This article is from the Good Guide to First-Time Investing 2025, available to download free here. 

When we invest, our money has an impact on the world around us – for good or for bad.

If we invest in companies that pollute the planet or exploit workers, we’re making these problems worse. But if we invest in companies that are developing new technologies to combat climate change or creating jobs in the green economy, we’re helping to build a better future for everyone.

With the effects of climate change becoming increasingly intense, and political shifts in the U.S. undermining net zero commitments, choosing to invest in the kind of world we want to live in is more important than ever.

But sustainable investing isn’t pure altruism. At Liontrust, we believe it is also a smart financial strategy for the long term. Here’s why.

Sustainable investing still makes sense in a Trump world

Donald Trump winning a second term as U.S. president may feel like a major setback for climate action and green business.

His views are almost exactly opposite to the philosophy of sustainable investors. He is anti: mitigating climate change, wind turbines, electric vehicles, diversity initiatives, and sceptical of some key areas of medical science.

Meanwhile his “Drill, baby, drill!” mantra is set to unleash a wave of new oil and gas – just as the world faces an impending global warming disaster. Trump’s rhetoric, and the resulting headlines, certainly isn’t helpful to those of us who feel urgent climate action is needed for the benefit of everyone.

But, the good news is that the key driving force behind sustainable industries is not politics – it’s economics.

When companies deliver cost-effective solutions to the world’s biggest problems, they will be adopted at pace – regardless of the political backdrop. These companies are well placed to experience significant growth over the long term, fuelled by demand for their products, that investors can profit from.

While it’s true that Trump opposes most clean energy policies, it’s hard to imagine the U.S. energy transition grinding to a halt as a result. Just look back to his first term from 2017 to 2021. Solar and wind industries grew healthily, even as federal policies prioritised fossil fuels.

Meanwhile, the use of coal (which he wanted to ‘make great again’) diminished dramatically as it could not compete economically with renewable energy and natural gas. Despite his best efforts, Trump will find it hard to change the upward trajectory of the renewable energy sector. Even in Texas, a Republican oil-producing state, solar capacity grew eight-fold in just five years to 2024. Renewables in the U.S and globally will continue to benefit from declining costs, advances in technology, and growing consumer demand.

On this side of the Atlantic, Europe is more determined than ever to transition to green energy and end its dependence on foreign fuel sources such as Russia. European countries now invest 10 times more in clean energy than in fossil fuels.

A strong long term outlook for sustainable investing

There is also momentum behind other sustainable themes that we believe ‘good’ investors can gain from. These include the race to find cost-effective treatments for cancer, overcome pollution in our water supplies, and protect our online data.

The companies delivering solutions to these major problems are likely to generate profitable growth that isn’t hindered by politics. Presidents and prime ministers come and go, but there is no let-up in scientific progress or innovation as companies compete to deliver the best solutions.

At Liontrust we believe the companies that will thrive are those that improve people’s quality of life, increase the efficiency with which we use scarce resources and enhance the safety of human activities.

For example in healthcare, early diagnosis of cancers dramatically reduces the number of people who will die from the disease. For colorectal cancer, this is estimated to be a three-fold reduction. Companies providing these services save money and save lives.

Important sustainability trends are set to remain intact for decades to come. Investing should always be for the long term (think five to 10 years at least), so it’s important for investment portfolios to reflect the constants, not only what is likely to be temporary.

In fact, political change can provide potentially profitable opportunities for investors. Concerns about Trump’s second term have weighed heavily on the price of some stocks, which means they can look undervalued compared to the wider market. The Liontrust Sustainable Investment team sees this as a rare chance to invest in some high-quality sustainable companies while their value is low.

Investing sustainably, through a trusted and experienced fund manager, is the only way to be sure that our money is being used to help build a sustainable future.

So while there are short-term challenges for sustainable investing, the longer-term direction of travel remains unchanged. In fact, at Liontrust we’re excited for what lies ahead.

If you’re looking for financial providers that make a positive impact on the planet as well as on your own pocket, our Good Egg firms are as good as it gets.

To earn their mark, they must pass a strict independent screening process to prove that they are doing what they say they are. Not just once, but every year.

We are proud to now have eight Good Egg firms. These are: Triodos Bank, PensionBee, Ecology Building Society, EQ Investors, Thrive Renewables, Path Financial, Switchfoot Wealth, and our newest addition – Unity Trust Bank.

To mark Earth Day – which has the theme ‘Our Power Our Planet’ – we look at what some of our Good Egg firms have been up to in the last year, and their plans for the next.

Richard Ravelin, General Manager at Path Financial

“We’ve taken bold steps to broaden access to responsible investment, empowering a wider range of investors to shape a more sustainable future. With significant funds now under our influence, recent recruitment of top talent, and our continued thought leadership in the field, we are thrilled to now act as co-manufacturer of our own in-house portfolios.

“Our Positive Impact range remains a cornerstone of what we offer. But we’ve also launched an exciting, innovative new portfolio range – designed not only to align with ethical values, but also to optimise shareholder engagement and stewardship. This is a first for ethical investing: a portfolio strategy built on partnering exclusively with fund managers who take voting and shareholder engagement seriously.

“In the face of headwinds against ESG investing, our commitment to active stewardship has never been stronger. We continue to collaborate with leading industry bodies and campaign organisations like ShareAction to promote meaningful shareholder advocacy. We believe that better corporate behaviour stems from investors taking responsibility – through active voting, robust engagement, and increased visibility.

“Looking ahead, we’re excited about what’s next. The momentum we’ve built this past year has laid the foundation for even greater impact.”

Roger Hattam, Director of Retail Banking at Triodos Bank

“The Triodos personal current account was re-launched last year with a new Visa recycled PVC debit card and Apple Pay mobile contactless payments are now available (Google Pay is expected soon). We’ve made over 30 changes to our mobile banking app in the past year to improve what it can do for customers and have also launched improved customer service options from the Bristol-based team, such as new chat capability.

“As well as a current account, Triodos offers savings accounts and investment accounts. As part of a portfolio of stocks and shares investment funds available to UK investors, the new Future Generations Fund was launched to UK retail investors last year. Triodos is consistently named ‘Best Ethical Financial Provider’ at the British Bank Awards.

“In early 2025, Triodos began accepting applications for new business savings accounts again and later this year new accounts for children will also be available. The Triodos crowdfunding platform has been offering an IFISA investment in the pioneering interiors company House of Hackney.

“Triodos is one of the only B Corporation certified banks in the UK and is well-known for leading on transparency and focusing on impactful lending – this year marks 30 years of supporting areas such as affordable green homes, community renewable energy and education providers, small businesses and charities.”

Lisa Picardo, Chief Business Officer UK at PensionBee

“Our approach to sustainable pensions has always been guided by what our customers tell us matters most to them. Since the launch of our first responsible investment option in 2017, we’ve consistently heard a clear message: savers want to feel confident that their pension is aligned with their values and contributing to a better future.

“In 2024, PensionBee launched the Climate Plan in response to customer demand for investments that align with international climate agreements and prioritise green revenues. The Climate Plan supports the Paris Agreement’s goal of transitioning to a low-carbon economy by excluding fossil fuel producers and major polluters, while investing in companies that are actively reducing their carbon footprint over time. This offers customers a practical way to use their pensions as a force for good.

“What we’re seeing is a deeper shift in how people think about retirement savings. It’s no longer just about returns, but also about responsibility; the idea that your pension, often your largest pot of wealth, can be a powerful lever for change.

“That’s why we continue to focus on transparency and accessibility to ensure savers can see exactly where their money is going, understand the impact it’s having, and take action if this no longer aligns with their priorities. Whether that means switching to a more sustainable plan or simply becoming more engaged in how their investments are managed, we’re here to support those choices.”

Louisiana Salge, Head of Sustainability at EQ Investors

“Undoubtedly the biggest challenge over the past year has been President Trump’s re-election and the US’s subsequent withdrawal from the Paris agreement and various other commitments, frameworks, and organisations – setup to tackle some of the greatest social and environmental challenges in the world.  Despite media attention on these negatives, sustainable investment is as important as ever.

“I believe, and this is in-line with EQ’s philosophy, that investors don’t just react to the world around us, but they influence it too. To make sure the asset managers we work with understand their role in mitigating systemic risks for our clients, I have spent the time since the election working with firms across the Atlantic to make sure their stewardship efforts continue to push for the change we need, mitigating real risks for our clients, including climate change impacts.”

Matthew Clayton, CEO of Thrive Renewables

“Despite the challenging global landscape, Thrive continues to take action, building new clean energy projects that will help to push dirty, expensive fossil
fuels off the grid once and for all. As well as celebrating our 30 th birthday, 2024 has been a significant growth year for us. We have acquired the development rights for two new onshore wind farms in Wales and Scotland, with one now already in construction.

“Other recent developments include the successful construction of the ATTIX CIC community-owned wind turbine in Scotland and the installation of the generation turbine at United Downs in Cornwall – which will generate the UK’s first geothermal electricity. Both sites expected to be operating soon.

“Moving forward, we remain resolutely focused on achieving our mission – a world where everyone can be part of the clean energy generation.”

You can find out more about our Good Egg companies here.

This article is from the Good Guide to Impact Investing 2025, free to download here.

As we move through 2025, global uncertainty is mounting. Climate progress is stalling, funding for sustainability is under pressure, and political decisions threaten to undo hard won gains.

The UK government is questioning its support for community energy, the US is stepping back from its commitment to the Sustainable Development Goals (SDGs), and foreign aid cuts are hitting the most vulnerable communities hardest.

But while political will wavers, people-powered investment doesn’t have to wait for permission to act. Now, more than ever, investors can take control and drive change directly.

While there is uncertainty around trickle-down policies, it is possible to continue with direct impact investing that delivers results quickly through those that are on the ground.

People-powered impact investing is a constant in uncertain times

Traditional funding structures are unpredictable—foreign aid gets cut, climate funding gets deprioritised, and political uncertainty makes long-term commitments fragile.

But direct impact investing provides a way for individuals to take action immediately, investing in real projects that create lasting change without waiting for institutions to catch up.

