At a time when everything you hear about banks and the economy seem to be doom and gloom, there is some light at the end of the tunnel. Ethical banks have seen an increase in popularity over the past 18 months, whilst other high street banks are feeling the pinch.
Confidence has been lost in major banks, such as Northern Rock, Lloyds TSB and most recently, the Royal Bank of Scotland, due to poorly made decisions being named the main reason behind the UK plunging into recession. As a result, many people are turning to the environmentally aware ethical banks, such as The Co-operative, Triodos and Ecology Building Society. Although the amount of money invested in ethical banks is comparatively smaller, at £9.8 billion, than the funds held by high street banks, the amount of current and savings accounts that are being opened with these greener alternatives is steadily growing.
Ethical banks commit to sustainable and responsible investments, such as clean, renewable energy projects, fair trade policies and social housing; areas that have lower financial returns, but don’t cost the environment. Many high street banks have become rich from unsustainable investment and investing directly or indirectly, through the companies they fund, in dirty, polluting technologies such as oil, investments that contribute to rainforest deforestation, exploitation of third world countries and the arms trade.
RBS have been criticised for their investments in fossil fuels, and were ‘encouraged’ to act to change their stance on greener investments recently by student protesters at the time of their AGM. This surge of interest in the ethical banking scene proves people are beginning to think more about what their money is invested in, rather than plumping for the bank offering the highest interest rate. Perhaps 2010 will see banks using very different tactics to win our custom.
Other items you might find of interest:
- ‘People and Planet’ Banking on Green Decisions
- Green Groups Set To Take RBS And The Treasury To Court Over Unethical Investments
- The Observer Ethical Awards 2010 Launched in Conjunction With Ecover
Tags: corporate responsibility, ethical banking, green banks, green investment, money