The first step to knowing whether your money is supporting the fossil fuel industry is to check what your current financial institution is doing with it. The bad news is that if you are with one of the "big banks," then chances are, fossil fuel companies or projects will make up part of their financial portfolio.

By using our bank-checking tool, you can see for yourself how committed your bank or credit union is to green banking, or whether they are just part of the "business as usual" banking system that is financing fossil fuels.

If it turns out that they are, we strongly encourage you to use our tool above to find a more socially responsible bank or credit union to move your money to.

Banks are for-profit institutions, and what is most profitable rarely coincides with being socially responsible. It is therefore perhaps not so surprising that their decisions as to where to allocate money typically pay very little regard to issues such as social welfare and the environment. But over time, the consequences of this can be devastating.

In the UK, there is a total of ~£3.69 trillion of customer deposits sitting in the savings and checking accounts of these banks, while in each of the the US and the EU, that number is above $15 trillion. Imagine if, instead of financing fossil fuels and deforestation, these amounts were put to work funding climate positive solutions like sustainable agriculture, electric-vehicle networks and renewable energy initiatives.

This is the promise of eco, or green banking, and it is the banking story that we can build together, one deposit at a time. The majority of banks and credit unions on this page are powering a greener, lower-carbon economy, and even with those that are not, you can still be confident that your deposit will not be used to propel us further towards climate catastrophe.

Broadly-speaking, there are three types of financial institution who might offer you checking and savings accounts and share your environmental values, all of which we have listed above:

Banks

A bank is a company with a government license to hold and lend money, usually offering a variety of personal and business banking services, such as high yield savings accounts, business loans and more. While traditional banking has always focused on maximizing profit for shareholders, a fast-growing number of eco-friendly banks are catering to customers who understand the necessity of shifting focus to environmental and societal wellbeing.

Credit Unions & Building Societies:

Credit unions and building societies (in the UK, Australia and New Zealand only) are member-owned, cooperative institutions that are focused less on profit (in the case of credit unions, they are entirely not-for-profit) and more on meeting the financial needs of their members. Since loans are typically provided for the benefit of members, these organizations in general are far less likely to be engaged in questionable business practices such as financing the fossil fuel industry.

Neobanks:

A newer banking alternative has emerged in recent years that focuses primarily on offering cutting-edge mobile banking services to customers nationwide. Neobanks only offer personal banking services, and as such do not themselves engage in the type of commercial banking that would entail supporting fossil fuels. With that said, in some cases, they may partner with less ethical banks behind the scenes in order to store and allow you to spend your money, which is definitely something to look out for.

Many green banks may not be quite as green as they seem. The term "greenwashing" refers to when a supposedly environmentally-friendly bank speaks more highly of its environmental impact than is warranted by its activities. This type of false messaging about a bank's climate commitments can be extremely damaging to the space, as it reduces trust amongst consumers, in turn causing them to become more sceptical about the impact they might have with their money.

While it is our mission at Bank.Green to maintain this trust by promoting transparency amongst environmentally-friendly banks, there is no substitute for investigating your own bank (or credit union/building society).

With that said, here are a few questions you may wish to ask a financial institution you are considering, before signing up with them:

How will my deposit be used to help build a better future, and how do you measure this impact?

Acknowledging that not all sustainable organizations that are divested (or divesting) from fossil fuels will be equally dedicated to supporting rewilding projects or the transition to renewable energy, for those who claim to be, it's important to understand how exactly they are doing so and how they measure their positive impact. Pay particular attention to claims made on their website or in other marketing material and ask for the evidence they are using to support these claims.

Do you partner with any other banks to look after customer deposits?

This question is especially applicable to environmental neobanks, which are often merely financial technology applications that act as a "front-end" to other banks who are the ones who actually carry out the financial services being offered. By "following the money" in this way, you may learn some unwelcome truths about how your money is really being used. In particular, ask what conditions your neobank has regarding the activities of the bank they are partnered with.

What is your position on financing fossil fuels?

In case it isn't obvious by now, we consider this the single biggest issue in determining whether a bank has any right to call itself sustainable. Since long before green banks emerged, traditional banks have engaged in their own form of greenwashing by touting all of the sustainable initiatives they are supporting while conveniently ignoring the fact that they still hand over billions to fossil fuel projects and companies.

While this final question is therefore more likely to be meaningful for banks who do not lead with their environmental commitments, it is always worth checking. If you are not able to find an answer with our own bank-checking tool, then it's time to ask them. As long as they have a policy in place to restrict any further financial support for fossil fuel companies or projects (and if they do, ask to see it!), then we consider them to be a safe option.

Which third-party certifications do you have that attest to your impact?

For financial institutions who are seriously committed to climate action, it is common for them to acquire third-party verification of this as a way of holding themselves publicly accountable. These external credentials can often be seen in the footer of their website, but it's always better to ask to be sure. Also be aware that no single certification mean that the organization is squeaky clean, so judge them as a whole along with other indicators.

B Corp Certification (Global)

B Corp was founded in 2006 with the aim of helping companies to stand out who are able to demonstrate exemplary social and environmental practices. To qualify as a certified B Corp, a company must score 80 or above on a 200-point test across five impact areas (only one of which is the environment.) Learn more here.

Global Alliance for Banking on Values (Global)

The GABV is, in its own words, a global "network of independent banks using finance to deliver sustainable economic, social and environmental development." It provides over 60 values-based banking options for people based on 6 principles to which all members must adhere, including a commitment to triple bottom line banking (profit, people and the planet). Learn more here.

1% For the Planet (Global)

One of the oldest environmental certifications, 1% For the Planet has a member base who have agreed to give 1% of their total annual sales to approved environmental nonprofits. It is worth noting that beyond this, there is nothing in the scheme that measures members companies' environmental impact. Learn more here.

Green America Certified (U.S.A)

Green America is a not-for-profit founded in 1982, whose mission is to "harness economic power—the strength of consumers, investors, businesses, and the marketplace—to create a socially just and environmentally sustainable society," One way they do this is via their "Green Business Network" of small businesses who must submit an assessment. So far there are not many banks and credit unions in the network, but those there are have committed to not financing certain industries, including fossil fuels.

Community Development Financial Institution (U.S.A)

Community development financial institutions (CDFIs) "share a common goal of expanding economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses." Managed by the CDFI fund, an arm of the U.S. Treasury, this network of banks and credit unions is over 1,400 strong. While not strictly an environmental certification, the communities served by CDFIs are often those most impacted by the negative effects of climate change, so being a CDFI can still be considered a positive indicator. Learn more here.

Fossil Free Certified (Global)

Of course, this list would not be complete without mentioning Bank.Green's own certification program. While we hold all of the above schemes in great regard, it is our firm belief that in order to have the greatest impact on climate change, before anything else, a financial institution must be committed to not allocating any further funds to its principal cause, the use of fossil fuels. This is why we created the Fossil Free Alliance, to allow any financial institution to signal to its customers, employees and the public at large that it is a guardian of our collective wellbeing.

One of the ways banks earn money is to first lend it out to businesses, collecting interest on these loans. A socially responsible, values-based or ethical bank is one that has made commitments to not lend to businesses who are engaged in activities that might cause harm to people or the planet. Eco, green or sustainable banks, on the other hand - while generally also ethical - maintain a narrower focus on environmental issues, often providing loans exclusively to climate-positive initiatives.

In almost all cases, these financial institutions seek to acquire third-party certifications of the positive impact they are having in order to demonstrate their transparency and accountability to their potential customers.