A recent poll by ShareAction has shown that the British public would switch banks based on the environmental and social impacts linked to their financial providers.
Fossil fuels were a key feature of the poll, with 38 per cent of respondents claiming they would change banks if their provider invested in or had strong ties with fossil fuel-intensive companies. An additional 54 per cent would consider a switch if their bank invested in businesses with poor labour and human rights standards.
These results suggest that social factors resonate more with the public than environmental ones, and human rights abuses are perhaps more comprehendible or inspire greater sympathy than climate disasters.
Overall, 73 per cent of respondents claimed they would want more, equal weight, or some consideration to be given to the environmental and social impacts of their investments, compared to financial returns.
Does this signify real change?
The results of such polls should be taken with a pinch of salt, since answering a tick-box questionnaire is very different to making a real-life change. However, ShareAction have recently set out a series of responsible investment principles to help the public make informed decisions about their investments and the wider impact of these.
We’ve collected our 3 key tips for investing with ethical banks:
- Know how to spot greenwashing – understanding what constitutes an unsubstantiated claim is key for identifying banks with negative impacts.
- Check who your bank is connected with – estimates have shown that just 100 companies are causing 71 per cent of carbon emissions.
- Think about your pension – most organisations choose the pension provider for their employees. If your organisation has chosen a bank with negative social and environmental impacts, consider a private pension plan with an ethical provider.
