One of the main causes of the climate emergency we are facing is fossil fuel consumption. Due to the conditions, over 43,000 people perished in Somalia alone last year, with children under five accounting for half of those deaths.
Though, lately, there has been a big investment in fossil fuels, but are there banks that don’t invest in fossil fuels? Well, we are about to find out. Please, read up to find these sustainable banks.
Currently, 36.4 million people are in danger of famine. For the past five years, the rainy season—which is essential to existence in these mostly pastoral and agricultural communities—has failed.
Furthermore, many in the UK have noted that droughts and other extreme weather events have increased the cost of groceries and heating bills, indicating that the effects of climate change are already being felt there as well.
Droughts, floods, and wildfires are a few climate-related shocks that can significantly affect food costs. For instance, the price of eggs in the US will increase by 60% in 2022.
According to the Guardian, growing chicken feed became 30% more expensive due to climate-related heatwaves and droughts, in addition to rising demand and an increase in avian flu.
This report on fossil fuel finance claims that since the Paris Agreement, 33 international banks have provided $1.9 trillion in financing for fossil fuels. which exceeds the total amount of money in the US economy.
To make sure we are not aiding this damaging enterprise, each of us must do our share.
This implies that to make it clear to big businesses and financial institutions that we oppose fossil fuel investment, we must remove our funds from dishonest banks!
Making the transfer to a bank that doesn’t invest in fossil fuels is one simple step that anyone who wishes to act can do.
Banks now prioritize achieving net zero goals as green technology and ESG laws require better levels of sustainable financing solutions.
Financial institutions that give environmental, social, and governance (ESG) considerations a top priority in their operations and investments are referred to as sustainable banks.
According to numerous sustainability rankings and evaluations, the following is a list of some of the banks that don’t invest in fossil fuels.
Table of Contents
Banks that Don’t Invest in Fossil Fuels
- Aspiration Bank (USA)
- KfW (Germany)
- Amalgamated Bank
- ING Bank (Netherlands)
- Charity Bank (UK)
- Spring Bank (USA)
- Standard Chartered (UK)
- Swedbank (Sweden)
- Crédit Agricole (France)
- VDK Bank (Belgium)
- Beneficial State Bank (USA)
- BNP Paribas (France)
- Rabobank (Netherlands)
- Nordea (Sweden)
- Triodos Bank (Netherlands)
- Sunrise Banks (USA)
- Nationwide (UK)
- Co-operative Bank
- Omista Credit Union
- CIBC Banks
- Bank Australia
- Commonwealth Bank
- Bendigo Bank
- Teachers Mutual Bank Limited
1. Aspiration Bank (USA)
Aspiration Bank is a unique online neobank with a focus on social responsibility and sustainability, accredited as a B Corp.
It offers a variety of environmentally friendly solutions, including as retirement funds that aren’t used to support the fossil fuel industry and loans and grants for investing in green technologies.
Because of its unwavering commitment, this bank has been approved by 1% by the Planet and Green America Certified Businesses with a clear focus on the environment.
This online-only green bank takes great satisfaction in being environmentally conscious and sustainable on all fronts. Your savings won’t be used for projects like coal mines, oil drilling, or pipelines since Aspiration, unlike many other large banks, doesn’t finance fossil fuels. With every purchase, you may also choose to plant a tree.
Additionally, by using their Aspiration Plus card, which is composed of recycled ocean plastic, you can carbon offset all of your gasoline expenditures and receive 10% cashback when you make purchases from TOMS and other participating retailers.
Customers will automatically receive carbon offsets, such as protecting natural habitats or purchasing associated gases, as part of their purchases from Aspiration Bank.
By banking with Aspiration, you’ll be able to uphold your environmental beliefs and make the world a greener place, which is an accomplishment deserving of praise in and of itself.
2. KfW (Germany)
German development bank KfW is well-known for emphasizing sustainable funding. Numerous initiatives that encourage sustainable development in Germany and around the world receive funding and assistance from KfW.
KfW provides a variety of services and solutions in the sustainable finance space that are intended to advance social and environmental sustainability.
