- How ethical is your bank? Do you know where your money is being invested? Does it align with your values and beliefs?
- Voting with our dollar goes beyond the goods we buy, and extends into where we store our money. Our social responsibility to both the environment and people extends into the institutions we trust with one of our most valued material possessions. The environmental and social influence banks have cannot be understated, as their conglomeration of financial affluence gives them a unique position and responsibility to make change.
- While this might seem obvious, how much do you know about your banking institution? Where is your money being invested? You might be surprised to see some of the world's biggest banks invest trillions in fossil fuels and private interests such as prisons. Profiting off of the misfortune of marginalized communities, many banks further their wealth agglomeration by victimizing vulnerable populations.
- European based bank Nordea reports that choosing to invest your money and working with banks aligning to sustainable principles can be 27 times more efficient than many common lifestyle changes associated with sustainable living. While shortening showers, reducing airline travel, and eating less meat are beneficial, one of the best methods for reducing your carbon footprint is also one of the easiest. Sustainable banking weighs its impact on not only environmental risk, but also ethical risks in financial sectors.
- While it is important to ask further questions when considering any financial insustion, consider looking for banks that are adhering to sustainable banking principles or are certified by legitimate ethical and sustainable organizations like B-Corp, such as Aspiration, City First Bank, or Spring Bank.
- Further reading: https://www.banks.com/articles/banking/sustainable-banking-principles/b, https://www.nordea.com/en/doc/sustainable-finance-at-nordea.pdf, https://www.thegoodtrade.com/features/green-banking