If you are worried about the impact you may be having on the environment through the bank you use, switch to an Ethical Bank or Building Society.
Ethical or Green Banks as they are called, provide all the services of regular banks, are regulated by the same authorities and also have to adhere to the same rules. The difference is that they leave you feeling more positive about your savings and who you are dealing with.
When I first heard about Ethical or Green Banking, I wasn’t exactly sure what to make of it. Were credit cards now being made of recycled plastic material or what?
After researching the market, I was pleased to find that the Co-operative Bank did launch a Greenpeace credit card in 1998 and this was the first non-PVC card to enter the market. Apparently, the Co-operative Bank is still working on converting all of its credit cards to non-PVC plastic but this takes time. Given all of the accumulated toxicity to our environment resulting from the manufacture and disposal of the billions of PVC Credit Cards currently in circulation, I think it is about time that all leading UK Banks started to help our environment by producing only non-PVC credit cards.
Aside from the PVC Credit Card issue, I sought to find out what Ethical Banking really means. EcoSwitch met with the Co-operative Bank at their Headquarters in central Manchester. The first thing that struck us was the fact they were really walking the talk by having a prominent solar tower on the skyline which contributes solar photovoltaic electricity for their offices. It was really impressive to see. When asked what was meant by Ethical Banking they informed us they have a range of products from Ethical Bank Accounts, to Loans, Investments, Mortgages and Credit Cards. I asked how these were ethical and whether they were genuinely ethical rather than being products covered up in a lot of ‘greenwash’! Yes, we all know some companies are guilty of this. But the Co-op reassured me that all of their investments, loans and other financial products are only given to projects that have a positive social or ecological impact. They explained that they have full transparency about the social and environmental projects that they finance. This allows their customers to see exactly where their money is going. I asked for examples and they provided me with a Bank Account Application Form. Although the form was quite long for a Bank Account application, it was thorough. I wasn’t allowed to be connected to the MOD in any way or be involved in any Arms Deals. The criteria used to separate genuine green and ethical customers from the other camp was clear. The Co-op were clearly interested in having only genuinely green and ethical customers rather than just taking on anyone. They brought my attention to their new ’Think’ Credit card. Not only is the APR very reasonable but it has some impressive environmental credentials- half an acre (yes I’m serious) of Brazilian rainforest is purchased and protected in your name when you transact on your credit card for the first time, plus a contribution of 25p for every £100 you spend on the card is made to Cool Earth who oversee the forest preservation project. You may have seen the Cool Earth.org logo around but they are fast becoming a leading organisation for the preservation of our rainforests.
After meeting with the Co-op, I sought to find out what other factors make Bank products Ethical. Rather than publishing all of my findings here which would definitely inundate you, I have decided to publish my relevant findings on each Bank and Building Society separately, in further articles.
In the meantime, if you want to feel good about who you bank with and want to find some competitive deals, I’ve posted some direct links for you below. The most prominent Ethical Banks are:
The leading ethical Building Societies are:
* Norwich and Peterborough Building Society
