Make Your Money Count
Your decision on where to keep, save and invest your money is more powerful than you might think. Your money is not just “sitting in the bank”. Any institution where you store your money - pensions, investments, and (especially!) your everyday bank account - is investing it on your behalf and could be investing to have a positive impact.
In many cases, financial institutions still invest heavily in the fossil fuel sector and deforestation, meaning your money might be indirectly supporting these activities.The good news is that there are many climate-friendly banks and investment funds available.
Choose banks, funds and providers that can make your money work harder for you, your community, and nature. You’ll also send a clear signal to the markets that people want to support cleaner, more responsible businesses and financial markets.
tips
Learn more about your bank’s commitment to climate change. You could ask them directly, check their website or see if they appear on lists like these: Global Alliance for Banking on Values, Certified B Corp banks, the Partnership for Carbon Accounting Financials, or this list from climate finance expert Marilyn Waite. If your bank isn’t committed to helping tackle climate change, consider switching to a bank that is. Look online for resources that can help you make the change, like BankForGood in the U.S.and Switch It in the UK.
If you have a pension fund, retirement savings or your own personal investments in funds, find out where your money is invested. If you can, ask to shift your investments out of heavy carbon polluting industries to more climate friendly alternatives. If you’re contributing to a retirement plan at work, ask to make a similar shift through your employer.
If you have other personal funds, check that your savings are not contributing to fossil fuel investment and deforestation using search tools like Fossil Free Funds and Deforestation Free Funds (in the US) or Le Label ISR (in France). If you’re looking to invest in climate-friendly funds, have a look at MorningStar’s review of the landscape.
If you own stocks, check if the company is committed to science-based targets and how they are rated on MSCI’s ESG & Climate Index. If you are looking to invest in stocks, Carbon Collective has identified over 100+ companies building climate solutions including solar, batteries, home insulation, and more. If you need an asset manager to help, check that they have committed to net zero or choose specialized asset managers focused on climate specifically, like Carbon Collective or Earthfolio.
benefits
When you choose climate-aware banks, stocks and funds that share your values, your money will be hard at work behind the scenes to support what is important to you. It’s a decision you can be proud of. And it could be better for your savings too - evidence shows that sustainable, well-run companies are, in many cases, more likely to perform better in the long run.
The more finance is directed away from fossil fuels and deforestation, the more activity we’ll see in renewable economies and the less carbon pollution we’ll have. The numbers are difficult to calculate but some experts suggest that shifting investments can be 21 times more effective at reducing your carbon footprint than giving up flying, going vegetarian or switching to renewable energy (that’s not to say those steps aren’t important - just make sure your money turbocharges them, instead of undermining them).
local to Palo Alto
Move your money
Get away from funding climate chaos by moving your money to a credit union or bank that does not fund fossil fuel projects. We recommend the local Stanford Federal Credit Union. For more information and resources click over to the Stop The Money Pipeline project.
Left text reprinted with permission from Count Us In