Through direct impact investing platforms such as Ethex and Energise Africa, investors can back projects that support clean energy, fairer societies, and economic empowerment – all while seeing their impact unfold in real-time.

And unlike traditional investments, returns can start coming back from as little as six months, depending on the project.

Building a just transition to net zero – starting now

Community-led renewable energy is a cornerstone of a fair, sustainable future, and local projects have been making significant strides in creating a cleaner, more secure energy system for the UK.

These initiatives matter. They democratise energy, giving local people control over how it’s generated, stored, and shared. They lower costs, build resilience, and reduce carbon emissions. Without investment, the UK risks missing its net zero targets and locking communities out of the clean energy transition.

That’s why platforms like Ethex exist – to give people a direct route to supporting these vital projects. Right now, projects like Solar for Schools are raising finance on Ethex to install solar panels on schools across the UK.

Investors can put their money to work today, helping schools cut carbon emissions while making them more energy independent.

A smarter way to invest in global impact

The UK’s recent reductions in foreign aid, combined with the closure of USAID programs, are having devastating effects on emerging economies. Many of these countries rely on development funding to build sustainable infrastructure, improve education, and support green energy solutions.

Without this aid, progress towards the SDGs is stalling, and millions of people are being left without access to basic services and economic opportunities.

Energise Africa is helping to enable people to invest directly in solar energy projects in Africa. The platform helps everyday people to invest from as little as £50 (with the first £100 guaranteed).

An example of a project offered by Energise Africa is Altech, which provides affordable solar home systems to off-grid families in the Democratic Republic of Congo. In 2025 Altech is raising investment on Energise Africa. With backing from people like you, through the latest project nearly 14,000 families could gain access to affordable, solar energy—empowering communities while generating a financial return for investors.

Energise Africa continuously brings newly sourced opportunities, such as Altech, to UK investors. These projects not only connect off-grid communities to solar energy and reduce carbon emissions but also empower local entrepreneurs. By investing through the platform, investors are able to directly improve the quality of life for thousands of families in Sub-Saharan Africa

The US rejection of the SDGs and the need for private-led solutions

With the US government stepping away from its commitment to the SDGs, the responsibilities around who should fund sustainable projects are becoming more uncertain.

The retreat of major global powers from their commitments to sustainability makes impact investing even more critical. Without government-backed initiatives, grassroots efforts combined with matched institutional funding can take centre stage to ensure that progress towards the SDGs does not stall.

At a time when government priorities are shifting away from sustainability, people have the power to keep momentum going. By choosing to invest through Ethex and Energise Africa, individuals can bypass slow-moving institutions and take direct action—right now. Whether it’s investing in renewable energy, ethical housing, or community-driven enterprises, these platforms provide a means to drive positive change at a time when political will is faltering, connecting grassroots investors with those that still care at an institutional level.

How direct impact investing can create lasting change

Ethex and Energise Africa are committed to funding real-life projects that make a tangible difference. By investing as little as £50, individuals can help fund impactful initiatives that:

Support solar energy generation: Projects like Solar for Schools and Altech bring renewable power to underserved communities, reducing reliance on fossil fuels and promoting energy security.

Empower communities: By backing businesses that prioritise social impact, investors help create jobs, boost local economies, and support sustainable development.

Drive positive climate action: Every pound invested in renewable energy and sustainable organisations contributes to reducing global emissions and mitigating the threat of climate change.

The financial benefits of impact investing

Not only do these investments create meaningful change, but they can also offer the potential of attractive financial rewards. Many opportunities on Ethex and Energise Africa qualify for tax-free returns through the Innovative Finance ISA (IFISA), allowing investors to earn tax-free interest while supporting ethical projects. This makes direct impact investing a financially attractive way to align personal wealth with global sustainability goals.

The added benefit of direct investing is that the impact your money is creating is completely visible to you, and you can rest in the knowledge that your money is helping contribute to positive and tangible outcomes.

Now is the time to discover the power in your pocket

With ongoing political decisions threatening sustainability efforts worldwide, we believe individuals have a crucial role to play in driving progress. Ethex and Energise Africa’s mission is to empower UK investors to take charge by directly funding projects that support clean energy, fairer societies, and the SDGs. Now more than ever, how everyday people choose to invest can speak loudly and lead by example. By investing in projects on these platforms, people can turn financial capital into meaningful impact—proving that together, we can build a better, more sustainable future for all.

Visit www.ethex.org.uk and www.energiseafrica.com to find out more.

Approver: Share In Ltd (FRN 603332). Approval date: 02/01/2025

The positive choice of a bank or building society with a better environmental record means increasing pressure on those that support the more environmentally destructive industries to reduce these investments.

Putting your money with a sustainable bank also supports a wider ecosystem of green finance that brings about real change. It can be an influential form of democracy and a relatively simple and quick green choice we can all make.

Here are our top nine ethical banks and building societies in 2025:

1. Triodos Bank

What’s on offer? A range of current, savings and investment accounts for individuals, and loans for positive impact businesses and charities.

How is it ethical? With a mission to “make money work for positive change,” Triodos, a B-Corp company, sets the industry standard when it comes to sustainable banking.

The bank offers a range of everyday ethical banking services for individuals. These include a current account, savings accounts and individual savings accounts (ISAs). Note that Triodos no longer offers current or savings accounts to new business or charity customers. It does, however, now offer savings accounts for businesses and charities. Triodos was the first (and is still the only) bank to be awarded a Good With Money ‘Good Egg’ mark.

Founded in 1980, Triodos believes that banks should be an active source for good and will only lend your money to organisations that are committed to making a positive social, environmental or cultural impact. Sectors Triodos invests in include renewable energy, sustainable farming, education, charities and social housing. You won’t find it investing in fossil fuels or other destructive industries such as fast fashion, weapons, tobacco or deforestation.

Triodos has a £3 charge on its current account, which might seem unusual. However, while most big name high street banks make money from their customers through high-interest overdrafts and extortionate fees, Triodos believes a £3 flat charge is fairer and more transparent. Bear in mind that Triodos does not have the option of an arranged overdraft on its current accounts.

The Good Egg mark

2. Charity Bank

What’s on offer? A range of savings accounts for individuals, and ethical loans to organisations and charities with a social purpose.

How is it ethical? Charity Bank offers a range of ethical loans and savings accounts. It was founded to support charities with loans that they couldn’t find elsewhere and to show people how their savings could be invested ethically and in ways that would make them happy.

Charity Bank invests its customers’ savings into small and large charities and social enterprises around the country. Therefore, your money might be used to build affordable homes, launch renewable energy projects or to foster peace among young people in divided communities – while also earning interest for you.

The bank, which is wholly owned by charities, trusts, and social enterprises, says on its website: “Charities have never been more needed, but also more challenged. That’s why our promise – of supporting charitable activities and helping people to save and do good – is more important than ever.”

3. Ecology Building Society

What’s on offer? Savings accounts and ethical mortgages.

How is it ethical? Ecology Building Society is dedicated to building a greener society by providing mortgages for properties and projects that respect the environment and support sustainable communities, funded through its range of simple, transparent savings accounts. Ecology is another Good With Money ‘Good Egg’ firm.

It was founded in 1981 through the efforts of a group of like-minded people committed to building a more sustainable future. To achieve this they decided to form a building society that could help finance environmental building renovations and support sustainable development.

Ecology funds its ethical mortgages with its range of savings accounts.

The building society specialises in financing self-build, renovations and conversion projects that are residential, commercial and 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.

Top 5 LEAST ethical banks

4. The Co-operative Bank

(Bought by Coventry Building Society – see below)

What’s on offer? A full suite of everyday banking services including current and savings accounts, insurance and loans for individuals and businesses.

How is it ethical? The Co-op Bank has a long history of ethical banking, having launched its first ethical policy back in 1992. Now, it is committed to carbon neutral operations, and won’t fund or invest in companies that manufacture or market destructive products like weapons and tobacco. It says it won’t support businesses or organisations that have business relationships with oppressive regimes and will promote human rights and equality across the world.

However, in 2017 the bank was bailed out by international hedge funds. Although they continue to proclaim it as an ethical bank, for many the sale put a question mark over the integrity of its ethical policy.

The Co-op Bank was recently bought by Coventry Building Society. The Co-op will continue to operate as a separate business for some time. It says there will no impact on its products and services.

5. Coventry Building Society

What’s on offer? Savings accounts and mortgages.

How is it ethical? Coventry Building Society recently became the first building society to achieve B Corp status. It won’t lend to or invest in businesses that have a negative impact on the environment, such as those in the fossil fuel industry. As well as setting net zero emissions targets for 2040, the society is also committed to sustainable energy, reduced paper use, and waste disposal.

Top 9 ethical financial advisers

6. Nationwide Building Society

What’s on offer? A full suite of everyday banking services including current and savings accounts, insurance and loans for individuals and businesses.

How is it ethical? As a building society, Nationwide must hold at least 75 per cent of its assets in residential property, making it far less likely than its big bank competitors to be lending to unsustainable firms.

Its profits are also invested back into the business for the benefit of borrowers and savers (it’s “members”) rather than shareholders. In June 2024, Nationwide handed back £100 each to nearly four million eligible members after its annual profits rocketed 40 per cent to £2.22 billion.

However, the society has been criticised by Ethical Consumer magazine for excessive remuneration of its top staff. In 2022, its highest paid director received over £3.45 million in total compensation. It also has a low customer service score of 1.8 on Trustpilot, with customers citing long waiting times and unhelpful staff.

7. Gatehouse Bank

What’s on offer? Savings accounts and green home finance.

How is it ethical? As an Islamic Bank, Gatehouse avoids investing in industries considered unethical under Shariah principles, which in practice are the same as those frowned upon under Christianity.

The firm states it will “only invest funds in ethical goods and services and, for example, does not invest in gambling, alcohol, tobacco or arms”. It invests in real estate and construction as well as sukuk, which are sometimes known as Islamic Bonds.

Gatehouse Bank offers a range of fixed and easy access savings account as well as reduced-rate loans for energy-efficient homes.

