Saving the environment — one bank at a time
Let’s be honest, 2020 is cancelled, especially here in Australia. Through bushfires, floods and coronavirus, one of our most pressing questions has become: "What can I do to make sure tomorrow is certain?"
You're probably doing what you can — recycling, buying environmentally friendly products, or even investing in companies that benefit our planet. But have you thought about how your banking choices are affecting the health of our planet?
As you know, banks have money — a lot of it. Some of it may well be yours, if you have savings. The way banks continue to operate and generate profit is largely through loaning money to businesses and other customers. Some of the money loaned is yours. Banks also invest in various industries and businesses.
The power of banks
Banks have enormous power, especially when it comes to determining who has access to money. They determine which ideas and businesses are empowered and supported.
Initially, the decision of whether to loan is based on the viability of the customer to pay back the loan. The bank generally makes the loan when they are confident. In more uncertain cases, they must make a decision.
Ultimately, your bank has control over whether they loan to or invest in businesses that are committed to protecting the environment, or whether they help fund industries like fossil fuels.
How does your financial institution use its profits?
In Australia, banks have made over $135 billion worth of loans to fossil fuel projects since 2008. However, as green energy and green products become popular, there is growing pressure for banks to invest more in environmentally-focused industries. Right now, as a customer, you can find out which banks invest in fossil fuels and which banks do not. You can also take the step to find out where your superannuation funds are going to.
Surrounded by natural disasters and a global health crisis, it’s past time to consider where our money goes and what it is used for.
Here are five practical ways to ensure your money is being used for good:
- Find out how much your bank is facilitating fossil fuel industries.
- Voice your opinion to them directly on their public social media channels or raise a complaint directly with them through their website (complaints are taken seriously).
- Put your money where your mouth is: move your banking elsewhere to a bank with positive environmental policies.
- Keep up to date with what your bank is doing.
- Encourage your colleagues, friends and family to take a stand.
As consumers and customers, we have the power to make sure our banks do the right thing for our planet and us.
If this year hasn’t convinced you that it’s time to take a stand for our planet, what will?