In the past 20 years we all noticed the emergence of more ethical companies. The organisations that treat their coworkers fairly, give back to the community, fight for a cause, etc. And nowadays companies like Body Shop revolutionise the world from the inside of the system – moving to greener, cleaner and more organic life we all deserve. The question then stands whether the traditional businesses such as banks are moving with this trend as well, and whether investing our money into these banks will help the planet.
The Big Five
The main group of banks in UK, or the Big Five, make their investments very carefully. After all, they are investing your money so that they can get a return and finance future expansions or crises. But this profit focused mindset of a traditional business is very often not responsible. Likewise, most of the Big Five invest our money into companies that are doing a minimum effort to prevent climate change, such as airlines and fracking.
Which Banks To Use Then?
However, with the new and greener companies emerging, investing into an ethically correct company is beginning to look more favourable in many of its aspects – including profit. Some of the Big Five companies also started to invest more ethically, but given their past relationship with unsustainable investing I would say it would be safer to store your money with a bank that is ethical from the very start.
If you haven’t heard of it yet – check out Triodos. It is an ethical bank that is well on the way to join the Big Five. But unlike some of the Big Five, it is also one of the banks that is least likely to avoid tax. And just recently they have invested into two large solar panel parks in Europe.
There are also options among mobile bank apps, such as Monzo and Revolut. These are as secure as physical banks – they got the same FSCS protection on any fraud or losses on behalf of the bank. But it is rare when they report an ethical action or have environmental policies. And what is more – the data centres that they use to store your data might be taking quite a lot of energy. So, they are a better option than the traditional bank at least because they don’t invest unethically, but it’s not 100% transparent yet.
The Trend Is Only Getting Stronger
Only last year in June, Financial Times wrote an article about how ethical companies actually starting to be profitable to investors as well as being good for the planet. And this is only going to get more advanced in further years because millennials are becoming the main and largest group to invest in ethically-correct companies. For this reason banks, which are also companies designed to generate profit, are starting to catch up with this trend in order to be able to offer a wider range of products that would appeal to millennials.
If you are banking with one of the Big Five and are thinking of opening a new account, then I suggest that you look up any ethical products they have in range at the moment. If not, then try to find one that works for you with another provider. And if that is a savings account, don’t forget to use comparison websites to get the best deal!
Thank you for reading this post, I’ll be back to you with more money wisdom’s for artists tomorrow!
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