This covers funding for energy-efficient construction, sustainable transportation, and renewable energy projects. It also covers programs that assist climate adaptation, biodiversity preservation, and sustainable urban development.
Additionally, KfW is steadfastly committed to accountability and openness in its sustainability practices.
The bank releases sustainability reports every month that include comprehensive data on its performance about stakeholder involvement, resource utilization, and carbon emissions.
All things considered, KfW’s emphasis on sustainable finance has elevated it to the forefront of the German and international financial sectors’ promotion of social and environmental sustainability.
3. Amalgamated Bank
Amalgamated Bank is the global leader of the Partnership for Carbon Accounting, a Certified B Corporation, and 100% carbon neutral. They only support clean energy sources and don’t invest in fossil fuels.
Amalgamated Bank, the first union-owned bank in history to go public, has always supported workers’ rights and now collaborates with more than 1,000 unions to achieve the best outcomes for educators, firefighters, and other workers.
The bank releases sustainability reports every month that include comprehensive data on its performance about stakeholder involvement, resource utilization, and carbon emissions.
All things considered, KfW’s emphasis on sustainable finance has elevated it to the forefront of the German and international financial sectors’ promotion of social and environmental sustainability.
4. ING Bank (Netherlands)
ING Bank provides guidance and assistance to clients looking to make the switch to a low-carbon economy, in addition to a variety of sustainable financing options, such as green bonds and loans, to finance sustainable economic operations.
Apart from its pragmatic measures, ING Bank fosters a sustainable culture by active engagement with stakeholders, clients, and employees regarding sustainability concerns and the encouragement of innovation with a sustainability focus.
To be transparent about its performance and advancement toward its sustainability goals, the bank also releases sustainability reports regularly.
5. Charity Bank (UK)
Through its operations, Charity Bank seeks to promote beneficial social and environmental effects in addition to being a social company.
The primary goal of Charity Bank is to use money for good. The bank concentrates on providing loans to businesses and initiatives that advance positive societal and environmental concerns.
This mission-driven strategy is consistent with the bank’s dedication to promoting responsible behavior and sustainability.
The bank provides loans to nonprofits, social entrepreneurs, and neighborhood groups that address a range of environmental and social problems.
Since 2002, they have disbursed 59 loans from the environmental sector to support social housing, the arts, communities, and education.
The bank indirectly supports community development, sustainability, and environmental conservation efforts by lending financial support to these organizations.
6. Spring Bank (USA)
Spring Bank, the first bank in New York to obtain B-Corp certification, is dedicated to maintaining ESG and sustainability standards.
This financial institution focused on community development provides a range of personal banking services, such as checking, savings, and lending products, in addition to business banking services, such as business accounts and loans.
Customers who choose to use Spring Bank’s services not only gain access to high-quality financial solutions but also support socially conscious efforts that enhance low-income neighborhoods by promoting small business investments and other local economic assistance programs.
7. Standard Chartered (UK)
Sustainable banking practices, which seek to strike a balance between positive social and environmental effects and financial performance, are a core value of Standard Chartered Bank UK.
The bank has established sustainability goals, including funding renewable energy projects, lowering carbon emissions, and encouraging diversity and inclusivity.
Additionally, Standard Chartered provides clients with sustainable finance options to assist in the shift to a low-carbon economy, including impact investing products and green bonds.
Furthermore, the bank works with clients to incorporate sustainability principles into their loan operations and does sustainability risk assessments for those activities.
8. Swedbank (Sweden)
Based in Sweden, Swedbank is a well-known Nordic-Baltic banking and financial services organization. With its headquarters located in Stockholm, it was established in 1820.
Retail banking, wealth management, business banking, and investment banking are just a few of the many financial services that Swedbank provides. More than 7 million people in Sweden, Estonia, Latvia, and Lithuania are served by the bank.
Swedbank is renowned for emphasizing sustainability and corporate social responsibility, as well as for having a significant online presence.
In the Nordic-Baltic region, the bank is known for offering top-notch financial services and for being a reliable partner to its clients.
9. Crédit Agricole (France)
The French international bank and financial services provider is called Crédit Agricole. With its headquarters located in Montrouge, France, it was established in 1894.
