Do it
TIME AT HOME
How to go green with
YOUR FINANCES
Editor of TheMoneyEdit.com, Kalpana Fitzpatrick shares her advice on how your cash can contribute to a better planet
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limate change, pollution and the environment are among our biggest life concerns and it’s the strongest we’ve felt since 1989, according to research*. While our concerns have led us to consuming less meat, seeking out eco-friendly alternatives and buying electric cars, the real power to make an impact lies with your money. Our finance expert Kalpana Fitzpatrick explains how what you do with your cash can help save the planet.
FEATURE KALPANA FITZPATRICK PHOTOGRAPH GETTY IMAGES *IPOS MORI **INVESTMENTS CAN GO UP AS WELL AS DOWN
Bank for good
When you put your money into a bank, it is used to invest in various companies and projects, but they might not necessarily be ones you would be happy about. A report from Greenpeace and WWF UK found that banks and asset managers were responsible for financing the output of 805 million tonnes of CO2 in 2019. If this upsets you, then make a stand and switch to a green bank. Triodos Bank Your money could be used to invest in projects such as social housing, eco-tourism and environmental technology (triodos.co.uk). Charity Bank Supports social enterprises and charities (charitybank.org). Ecology Building Society Invest with this building society and you’ll be supporting sustainable projects (ecology.co.uk). Co-operative Bank Helps projects such as tackling youth homelessness (co-operativebank.co.uk).
Green Bonds
The government recently launched Green Bonds, which are available from National Savings & Investments (nsandi.com/green-saving). Your savings can support recycling projects, renewable energy, or flood defences and early warning systems, to name a few.
A green mortgage If you’re buying a new energy-efficient home or have made eco-friendly changes, you could qualify for a green mortgage with lower rates and cashback. Speak to an adviser to find the best deals. You’ll need an EPC rating of A or B in order to qualify.
Sustainable investing
You could choose an ethical fund that invests in climate change incentives, clean water projects or animal rights, for example – but that also aims to deliver strong returns.**
Ethical pensions
Switching to a sustainable pension is a hugely powerful way to cut your carbon footprint. It's reckoned that around £3 trillion of pension money has contributed to deforestation or funded fossil fuel projects. Let your pension fund know if you’re not happy. See makemymoneymatter.co. uk for template letters, and check how green your pension is at isitgreen.org.
Know your STUFF
Ethical banks are covered by the Financial Services Compensation Scheme. Up to £85,000 of your savings are protected should the bank go bust (fscs.org.uk/check-yourmoney-is-protected). Apply for a £5,000 grant using the Boiler Upgrade Scheme if you replace a gas boiler with a low-carbon heat pump. The scheme will be available via a supplier, but it won’t cover all the cost, which can be in excess of £10,000. Find ways of reducing your energy bill with tips from the Energy Saving Trust (energysavingtrust.org.uk).
‘LET YOUR BANK KNOW IF YOU ARE NOT HAPPY WITH WHERE YOUR MONEY IS BEING INVESTED’ JUNE 2022 | 115
