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What Is a Climate-Friendly Checking Account?
A climate-friendly checking account is an account at a bank or credit union that ensures your money is not used to finance fossil fuel-related projects. If you are interested in ethical finance and sustainable spending, this type of account can help you use your short-term savings to combat climate change.
What Makes a Checking Account Climate-Friendly?
Climate-friendly banking generally refers to how banks use the money you deposit. A bank might be considered climate-friendly if it:
- Has a triple bottom line: Measures success based on social and environmental impact, along with profits.
- Doesn’t participate in fossil fuel projects: Avoids lending money to, investing in, or underwriting fossil fuel-related companies or projects.
- Invests in climate-neutral and -positive organizations and projects: Seeks out carbon-neutral or -positive borrowers.
Be cautious of greenwashing, where banks highlight eco-friendly actions without addressing the adverse effects of their other activities.
How to Find a Climate-Friendly Checking Account
Here are three steps to help you find a climate-friendly checking account:
1. Avoid the Big Banks
Big banks may offer convenience but often finance fossil fuels. The Rainforest Action Network’s 2023 Banking on Climate Chaos report can provide insights into which banks to avoid.
2. Look for These Certifications
Two certifications directly related to climate-friendly banking are:
- Global Alliance for Banking on Values (GABV): Committed to a triple bottom line.
- Fossil Free Certification: Awarded to institutions that avoid fossil fuel projects.
Certified B-Corporations (B-Corps) and Community Development Financial Institutions (CDFIs) may also be good options, though not directly climate-related.
3. Use These Search Tools
Several search tools can help you find climate-friendly checking accounts:
- Bank.green: Lists financial institutions considered green banks.
- Mighty Deposits: Shows banks and credit unions that don’t finance fossil fuels.
Review the bank accounts’ fees, requirements, interest rates, and features. Consider options with nearby branches if you prefer in-person banking.
Other Ways to Make Your Finances Climate Friendly
Besides using a climate-friendly bank, consider these strategies:
- Learn about ESG and impact investing: Invest in companies based on their environmental impact.
- Offset your carbon footprint: Buy carbon offsets to make your household carbon-neutral or -positive.
- Invest in eco-friendly upgrades: Take advantage of tax credits for purchases like electric vehicles or solar panels.
- Support advocacy organizations: Volunteer or financially support groups pushing for climate-friendly regulations.
Open Your Bank Account
Many climate-friendly checking accounts are available, including options with no minimum opening deposit or monthly fees. Some also offer business checking accounts and other banking products. Once you find a suitable bank, opening an account online is often straightforward.
For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We are here to help you with all your mortgage requirements.
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