8. Tandem Bank

What’s on offer? Savings accounts, mortgages, home loans, greener car insurance and green home improvement loans.

How is it ethical? A digital challenger bank, Tandem aims to be a “greener, more accessible bank for people across the UK”. The bank guarantees that your savings are never used to fund fossil fuel extraction and production or similar destructive industries. Instead, money held in its savings accounts is used solely to fund its lending products.

Tandem’s home improvement loans finance energy-efficient improvements such as solar panels and air source heat pumps, saving people money on energy bills while also helping to save the planet. ​​Tandem’s EPC mortgages reward customers who own energy-efficient homes.

9. Starling Bank

What’s on offer? Full UK current and business accounts, and two savings accounts.

How is it ethical? Starling Bank says it is committed to creating a new kind of bank that puts customers first and is aware of its impact on society and the planet.

Its mission statement says: “We do not provide banking services to organisations that use excessive power to systemically promote public behaviour that is harmful to individuals, groups or to the whole of society in order to maximise their own profits. This may include, for example, arms manufacturers and tobacco companies. We do not invest in such organisations or take investment from them.”

However, the privately-owned bank does receive investment from less-than-ethical backers including US banking giant Goldman Sachs and the Qatar Investment Authority.

Ethical Consumer magazine has criticised Starling for not having an adequate policy excluding loans to companies linked to significant workers’ rights abuses, oppressive regimes or factory farming. It also has no lending policy in place that favours organisations and projects making a positive impact on the environment and society.

More options

Other good options for ethical banking include Reliance Bank, Skipton Building Society and Leeds Building Society.

If you have some spare cash once essential outgoings are taken care of, it’s a very good idea to build up a cash savings pot.

Although savings rates are better now on average than they have been in many years, unfortunately once inflation is taken into account, saving in cash almost always means losing money in real terms.

However, unlike investments such as Stocks and Shares ISAs which can go up and down in value, cash accounts come with reliable interest rates and deposit protection from the Financial Services Compensation Scheme. This means they remain an attractive option for those looking for a low risk place to store up a rainy day fund.

If you’re looking for a more ethical place to stash your cash than the Big 5 high street banks, which remain beset by issues such as investment in fossil fuels, executive pay, fair treatment of customers, and so on, check out these alternatives.

On the ethical scale, they range from stand out social and environmental pioneers (such as Triodos Bank, Ecology Building Society and Charity Bank), to structurally less greedy than the big players, to neutral.

Here are our top nine:

1. Triodos Bank

• Everyday Savings 2.80 per cent gross/ AER
• Ethical Savings Bonds at up to 3.80 per cent gross /AER (over two years)

Why is it ethical?

Ethical Bank Triodos, which has a Good Egg mark from Good With Money, is a true leader in the field of ethical personal finance and only invests in businesses that have a positive social and/or environmental impact.

Key terms

• The Everyday Savings account gives instant access with no notice required. It has a £1 minimum deposit.
• The Ethical Savings Bonds offers fixed rates of one or two years.

2. Ecology Building Society 

• 35-Day Notice at 3.45 per cent per year gross/AER variable 
• Regular Saver at 3.60 per cent per year gross/AER variable 
• Easy Access at 2.95 per cent per year gross/AER variable 

Why is it ethical?

Ecology Building Society is known for its mortgages on eco-friendly new builds and renovation projects. So what it takes in deposits from savers, is used to lend to making Britain’s housing stock more energy efficient.

The company boasts a Good Egg mark from Good With Money, which is awarded only to companies that make a positive impact in the world.

Key terms

• The 35-Day Notice account has a minimum balance of £500.
• With the Regular Saver, savers can put in between £25 to £250 a month via standing order or direct debit, up to a maximum of £3,000 per calendar year.
• The Easy Access account has a savings limit of £125,000. Both accounts are also available to open on behalf of a child or in a child’s name.

3. Co-operative Bank

• Regular Saver paying 7 per cent interest gross/AER (variable) per year.
• 1 Year Fixed Term Deposit paying paying 4.15 per cent gross /AER fixed (annually).

Why is it ethical? 

The Co-op Bank has a long history of ethical banking, having launched its first ethical policy back in 1992. Now, it is committed to carbon neutral operations, and won’t fund or invest in companies that manufacture or market destructive products like weapons and tobacco. It says it won’t support businesses or organisations that have business relationships with oppressive regimes and will promote human rights and equality across the world.

However, in 2017 the bank was bailed out by international hedge funds. For many, the sale put a question mark over the bank’s ethical credentials.

Key terms

The Regular Saver is for Co-operative Bank current account holders only. You can save up to £250 a month in a sole or joint account. Minimum deposit is £1. The Fixed Term account has a minimum deposit of £1,000 and you cannot withdraw funds within the term.

4. Nationwide

• Flex Regular Saver paying 6.5 per cent interest gross/AER (variable) per year.
• 1 Year Triple Access Online Saver paying 4.00 per cent gross/AER (variable) per year. 

Why is it ethical? 

As a building society, Nationwide must hold at least 75 per cent of its assets in residential property, making it far less likely than its big bank competitors to be lending to unsustainable firms. Its profits are also invested back into the business for the benefit of borrowers and savers (it’s “members”) rather than shareholders.

Key terms

• With the Flex Regular Saver, after four withdrawals the interest rate reduces to 1.75 per cent AER/gross a year (variable) for the rest of the term. You must hold a current account with Nationwide to open this savings account.
• With the Triple Access Online Saver, you can make three withdrawals without losing interest.

5. Coventry Building Society

• The Regular Saver account: 4.50 per cent interest (variable) gross/AER per year

Why is it ethical?

Building societies are mutual organisations, which means they are owned by their customers and not shareholders.

As a result, they behave differently – better. Shareholder-owned companies tend to aim for maximum profits as quickly as possible, which can result in some dodgy decision-making, whereas building societies’ interests are the same as their customers’ interests, so good products and service are as important as profits (which go back to members anyway).

NB. Mutuality isn’t a sure fire guarantee of totally ethical behaviour, but it is a good foundation for it. Chief executives of some of the larger building societies, including Coventry, have come under fire for high pay, at a time when savings rates remain low.

Key terms

With the Regular Saver account you can save from £1 to £500 per month. You can access your money, but it’s with a charge equal to 30 calendar days interest on the amount withdrawn.

6. Tandem Bank

• The Instant Saver account: 4.15 per cent interest (variable) gross/AER per year

Why is it ethical?

A digital challenger bank, Tandem aims to be a “greener, more accessible bank for people across the UK”. Tandem guarantees that your savings are never used to fund fossil fuel extraction and production or similar destructive industries. Instead, money held in Tandem savings accounts is used solely to fund its lending products.

Its home improvement loans finance energy-efficient improvements such as solar panels and air source heat pumps, saving people money on energy bills while also helping to save the planet. ​​Tandem’s EPC mortgages reward customers who own energy-efficient homes.

Key terms

• No minimum deposit. Manage your account online. The rate includes a 0.25 per cent “top-up” but this is available at the click of a button.

7. Charity Bank

• Ethical one-year fixed rate account paying 4.16 per cent AER a year

Why is it ethical?

Charity 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 and in ways that would make them happy. It invests its customers’ money into charities and social enterprises around the country.

It says on its website: “Charities have never been more needed, but also more challenged. That’s why our promise – of supporting charitable activities and helping people to save and do good – is more important than ever.”

Key terms

•  The one-year account has a minimum deposit of £5,000.

 Top 6 ethical current accounts

8. Gatehouse Bank

• 5-Year Woodland Saver fixed term deposit at 4.65 per cent expected profit – more on this below (minimum deposit £1,000)
• 3-Year Woodland Saver fixed term deposit at 4.65 per cent expected profit
• 1-Year Woodland Saver fixed term deposit at 4.62 per cent expected profit 

Why is it ethical?

As an Islamic Bank, Gatehouse avoids investing in industries considered unethical under Shariah principles, which in practice are the same as those frowned upon under Christianity. The firm states it will “only invest funds in ethical goods and services and, for example, does not invest in gambling, alcohol, tobacco or arms”. It invests in real estate and construction as well as sukuk, which are sometimes known as Islamic Bonds.

So what’s this expected profit thing all about then?

The accounts pay profit not interest because the payment and receipt of interest is forbidden in Islam as money cannot in itself generate money. Instead the company provides an ‘expected profit rate’. If the company feels that the expected profit rate will not be achieved, it will give reasonable advanced notice of the new expected profit rate and customers can close the account immediately with no penalty and will be given the profit they have earned.

The rates on its fixed bonds are competitive. Although they are not at the top of the best buy tables, they are in the top ten accounts.

Key terms

The minimum deposit on all Gatehouse Bank’s fixed-rate saver accounts is £1,000.

9. Raisin UK

Raisin UK is slightly different as it’s a ‘savings platform,’ which works with a selected number of banks and building societies and help source savings accounts for you.

Top ethical offers: 

• One year fixed term deposit account with Sharia Bank QIB offering 4.70 per cent/AER/Gross

Why is it ethical?

Raisin UK enables you to compare savings rates from ‘ethical’ banks. It offers savings deals with building societies, which are by nature more ethical than banks, Sharia-compliant accounts (such as Gatehouse and QIB UK) as well as Tandem, which says it is aiming to be a ‘Good Green Bank’.

Sharia-compliant banks adhere to Islamic principles, many of which can also be considered ethical values. These principles include:

• Not charging interest on money borrowed from the bank
• Not paying interest on savings accounts (see more below)
• Not benefitting from restricted practices such as gambling, pornography, firearms, alcohol, and tobacco
• Not making high-risk investments
• Sharing profit and risk mutually between the bank and consumers

As with Gatehouse Bank, these accounts pay an ‘Expected Profit Rate’ (EPR) instead of an annual equivalent rate of interest on your savings. You’ll see the EPR advertised as a percentage, making it easier to compare to the interest rates offered by traditional banks. The EPR is your share of the money that the bank makes investing your deposit. Because the profit that the bank makes can vary, so too can the EPR. However, Raisin UK says the EPR has “never not been paid out.”

