Irish Banks Rated: The Greenest Banks are Irish Banks

From a climate perspective, Ireland’s bank ratings are thankfully not as bleak as those in the U.S. analysis. Whilst this is positive news, the Irish banking sector is miniscule when compared to its U.S. counterpart and the Irish economy is dominated by the tech and pharmaceutical industries with a virtually non-existent fossil fuel industry. The fluid nature of money and the interconnectedness of our banking system, however, mean it is important to leave no stone unturned in our pursuit of a greener financial future. With this in mind, we have duly assessed the major players in the sector.

How We Rate Banks

We assess banks based on their climate impact across five categories: Great, Good, Okay, Bad, and Worst. Our analysis focuses on several critical factors, including the amount banks invest in fossil fuels versus renewable energy, the strength of their exclusion policies regarding harmful industries, their transparency in disclosing climate-related risks, and whether they have effective governance structures to address climate issues. For a breakdown of how we evaluate these factors, visit our methodology page.

Irish Banks Top the Ranks

Ireland’s retail banking sector has been dominated by several main players for the past number of years. With the phased withdrawal of Ulster Bank, a subsidiary of NatWest in the UK and the lowest-rated bank of the four, the remaining institutions, Allied Irish Banks (AIB) (including subsidiary, EBS), Bank of Ireland, and Permanent TSB, now account for the lion's share of the market. So how did they fare? All achieved a ‘Great’ rating, the highest score we award!

With a rating of ‘Good”, An Post Money is another significant player in the Irish banking landscape. Whilst they may not contribute to the financing of fossil fuels, they need to communicate this. A lack of transparency will negatively impact a bank's rating.

The Rise of Fintech

Irish banks are leaders in green banking, with top ratings for AIB, Bank of Ireland, and Permanent TSB. Credit unions also avoid fossil fuel financing, though greater transparency is needed. Meanwhile, global corporate banks in Ireland continue to fund fossil fuels. Stay informed and make sure your bank isn't funding fossil fuels.

Credit Unions

Our analysis recognised the important role credit unions play in the Irish banking sector. Although we didn’t investigate every credit union in Ireland, a look at the policies of the umbrella groups, the Irish League of Credit Unions (ILCU) and the Credit Union Development Association (CUDA), demonstrate that even though there are areas that need improvement, most notably in terms of transparency, by and large, we can conclude that credit unions are not contributing to fossil fuel financing.

The Usual Suspects in the Corporate Sector

Some globally recognisable names round out the Irish banking landscape. These include Intesa Sanpaolo, Barclays, Bank of Montreal (BMO) and Bank of America, which primarily operate in the corporate sector. Each of these banks is rated ‘Worst’ by Bank.Green and have been continually found to be funding the climate crisis and misleading their customers while doing so.

Keep Your Finger on the Pulse

As always, we ask you to remain vigilant; a high score today doesn’t guarantee future ratings. Banks must continually assess their practices and banking relationships in an ever-evolving environment. As a customer, you are best placed to ensure they are moving in the right direction.

The U.S. offers a pertinent example. In the past number of weeks, as the political headwinds have shifted, some high-profile banks have been reneging on their already frail climate commitments. To conclude, whilst we acknowledge and commend the work that Irish banks are doing, a lot of work still needs to be done globally to move the needle.