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#104 Socially Responsible Banking

#104 Socially Responsibly Banking

More and more individuals are actively spending their money with companies that are working for the betterment of our planet. But, did you ever stop and make sure the bank you are using supports those same values? Each day we vote with our dollar for the type of planet we want to create, and choosing a bank that is socially and environmentally responsible is just as important as the eco-friendly laundry detergent you purchase.

Banking On The Environment:

As environmental issues increase all over our planet, knowing what banking institutions do with the money sitting in your accounts is critical. Numerous banks have been called into question for their financial backing of the Dakota Pipeline as well as oil exploration in the Arctic, but the reality is, banks are currently funding numerous projects that are detrimental to our planet, and have been for decades. Coal is one of the most polluting industries and is still backed by the likes of J.P. Morgan Chase, Goldman Sachs, Bank of America, CitiBank  and Morgan Stanley, even after many of these financial institutions stated they would back off from coal funding. Any notion of ethical banking doesn’t align with backing an energy source like coal. Informing yourself about your bank’s investment portfolio will allow you to determine if your bank shares in your values.

Banking Facts:

  • $1.9 trillion dollars have been invested in fossil-fuels by the world’s largest banks since the signing of the Paris agreement in 2016.
  • JPMorgan Chase has provided $196 billion in finance for fossil fuels, which accounts for 10% of all fossil fuel financing.
  • All of the big six U.S. banking giants are in the top “dirty dozen” bankers of climate change.
  • The New York bank is one of 33 powerful financial institutions to have provided an estimated total of $1.9 trillion to the fossil fuel sector between 2016 and 2018.
  • The most aggressively expanding coal-mining operations, oil and gas companies, fracking firms and pipeline companies have received $713 billion in loans since 2016.
  • Only 3 of the world’s 10 biggest banks joined the coalition of 130 global financial firms in agreeing to align their business with international efforts to address climate change and other environmental issues.

How can I make an impact:

Tier 1: Global Goodness

  • Know who you are banking with. There are banks going the extra mile when it comes to green banking by becoming certified B Corps and adding environmental responsibility to their futures reports. 
  • Go To: https://www.greenamerica.org/getabetterbank to source local green banks in your area.

Tier 2: Planet Protector

  • All of Action 1
  • JPMorgan Chase, Wells Fargo, Citi, Bank of America, Morgan Stanley, and Goldman Sachs are all in the top dozen “dirty” banks for fueling climate change. 
  • Click Here for a list of the “dirty dozen” banks to divest from.
  • Divest from any bank not supporting environmental stewardship. 
  • Write a letter to your bank asking them to make stronger commitments against the financing of projects that are detrimental to the environment. 

Tier 3: Earth Angel

  • All of Action 1 & 2
  • For a step by step approach to breaking up with your bank Click Here.
  • Support causes that are working to fight against environmentally destructive investment projects.
  • Together we can create change. By demanding banks change their investment habits, we can ensure a brighter future for generations to come. 
  • Choose to be an Ambassador for Change, and always Spread Love and Spread Light.

Facts References: 

https://www.sierraclub.org/press-releases/2019/10/report-finds-global-banks-poured-19-trillion-fossil-fuel-financing-paris

https://www.theguardian.com/environment/2019/oct/13/top-investment-banks-lending-billions-extract-fossil-fuels

https://www.greenamerica.org/getabetterbank

https://www.sierraclub.org/sierra/your-bank-financing-climate-catastrophe

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