Written by Rokas Beresniovas and Ravi Mikkelsen
The saying, “Money makes the world go ’round,” reminds us of the profound influence our financial choices can have. If you’re seeking a New Year’s resolution with meaningful impact, consider reassessing where your money is held. Changing where you bank might be one of the simplest yet most impactful steps toward supporting sustainability.
Even if purchasing an electric car or installing solar panels isn’t currently an option, shifting your banking habits to align with environmental goals is something almost anyone can do. Financial institutions play a critical role in shaping industries, and by choosing banks that prioritize the environment, you can join a growing movement for positive change.
READ: Climate finance: The critical role of specialized financing mechanisms (July 14, 2024)
Explore climate-positive options
Take Atmos Financial, for example. Atmos offers checking and savings accounts that fund climate-positive projects, dedicating 100% of its resources to clean energy initiatives, electrification, and other environmentally focused goals. With features like mobile banking, no ATM fees, competitive interest rates, and up to 5% cash back at eco-friendly businesses, Atmos combines convenience with impact. Notably, $5,000 in an Atmos account can save 5.85 tons of CO2 annually—the equivalent of eliminating over 13,000 miles of car travel. While Atmos is not a bank, it partners with Five Star Bank, an FDIC-insured institution, to ensure deposits are secure and regulated.
Clean Energy Credit Union, another excellent choice, uses deposits to reduce the cost of residential solar and electrification projects. As a federally regulated entity, Clean Energy CU offers unique financial products like low-interest loans for renewable energy projects, although its technological offerings may be less advanced than those of Atmos. Both institutions empower you to make a tangible difference with your money.
Local and sustainable alternatives
Local credit unions and community banks also provide great options for those looking to divest from fossil fuels. Many are committed to funding green projects and supporting sustainable businesses. Initiatives like “Bank For Good” can guide you toward over 30 such institutions.
The Cost of Inaction
Traditional banking choices carry hidden environmental costs. Since 2015, the top 60 global banks have poured $4.6 trillion into fossil fuel industries. Depositing money in these institutions indirectly supports significant carbon emissions. Climate advocate Bill McKibben highlights that individuals with more than $125,000 in mainstream banks may unknowingly fund more carbon emissions through their banking choices than through their daily activities combined.
READ: Most promising climate tech startups to watch in 2025 (December 5, 2024)
Small changes, big impact
Your financial decisions hold immense power. By choosing accounts that are not only “fossil fuel free” but actively invest in renewable energy, you help redirect funding toward a sustainable future. Switching to a climate-conscious financial institution is a simple yet impactful way to align your values with your spending habits.
This year, let your finances reflect your commitment to the planet. Small changes, like choosing the right bank, can collectively drive significant momentum toward a greener, more sustainable world.