By Sydney Cohen
What is Green Banking?
Green banking is the most sustainable way of managing your finances. Green banking may sound like an abstract concept but we still need to consider it. The unfortunate truth is that if we don’t start thinking green in every aspect of our lives, then we don’t help ourselves or our planet.
Green banking is an idea that has been around for a long time, but it’s still not very well known. It’s the concept of investing in environmentally-friendly companies and products instead of those with a negative impact on the environment.
This could mean buying stocks from companies that are making huge strides in green technology or avoiding banks that invest heavily in fossil fuels. Many people have never heard about this before because there are so many different types of ‘green’ initiatives out there!
Green Banks
When you want to reduce your carbon footprint, what is the first thing that comes to mind? You might think about driving less or using more energy-efficient light bulbs.
But did you know that there are also green banks that use renewable resources and produce little waste? These banks offer checking accounts, loans, mortgages, and other financial services while promoting sustainability.
Global Growth of Green Banking
The green banking trend has been prevalent in North America for some time, with many banks attempting to reduce their carbon footprint. The trend is gaining traction in Europe and Asia as well.
How a Green Bank Operates
A green bank may help the private sector develop innovation and new market development tools to accelerate the deployment of clean energy technologies. Green banks leverage private financing to fund green energy technologies that, despite their commercial viability, have struggled to establish a widespread presence in consumer markets.
Green Bank Partnerships
Green bank partnerships drive about $60 billion in shale gas energy investments across the world. The UK, Australia, Japan, China, New Zealand, and Malaysia developed national banks and are committed to investing heavily in clean energy technologies. Green bankers say their goals include cost reductions for ratepayers, stimulating the private sector investment, and supporting economic activity.
Virtual Green Banking
Green bankers use the money to fund businesses that do no harm to the world. Many banking systems send debit/credit/check-out cards that are handmade out of recyclable plastics or wood. A few green bank buildings have brick-and-mortar locations you can actually visit, but most of them are digital.
How To Help the Environment With My Account?
Banks generally have principal aspects which are taken into consideration during transactional relations with consumers. Green bankers try to be accountable for reducing waste by using renewable energy resources and increasing environmental awareness.
Each bank uses its practices in different ways but, in general, there are steps that every bank must take when practicing green banking. Understanding how business decisions impact people’s lives currently and in the future is essential because this knowledge can help each company establish guidelines for its financial policy, including considerations about climate change policy or sustainability goals.
Ways of Green Banking
Green banking works well with the environment and it does you well by saving you money. Clean banking practices could help people save money on all kinds of things such as electricity bills and the rate of vehicle insurance. Even shopping online will be cheaper for you and better for the environment if you buy through companies with recycling programs, instead of shipping plastic or paper boxes without recycling them first.
Your Green Actions Have an Impact
Another green banking method is using cash instead of credit cards for little purchases, reducing the need of digital or paper bills. Further use of green banking involves avoiding the use of ATM outside of the bank hours, so that lights don’t have to remain on the whole night.
Examples of Successful Green Banks
Green bank projects have appeared almost everywhere in recent years. Tri-State Sustainable Energy Association created one of the first green banks in 2006. The Initiative Bank tries to be not only environmentally, but also socially responsible. The Netherlands Rabobank Corporation is a pioneer in sustainable banking, a provider of environmentally safe products for rural farmers who reduce pollution from animal waste.
How To Get Involved in Green Banking?
Most people feel that they can save money simply by taking care of bills and expenditures more responsibly. Solar panels have been released at affordable prices and could provide heat for cooking and heating water. All these changes will affect your monthly spending without required purchases as well as reduce your carbon footprint.
The Future of Green Banking
Green banking will combine conventional and sustainable practices to become a major trend as it matures, changing the world for the better. Due to climate change, we are becoming more attentive to the value of our materials.
Some countries will perhaps adopt green banking as a standard, such as Germany Energie Bank Deutsche Annington (EBA). Other nations might want traditional banks rather than green banking. Green banking could become an option with some countries, such as Australia where traditional banking dominates the market.
Religion and Green Banking
Green banking is becoming more popular in Muslim communities. A recent article entitled Green Banking and Islam: two sides of the same coin explores this phenomenon and gives the following explanation:
It is observed that the doctrine of Islam established for mankind 1,400 years ago consists of the same principles that are now being implemented in the shape of Green Banking. The dimensions of Green Banking are in line with Islamic teachings and, thus, can easily be adopted and marketed by banks, especially Islamic banks, targeting the Muslim consumers. The congruence of Green Banking with Islamic principles can play a major role in fostering the growth of this imperative ideology for the Green Muslim consumers. Islamic banks can market green products and services on the basis of religious congruity to the Muslim consumer market and create greater acceptability and loyalty.
The increasing recognition in Muslim communities that their banks need to be environmentally positive to resonate with their religious values is an exciting development. God willing, we will see this trend continue to grow in faith communities.
Why Choose a Green Bank?
Green banking is the antithesis of traditional banking. Instead of financially supporting industries that are good for the environment, with non-green banks you inherently support industries that you may not like such as tobacco, oil, and fossil fuel projects.
With green banking, you can support a renewable future, as green banking allows you to invest in renewable energy projects and other important industries that benefit the environment.
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