Introduction

Have you ever wondered what happens to your money when it’s sitting in your bank account? Well I’m here to tell you that it doesn’t just sit around in a golden vault. In fact, in order to give you interest on your savings, banks invest your money into different projects around the world.

• Welcome to Season 4 - “ “. I’m Oscar, and I will be leading us through the green finance part of this season.
• This is episode 41, all about the impact of banks on the environment.

<aside> ⚠️ Disclaimer: The information provided in this podcast episode is for educational and informational purposes only. It is not intended to provide legal, financial, or any other professional advice. The views and opinions expressed by the podcast hosts are their own and do not necessarily reflect the views of any banks or financial institutions mentioned. Any reliance you place on the information provided is strictly at your own risk. We do not make any warranties about the completeness, reliability, and accuracy of this information. Any action you take based upon the information provided in this podcast episode is strictly at your own risk, and we will not be liable for any losses and damages in connection with the use of this information. Always consult with a qualified professional before making any financial or legal decisions.

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Problems

• Banks invest in fossil fuels
  • Fossil fuels have historically been reliable investments that return good profits, so banks invest in them
  • This props up the fossil fuel industry by financing new extraction of fossil fuels
  • Obviously fossil fuels are bad for the environment because their burning releases carbon dioxide
  • But banks also often fund riskier extraction projects that have other effects such as pollution and environmental destruction
    • Fracking, which is proving very controversial in UK politics
    • Tar sands drilling
  • Oil companies are long associated with evil, and banks have helped to fund this
• Banks also invest in other nature-destroying projects that can contribute to deforestation and habitat destruction
• Banks are dishonest to their customers about this
  • They utilise greenwashing tactics to influence unsuspecting consumers to bank with them
  • Just like oil companies, they make shallow promises about their ambition to change their investment strategies
• Oil is not even a good investment anymore
  • Extraction is becoming increasingly risky as easy fields have been tapped already
  • With the uncertain fate of oil in the global economy, investments could turn sour quickly
• Pensions
  • Basic concept of pensions: you and your employer pay a contribution to a pension fund every year. This money is invested and when you reach your pension age you get a certain sum of money every year until you die.
  • Pensions basically act as investment funds, run by a manager who oversees the investment of pensioners’ money.
  • They often fall foul of the same issues as banks: investing in fossil fuels and other unethical projects.
  • People are often unaware of who runs their pension, or they don’t have an option to switch providers, meaning they are locked into this environmentally unfriendly path.
  • According to an activist group, switching your pension is 21 times more effective for the planet than “stopping flying, going veggie and switching energy supplier combined”.

You’re listening to fighting failure. This is episode 41 all about how the finance industry is destroying the planet. If you like what what we’re doing please leave a review and share the podcast. If you’d like to give us a little love - in late Valentine’s Day spirit - feel free to head to our patreon insert the hhtp details and give a small donation. Thank you all for your support, and without further ado Fighting Failure presents the solutions section of this episode…

Solutions

• Switch banks

  • Do your own research (links provided at shownotes.fightingfailure.earth) and find which banks will suit your needs.
  • In the UK, the current account switch guarantee means that you can switch between any UK bank and all your money (obviously), direct debits, loans et cetera will be moved over seamlessly as well.
  • If you can’t easily switch your bank over entirely, consider opening an account with a green bank and keeping most of your money in there so that the bad bank isn’t getting your cash!
  • If you’re a kid like us, consider asking your parents to switch banks.

• Raise awareness

  • This is a little known issue, but it’s really easy for people to fix. Be aware of it and perhaps suggest to others that they change their banking practices.
  • Let the banks know that you want change. Lobby the lobbyists for change
  • Let governments know that you won’t stand for greenwashing.

• Pensions

  • This is harder to switch, but do your research — there are many helpful websites out there.

• Banks form such an important part of investing, that they could provide much needed investment for a greener future