Other ethical savings options?

Credit unions

Credit unions are amazing local, again mutual organisations, which use savings from local people to provide affordable finance, also to local people. At times like this, they really come into their own, but few people know about them. Check whether there is a credit union local to you here.

The rates are often competitive and you know your money is helping people near you. Balances are protected by the Financial Services Compensation Scheme up to £85,000 in the usual way.

Commsave is an example of a large credit union open to people who work for certain companies or are members of the Unite Union, which pays dividends rather than an interest rate. (full list here).

Digital-only banking apps

Savings accounts offered by the new breed of digital-only banks, such as Starling, are not NOT ethical: compared to the big banks, they are a blank canvas, with no big legacy issues of poor customer service or investment in fossil fuels to put you off, and they are generally well-intentioned.

Investments NOT savings

For clarity, there are a number of options that seem more like savings than investments, but are investments. These include peer-to-peer platforms and round-up robo-investment apps. We’re big fans of investing, but it’s important you know the difference as with investing comes risk of loss.

Investing is more of a long term thing – at least more than five years, whereas savings accounts are more suited to shorter term needs.

If you want to know more about investing, take a look at our guides section.

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.

After a spell of higher interest rates for savers, they are now slowly falling – but you still have the potential to earn more than inflation. So, where should you put your savings for the best?

If you care about the future of the planet as well as your own, then interest rates won’t be the only important factor you consider when choosing a cash savings account.

Ethical banks and building societies will not invest in fossil fuels and other destructive industries like tobacco and weapons, and some – like Triodos – go so far as to only lend your money to businesses and projects that are making a positive impact on the planet and society.

Here are our top sustainable instant access savings accounts currently offering the highest interest rates.

1. Tandem Bank

Account: Easy Access

Interest: Variable 4.15 per cent/gross/AER* (with ‘top-up rate’ – you need to manually apply this, but it’s the click of a button)

Key terms: No minimum deposit. Manage your account online.

Why is it ethical? A digital challenger bank, Tandem aims to be a “greener, more accessible bank for people across the UK”. Tandem guarantees that your savings are never used to fund fossil fuel extraction and production or similar destructive industries. Instead, money held in Tandem savings accounts is used solely to fund its lending products.

Its home improvement loans finance energy-efficient improvements such as solar panels and air source heat pumps, saving people money on energy bills while also helping to save the planet. ​​Tandem’s EPC mortgages reward customers who own energy-efficient homes.

6 top-paying ethical Cash ISAs

2. Leeds Building Society

Account: Limited Issue Online Access Account

Interest: Variable 4.31 per cent/gross/variableAER*

Key terms: Minimum deposit £1,000. Can be managed online only. The term is fixed until 30 September 2026, with interest paid annually on September 30. If the balance falls below £1,000, the rate of interest will be 0.05 per cent/gross/variable AER*

Why is it ethical? Leeds Building Society says it puts “fairness, transparency and good ethical practice remain at the heart” of everything it does. As a building society it will not invest in fossil fuels and all its buildings run on 100 per cent renewable electricity.

3. Yorkshire Building Society

Account: Easy Access Saver

Interest: Variable 4.10 per cent/gross/AER*

Key terms: Minimum deposit £1. Unlimited withdrawals allowed.

Why is it ethical?  Yorkshire Building Society is an official signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry. The mutual has made a commitment to identify and measure the environmental and social impacts of its business activities, set and implement targets where it has the most impact, and regularly report publicly on its progress.

4. Ecology Building Society

Account: Easy Access

Interest: Variable 2.95 per cent/gross/AER*

Key terms: Minimum initial deposit £25. Save up to £125,000

Why is it ethical? Ecology Building Society is known for its mortgages on eco-friendly new builds and renovation projects. The deposits it holds from savers is used to lend to making Britain’s housing stock more energy efficient. Ecology is a Good With Money ‘Good Egg’ company – this is a mark that is awarded only to companies that make a positive impact in the world.

5. Skipton Building Society

Account: Easy Access Saver

Interest: Variable 3.05 per cent/gross/AER*

Key terms: Minimum deposit £1.

Why is it ethical? As well as not investing in fossil fuels, Skipton offsets more emissions than its operations produce. Its partnership with the Yorkshire Dales Millennium Trust will see it plant 30,000 trees from 2021 to 2023. The partnership will also support 400 people from disadvantaged communities to get involved in creating and caring for woodlands.

6. Triodos Bank

Account: Online Saver Plus

Interest: Up to 2.80 per cent/gross/AER*

Key terms: Minimum deposit £1. Three penalty-free withdrawals per year.

Why is it ethical? While the interest rate on its instant access savings account isn’t the highest out there, Triodos – A Good With Money ‘Good Egg’ firm – really is the gold standard when it comes to saving your money sustainably. While you earn interest on your savings, Triodos uses your money to finance projects that are making a positive and lasting impact on society, culture or the environment. It prides itself on being open and transparent about its investments and publishes details of every loan it makes, as well as the positive impact it is making.

Triodos says it increases rates across the board for all its products, not just some, and for all customers – it won’t tempt people in with temporary higher rates that will fall later on.

7. Nationwide Building Society

Account: Flex Instant Saver

Interest: Variable 3.00 per cent/gross/AER* for 12 months

Key terms: After 12 months, Nationwide will move your money to another instant access savings account with a lower interest rate.

Why is it ethical? As a building society, Nationwide must hold at least 75 per cent of its assets in residential property, making it far less likely than its big bank competitors to be lending to unsustainable firms. Its profits are also invested back into the business for the benefit of borrowers and savers (it’s “members”) rather than shareholders. In June 2023, Nationwide handed back £100 each to 3.4 million eligible members after its annual profits rocketed 40 per cent to £2.22 billion.

8. Co-operative Bank

Account: Online Saver

Interest: Variable 2.46 per cent/gross/AER* changing to 2.34 per cent on January 22, 2025

Key terms: Only for Co-op current account holders. Minimum £1 deposit. Manage online and on mobile only.

Why is it ethical? The Co-op Bank is the only bank to have a “customer-led” ethical policy. Taking into account customer views, it takes a strong stance on fossil fuels, climate, labour rights, indiscriminate weapons and animal welfare. However, in 2017 the bank was bailed out by international hedge funds. Although they continue to proclaim it as an ethical bank, for many the sale put a question mark over the integrity of its ethical policy. However, the bank is currently in exclusive talks with Coventry Building Society over a potential merger.

* AER stands for Annual Equivalent Rate and it’s a type of interest rate for savings accounts. AER is calculated based on the interest, bonuses and charges on your savings account across a 12 month period. If your AER is variable, the amount of interest you’ll earn can change, either going up or down.

If you’d like to find out more about the above providers, a Which? membership gives you access to in-depth, expert reviews, ‘Best Buys’ and ‘Don’t Buys.’

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.

Doing anything for the first time can be daunting – whether it’s your first day at school, your first solo drive, or an adrenaline-fuelled activity like zip-lining, scuba diving, or bungee jumping.

While these physical challenges may set hearts racing, some of us feel the same level of anxiety when it comes to investing for the first time – handing over our hard-earned savings. But, as with other big decisions in life, the key to overcoming fear is preparation and knowledge.

Our new Good Guide to First-Time Investing, is here to help you navigate the many decisions you’ll need to make before taking the plunge into investing.

We’ll help you assess your comfort with risk—are you more of a hill walker or a kamikaze base jumper? We’ll also explore your personal values and whether you want your investments to align with them, as well as other key considerations like your financial goals and investment time horizon.

Our aim is to equip you with the knowledge to confidently choose the right investment options for you. We’ll introduce you to different types of investment vehicles and prepare you to make that all-important first investment.

And because we’re Good With Money, we want to help you DO good with your money as well as BE good with it. That’s why this guide focuses on sustainable investing. We’ll walk you through some trusted options, and introduce you to the new ‘Sustainability labels’ from the Financial Conduct Authority so you can make informed choices.

This guide is sponsored by Liontrust, which is a true expert in sustainable investing. Its specialist team sources strong sustainable companies that can drive profit for investors through making positive environmental and social impacts.

Now, it’s time to download your free guide and take that first step – your investment journey starts now!

Good Guide to First-Time Investing 2025

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When you invest, it has an impact not just on your finances but on the wider world – for good or for bad. This is because your money gets put to work in the companies, countries and assets in which you’ve invested.

If you aren’t paying attention, you could unwittingly be helping to finance industries that go against your ethical values and undermine your life choices.

For a long time, most people had very little engagement with their investments, mostly because the finance industry made it that way. You had to put faith in fund managers who would too often make decisions based on the potential for profit alone – regardless of the cost to the planet and society.

Usually this meant investing in destructive areas that are driving the world’s biggest problems such as fossil fuels, weapons, tobacco and deforestation.

But the GOOD news is that now, impact investing is giving control back to you – the investor – over exactly where your money is going.

It’s a way to consciously put your money to work tackling the issues you care about most, while also aiming for profit. With impact investing, the benefits to society or the environment are of equal importance to the returns generated. But it’s not an ‘either-or’ situation – you really can have both.

Our new Good Guide to Impact Investing – in partnership with impact investing specialists Ethex and Energise Africa – covers everything you need to know to get started. So dive in! Join us in investing for (positive) impact today.

Download your guide here

It can be easy to forget that where we keep our money has consequences far beyond our own saving and spending potential.

Research shows that the UK’s ‘Big Five’ banks – HSBC, Barclays, Santander, NatWest and Lloyds – are still pumping BILLIONS into fossil fuel projects. This is despite them having made net zero pledges.

A campaign from Make My Money Matter reveals that in 2023 alone, these banks provided more than $55 billion (£41 billion) in finance to oil and gas companies to help them expand. If you are a customer of these banks, you have the power to create meaningful change.

One of the most significant things you can do as an individual to fight climate change and help create a better, safer, more sustainable world is to move your money to a provider that shares your ethical values.

Ethical banks and building societies avoid investing in environmentally harmful or otherwise unethical industries. A minority – such as Triodos Bank – go much further by proactively investing your money to make a positive impact on the planet and society.

