Fossil fuels are one of the major factors contributing to our climate emergency. Bristol City Council is aiming to get the city to net zero carbon emissions by 2030 to tackle climate change and big part of that is getting people and businesses to switch to renewable energies.
But while many people might swap to tariffs using greener fuels, or install solar panels in their homes, they might not realise that their bank is investing in fossil fuels with their money.
Earlier this week, scientists published a disturbing paper concluding that the drought in the Horn of Africa is now around 100 times more likely to happen due to the human-caused climate crisis.
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More than 43,000 people died in Somalia alone last year due to the conditions, with half of the deaths in children under five. Some 36.4 million people are currently at risk of starvation. The rainy season, critical for survival in these largely agricultural and pastoral communities, has failed for the past five years.
And the impacts of the climate crisis are already being experienced in the UK as well, with many pointing to droughts and other extreme weather conditions pushing up our grocery costs and heating bills.
The cost of food is particularly susceptible to climate-related shocks like droughts, floods or wildfires. For example, the cost of eggs in the US rose by 60% in 2022. In addition to increased demand and a spike in avian flu, climate-fuelled droughts and heatwaves made growing chicken feed 30% more expensive, reports the Guardian.
And one easy thing people who want to take action can do is switch to a bank that isn’t investing in fossil fuels. Below is a list of UK banks which have pledged to avoid the industry.
Starling
App-based bank Starling says it expressly avoids funding fossil fuels, mining, arms and military, and instead invests in “government securities and other high-quality liquid assets”.
A spokesperson said: “We invest your money on supranational bonds and securities backed by UK residential mortgages. Our investments are primarily to support the Bank’s liquidity. We carefully consider the organisations we invest in, taking into account a number of factors such as what those organisations do and how safe our customers’ money is. We do not invest directly in fossil fuels, which includes new fossil fuel extraction.”
Find out more here.
Triodos
Triodos Bank N.V. is an ethical bank based in the Netherlands with branches in Belgium, Germany, United Kingdom and Spain.
A spokesperson said: “We only lend to organisations that positively affect people’s lives, protect the planet, or build strong communities – and we’ve done so since we opened our UK doors in 1995. We have never – and will never – lend or invest in fossil fuel projects.”
Find out more here.
The Co-operative Bank
The popular high street bank pledged in 1992 to avoid investing in fossil fuel companies.
A spokesperson said: “By choosing us, you’re choosing to withdraw from the financing of fossil fuels, oppressive regimes, unethical labour practices, and so much more.”
Find out more here.
Charity Bank
This bank was founded to support charities with loans that they couldn’t find elsewhere and to show people how their savings could be invested ethically and in ways that would make them happy.
Find out more here.
Monzo
App-based bank Monzo avoids any investments linked to fossil fuels.
A spokesperson said: “At Monzo we’ve built a branchless, digital bank with a relatively low carbon footprint. However, our operations still contribute to global climate change, and we know that as we grow as a business, our environmental impact will grow too.
“Our mission is to make money work for everyone, and it’s our responsibility to ensure that at the very least we do no damage to the environment, by reaching net zero emissions as a business. We also know that fighting the climate crisis really matters to our customers and our team, and we want to hold ourselves to a standard that we can all be proud of.”
Revolut
It started in 2015 as a travel card that provides cheap exchange rates, and it is now becoming a bank. It is the fastest-growing digital bank offering a wide range of features.
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