‘Some would term our efforts futile, but if all were to follow our example, what a change would be wrought for our beloved Planet!’
– Margaret Atwood, from ‘Year of the Flood’
This article is of a less esoteric nature, and yet it concerns a subject close to my heart - how we can all create a better, fairer world together.
Ethical Banking: What are you funding with your money?
When we think of banks, we primarily look for a secure place to deposit our money that pays us a good rate of interest. For this reason, many of us bank with traditional High Street banks. But have you thought about how the bank might invest your money when you are not using it? A bank’s core business is to lend the money you deposit with them to somebody else. We generally don’t know who the banks lend to and what the money will be used for. Hence, your money may be – and often is - used to fund wars, animal testing, nuclear power, tobacco or companies that operate in countries where human rights are disregarded.
What are the alternatives?
Unlike most High Street banks, ethical banks are concerned with the social and environmental impacts of their investments and loans. They are regulated by the same authorities as traditional banks, but share a common set of principles, primarily transparency about who they fund. Interest rates may not be as high as those of traditional banks as ethical companies tend to operate on narrower margins, but a better, fairer and healthier world might be the pay-off.
Switching your bank account, even though it may seem arduous, is actually very easy. Banks are now able to automatically transfer your standing orders and direct debits to your new account, meaning that your main task is to notify people who pay into your account, such as your employer.
Ethical banks and investments
There are now a growing number of ethical banks and investments to choose from.
The main, longest-established ethical bank is The Co-Operative Bank (http://www.co-operativebank.co.uk/ ) and its Internet equivalent Smile (http://www.smile.co.uk/ ), although, strictly speaking, there are doubts about as to whether their policy is completely ethical. However, the Co-Op has moved into the right direction and offered good alternatives to mainstream banking for many years.
The Triodos Bank (http://www.triodos.co.uk/ ), based in Bristol, is Europe’s leading ethical bank as it directly invests in ethical and environmentally friendly enterprises and offers targeted account, such as the Earth and Organic Savers.
The Ecology Building Society (http://www.ecology.co.uk/ ) lends money for the purpose of ecologically sound properties only.
For savings and investments, building societies such as Abbey National are an ethically neutral way to save, as the societies are owned by their members.
If you want to directly contribute to the growth of ethical businesses, you could think of taking out an ethical investment. You could consult a financial advisor that specializes in ethical investments, or visit the following links to find out more:
Ethical Consumer www.ethicalconsumer.org/FreeBuyersGuides/money.aspx
Vegan Society www.vegansociety.com/people/lifestyle/finance/investment.php
My husband and I recently switched to The Co-operative Bank. So far their customer service has been sterling and I like their ethos.
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