Top 10 Eco-Friendly Banks Supporting Sustainable Finance

With the increasing awareness of climate change and other related environmental issues, there is increasing pressure for companies and even organizations to become environmentally conscious. The banking and finance industry is also grappling with a new wave of change, as several large banks expand on the use of ESG factors in their operations and investment choices.

Banks are in a position to influence change as actors through their lending and investment roles. They can invest in sustainable projects to promote expansion of clean energy, environment friendly structures, and other projects that are beneficial to the environment. Here are 10 of the top eco-friendly banks leading the movement for ethical, sustainable finance:Here are 10 of the top eco-friendly banks leading the movement for ethical, sustainable finance:

1. Amalgamated Bank

Amalgamated Bank has embraced socially responsible banking as one of its core values from its initial formation by labor unions in 1923. All its activities are supported by green power and it has not invested in fossil fuel development for more than ten years. The LongView Funds it offers for wealth management also operate according to the principles of ESG investment only.  

2. Aspiration

Aspiration is an online bank, which has been created with purpose of offering environmentally friendly banking services. Its “Planet Over Profit” slogan means actions like planting a tree for every sale made and using customers’ money to only support moral, environmental funds. Aspiration also does not fund oil/gas pipelines or weaponry development.

3. Beneficial State Bank 

Beneficial State Bank’s mission statement is “Banking for Good,” and this means that the bank is interested in making a positive impact on the environment and society within the lending business. The company is B Corp Certified and has provided over $1bn in loans for building community, such as affordable housing, clean energy, and nonprofits, etc.

4. First Republic

First Republic has been delivering responsible banking coupled with customized services since its inception in 1985. It provides impact investment opportunities, green investment portfolios, as well as financing for LEED registered buildings. First Republic also leads by example in other environmental concerns, for instance, buying renewable energy certificates and carbon offsets.

5. Green America Bank

Another Clean Energy Bank that is in the pipeline is the Green America Bank based in Chicago, as its name suggests. Its lending and deposit-taking support sustainable products such as electric vehicles and rooftop solar panel systems for homes. Green America Bank does not only incorporate the concept of going green in the services it offers but also in the way it conducts its businesses by being carbon neutral, recycling and other practices. 

6. New Resource Bank

Launched in 2006, New Resource Bank in San Francisco claims to be America’s green bank. It is also a certified B Corporation because of practices such as its policy on Environmentally & Socially Responsible Practices to guide lending and operations for sustainability. New Resource Bank has been able to finance over $6 billion towards green projects to-date.

7. Seattle Bank

The bank’s motto “The World’s First Environmental Bank” displays it as a financial institution that actively influences the process of lending for the sake of environmentalism. This priority is reflected in its green affordable housing loans, conservation land transactions, clean tech manufacturers, and more. Seattle Bank also distinguishes itself with environmentally friendly policies such as using 100% recycled paper, and supporting environmental organizations such as The Nature Conservancy.  

8. Sunrise Banks 

The mission of Sunrise Banks, situated in Minnesota, revolves around the concepts of community development and sustainability. It labels itself as a ‘socially responsible bank’ based on initiatives such as being carbon-neutral, supporting renewable energy projects across the country, declining to finance the Dakota Access Pipeline, and refusing to invest in private prisons.

9. Triodos Bank

With its branches in different European countries, Triodos Bank emulates ethical and environmental banking. Being one of the mission-oriented sustainable banks, Triodos helps to drive money flow to “change for good” through its sustainable investment approaches and lending support provided for the positive impact sectors inclusive of renewable energy and organic farming. The Global Alliance for Banking on Values also ranked it as the world’s most sustainable bank between 2012 and 2015.  

10. Vancouver City Savings Credit Union: Vancity 

Vancity is Canada’s largest community credit union, and environmental action is an inherent part of its business and communication strategy. Boasting in its tagline as the good money company, Vancity supports goals such as operational emission elimination by 2040, supplier codes on sustainability, and it has provided more than $3 billion in financing to clean energy and green housing to this date.  

The Bottom Line

These banks are not business as usual but are showing that the finance sector can actually be a force for positive change on combating climate change. They are establishing great trends for environmental responsibility and investing in sustainable technologies required in the present time more than ever. More big banks are expected to take the lead to further the shift toward sustainable finance and economies globally.