Grow your money ETHICALLY

How to ensure your finances line up with your planet-friendly values

W

E often forget that where we store our money has consequences beyond our own saving potential. Banks, building societies, pension and investment companies use our earnings to make themselves, and sometimes their customers, richer by investing in various industries.

Often, without us realising, this can mean our money is being funnelled into businesses we might not approve of, such as fossil fuels, tobacco or arms industries.

But increasing demand for green investments has seen a rising number of financial institutions pledging to only invest in ethical concerns such as renewable energy and projects that benefit local communities.

TIME FOR CHANGE

According to pressure group, Make My Money Matter, you could cut your carbon footprint 21 times more effectively than going veggie, giving up flying and switching energy provider combined simply by making your pension green.

The group, backed by film director and writer Richard Curtis, is urging us to make sure our pension fund knows this, and that we want a pension we can be proud of.

While you’re greening up your hard-earned cash, it’s worth considering changing your bank, too. Having a current account with one of the High Street banks is believed to be a vote for the status quo, which has always meant funding the fossil-fuel industry, new oil and gas exploration and the arms trade. There are plenty of safe and ethical options to choose.

If you have investments, talk to your financial adviser or broker about making them green as well. Such is the interest in environmental issues right now that many are matching, even beating the success of traditional schemes.