Despite clear evidence and global consensus of the need to shift away from fossil fuels because of climate change, the fossil fuel industry continues to expand production and roll back environmental commitments. This expansion is facilitated by financing from the world’s largest banks. Since the Paris Agreement in 2015, the world’s 60 largest banks have provided $6.9 trillion in financial commitments to the fossil fuel industry, with $673 billion in fossil fuel financing in 2023 alone. Financing for fossil fuel projects from major banks is not only fueling the climate crisis: these projects are also causing the destruction of frontline communities and ecosystems. More frequent wildfires and floods are raising prices for home insurance, groceries, and other household costs.
Saying “No Thanks” to fossil fuel banks
If you’re concerned with what your bank is doing with your money behind your back, there are some simple steps you can take to learn about the climate impact your bank might be contributing to, and to help you find sustainable alternatives.
Step 1- Find out if your bank is financing the climate crisis
Since the Paris Agreement, the six largest U.S. banks – JP Morgan Chase, Citi, Wells Fargo, Bank of America, Morgan Stanley, and Goldman Sachs – have committed $1.8 trillion in lending and underwriting to the fossil fuel industry.
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Banking on Climate Chaos is an annual report published by Rainforest Action Network, Sierra Club, and others tracking fossil fuel financing of 60 of the largest commercial and investment banks. You can also learn about the environmental and social impacts of fossil fuel projects on frontline communities across the world.
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BankTrack monitors the financing activities of private sector commercial banks worldwide, with a focus on projects, policies, and investments that can have adverse effects on human rights, the environment, and local communities.
Step 2- Search for a green banking solution
If you’ve found that your bank is financing industries that are fueling the climate crisis, it may be time to consider a more sustainable banking solution.
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bank.green can be used to search for sustainably-minded banks in your area. Some of these banks are listed as “Fossil Free Certified”, meaning they have pledged not to finance new fossil fuel companies or projects.
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Global Alliance for Banking on Values (GABV) is a network of independent, sustainable, and values-based banks and banking cooperatives from around the world. Prioritizing values such as sustainability, social inclusion, transparency, and environmental responsibility, member banks share a common mission to use finance as a force for good.
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Mighty Deposits is a platform that helps consumers choose banks and credit unions based on their environmental, social, and community impact. It provides detailed insights into how these institutions use deposits to support various causes.
Spread the word
It helps to share what you find with friends and family and encourage them to consider green banks as well. They may have the same concerns about climate change and environmental impact as you. Raising awareness can multiply the positive impact of green banking and help speed the growth of the sustainable financial industry.
See if you’re invested in banks financing the climate crisis
If you’re saving for retirement, your investments are likely invested in the same banks that are financing the climate crisis. As You Sow’s Fossil Fuel Finance ratings for mutual funds assigns scores based on the portfolio’s investments in banks providing financial commitments to fossil fuels – including tar sands, arctic drilling, and coal mining. These ratings help investors search for funds that avoid climate risk from financial institutions.
It’s time for banks to accelerate the transition to a just, sustainable economy. Continuing to invest in fossil fuel expansion carries massive financial risks. Finding a sustainable green bank that recognizes the risks of fossil fuel financing and investments could help protect your savings and help build a safer future for all.
