Make your money greener

If you’d like your money to work harder for the planet, here are four tips to get you started.

Many of us ask ourselves what more we could do to tackle the climate crisis. Beyond reusable cups and secondhand clothing, how much power do we have as individuals to make a difference?

Well, there’s a lot of power in where we choose to bank, spend and save our money. Your personal finances are one of the most important tools you have to support the planet. Here are four tips on how to make a positive impact:

Shop local

Spending is the area of our finances where we can make tangible changes quickly and easily.

Local greengrocers, bakers, butchers, fishmongers and independents are often cheaper, use less packaging and transport, and support local supply chains - which is better for your wallet and the planet.

See if local farms deliver vegetable boxes, or find your nearest tailor to mend and resize your clothes instead of throwing out and buying new.

Directing money to local and independent retailers and away from big brands may also encourage them to become more sustainable, too.

Go green with your bills

Most of us spend at least half of our net income on what we consider to be fixed outgoings, such as rent or mortgage, bills and insurance.

It means a big portion of our budget goes to a relatively small number of organisations, most with the potential to influence sustainable structural change on a big scale.

If you are able to switch provider, consider one that has a stronger green policy, for example an energy provider that supplies your home with 100% renewable sources.

Alternatively, some providers offer greener or eco packages, so speak to your current provider to see if there is a deal suitable for you. In both cases, make sure they aren’t ‘greenwashing’ and their practices match their claims.

Finally, look at how you can reduce your usage. This will save you money, save energy and lower your carbon footprint. Most energy and water companies have tips on their websites for reducing your usage.

Put pressure on your current bank, or switch

It can be difficult to know how your bank is contributing to the climate crisis, but transparency is improving.

Independent organisations are now publishing league tables of how much money banks around the world are funnelling into various fossil fuel activities. These are available online, so see how your bank stacks up.

If your bank is funding industries that don’t align with your climate values, switch your accounts to another bank.

It’s also worth letting your old bank know, by email, phone or social channels, that you have switched for sustainability reasons. This will evidence customer demand for greener policies and encourage them to clean up their act, too.

As well as moving your money out of these banks, you could consider supporting a campaign group, such as ShareAction, to put pressure on banks to stop this financing altogether.

Add some charitable giving to your budget

If you have capacity within your budget, there are many organisations out there who can put small donations from individuals towards large-scale initiatives that can have a big impact.

Look for charities and campaign groups working in an area of sustainability that you’re interested in, such as cleaning the oceans, reducing plastic waste or climate education.

Many of these organisations can collaborate with governments and global organisations on our behalf to drive bigger changes than we can do alone.

The information provided is financial guidance and should not be considered as financial advice.