The Current Account Switching Service takes care of transferring all your direct debits to your new account and closing your old one, so it’s easier than ever to move your money for Good.

These seven providers rank highly on the ethical stakes.

1. Triodos Bank

Triodos Bank, a B-Corp company, sits firmly at the top of our list of ethical current accounts. Founded in 1980, Triodos champions a new way to do finance that’s good for people and planet. It believes that banks should be an active source for good and will only lend your money to organisations that are committed to making a positive social, environmental or cultural impact.

Sectors Triodos invests in include renewable energy, sustainable farming, education, charities and social housing. You won’t find it investing in fossil fuels or other destructive industries such as fast fashion, weapons, tobacco or deforestation.

The bank publishes a map with details of each investment it makes on its website in the name of total transparency.

Find out why Triodos is a Good With Money ‘Good Egg’ company

The Triodos mobile banking app allows you to monitor your balance and spending, including alerting you when you’re down to your last £100; when you have insufficient funds to make a payment and can help keep track of your daily card use at home and abroad.

Its contactless debit card is made from a recycled plastic that has the lowest possible carbon footprint and environmental impact.

Triodos was granted a UK banking license in 2019, so current account holders’ assets are protected under Financial Services Compensation Scheme (FSCS), which covers up to £85,000 per person.

Triodos has achieved ‘Best Buy’ status for its personal current accounts from Ethical Consumer magazine – the only bank to do so – alongside joint Best Buy status for its savings accounts. It is also a Which? ‘Eco provider’.

In first earning its Good Egg mark in 2018, Triodos was rated as making a ‘high impact’ in all areas, a high bar it has maintained every year since.

There is a £3 monthly for its current account, which Triodos says is “the cost of a fair trade coffee”. It says: “Most banks fund free accounts with hidden costs and high overdraft charges – often with financially vulnerable customers footing the bill. We don’t think that’s right or fair.”

However, Triodos does not offer an arranged overdraft.

2. Nationwide

As Britain’s biggest mutual, Nationwide says “the fact that we are owned by our members and run for their benefit, makes us fundamentally different from our big competitors.”

The building society – another Which? ‘Eco Provider’ – continues to offer a competitive package for those looking to switch their current account. Its FlexPlus current account comes with an £18 fee. If you make use of the free insurance that comes with it (the travel, mobile and Europe-wide breakdown insurance could be worth more than £500 a year in total), it’s still an attractive option. Having a FlexPlus current account also gives you access to exclusive savings rates for Nationwide members.

Nationwide also offers a FlexDirect current account, which has no monthly fee and comes with an attractive five per cent (AER) interest on balances for the first 12 months on balances up to £1,500 before reducing to 0.25 per cent (AER). There is also one per cent cash back on debit card spend and a £50 interest-free overdraft buffer.

To qualify for this account, you must pay in at least £1,000 per month. You’ll pay no overdraft interest for the first 12 months, followed by a steep 39.9 per cent (as with all its current accounts) so it pays to stay in credit.

The society discloses the carbon emissions associated with its mortgage, commercial real estate and registered social landlord lending, and has set science-based targets to reduce all three. It says: ‘We have committed to playing our part in the transition to a net-zero future. This is just one of the ways we demonstrate our mutual difference.’

In June 2024, Nationwide gave millions of its members £100 each for the second time as part of its unique reward scheme. And in April 2025, it gave an additional £50 each as a ‘thank you’ after it bought Virgin Money.

However, the building society has been criticised by Ethical Consumer magazine for excessive remuneration of its top staff. In 2024, its highest paid director was paid over £2.4 million. It also has a low customer service score of 1.9 on Trustpilot, with customers citing long waiting times and unhelpful staff.

The UK’s most ethical banks and building societies

3. The Co-operative Bank

The Co-operative Bank was bought by Coventry Building Society for £780 million in May 2024.

Both organisations will continue to operate under their current names and branding while they are integrated, which is expected to take several years. Eventually, Co-operative Bank customers will be migrated to become Coventry society members. Coventry – the first B Corp building society – does not offer its own current accounts.

The deal means Co-operative Bank will return to a mutual structure, where it is owned by individual members rather than shareholders and investors like most UK banks.

This is positive news following years of uncertainty over the bank’s ethics. In the 2010s, the Co-operative Bank got itself into deep financial trouble which led to it becoming fully owned by private equity, including hedge funds. Hedge funds often use tax havens and are lightly regulated with limited transparency.

Despite ownership obstacles, the Co-operative Bank has stood by its ethical policy since 1992. This means it doesn’t lend to companies that don’t fit with its values, so it doesn’t do business with the oil, coal or gas industries.

The bank’s standard current account is free and you can earn up to £2.20 a month in rewards. If you are looking for extras alongside your current account then its Everyday Extra account is a good choice. In return for £15 a month you’ll get mobile phone insurance, worldwide travel insurance and UK & European breakdown cover. Just make sure you aren’t doubling up on insurance you already have elsewhere.

The Co-operative is another ‘Eco-provider’ with Which? – it was applauded for its “high ethical standards for the businesses it offers services and finance to, most of which are small and medium-sized”.

It sets high ethical standards for the businesses it offers services and finance to, most of which are small and medium-sized. It excludes firms involved in the exploration, extraction or production of fossil fuels, and the unsustainable harvest of natural resources. Its ethical review process includes parent companies both in and outside of the UK.

4. Cumberland Building Society

The Cumberland is a building society based in Cumbria. It offers current accounts, as well as mortgages and savings accounts, to customers living in Cumbria, South West Scotland, West Northumberland and North Lancashire.

It does not invest its members’ money in stocks and shares, so many of the issues normally associated with ethical investment do not apply to it. It says on its website: “We don’t make direct investments in stocks and shares and we do not provide funding for fossil fuel projects or companies. Furthermore, we don’t invest your money outside the UK.”

The Cumberland’s Kinder Kind of Kitchens initiative, in partnership with Fareshare Lancashire and Cumbria, supports people across Cumbria and Lancashire to overcome food poverty.

The Cumberland Plus Current Account has no monthly fee and the interest on an arranged overdraft is 14.99 per cent (EAR variable), which is low compared to its competitors. To be eligible, you must pay at least £750 per month into your account (you will be charged £2 per month if you don’t meet this). Note that you will only be considered for an arranged overdraft once your account has been active for at least six months.

Cumberland also offers a Freedom Apprentice Current Account, designed for young people on apprentice schemes, and a Day2Day Account, which has no overdraft facility and no amount of funding required for younger people.

The Good Guide to Financial Planning 2025

5. Starling Bank

Starling – voted ‘Best Banking App’ at the British Bank Awards 2024 – offers 3.25 per cent variable interest on its personal and joint current accounts. (up to balances of £5,000).

Its multitude of app features make banking and managing your money easy, as well as more environmentally friendly.

Starling says it expressly avoids “directly” funding fossil fuels, mining, arms and military, and instead invests in “government securities and other high quality liquid assets”. It adds: “We invest your money on supranational bonds and securities backed by UK residential mortgages. These investments are to support the Bank’s liquidity. We carefully consider who we invest in, taking into account a number of factors. We do not invest directly in fossil fuels.”

Starling also says: “We will not do anything in our tax affairs that runs contrary to either the letter or spirit of tax legislation in the UK and any other country in which we are liable for tax.”

However, Ethical Consumer magazine has criticised Starling for not having an adequate policy excluding loans to companies linked to significant workers’ rights abuses, oppressive regimes or factory farming. It also has no lending policy in place that favours organisations and projects making a positive impact on the environment and society.

Also, it is worth noting that despite its longstanding opposition to fossil fuels, in March 2021 Starling accepted funding from Qatar’s sovereign wealth fund. The fund was set up in 2005 to invest Qatar’s substantial oil and natural gas revenues around the world.

A spokesman for Starling Bank said that “one of the key roles of QIA is to reduce Qatar’s dependence on revenues derived from oil and gas and to expand investment into non-hydrocarbon sectors. That’s one reason why it has been investing in a range of well-known British brands in addition to Starling.”

In April 2022, Starling raised £130.5 million from previous backers, including Goldman Sachs Growth Equity and the Qatar Investment Authority to build an “acquisitions war chest.”

Since Starling is a paperless, branchless bank, its carbon footprint is significantly lower than some of its competitors. It uses renewable energy to power its four offices and its debit card is made from recycled PVC plastic. Starling will plant a tree for every friend you refer – so far it says it’s planted 60,000 trees.

There are no monthly fees and arranged overdraft interest is charged at 15 per cent, 25 per cent and 35 per cent EAR (variable) based on factors such as your credit rating.

Read our full review of Starling Bank 

If you want to have a savings account, insurance policy, investment fund or mortgage from companies that do the right thing, check out our Good Eggs.

These are companies that have passed strict (independent) criteria to prove they make a positive impact – to the planet, society, and you. 

If you’d like to find out more about the above providers, a Which? membership gives you access to in-depth, expert reviews, ‘Best Buys’ and ‘Don’t Buys.’ 

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.

If you’re going the extra mile to make your home eco-friendly (and save money), be it by fitting the best possible insulation, switching to a renewable energy provider or installing your own solar panels, it makes sense to ensure that your insurance provider is in line with your ethics.

Things to consider when looking for a more responsible insurer include whether the company has an ethical investment policy, its environmental stance and legal structure (for tax avoidance). To get you started, we’ve pulled together four of the most ethical insurers on the market, including those that have a specific focus on ‘eco homes’.

Naturesave

With 10 per cent of the premium you pay going towards environmental projects and discounts for energy efficiency, insurance broker Naturesave certainly wears its eco credentials on its sleeve (which makes it a rare breed in the insurance industry).

Naturesave provides cover for all types of buildings, including self-build and eco homes, as well as alternative builds like timber-framed or straw bale houses. Renewable energy systems including solar PV panels and biomass boilers are covered as standard, which is unusual in the sector. It also offers discounts for energy efficiency practices in the home.