One of the biggest retail banking networks in Europe and one of the biggest banking corporations in France is Crédit Agricole. The bank provides a broad range of financial services, such as asset management, insurance, corporate and investment banking, retail banking, and more.
The French market is well served by Crédit Agricole, which is renowned for its emphasis on sustainability and corporate social responsibility. The bank operates in more than 50 countries throughout Europe, Asia, and the Americas, demonstrating its substantial global reach.
According to CNBC Make It’s analysis utilizing data from the Banking on Climate Chaos 2021 report, the French cooperatively held bank experienced the highest fall in fossil fuel financing, going from $19 million in 2016 to zero in 2020, a 100% decline.
10. VDK Bank (Belgium)
VDK Bank is a cooperative bank based in Belgium that prioritizes moral and responsible banking practices.
The Global Alliance for Banking on Values is a powerful people-centered business model that strengthens and diversifies values-based banking in Europe, which is why the institution joined it.
When developing investments and granting loans, VDK Bank has always placed a high priority on respecting human and labor rights. The bank’s enduring legacy is shown in its dedication to moral and responsible banking practices.
The bank has, nevertheless, adjusted to new priorities and circumstances. VDK Bank has acknowledged the growing importance of environmental issues and the pressing need to combat climate change in recent decades.
The bank aims to positively impact climate resilience and environmental preservation by coordinating its operations with sustainability goals.
By focusing on a comprehensive and responsible approach to banking, VDK Bank has demonstrated its commitment to tackling social and environmental concerns through its transformation into an ethical and sustainable bank.
11. Beneficial State Bank (USA)
With locations in California, Oregon, and Washington, Beneficial State Bank is a socially conscious bank recognized by GABV and B Corp.
They offer both personal and business banking services that support sustainable practices like as the growth of minority-owned enterprises and the use of renewable energy.
By selecting this organization, you’re promoting eco-friendly banking practices, community development, and access to affordable housing in low-income areas.
Beneficial State Bank is a great option for people who are concerned about sustainability because of its dedication to providing small business lending options for regional businesses.
12. BNP Paribas (France)
The French international bank and financial services provider is called BNP Paribas. It was established in 2000 when Paribas and Banque Nationale de Paris (BNP) merged.
With its headquarters located in Paris, BNP Paribas stands among the biggest banks globally in terms of total assets. The bank provides a broad range of financial services, such as asset management, insurance, corporate and investment banking, and retail banking.
With operations in more than 70 nations, BNP Paribas provides services to customers in North America, Europe, and Asia. The bank is well-known for its proficiency in investment banking as well as its emphasis on social responsibility and sustainability.
13. Rabobank (Netherlands)
The Dutch international banking and financial services corporation is called Rabobank. Its main office is in Utrecht, Netherlands, where it was established in 1898.
In addition to offering a comprehensive variety of banking services to individuals, small enterprises, and major corporations, Rabobank functions as a cooperative. Among these services are insurance, asset management, retail and commercial banking, and more.
The bank has a solid reputation for meeting the requirements of rural and agricultural areas and is well-known for its emphasis on sustainability and ethical banking practices.
With operations in multiple European nations, Rabobank is well-represented in the Netherlands and Belgium.
14. Nordea (Sweden)
Based in Helsinki, Finland, Nordea is a well-known financial services company. One of the biggest banks in the Nordic and Baltic regions, it was established in 2003.
Retail banking, business banking, wealth management, insurance, and other banking and financial services are just a few of the services that Nordea provides.
The bank serves more than 11 million clients and has operations in multiple Nordic and European nations. Nordea is renowned for emphasizing sustainability and digital innovation, and it is well-known for offering its clients premium financial services and goods.
15. Triodos Bank (Netherlands)
The Netherlands-based Triodos Bank is a sustainable banking organization. It was established in 1980 and provides personal and corporate banking services throughout several European nations.
Triodos Bank is renowned for emphasizing moral and sustainable finance, contributing to initiatives and institutions that improve the social, environmental, and cultural spheres. This covers funding as well.
