As I’m currently immersed in the realm of buying a house, my world has been revolving around banks, banking and more banking recently! It occurred to me during this process that who we choose to do our banking with is possibly one of the biggest decisions we can make in regards to our attempts at sustainable-living. Considering that who we bank with is essentially who we are lending our money to, what is the point of living sustainably if our money is being used to invest in businesses with unsustainable practices that harm rather than nurture our planet?

I started to think, how is it that people choose who they bank with? Is their decision based on cost and fee-structures? Is it based on who they have always banked with and their current comfort levels with the services they’re used to? Is it based on who their parents banked with and tradition? Or is it, as was the case with myself, based on which bank came to their primary school when they were six years old and opened an account for them with the aim of teaching them about the importance of saving early (or getting them early, as I like to think!)? What can we, as conscious green consumers, do to ensure our money is being invested in environmentally and socially friendly corporations and institutions?

As I’ve been thinking of buying a house for the last few years, I did extensive research on mortgages and the banks that financed them and discovered in the process some environmentally and socially friendly banking institutions that I had previously been unaware of:

  1. MECU is a fantastic Melbourne-based credit union that takes an environmental and social approach to their sustainable practices. MECU is a signatory to the United Nations Environment Program Finance Initiative and has a Sustainability Covenant with the Environmental Protection Agency of Victoria. MECU does not invest in institutions or corporations that harm the environment or are not socially ethical. The bank recycles everything, and even ensures that the plastic ATM cards its customers use are made from recycled plastic! They have a variety of green products that offer eco-incentives, such as reduced interest rates on car loans for effecient cars and payment pauses on home loans if homes are having eco-friendly installments such as water tanks or solar panels added.
  2. Bendigo Bank is another Victoria-based bank that has traditionally been focused on supporting local communities. They are moving towards sustainability and have offset their vehicle carbon emmisions, reduced their energy use and built one of Australia’s only 5-star energy rated office buildings. Bendigo Bank offers green loan products for consumers and businesses and has begun the Generation Green iniative aimed at educating their customers on more eco-friendly ways of living. You can also purchased carbon offsets through this scheme.
  3. HSBC is a large international banking group that operates in over 85 countries around the world. HSBC has established a Climate Partnership with Climate Group, Earthwatch, the Smithsonian Tropical Research Institute and the WWF aimed at addressing environmental issues through widespread, worldwide education and research initiatives.  I was unable to find information on the companies invested in by HSBC unfortunately, so am a bit wary on HSBC, however donating $100 million dollars to these organisations in the Climate Partnership has to be a step in the right direction.
  4. I was surprised to find out that Westpac, a large Australian bank, was also considered a relatively green bank. Westpac has reduced their emissions by 45% in recent years and adheres to the Equator Principles in manging environmental and social risk in project finance. Westpac is ranked number one in the worldwide corporate banking sustainable ranking scheme and offers all its clients discounts on environmentally friendly services. The Sydney Morning Herald, however, is wary of corporate greenwash by Westpac which can be read about in this article.

Personally, I changed all my banking over to MECU. I found the credit union to be friendly, approachable, very well run in relation to their product services. I’ve been very impressed with their commitment to environmental and ethical practices and have felt like I’ve been acknowledged as a REAL PERSON by a financial institution for once, rather than just a client number. Although their fees are marginally higher than the main banks, the fact that I am not contributing to the environmental quagmire we’re currently in through my banking choices well justifies those slightly higher fees, in my opinion.

Some highlights of banking with MECU:

  • All cars financed through MECU have their carbon emissions offset, free of cost, for the life of the loan through MECU’s Conservation Landbank: my car is now carbon neutral!
  • Recycled paper and plastic used in all consumer products and cards: paperless statements are also available.
  • No marketing ever to “increase your credit limit” etc. MECU uses socially responsible banking initiatives.
  • Eco-pause available on home loans where borrowers can take a three month pause from mortgage payments to pay for the installation of grey-water systems, water tanks, solar power and solar hot water etc. This means that in the future I will be able to become completely sustainable.
  • Family repayment pauses are also available meaning if I have a child someday I can take a break from payments to stop working for up to 3 months or 6 months at part-payments.

I’d be interested to know if anyone else banks with environmentally sustainable banks, and if so, what features they offer? I think that this is one of the most important ways to help the environment and one that is often, sadly, overlooked by consumers. What are your thoughts?

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