As an insurance broker, Naturesave says it aims to select partners that have committed to stopping underwriting new fossil fuel projects. While all of its partners are still investing to varying degrees in fossil fuels, Naturesave says “we continue to use our long standing and growing presence in the market to apply pressure for change that we hope will ultimately lead to a truly fossil fuel-free insurance product.”

Through its ‘Campaign for Divestment’, the company lobbies the insurance industry to urgently divest from the fossil fuel activities that harm the planet and the people living on it.

For those who value good customer service, Naturesave handles all of its claims in-house and doesn’t use call centres. The company, which is a carbon neutral business, will also plant a tree for every new policy issued.

In 2022, Totnes-based Naturesave was bought by Lloyd & Whyte, a broker within the Benefact Group. The Benefact Group is itself owned by a charity and all profits go towards good causes. The Benefact Group’s investments are handled by sustainable investment specialists EdenTree.

ETA

The Environmental Transport Association, or ETA, is an insurance company that’s owned and run by environmentalists who are committed to promoting sustainable transport.

The company has scored top marks for being an ethical insurer by the Good Shopping Guide since 2015. The guide says: “We encourage other companies in the Insurance sector to follow ETA’s example and adopt more ethical policies and practices.”

As its name would suggest, the company’s major focus is on transport insurance (including cycling) and 10 per cent of its premiums help to support a campaign for sustainable transport. It has also run nationwide campaigns like Green Transport Week, Car Free Day and Twenty’s Plenty to name a few. It does, however, also offer home insurance policies by partnering with Safe&Secure.

ETA gives its customers the option to offset the carbon impact of their insurance policy for £7 per month or £84 per year.

Ecclesiastical Group

Ecclesiastical offers ethical insurance for churches, charities and community organisations. As part of the Benefact Group, all of its “available profits” go to charities and other good causes, with £200 million donated over the past 10 years.

It has donated £1,000 each to 250 charities from across the UK as part of Ecclesiastical Insurance and the Benefact Group’s Movement for Good Awards.

If you take out a policy with Ecclesiastical it will donate £130 to your church or cathedral, and there’s no limit to the number of donations.

Ecclesiastical was named as a Which? Best Buy for Buildings and Contents insurance in 2025.

Arma Karma

Launched in 2019, Arma Karma offers an ethical monthly subscription “possession-based insurance” which covers the belongings you care about most. Rather than offering blanket contents insurance as many insurance providers do, you can keep costs low by choosing the individual items you wish to insure. These will be covered both at home and abroad.

If you choose Arma Karma for your home insurance, it will donate 25 per cent of its cut to the charity of your choice (from a panel of four). It will also plant a tree for every new sign-up (to date it has planted 5.514 trees, saving 96.13 tonnes of carbon). Arma Karma also receives top marks in the Good Shopping Guide’s ethical insurer rankings table.

If you’d like to find out more about the above providers, a Which? membership gives you access to in-depth, expert reviews, ‘Best Buys’ and ‘Don’t Buys. 

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.

Not all ethical insurance providers choose to offer car insurance, but those that do may offer extras such as charitable donations or the peace of mind that they aren’t investing your insurance premiums in industries that harm the planet.

Here are some good choices:

Evergreen Insurance Services

In the world of insurance, which is traditionally driven by profit, Evergreen Insurance is a broker with a difference. It will shop around to get you a good deal on your car insurance, then donate a portion of its commission (up to 25 per cent, depending on how long you’ve been with them) to a wildlife or nature charity. The donation doesn’t cost you anything extra.

The charities spend the money in different ways; rehabilitation of animals, educating people, reducing waste and creating environments for nature to thrive. You can choose where you want your money to go from a panel of 25 organisations, and even nominate a charity you care about to join the list. See some examples of where the money goes here.

Evergreen even offers commercial cover for fleets, charities, shops and tradesmen, as well as cover for young and learner drivers.

It also offers travel, home, pet, life and gadget insurance policies.

Pluginsure

Founded in 2006, Pluginsure was the UK’s first-ever website dedicated to insuring electric cars, vans and trucks.

Policies include insurance for your car’s battery. The firm covers more than 30 makes of electric car and quotes are available by phone on 0330 043 1962. PlugInsure is most competitive for drivers aged over 30, who have accumulated several years of No Claims Bonus and live outside of London. It admits it cannot offer the lowest rates on the market for insuring a Tesla.

Pluginsure is a broker using a panel of insurers, so it’s worth also checking the ethical credentials of the company recommended to you for your policy.

Top 4 ethical travel insurers in 2024

Aviva

Aviva still has a way to go on its environmental performance, but it has made huge improvements that are worth commending.

The company’s thorough Sustainability Report lists its objectives for reducing its environmental impact, including a bold target to become net zero across its entire business by 2040. It actively engages with big carbon emitters in the oil and gas, metals and mining, and utilities sectors to drive change, and has divested from all companies that more more than five per cent of their revenue coal. In 2022, Aviva launched a campaign for the UK to be the most climate-ready large economy in the world by 2030.

Aviva is transparent about its tax conduct – a rare entity in the insurance industry – and does not make political donations. The company has achieved ‘ethical accreditation’ from the Good Shopping Guide.

Following the Labour government’s first Budget, which will see more people dragged into higher tax banks and a hike on Capital Gains Tax, using an ISA has become an even more vital way of protecting your hard-earned money. With the new tax year a few days away (and with it this year’s ISA allowances resetting), Alex Hollinshead of ethical financial planners EQ Investors gives a speedy run down of what the different ISAs are and how to use them. 

What is an ISA?

An Individual Savings Account (ISA) is a tax-efficient way to save or invest. It allows you to earn interest or returns without paying income or capital gains tax.

Introduced in 1999 by then-Chancellor Gordon Brown, ISAs replaced the Tax-Exempt Special Savings Accounts (TESSAs) and Personal Equity Plans (PEPs) that were previously available.

There are currently five different types of ISAs to suit various financial goals.

1. Stocks & Shares ISA

Also known as an Investment ISA, a Stocks & Shares ISA lets you invest in assets like company shares, bonds, and investment funds.

This option is best for those willing to invest long-term (at least five years) and who are comfortable with potential risks, since the value of your investments could go down as well as up. However, this also gives you an opportunity to earn higher returns than you can from your cash savings.

Best for:

• Long-term investors seeking higher potential returns.
• Those comfortable with market risks.
• Anyone over 18 years old.

Top 7 platforms for a green stocks and shares ISA

2. Cash ISA

A Cash ISA mainly works like a traditional savings account. The benefit being that when you hold a Cash ISA, you don’t pay any tax on the interest you earn – while with a traditional bank or building society’s savings account, you will usually pay Income Tax on earnings.

Best for:

• Low-risk savers.
• Those who want a tax-free savings choice.
• Individuals aged 18 and over.

6 top-paying ethical Cash ISAs

3. Lifetime ISA (LISA)

Designed for first-time homebuyers and for long-term savers planning for retirement. LISAs have become the go-to for first-time property buyers since the ‘Help-to-Buy ISA’ scheme stopped being available to new customers in 2019.

You can contribute up to £4,000 annually, with a 25 per cent yearly government bonus. Funds can only be used to buy a first home (under £450,000) or withdrawn after age 60, with penalties for early withdrawal. 

Opting for a Lifetime ISA means you can hold cash or investments, or a combination of both.

Best for:

• First-time homebuyers.
• The self-employed planning for retirement.
• Individuals aged 18 to 39. You must open and fund a LISA before you turn 40.

3 ethical Lifetime ISAs (LISAs)

4. Innovative Finance ISA (IFISA)

An IFISA allows tax-free investment in peer-to-peer (P2P) lending and crowdfunding bond/debenture opportunities. 

While returns may be higher than traditional options, there is significant risk since investments are not protected by the Financial Services Compensation Scheme (FSCS).

Best for:

• Individuals looking to diversity their investment portfolio.
• Direct accessible ethical investments for small amounts. 
• Individuals aged 18 over.

Top 4 green investments for your IFISA

5. Junior ISA (JISA)

A JISA is a tax-free savings or investment account for children under 18. Parents or guardians can open one, and anyone can contribute up to £9,000 annually. At 18, the JISA converts into an adult ISA, giving them the opportunity to keep building their financial future in a tax-efficient way.

Launched in 2011 to replace Child Trust Funds, Junior ISAs enable you to save and/or invest for your children in a tax-efficient way.

You can open a Junior ISA for your child at any time, as long as they’re under 18, live in the UK, and don’t already have a Child Trust Fund

Best for:

• Parents giving their children a head start in life.
• Gradually introducing children to concepts of investing and savings.
• Grandparents can use to reduce how much inheritance tax is due.

Best ethical Junior ISAs

How many ISAs can I have?

Aside from the Lifetime ISA (one per adult) and the Junior ISA (one of each type per child), you can open as many of the other ISA types as you like.

However, if you have ISAs with multiple providers, it can be harder to keep track of what you’ve paid in where. If you realise you’ve exceeded your allowance, contact HMRC to let them know.

How much can you put in an ISA?

There is a limit on how much you can pay into your ISAs each year. For the current tax year, the total ISA allowance is £20,000.

LISAs work a little differently. With these, you can only save up to £4,000 each tax year, with the government adding a 25% bonus. The LISA limit of £4,000 counts towards your £20,000 annual ISA limit.

If you’d like to save on behalf of a child, you can also open a JISA to save an extra tax-free sum. For the current tax year, that’s up to £9,000.

With a new tax year rolling around, you might be wondering how you can squeeze a little more cash aside into savings this year. It might feel hard to save any money at all at the moment, especially with ‘Awful April’ bringing in rises to most household bills – but an auto-savings app could help you build up a nest egg without you even noticing.

These apps use clever technology to work out how much you can afford to save and then automatically move money from your bank account into a separate savings pot. They can also ’round up’ your purchases to the nearest pound and save the change for you. The idea is that by squirrelling small amounts of cash away regularly, you can build up a healthy pot without thinking about it.

If you’re feeling the pinch one month, you can always tell the app to save less, or withdraw the money back into your current account if you need it.

