Economically, it’s been a hard year for many. Environmentally, it’s been hard too. And the solution to both can come from what we do with our money.
Whether it’s switching to a 100 per cent renewable energy deal or investing in a fund with sustainability at its heart, the most powerful thing we have – our cash – can get the best, most profitable deal for our pockets while also looking after the planet and the people on it.
So as we enter 2025 (that number feels important, doesn’t it), consider going green with your finances. It’s the single most powerful action you can take to help tackle major environmental challenges like climate change, deforestation, biodiversity loss and inequality. And it can make a positive impact on your finances, too.
Here are seven easy ways to make your money as good as you are.
1. Switch to a current account that’s kinder to the planet
Moving the account you use for everyday spending is one of the easiest – and quickest – ways to make sure your money is planet-friendly. With some providers, like Good Egg firm Triodos Bank, it can even make a positive impact.
The vast majority of people in the UK bank with one of the Big Five – banks that, sadly, have a very poor record when it comes to the environment. If you want to be sure your cash isn’t going towards financing industries or projects harming our world (such as fossil fuels, arms and tobacco), look for providers that are committed to not investing in them or who are explicitly backing green projects.
As well as Triodos Bank (which only invests in companies and projects making a positive impact), we like The Co-operative Bank, Nationwide Building Society, Cumberland Building Society and digital bank Starling. Look out for exciting new ethical debit card provider Zero coming later this year too.
For business current accounts (especially charities and social enterprises), we love Unity Trust Bank and Charity Bank.
Top 7 ethical current accounts
2. Sort out your savings
By putting your savings with an ethical specialist you know you are using the power of your money for good. Providers like Good Egg mark firms Ecology Building Society and Triodos Bank as well as Charity Bank use their customers’ deposits to fund only those organisations delivering positive environmental or social impacts. We also love new sustainable savings app Shoal.
See our top-paying sustainable easy access accounts and top-paying sustainable fixed rate accounts.
Top 9 ethical savings accounts
3. Choose sustainable investments and ISAs
Moving to more environmentally-friendly alternatives is not as tricky as you might think. It also makes investing more interesting as you can choose to help tackle issues that matter to you.
Platforms like The Big Exchange and Interactive Investor, as well as wealth managers like Good Egg firm EQ Investors, all offer sustainable portfolios and are a really good place to start. The first two have a minimum monthly investment of £25, while for Simply EQ it’s £100. Another useful resource is our free Good Investment Review, which looks at a growing universe of impact funds.
The Financial Conduct Authority (FCA) recently brought in a raft of measures aimed at clamping down on greenwashing. This includes sustainable investment labels, disclosure requirements and restrictions on the use of sustainability-related terms in product naming and marketing. See our Good Guide to Avoiding Greenwashing for how to use these new rules to your advantage.
Top 7 platforms for a green stocks and shares ISA
4. Invest in the UK’s renewable energy revolution
With the Ukraine war continuing to restrict access to gas and leading to massive oil company profits, it’s no wonder the more sustainably-minded among us are increasingly inspired to look for more natural energy sources.
Investment platforms such as Good Egg company Thrive Renewables, as well as crowdfunding platforms Ethex and Triodos Crowd all offer options to invest in renewable energy in the UK including onshore and offshore wind, solar, hydro and more.
5. Green your pension!
The biggest pot of money you are likely to have (aside perhaps from your house) is your pension. So it can make a HUGE impact on the planet to make it green.
Check out our Good Guide to Pensions, produced in partnership with PensionBee. This includes insights on some of the greener pension providers like Nest, Penfold and the Sustainable Pension Company. PensionBee recently launched a new Climate Plan which not only excludes fossil fuels but actively invests in companies making a positive impact. You’ll also find heaps of useful information on the campaign site Make My Money Matter.
6. Choose an ethical financial adviser
A growing number of independent financial adviser (IFA) firms and wealth managers offer advice on ethical and sustainable investments and can help you put your money to work for the planet. Path Financial, Bluesphere Wealth, Switchfoot Wealth and EQ Investors all hold the Good Egg accreditation, and Ethical Futures is listed in our Good Directory. For higher net worth investors, Castlefield offers a range of advisory services.
Top 9 ethical financial advisers
7. Find help to make your home green
The C-Change mortgage from Ecology Building Society offers borrowers savings of up to 1.50 per cent on the standard variable rate. The discounts reward borrowers for creating an energy-efficient home, bringing reduced energy bills and a lower mortgage rate at the same time.
Naturesave offers green home and travel insurance by allocating 10 per cent of customers’ premiums to environmental projects. Tandem Bank, through its Allium home lending arm, offers green home improvement loans. Charity Bank is offering £1000 or £2000 cashback when you buy or build an energy-efficient building with its Sustainable Buildings Loan.
As well as the above, you might also find some of our Good Guides useful: check out our Good Guide to Net Zero, the Good Guide to Going Green at Home, The Good Guide to Pensions and our Good Investment Review.
Good With Money occasionally uses affiliate links to providers or offers, where relevant. This means that if you open an account or buy a service after following the link, Good With Money is paid a small referral fee. We choose our affiliates carefully and in line with the overall mission of the site.
