Four benefits of green banking

What comes to your mind when you hear the word green banking? Learning about green banking can make you aware of how your money is being invested in bigger projects and then you can decide where to put your money. 

In this blog post, we will share with you four benefits of green banking. 

Source: Beverly Hills Magazine

1. Where is your money being invested?

    Did you know that every time you open a savings account or a checking account, your money just doesn't stay there doing nothing? Banks use that money to finance different projects, or invest in all kinds of industries. Wouldn't be nice if you could know where your money is being applied to? Where is it going when you are not using it?  Would it be fair to decide where your money is going?  This can be possible if you can use what's called a green bank. According to the book "Banking and Finance" Julia, Taslima, and Salina Kassim. 2020. “Green Banking.” Banking and Finance, December. IntechOpen. doi:10.5772/intechopen.93294.

"Green banking is an eco-friendly financing. Bank's concern about environmental well-being while financing to business is considered as green banking. To get a sustainable positive impact from business, green banking is essential"

2.Checking and Saving accounts that make a difference.

    Before you decide to go and open a new bank account, you need to make sure that the institution is indeed a green bank or what they are also called a 'socially responsible bank'. To make sure you are in a green bank, look for these certifications:

Certified B Corporation - Founded in 2006, the nonprofit network B Lab runs the certification program with scorecards across five impact areas: governance (or management), workers, community, environment and customers. To be certified, B Corp companies must score an 80 or higher on a 200-point test. Other requirements include background checks, on-site reviews and re-certification every three years.

Fossil Free Certified - Starting in February 2022, the not-for-profit Bank Green launched the Fossil Free Banking Alliance and certification program focused on one requirement: A bank must not finance fossil fuel companies or projects, now or in the future. Fossil fuels consist of oil, coal and natural gas, and their extraction and energy use remain the largest sources of greenhouse gas emissions from human activities, according to the U.S. Environmental Protection Agency.

Green America Certified - Since 1982, the national not-for-profit Green America has built a green network of small businesses. Green America defines “green” to mean a focus on social justice and environmental responsibility.

1% Certified - Established in 2002, this global movement makes member businesses and nonprofits commit to giving the equivalent of 1% of total annual sales to environmental nonprofits. Some of the 1% can come from pro-bono professional services and volunteering. The environmental nonprofits must be approved by 1% for the Planet.

These are some of the different certifications that a green bank should have. See the full list and more information at NerdWallet.com in their article: Ethical Banking: What is a socially Responsible Bank?

3. Giving back to the community

    Talk to your bank about what programs and companies they fund. Join an ethical bank that uses it savers' money to lend to charities and social enterprises. See what companies they are helping the reduce their footprint by investing in developing alternative renewable energy projects. 

4. Support Sustainable Brands 

    Look for companies who are reducing and recycling their products. Big brands like Cotopaxi, Patagonia, and small companies that are just beginning like Aqua International and Heavenly. They all have a presence in different areas, like clothing, clean water, backpacks, but all of them are reducing the footprint.

At Envibank, we believe that small changes can make a big difference in protecting the planet. We are a B certified, fossil free and green america certified bank, and we are here to answer all your questions about how you or your company can be part of green banking. 

Contact us at www.envibank.com or call 1-800-123GREEN

www.envibank.com