for investments.

Did you know all the financial institutes you put your money in further invest that money to gain profit? You may not be putting your money directly into eco-hazardous projects. Still, you might indirectly do that by not choosing a green financial institute/bank!

To ensure your finances support sustainable, climate-resilient investments, you must be careful about the money you spend on stuff and the money sitting in your banks, pension funds, investments, securities, and insurance.

Let’s talk about how you can do that. Read the following paragraph to learn more. ↓

HOW TO ENSURE YOUR MONEY IS INVESTED IN GREEN PROJECTS?

Investigate how sustainable or green your bank is to ensure your money is invested in green projects.
Some ways to figure this out are:

Under EU rules, big European banks must disclose sustainability-related information in annual reports called Environmental, Social and Governance Reports, or ESG. Based on these reports, you can take control of your finances and choose a ‘green bank’ to put your money in.
Conduct an Ecosia search to find your bank's report using the format: “<bank-name> + ‘impact report’ or ’ESG report’"
Check for External Certifications →. Financial institutions most committed to driving positive environmental impact tend to get third-party certifications or join networks focused on climate action.
Check the bank's website at the bottom or on an About Us page for designations, including Certified B Corporation, Global Alliance for Banking on Values membership, Fossil Free Certified, etc.
Ask your bank about their Investments →.
Look out for investments in eco-hazardous projects.

Whatever your vision for a sustainable future, whether renewables or equitable communities, there's an easy way to support it by moving your cash around. It could mean the difference between sustaining the future you hope for and funding initiatives that do the exact opposite.