Make Your Money Go Greener
Nov
13
Your money has power. You can choose to buy only the green and ethical products such as those mentioned throughout my post, and as consumer demand for these products grows, more producers switch to green production methods, putting more green products on the shelves. A happy by-product is that cost comes down, bringing green products within the financial reach of more people.
You have power too by choosing carefully what not to spend your money on - by boycotting goods, services, and products you believe are doing harm to the planet or to the people involved in the manufacturing and production processes. If enough consumers boycott a product, the firm selling it may be forced to change its practices to benefit the planet and the people involved in the production.
Although the managers of your bank, building society, pension fund, or investment fund invest and handle your money for you, you have the choice of simply letting them get on with it and taking no interest in where your money is invested or you can be quite clear about the types of investments you want your money used for. If you take the first approach your money may be invested in firms that harm the environment or treat producers unfairly; if you take the second approach you can make sure that it is invested in companies that protect the environment or their workers. The choice is yours. Think carefully about what you do and do not want your money used for and take ethical financial advice.
By all means, take the time to review your banking, savings, and investment accounts. Do an audit to find out what exactly your money is currently invested in and how ethical those funds and companies are. And if they’re not green enough to suit you, move your money to a place or product that is.
Considering Ethical Accounts
One way to use your money ethically is to keep it in green accounts. You can talk to your branch about a green account as you would about any other savings or current account. Ask about their codes of business ethics and social and environmental policies.
Keep in mind that some banks may offer the odd ethically sound account but ignore green and ethical issues in the rest of their business dealings. You want to know that your bank is behaving ethically as well as using your money ethically.
Some banks and building societies are waking up to the fact that their savers are concerned about the planet and the good of the people, creatures, and plants living on it. If your own bank or building society can’t give you a green version of the kind of account you’re looking for, whether that’s a cash account where you can take money out of an ATM (Automated Telling Machine) or an ISA (Individual Savings Account), move your money to one that can. Make it clear that you are moving your money because you want a green account.
Building societies are mutual organisations run for the good of the members rather than for the benefit of shareholders, so your building society is less likely than banks are to invest in firms that trade in arms or in countries run by oppressive regimes.
Apart from the high street names, you can try the places in the following list for green accounts:
The Co-operative Bank has been describing itself as green or ethical for many years. It’s part of the co-operative movement in the UK which includes the Co-op shops, insurance, and funeral services.
Smile is the Internet banking arm of the Co-operative Bank and if you open particular accounts with Smile it makes a donation to charity.
Triodos Bank describes itself as one of Europe’s leading ethical banks and guarantees that your money will be used to finance only businesses and charities that benefit people and the environment. For example, opening a Wildlife Saver Account helps protect some of the UK’s wildlife habitats.
In the UK, Triodos has links with The Soil Association and Friends of the Earth among other green organisations.
The Ecology Building Society uses money invested in it to fund mortgages on energy-efficient homes, green renovation and green enterprises that have low impact on the environment. Its own headquarters is built from straw bales with photovoltaic panels and a turf roof - all earth- friendly, energy-conserving materials.
Because they’re listed here doesn’t mean that I’m recommending these institutions; I’m just offering them as places that can give you an idea of how green banking works.
It’s also worth thinking about some of the Islamic accounts available through the Islamic Bank of Britain, or high street banks like Lloyds TSB. There’s more on how these work in the upcoming section ‘Taking the interest out of banking‘.
Ethical or green banking is growing in popularity and so more accounts will come on stream. As with any other kind of accounts, shop around to get the one that best suits both your banking needs and your ethical concerns.
Because green ethics are not always black and white choices and implementation of green investing varies with each banking institution, you may find that you need to prioritise what matters most to you about a green account. After investigating your options, for example, you may realise you want to work with a particular institution because even if it doesn’t measure up on every front, it is committed to change and gives you an opportunity to have a voice in those coming changes.
Possibly related posts: (automatically generated)
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- Organic Foods for your fridge and freezer
- Investing in Ethical Financial Products part 1
- Investing in Ethical Financial Products part 2
- Initiating Green Projects
- A Green Home
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