Before you start thinking you can’t afford to have your money help climate change. We’re not talking about spending money on this blog. We’re talking about green investing in the UK. Recent studies from Make My Money Matter, show that you can fight climate change at high levels by simply having your pension with the right company. It’s important to note, that we’re not financial experts and we’re certainly not giving out financial advice today. However, if you feel powerless towards fighting climate change, these are some tips to help your money go further, just by doing a little more research as to where you’re storing your money.
What is green investing?
Green investing in the UK is a term that refers to investing your finances with companies that align with eco-friendly ideologies. But this doesn’t require as much effort as you may think. For example, you can see how eco-friendly your bank is by looking into the companies they invest in or causes they help support.
Let’s take a look at how green investing can relate to your lifestyle.
Banking with the right people
Sadly, a lot of high street banks are heavily invested in fossil fuels, making them not such a green choice. Barclays is the world’s fifth biggest funder for fossil fuels – you can only imagine the harm any money banked with them is doing to the planet. That being said, there are high street options that don’t invest in fossil fuels.
Nationwide Building Society is building society, not a bank, and therefore is loyal to its members, not its investors on the stock exchange. It means that it is within their best interest to do what members want. Not what gives the most profit to investors. While it isn’t the most eco-friendly financial service out there, you could do much worse. It gives the best of both worlds between green and traditional operations with stores on most high streets.
On the top end of the scale is Triodos. A fully fledge UK bank since 2019 but originated from the Netherlands. They’re one of the most sustainable banks out there and are completely transparent with where their money is invested. You can check out all their investments here and what areas of climate change those businesses are tackling with their funding.
Looking at your other assets
If you’re banking with an eco-friendly business, then the next step is to look at how your other financial assets impact the planet. For example, your pension. According to Make Money Matter, making your pension ‘green’ can be 21 times more effective than going vegetarian, switching energy providers and never flying again combined.
No matter who your pension is with, be sure to check out where they’re investing your money. As the consumer, you hold the power. Write to your pension provider and let them know that you want a greener future, you can find a template here. Alternatively, speak to your employer – they may be just as shocked as you are to discover that their pension choice is increasing the impact of climate change. Not so ideal if they have a net zero goal they’re working towards.
While we know that your bank and pension scheme are just two areas where you can help fight climate change with your money, there are others out there. Investing in saving schemes, bonds, and even on the stock market. As we mentioned, we’re not here to dish out financial advice, but there is plenty of information out there that you can get stuck into. So if you think the only way your money can help the planet is to buy a bamboo toothbrush and reusable nappies – think again. Look into green investing.
