Most people think of their carbon footprint in terms of flights, diet and driving. Few think about their bank account. But the money sitting in your current account is being invested by your bank while you're not using it - and for most UK high street banks, a significant portion of that investment goes into fossil fuel projects.
A 2023 study by Make My Money Matter estimated that moving your pension to a sustainable fund has 21 times more impact than going vegetarian, switching to an electric car and taking no flights combined. The carbon footprint of having £10,000 in a high street bank that invests in fossil fuels is estimated at around 3-4 tonnes of CO₂ per year.
Triodos - the gold standard for ethical banking. Publishes every loan it makes. Funds only social and environmental enterprises.
Starling - a B Corp certified digital bank. Has committed to net zero financed emissions by 2050 and does not directly fund fossil fuel extraction.
Monzo - B Corp certified. Has a responsible lending policy and is phasing out financed emissions.
Co-operative Bank - has an ethical policy dating back to 1992 and does not invest in fossil fuel companies.
The major UK high street banks - Barclays, HSBC, NatWest, Lloyds, Santander - all continue to fund fossil fuel projects to varying degrees. Barclays is consistently ranked as Europe's largest funder of fossil fuels. Switching is easier than it sounds - the Current Account Switch Service guarantees a 7-day switch and automatically redirects payments.
If you have a workplace pension, this matters even more than your bank account. Asking your employer to move you to an ESG fund takes a single email. The website MakeMyMoneyMatter.co.uk has templates and guides for asking your employer to offer a greener pension option.
