QUICK WINS
Move your bank account! It's very easy and you should absolutely start now given the impact it has. Why not move you business and personal accounts? Triodos, Starling , Monzo all offer business accounts. You can even get sustainable business mortgages through the likes of Ecology!
Look here for a longer list of ethical business bank accounts and find out more about Ethical Banking via Ethical Consumer.
LONG TERM IMPACT
Already banking with Starling, in April 2023 EcoShaper pledged to green their pensions.
SDGs
Lowering your emissions from finance and pensions moves you closer toward achieving the following Sustainable Development Goals
Promoting sustained, inclusive sustainable economic growth
Decarbonising your finance makes a huge dent in your consumption footprint
Removing investment from fossil fuels increases the chances of providing a habitable planet to our kids
Finance & Pensions
Did you know the impact of your finances and investments are included in your net zero measurements? They count as scope 3 emissions - and addressing them is the biggest ‘quick win’ you can make!
Shockingly, the average UK pension generates around 23 tons of CO2e every year! And the big 5 High St banks have invested £29bn in the last 12 months alone. Since the Paris Agreement in 2015, the world’s 60 biggest banks have invested $5.5 trillion in fossil fuels - hence the huge impact. See the steps below to switch your pension.
There’s a lot of false information out there (no prizes for guessing which powerful lobby groups started it!) about responsible investment not generating the same returns, but in fact renewable portfolios have outperformed fossil fuels for the last 15 years! 2022 was the first year this changed, due to the Ukraine war, and the uptick in guns and oil demand - a no-brainer on whether you want your pension invested in those sectors!
Climate positive impact with your finances
Pension
Switching your pension is quite long-winded, but actually for SMEs it doesn’t require a huge amount of work on your part, as most of it is handled by your existing and new pension providers.
Appointing someone to take charge of the process can be useful so that employees have a go-to person to answer questions. If you have a finance department or HR that’s ideal, but most SMEs won’t so have to familiarise themselves with the process, they won’t be able to answer every question, but can revert back after discussion with providers.
We advise you to seek out an independent financial advisor to provide you personal advice and a pensions advisor for your business. There are some good ones in Surrey, including accredited B-Crop Switchfoot Wealth and Tribe Impact Capital.
Make My Money Matter has lots of excellent info and advice on this issue, set aside 20 mins to have a good browse.
As always, Which is a good source of information, and more info about low impact pensions and accounts can be found at Good with Money and Ethical Consumer.
Is it easy?
Bank Account
This doesn’t need to be particularly time consuming either! Banks want your money, so your new bank will do most of the work for you. But before you do anything, always read the fine print for the new account!
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Apply to the new bank. Just type into Ecosia (the search engine which plants trees) ‘Apply for a XXX account’.
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Complete the online questions
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Provide the date you want to make the switch - ideally so it doesn;t interfere with any upcoming payments, just to make sure you avoid headaches
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If you’re accepted, the new bank will handle the transfer of your money, your direct debits and standing orders, and sport out new debit cards
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Once your new account is open, close the old one. (this is important as they may keep charging you fees, even if the account is empty!)
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Calculate those emission savings and add them to your net zero plan! You may want the carbon savings over the next few years, rather than as one big lump.
Moving your pension to an ethical provider is 21x more powerful at reducing emissions than than stopping flying PLUS going vegetation PLUS switching to a renewable energy provider.!
Did You Know?