How to ensure your invested money is far more ecological
Q: How do I green my money A: Good question! When it comes to the climate crisis, the way we invest our money is just as important as how we spend it. Banks and building societies aren’t just places to stash your cash.
They drive the global economy and have an enormous impact on what happens to the world.
Unfortunately, some are still trapped in outmoded ways of doing things and investing in new oil and gas projects.
Considering that the International Energy Agency has warned that we need to stop all new fossil fuel developments, this is not a good look.
In response, you can make a positive choice by swapping to a green bank.
Green banks
Green banking is all about only investing in companies and projects that bring real environmental benefits.
Some banks have been built exclusively on this ethos – including The Co-operative, Triodos and Ecology Building Society.
Meanwhile, some conventional banks have ‘gone green’.
NatWest, for example, was the first major UK bank to join the Partnership for Carbon Accounting Financials, which means the environmental impact of its loans and investments are independently verified.
While most high street banks have made commitments to sustainable practices, not all of them are walking the talk.
For example, Barclays has pledged to reduce its emissions to net zero by 2050 – but, out of all UK banks, it’s the top funder of the oil and gas industry.
How to choose
If you want to review your bank, you can find out how it is performing in the Rainforest Alliance Network’s ‘Banking on Climate Chaos’ report.
Plus, the personal finance website ‘Good With Money’ offers lots of useful information.
It uses the registered ‘Good Egg’ mark to denote a financial service that makes a positive impact.
Pensions
Greening your pension is one of the most effective things you can do to fight climate change.
It’s akin to going vegan and giving up flying combined.
In the UK, there is a staggering £2.6 trillion invested in pensions.
This money is enough to power a truly green recovery post-COVID.
The thing is, most of us don’t really think about our pension pot.
The result is that a large percentage remains invested in activities such as the deforestation of the Amazon, cigarette sales and fossil fuel projects.
This doesn’t need to be the case.
You can check how your pension is invested.
If you’re not happy, you can move it so your savings help create a better world. Visit the ‘Make My Money Matter’ website for more information.