As the climate crisis intensifies, consumers are increasingly avoiding financial institutions that support fossil fuels. But there’s another major environmental threat your money could be supporting without you even knowing: deforestation.
Forests are essential to life on Earth. They act as powerful carbon sinks by absorbing vast amounts of greenhouse gases and are irreplaceable biodiversity hotspots. They are also home to indigenous communities who rely on them to survive and play a crucial role in protecting them. And yet, we an alarming 10 million hectares of forest are being cut down every year – the equivalent of 30 football pitches per minute.
In the UK, the financial sector continues to fuel this destruction. Since the COP26 climate summit in 2021, UK banks have invested more than £1 billion in companies linked to deforestation, according to a report by Global Witness. HSBC was the worst offender, responsible for 62 per cent of all credit to businesses driving deforestation through activities like palm oil production, cattle farming, cocoa cultivation, and oil and gas exploration. Standard Chartered and Barclays also provided significant funding.
If you want to ensure that your money isn’t contributing to deforestation, choose a bank or building society that aligns with your values. Here are four that are committed to NOT investing in deforestation – and to building a more sustainable future for people and planet.
1. Triodos Bank
Triodos Bank will only finance companies and projects that make a positive social, environmental, or cultural impact. It will therefore not invest in industries linked to deforestation, such as palm oil, soy, timber, or beef production. Instead, the B Corp company and Good With Money ‘Good Egg’ firm focuses on sectors like renewable energy, sustainable farming, and social housing.
Triodos Bank has been a vocal advocate for extending due diligence obligations to the financial sector to prevent the financing of deforestation. It has itself committed to providing at least €500 million (£425 million) in investments, loans and contributions to the nature-based solutions sector by the end of 2030 as part of its biodiversity targets. These initiatives focus on the conservation, restoration, and regeneration of natural ecosystems.
Starting in 2026, Triodos Bank plans to report on the positive biodiversity impacts of its own financed projects.
2. Ecology Building Society
Ecology Building Society provides mortgages for properties that respect the environment and support sustainable communities, funded through its range of transparent savings accounts. Ecology is another Good With Money ‘Good Egg’ firm. Ecology goes further than simply avoiding investing in harmful industries. By focusing on environmentally responsible development, it actively contributes to reducing deforestation and promoting biodiversity.
Ecology specialises in financing self-build, renovations and conversion projects that are residential, commercial and for the community. They are discounted for those making their homes more energy efficient – which is 95 per cent of Ecology customers. The discount varies depending on the scale of the energy improvement.
3. The Co-operative Bank
The Co-operative Bank, which offers a wide range of banking services, is the only UK high street bank with a customer-led ethical policy built into its constitution. This policy excludes financing for businesses involved in activities contributing to global climate change, such as the extraction or production of fossil fuels. It says customer feedback has also led to it implementing policies to combat deforestation.
In 2023, The Co-operative Bank and Friends of Earth joined forces to bring back nature to over 1,000 spaces deprived of wildlife and greenery across the UK. Last year the bank was bought by Coventry Building Society, which is a registered B Corp company.
4. Charity Bank
Charity Bank offers a range of ethical loans and savings accounts. It does not invest in activities that would contribute to deforestation. As a social purpose bank, its provides savings accounts that help to fund loans to charities and social enterprises. It also avoids any projects that could have negative social or environmental impacts.
The bank, which is wholly owned by charities, trusts, and social enterprises, also offers “Green Loans.” These help organisations improve energy efficiency, cut emissions, support biodiversity, and switch to renewable energy sources.
The bank was founded to support charities with loans that they couldn’t find elsewhere and to show people how their savings could be invested ethically.
