Like many people, I know little about finance and even less about the systems that govern it. In fact, aged 28, I am still trying to wrap my head around the fact that my money doesn’t actually sit in neat (but scant) piles of notes and coins, slowly growing (ok fine, dwindling) in size. Money moves. For example, the money I receive for this article, deposited into my current account, will be used to issue loans and investments for all kinds of projects, from individual home loans to business expansion. The downside of this lending is that my money could be financing fossil fuel extraction, coal mining and deforestation.

And by “could” I mean almost definitely. Since the Paris Agreement in 2015 – the legally binding climate deal that commits to drastically reducing greenhouse gas emissions to limit global warming – the 60 biggest banks have provided $3.8tn in financing for fossil fuel companies. Fossil fuel investment has actually increased, from $640bn in 2016 to $736bn in 2019. This is essentially bankrolling our own funeral, as any support, either direct or indirect, for fossil fuels, is akin to environmental murder.

Terrified? Me too. Feel helpless to effect change beyond your small world of plant-based eating and waste-free living? Same. So, let’s look at Irish banks and their role in the climate crisis and figure out if we can save the world while saving our pennies.

According to Bank.green, an independent website that rates world banks on their environmental impact, Bank of Ireland, while not the worst perpetrator, is still bankrolling the fossil fuel industry. I turned to BoI’s website and then its Responsible & Sustainable Business Strategy to find the truth in this. When looking at banks it is important to be aware of what they don’t say, as much as what they do. While Bank of Ireland is certainly taking steps to mitigate its climate impact, its focus is primarily operational. They talk of setting science-based targets for lending practices but nowhere do they mention a plan to stop, or finish proof, that they are not financing fossil fuels. It is important to bear in mind that as it stands, banks are not required to publicly report on the environmental impacts of their loans, nor are they obligated to disclose fossil fuel financing. And personally, in my experience of climate action and consumer culture in general, if they’re not declaring it – “they” being a fast fashion retailer, a social media influencer, or even a government – then they’re not doing it. Why promote a plan to decarbonise your operations by 2030 if you were doing, right this moment, something infinitely better?

My recommendation? Move your money. If your bank is not doing enough to prevent the mass destruction of climate change that financial institutions bankroll, leave them. Quickly and loudly. Be demanding. Ask on social media why they are ranked so poorly by independent websites, compare them to sustainable providers and show their inadequacy, email them when you leave to let them know exactly why you’re leaving. When developing their Responsible Business and Sustainable Strategy 2021- 2024, BoI conducted market research to see what was important to their stakeholders as well as impacted on their business. Climate issues ranked among the lowest priorities. Change this with your voice.

AIB is an interesting one. It also happens to be my bank so I am personally invested (pun intended) in its do-gooding. While Bank.green rates AIB’s climate action as unsatisfactory, Sustainalytics ranks them in the top ten per cent of global banks for their low ESG (Environmental, Social and Governance) risk while The Good Shopping Guide gave them a 75 per cent ethical approval score, ranking them as “good” in the environment category which takes into consideration environmental reporting, carbon disclosure and reduction targets and environmental destruction. AIB launched Ireland’s first Green Bond, was a founding signatory for the UNEP FI Principles for Responsible Banking, the first Irish Bank to join the Net Zero Banking Alliance and has created an excluded activities list which declares that the bank will not provide loans or advisory services to any entities involved in the extraction of oil and coal, onshore and offshore exploration and natural gas fracking. But is it doing enough?

Having reached out to AIB to find out more about what they might not be saying, I feel satisfied that their proclamations around sustainability are sound. As an AIB customer, I feel confident my money is not being used for harmful activities. But, while not causing harm, my money is still not doing as much good as it could be. Therefore, I will be moving my money to an alternate provider and telling the bank my reasons for doing so.

Ulster Bank is owned by NatWest Group. According to the Rainforest Alliance Network 2021 report, NatWest is not only one of the 60 banks condemned for increased investing in fossil fuel projects, it has contributed $13.39bn to fossil fuel financing from 2016 to 2020, including giving $250m to BP in 2020 alone. Were you to switch, you would be sending a direct and potent message to an Irish bank but also to the behemoth that is the UK financial industry.

So which bank can you switch to? One banking alternative – aside from credit unions, which I urge you to investigate to ensure your particular branch is a climate action hero – is a digital bank called Tomorrow. Anyone already using Revolut, or any form of digital banking, will love Tomorrow. (To note: Revolut has also introduced two green policies in 2021 – it is a founding member of Tech Zero – a cohort of technology companies committed to driving net carbon emissions to zero, and also recently appointed watershed, a global leader in the management of carbon footprints, to independently measure Revolut’s carbon footprint, and to design a program to reduce that footprint to the minimum achievable and in line with Paris agreement standards.)

Offering a range of debit account options, from a fee-free introductory option, to shared accounts and a “Tomorrow Zero” account which, for €15 a month, offsets your entire carbon footprint, Tomorrow is an online bank committed to actively achieving environmental good. For every €1 you spend, it protects 1m2 of rainforest. While Tomorrow is relatively new and does not come with the options larger banks can offer – credit cards, mortgages, loans or physical branches – its innovation greatly impresses me. With our support, Tomorrow could grow into a new movement of ethical banking.

If this doesn’t float your boat, bombard an ethical bank you do like with pleas for an Irish branch. The Good Shopping Guide, Switchify or Bank.green are good places to find sustainable banks intent on doing good. If you find one you like, petition it for its services. Remember, supply will always meet demand. Your money – the source of so much power – can make a world of difference.

@holly_hughes_words

*This article was corrected on October 26 to reflect information regarding Revolut’s green policies.