- Renewable energy projects
- Sustainable agriculture
- Clean technology
- Other environmentally friendly initiatives
The bank places a strong emphasis on sustainable investing by allocating capital to companies and initiatives that share their environmental beliefs. They provide a selection of investment options that emphasize both profitable returns and favorable effects on society and the environment.
16. Sunrise Banks (USA)
Sunrise Banks is a financial institution located in Minnesota that focuses on providing green banking services and encourages social responsibility.
They are certified as a B Corporation, a member of the Global Alliance for Banking on Values (GABV), and a Certified Development Financial Institution (CDFI) as part of their dedication to sustainability and the neighborhood.
They provide a wide range of personal and corporate account kinds, such as loans, savings and checking accounts, and non-profit banking solutions.
Sunrise Banks’ goal is to serve low-income areas by offering high-quality financial solutions that adhere to environmental regulations.
17. Nationwide (UK)
Since Nationwide is a mutual society, its members, not stockholders, are the organization’s primary beneficiaries. They claim not to be interested in investing and are a part of the Net-Zero Banking Alliance.
With just 100% renewable electricity and offsets for any emissions they were unable to cut, they have been operating emissions carbon neutral since April 2020.
They provide current accounts in addition to credit cards, loans, and mortgages, so they can be a suitable option for you if you’re searching for a long-term financial partner for all of your needs.
18. Co-operative Bank
The Co-Operative Bank sources all of its electricity from renewable sources is carbon neutral, and sends zero waste to landfills.
They feature a Value & Ethics survey where you can express your opinions on crucial issues like climate change, human rights, animal welfare, etc. This poll helps them decide which campaigns to support and how to behave ethically.
19. Omista Credit Union
As a B Certified Corp, OMISTA Credit Union Bank is dedicated to enhancing the community.
They chose to employ 100% renewable energy for a portion of their operations and offset 100% of their electricity use with green energy, which results in profits that are reinvested locally and Bullfrog Powdered.
20. CIBC Banks
The environmental, social, and governance issues that are significant to its stakeholders are the focus of CIBC Bank.
Through their partnership with Bullfrog Power, they contributed to the funding of community-based renewable energy projects across Canada in 2020, and they invested $15.7 billion in the environmental and sustainable sectors.
21. Bank Australia
Bank Australia is a bank owned by its customers and a B Corp. They are carbon neutral and powered entirely by renewable energy.
As a member, you’re also included in their Conservation Reserve, where they support biodiversity, offer habitat for local species, and assist wildlife in adjusting to climate change.
22. Commonwealth Bank
The move toward net zero emissions is something that Commonwealth Bank is dedicated to.
They have collaborated with Amber to provide their customers with access to renewable energy, and their CommBank Green Loan is a 10-year secured fixed-rate loan intended for current and qualified home loan customers to purchase and install clean energy items like solar panels.
23. Bendigo Bank
Being an ESG, Bendigo Bank takes a transparent and accountable approach to issues about the environment, society, and corporate governance. By 2030, this bank aims to be carbon neutral.
Since 2002, they have been helping consumers reduce their carbon footprint by providing green loans. They have also funded several local renewable energy projects, including Warburton Hydro and Hepburn Wind.
24. Teachers Mutual Bank Limited
Teachers Mutual Bank is committed to assisting Australian educators in securing a stable financial future, as well as their families. a morally sound, neighborhood-focused bank that exclusively uses solar energy and never extends credit to the fossil fuel sector.
Additionally, they give back 6.8% of their profits to the bank’s members and the education sector, and they hold a Responsible Investment Association Australasia (RIAA) Certification.
Conclusion
In conclusion, choosing a bank that upholds sound financial practices is a useful way to align your funds with your principles and support sustainability.
Make the switch to a green credit union or financial institution, or simply become conscious of how sustainable the current procedures at these facilities are. Every action made to cultivate mindful financial habits has the potential to improve both the environment and society at large on our planet.
The future of banking should be centered on environmental progress, so now more than ever, we need to act!
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A passion-driven environmentalist by heart. Lead content writer at EnvironmentGo.
I strive to educate the public about the environment and its problems.
It has always been about nature, we ought to protect not destroy.