Just bear in mind that while these apps can help you save more, most interest rates can be beaten elsewhere – so to maximise returns (in a way that’s kind to the planet too), see our top-paying sustainable savings accounts.

Here are our top three auto-savings accounts in 2025 (that are as ethical as it gets in this market):

Moneybox

Moneybox is just that – a money box. Once you connect a bank account, the app will round up your transactions to the nearest pound and set aside your spare change for you to save or invest.

For example, if you buy a coffee for £2.60, it will round the transaction up to £3 and then put the spare 40p in your “digital moneybox”. You can set your round-ups to be moved automatically, or choose to do it manually for each transaction.

If you want to have quick access to your savings, Moneybox offers a ‘Simple Saver’ account, with a healthy 3.15 per cent (AER variable) interest rate and no account fees or charges. Withdrawals are limited to one per month.

If you’re happy for your money to be locked away for a while in return for a higher interest rate, Moneybox offers two notice accounts – 32 days’ notice at 4.24 per cent (AER variable) to 95 days’ notice at 4.55 per cent (AER variable).

Moneybox also has a Cash ISA offering a very competitive 5.32 per cent interest (AER variable), which enables three withdrawals per year.

The app also gives you the option of investing your money in a Stocks and Shares ISA, Junior ISA, Lifetime ISA, General Investment Account or Self-Invested Personal Pension (SIPP). Just remember that with investing your capital is at risk.

With Moneybox, your savings are protected by the Financial Services Compensation Scheme (FSCS) up to £85,000.

The Good Stuff

The Moneybox app is clear and easy to use, and it scores highly on customer service (with a 4.4 out of 5 score on Trustpilot). It also offers ESG fund options for your investments. However, it doesn’t provide much information on the details of these funds, such as the top 10 holdings or a sector breakdown.

What’s the cost?

There are no fees for Moneybox’s savings accounts. You can find out about fees for investing, here.

Plum

Plum is a smart money ‘robot’ that helps you budget, save and invest all through automation. The app links to your bank account and uses artificial intelligence to analyse your income and spending habits.

It calculates an amount it thinks you can afford to save each week, and automatically transfers this to your Plum account. If you turn on ‘Round-Ups,’ Plum will round up your transactions to the nearest pound and save your spare change.

You can transfer this money into “Interest Pockets” that are assigned to different goals. Plum’s free plan gives you one ‘Easy Access Interest Pocket’ with an interest rate of 4.17 per cent for Plum Premium subscribers, 3.69 per cent for Plum Pro and Ultra subscribers, and 3.53 per cent for Plum Basic customers. (all AER/variable) – see below for costs of Plum’s paid-for plans.

Plum also offers Plum Interest, at a variable 4.41 per cent interest rate on your easy access cash. This is NOT a savings account. Your money will be invested with the BlackRock ICS Sterling Government Liquidity Fund, which holds low risk government-backed assets.

You can withdraw your money for free at any time. Another option is to invest your savings in a Plum Stocks and Shares ISA or SIPP. As always with investing, remember your capital is at risk.

Note: To qualify for FSCS protection with Plum, your savings must be kept in one of its ‘interest savings pockets’ – this includes the free pocket.

Chip

Chip is an auto-savings and investments app that uses artificial intelligence (AI) to calculate how much you can afford to set aside each month without affecting your normal day-to-day spending habits.

Chip currently offers an Instant Access account at 3.56 per cent, a Prize Savings account where you can win a share of £62,500 each month, and a Cash ISA at 5.26 per cent, lowering to 4.32 per cent after three months.

The good stuff

We like that Chip makes it easy to save and invest all in one place. But, and it’s a big one, its charges (see below) can add up. Also its investments are held primarily with fund giant BlackRock, which (as above) has a shady record for greenwashing on sustainability.

What’s the cost? 

You can use Chip for free, but if you want to set up recurring saves (a set amount paid regularly into savings), you’ll pay 45 pence a time. There is a premium ChipX plan for £5.99 per month, which gives you unlimited recurring and auto saves.

Other options

Banks and building societies such as Tandem, Starling and Nationwide also offer round-up savings features.

When it comes to being responsible, who you borrow from is as important as who you pay money to. In the course of our lives, a mortgage is likely to be our single biggest borrowing.

Most conventional banks invest in controversial activities such as weapons, cluster munitions, fossil fuels and deforestation, meaning your mortgage and interest payments could be funding these harmful industries.

Rising interest rates have meant that finding an affordable mortgage is a difficult task, but there are ethical lenders offering competitive deals.

They cover everyone from mainstream borrowers to those struggling to get on the property ladder or those wanting to build something more interesting. And if you are buying or building an eco-friendly home or plan to make green home improvements, you could be find a discounted rate.

Here are six Good picks.

Ecology Building Society 

Standard variable rate (renovation) of 6.29 per cent

Standard variable rate (residential self-build) of 6.49 per cent

If you’re borrowing for a project that is a little different, Ecology Building Society (a Good With Money ‘Good Egg’ firm) specialises in properties outside the mainstream. These include self-build mortgages for non-standard but energy-efficient construction, energy-efficient renovations, moorings for houseboats and loans for buying woodland.

With a standard variable rate from 6.29 per cent for renovations and 6.49 per cent for self builds, Ecology won’t compare with the very cheapest rates on the market. But mortgages for non-standard properties are typically more expensive than the norm. The good thing is, once your property is complete, the rate is typically discounted according to the energy savings you are making.

So if you’re building a wattle and daub house or want to make a listed building more energy efficient, Ecology will consider your project without taking what it calls a ‘tick box’ approach.

The mortgages are funded through members’ savings accounts.

Good For: Selfbuilders, energy improvers, homes that promote sustainable living

A Good Egg: Ecology Building Society

Coventry Building Society

Remortgaging: Fixed rate to 31.08.30 at 4.23 per cent with a 35 per cent deposit (£999 product fee) or 4.40 per cent with a 25 per cent deposit (£999 product fee)

First-time buyers: Fixed rate to 31.08.30 at 4.18 per cent with a 35 per cent deposit (£999 product fee) or 4.28 per cent with a 25 per cent deposit (£999 product fee)

Coventry Building Society is currently the only building society to have achieved B Corp status. B Corp is a globally recognised certification for companies that meet high standards of social and environmental performance, accountability, and transparency, and are run for the benefit of all people, communities, and the planet.

Its rates are competitive too.

Good for: Those remortgaging or first-time buyers with a decent deposit

Suffolk Building Society

Remortgaging and first-time buyers: Two-year fixed rate at 5.09 per cent with a 20 per cent deposit (£199 application fee/ £999 completion fee)

Remortgaging and first-time buyers: Five-year fixed rate at 5.05 per cent with a 20 per cent deposit (£199 application fee/ £500 completion fee

Building societies are mutuals, which means they don’t need to make a profit for shareholders. They are owned by their customers, who have a vote in their decision making. This business model fundamentally makes building societies a more ethical option than banks (not including ethical banks such as Triodos and Charity Bank).

Smaller building societies are traditionally more able to look at customers on an individual basis, and Suffolk is proud of its roots in the community. As well as promising to consider each customer individually, it works with housing organisations across Suffolk to help address more systemic homelessness issues. The group also has a focus on financial education in schools.

Suffolk is one of the few providers to offer competitive mortgage rates for house purchases with a 10 per cent deposit

Good for: First-time buyers with smaller deposits

Nationwide Building Society

Remortgaging: Two-year fixed rate at 4.14 per cent with a 30 per cent deposit (£999 fee) or five-year at fixed rate at 4.04 per cent with a 30 per cent deposit.

First time buyers: Two-year fixed rate at 4.44 per cent with a 30 per cent deposit (£999 fee) or five-year fixed rate at 4.44 per cent with a 30 per cent deposit (£999 fee)

Britain’s biggest mutual uses its size to offer good value products for more standard borrowers, particularly those with a decent amount of equity in their homes.

For those who do have equity or a decent deposit to put down on a first home, Nationwide’s rates are competitive.

Nationwide’s ‘Green Additional Borrowing’ scheme offers a lower initial interest rate if at least 50 per cent of the loan is used to make your home more sustainable. This includes the following measures: “air source heat pump, cavity wall insulation, double glazing/replacement windows, electric car charging point, ground source heat pumps, loft insulation, small scale wind turbine, tanks and pipes insulation.”

Good for: Borrowers with lots of equity in their homes/ first-time buyers with at least 30 per cent deposit

Co-operative Bank

Remortgaging: Three-year fixed rate at 4.28 per cent with 30 per cent deposit (£749 fee) or a five-year fixed rate at 4.35 per cent (£749 fee)

Despite its highly publicised woes in recent years and hedge fund ownership, the Co-op continues to reiterate that it is an ethical bank. It is currently in talks with Coventry Building Society over a proposed merger.

Co-op Bank donates £5 to youth homelessness charity Centrepoint for every mortgage taken out.

Existing customers of the Co-op can apply for one of its Green Additional Borrowing products to help make improvements to their home that will reduce energy consumption and help tackle the climate crisis.

The Co-op Bank is not currently taking mortgage applications from new customers through its website, so if you aren’t remortgaging with them, you would need to go through a mortgage broker.

Good for: Borrowers looking to remortgage

Habito

If the mortgage market feels a bit overwhelming, Habito is an online mortgage broker that promises to take care of the entire mortgage process for you. Habito is a B-Corp company, which means it is legally committed to putting people and planet on the same level as profit. The online platform can search more than 90 lenders and 20,000 products in just a few seconds to find the right product for you.

Using Habito as a broker to find your best mortgage deal, and apply for it on your behalf, is completely free.

It also offers a ‘Habito Plus’ service where it will handle all your buying admin, including price negotiation, an in-depth property survey, conveyancing and legal work, for a fixed fee that starts at £2,000.

Good for: People wanting some expert help with finding a mortgage

If you want to have a savings account, insurance policy, investment fund or mortgage from companies that do the right thing, check out our Good Eggs.

These are companies that have passed strict (independent) criteria to prove they make a positive impact – to the planet, society, and you. 

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.

