Make Your Money Work For Good
Have you ever stopped to think about what happens to the money that you pay into your bank, savings account or pension scheme and about how it is shaping our planets future?
Banks and other institutions use the money they hold to finance businesses and projects around the world, with some of the biggest banks in the UK consistently funding projects that are detrimental to human and environmental health. Investors and asset managers from the UK are among the top five countries responsible for 90% of institutional (pension funds, insurance companies, commercial banks) investments in the fossil fuel industry, holding $161 billion in bonds and shares.
Barclays is Europes’ foremost fossil fuels financier globally and the largest funder of fossil fuel projects in Africa, whilst also providing backing for agribusinesses implicated in deforestation and human rights abuses in the Global South. https://actionaid.org/news/2024/how-barclays-continuous-destructive-funding-pushing-our-climate-brink In fact none of the top 5 UK banks – Barclays, Lloyds, NatWest, Santander and HSBC – score very well on ethical issues. https://thegoodshoppingguide.com/subject/ethical-banks-building-societies/
Despite the UK government’s commitment to halt deforestation by 2030, UK banks continue to provide finance for companies engaged in destroying forests. https://globalwitness.org/en/campaigns/forests/british-financiers-funnelled-over-1-billion-into-forest-risk-companies-despite-cop26-pledges/ From 2016 to June 2024 HSBC provided £2.9 billion in finance to ‘forest-risk’ companies.
Switch your current/savings account
Happily there are banks which use the money they hold for socially and environmentally beneficial projects, such as renewable energy and reforestation initiatives. Building societies can also be a good choice, as they are mutual organisations owned by their members and are unlikely to invest in controversial industries.
Triodos, the Co-op Bank/Smile and Nationwide come top in Ethical Consumer’s guide to current accounts and these, along with several building societies including Skipton BS and Yorkshire BS, feature in the Good Shopping Guide top 10. If you don’t already use an ethical bank, then it is easy to switch. The Current Account Switch Service operated by over 40 UK banks means the process is simple – just choose your new bank and they arrange to transfer your balance and all your regular payments.
How Green is Your Pension?
Pensions are another area to consider when trying to make your money work for good. Currently UK pension schemes invest around £88 billion in fossil fuels and £300 billion is linked to deforestation! Imagine if this money was invested instead in renewables or reforestation projects. Visit the Make My Money Matter website to find out how to go about asking your employer to switch to a greener pension provider. Nest ranks best of the 12 largest pension providers.
Make your money work for good!
Jakki Phillips
Is your bank still funding fossil fuels in 2025? – visit the Good With Money website to find out more