By Anne Behlouli | Program Manager, The Alliance Center
As we learn how to navigate the far reaching impacts of COVID-19 and work to get to the “other side” of this crisis, we have the chance to ensure things don’t necessarily go back to business as usual. While there are many activities we aren’t able to participate in currently, there are still actions we can do from home to build a more sustainable future.
Last month, the Rainforest Action Network, Sierra Club and several other nonprofits released the latest version of Banking on Climate Change 2020: a report focused on global banks’ fossil fuel financing. One of the major takeaways is the financing of fossil fuels by banks is on the rise. Since the Paris Agreement in 2016, 35 international banks have not only been sustaining their investments in fossil fuel companies, they have actively expanded it with $2.7 trillion invested.
To be part of the solution, what actions can we take to relocate our money and support banks that focus on the wellbeing of people and the planet?
Step 1: Check How Your Bank Stacks Up
The annual Banking on Climate Change Report Card ranks banks in order of how much they lend to fossil fuel companies. You can get key insights on what financial institutions to avoid without having to read the entire report!
Step 2: Take Action
There are other banking options worth considering for your checking and saving accounts. Local credit unions are member-owned nonprofits focused on serving the needs of their community. You can actively look for a socially responsible bank utilizing Global Alliance for Banking on Values as a resource. This is an independent network of banks using finance to deliver sustainable economic, social and environmental development.
Finally, if you have a portfolio to invest in, specialized impact investing companies are a valuable resource.You make smarter choices to support innovative companies that are addressing systemic problems and leading long-term economic growth. Oil and gas companies were already facing structural problems even before COVID-19. The recent crash of the oil price demonstrates how volatile the market is and how divesting from fossil fuels is both an ethical and financially-wise decision for the future of your savings.
It’s Up to Each of Us
We each have the opportunity and available resources to evaluate where our money is and which industries it’s currently supporting. If you are looking for a way to take action to support a more resilient future during the time of quarantining, please consider researching your bank and discovering more sustainability-minded options. This small step can make a big difference in reducing the funding of fossil fuels and instead investing in a more equitable future for all.