The sharp rise in the cost of living over the last few years has driven a huge increase in credit card usage.

Borrowing to meet basic needs and expenses is dangerous, particularly on credit cards with high interest rates. However, our plastic friends can be a useful money-saving tool if you use them wisely. They can help you to budget, protect you against problems and spread the cost of purchases over time.

They can also improve your credit rating, by providing evidence that you are the kind of person who can borrow money and pay it back on time.

Saying this, the credit card market can feel like a bit of a jungle! From providers hiking limits without asking to slapping the highest interest rates on the worst off consumers, they don’t exactly scream ethics. Many will also have concerns about choosing a card from a big bank where lending practices are questionable.

In this difficult market, here are three of the more ethical cards to consider.

Nationwide credit card

Nationwide is the UK’s biggest building society. Its mutual status means that, unlike a bank, it is not listed on the stock market and accountable to shareholders. Instead, it is accountable to its members – ie. the people who bank with it – and they have a say in how it is run.

The society changed its terms and conditions in 2016 to rule out automatic increases in credit limits, and doesn’t remove promotional deals if a user misses a payment.

Nationwide’s credit card comes with worldwide commission-free purchases and no annual fee.

Introductory offers: The card comes with two offers; 0 per cent interest for 18 months on balance transfers and 0 per cent on purchases for three months; or 0 per cent interest on balance transfers for 15 months and 0 per cent on purchases for 15 months. A 1.5 per cent balance transfer fee applies for the first 90 days, after that it’s 2.4 per cent (with a minimum charge of £5). You must be a Nationwide current account holder to apply for its credit card.

Interest rate: 24.9 per cent.

Top 7 ethical current accounts

Co-operative members credit card

With 1p back for every £2 you spend in the Co-op food stores and 1p for every £3.33 spent everywhere else with a Visa symbol, this fee-free card (only available to Co-operative members) offers rewards and incentivises you to shop with the mutual, which has ethical sourcing policies.

While the Co-operative Bank doesn’t have a squeaky clean ethical scorecard – in 2017 it had to be rescued by international hedge funds – it is in the midst of a takeover by Coventry Building Society, a certified B Corp.

The Co-operative credit card has a 2.75 per cent fee for purchases abroad.

Introductory offers: None, although there are also no balance transfer fees. Bear in mind that you cannot transfer a balance from another Co-operative or Smile credit card.

Interest rate: 18.2 per cent.

Metro Bank credit card

A challenger bank without the legacy issues of some of the larger players, Metro Bank is (so far) unencumbered by some of the scandals that have plagued the likes of the Co-op. It also promises to print your credit card while you wait.

There’s no cashback and it offers one single, (comparatively) low rate of 18.9 per cent. However, the card is free to use in Europe, which may sweeten the deal, particularly if you are a regular traveller.

Introductory offers: None.

Interest rate: 18.9 per cent.

For your complete guide to the best ethical and sustainable investment funds available to UK investors, see the latest full Good Investment Review, produced in partnership with Square Mile Research and The Big Exchange. 

Having committed to holding only one major fiscal event per year, Chancellor Rachel Reeves was meant to deliver a low-key Spring Statement. But after the Office for Budget Responsibility (OBR) slashed its growth forecast just hours earlier, she was forced to go further than expected with spending cuts. Here, we look at what her announcements (and in some cases, lack of them) mean for your personal finances.

Welfare cuts

In the most dramatic move of the day, Reeves expanded her cuts to benefits after the OBR said the reforms she announced last week would save £3.4 billion, not £5 billion. The universal credit health element will now be cut by 50 per cent and frozen for new claimants rather than rising in line with inflation.

Meanwhile, the universal credit standard allowance will increase from £92 per week in 2025-26, to £106 per week by 2029-30. It had previously been expected to rise to £107 per week by that year.

You can keep your Cash ISA allowance, for now

There has been much speculation about potential changes to ISAs, such as cutting the Cash ISA tax-free allowance of £20,000, but these failed to materialise. The plans have been pushed rather than cancelled, as a document published after Reeves’ speech confirmed the government is exploring options to overhaul ISAs to encourage more Brits to invest.

No changes to pensions

There were also no changes made to pensions, so savers still trying to work out last year’s taxation announcements can breathe a sigh of relief. The Chancellor has made clear that major announcements on tax will be kept for the Autumn Budget from now on, so for now there is some breathing room for those planning for retirement.

Mortgage rates to stay high

Homeowners will be facing higher mortgage payments for longer than expected. The OBR said that interest rates on mortgages will go up from 3.7 per cent in 2024 to 4.7 per cent in 2028, then stay there in 2029. This compares to a prediction of 4.5 per cent in the October budget.

The OBR looks at the rate that everyone who currently has a mortgage is paying, rather than the cheapest new deals on the market. This figure was certain to go up in some form, as a third of borrowers are still paying super-low 2021 interest rates. However, they will stay higher for longer because of sticky inflation.

Taxes hit new record high

It’s more depressing news on taxes, with the OBR saying they will reach a post-war record high by the end of this parliament. It forecasts that by 2027-28, tax as a share of GDP (a measure of the size of the economy) will have reached 37.7 per cent. This is up from 35.5 per cent in 2023-24. In the 1990s this figure was under 29 per cent.

Measures set out by Reeves in her October budget, which were left untouched today, have driven taxes higher. Then, the chancellor increased the main rate of employers’ national insurance contributions to 15 per cent from 13.8 per cent and cut the earnings threshold where the levy kicks in to £5,000 from £9,100.

The measures, which begin on April 6, mean a £25 billion tax increase on UK businesses. Income tax thresholds being frozen for several years – which drags more people into higher tax bands – are also contributing to the higher tax burden.

Two thirds of ISA holders would switch providers to have a positive impact on the world, new research shows.

A survey by sustainable bank Triodos found 63 per cent of savers are willing to shift to a green cash or stocks and shares ISA.

The study reveals the majority of UK adults (81 per cent) are fearful of the future and anxious to support a better world. Almost two-thirds (65 per cent) are concerned about what President Trump’s second term will mean for action on climate change and progress on social inclusion and equality (63 per cent).

Older generations are especially concerned about global politics, with 83 per cent of those aged over 55 feeling troubled by the direction it’s taking.

More than two thirds (68 per cent) think we need positive social and environmental change “now more than ever.” This rises to 64 per cent among the younger Gen Z and Millennial generations. However, many are overlooking the potential of their personal finances to help bring about positive change.

Confusion and feeling overwhelmed about how to do this are preventing many from taking action: half of UK adults (49 per cent) – rising to two-thirds (67 per cent) of 18-34 year olds – say they want to help have a positive impact, but don’t know where to start.

Young people respond to corporations slashing climate and DEI targets

Younger people are especially motivated to act on their concerns, with the majority of 18-34 year olds (55 per cent) wanting to use their money to help fund positive change (51 per cent).

This age group is especially dismayed by the global backlash against commitments on sustainability and diversity, equality and inclusion (DEI), with more than half (53 per cent) wanting to help fill this gap in funding initiatives that build a greener, fairer world.

When it comes to the actions of big corporations and banks, over half (55 per cent) of 18-34 year olds are likely to support businesses that demonstrate progress on sustainability, and the fair and equal treatment of people, over businesses that don’t.

Meanwhile, four in 10 say they are prepared to move their money out of their current bank if it scraps its current sustainability commitments (42 per cent) or DEI initiatives (40 per cent) – as many US-based big banks have done since Trump’s second term began.

ISA changes could unlock shift to sustainable savings and investments

Encouragingly, 63 per cent of ISA holders are willing to move at least some of their holdings from their current ISA provider to an ethical or sustainable bank in order to have a positive social or environmental impact.

On average, these ISA holders said they would switch 30 per cent of their holdings to a sustainable provider; a move that could unlock up to £21 billion of sustainable savings and investments.*

Roger Hattam, Director of Retail Banking at Triodos Bank UK said: “In the face of distressing news headlines, it’s no wonder that so many of us feel overwhelmed about how to have a positive influence on the world. But every individual person matters. Each one of us can take a surprisingly impactful step to contribute to a fairer, sustainable world, simply by switching bank or savings accounts. Every penny and pound in sustainable savings or investments is helping to collectively finance advances in renewable energy, community-led initiatives and businesses that promote fair and equitable treatment of everyone.

“Since the Paris Agreement was signed, the world’s 60 largest banks have poured over $6.9 trillion (£5.3 trillion) of money into the fossil fuel industry in the form of loans and underwriting. It’s time to arrest this trend, and customers have the power in their wallets. As a sustainable bank, Triodos offers an alternative – with a proven track record of funding sustainable projects and endorsing bold global initiatives, such as the Fossil Fuel Non-Proliferation Treaty.”

This year International Women’s Day focuses on ‘Accelerate Action’. While celebrating how far we’ve come, it’s vital to also recognise the ongoing need to tackle lasting gender barriers. Zoe Brett of ethical financial planners EQ Investors explains.

As we come to celebrate International Women’s Day, we are reminded of the courage and tenacity of the Suffragettes and the continued work of many other incredible women in fighting the good fight for our equality.

This time of celebration and gratitude also comes with reflection. We’ve come a long way but there is more work to be done. One such issue is the gender pension gap.

What is the gender pension gap and why does it matter?

In essence, the gender pension gap refers to the reduced level of retirement savings the average woman has versus their male counterparts. The Pensions Policy Institute (PPI) reports that by their late 50s women’s pension wealth is just 62 per cent of men’s.

The PPI also reports that women are particularly susceptible to poverty in their retirement years with two thirds of pensioners in poverty being women. With such doom and gloom statistics, it’s easy to see why this particular form of inequality is attracting so much attention from policy makers and the female community.

Why is there a gender pension gap?

On average women earn less than men meaning they have less resources to save for their golden years. The gender pay gap is a whole other story but some of the driving factors include traditional gender roles such as women taking time out of their careers to raise a family, gender bias in the workforce and a higher percentage of women in lower paid industries such as healthcare and education.

Women are also more likely to accept part-time work to accommodate family responsibilities leading to some employers not offering access to a work related pension scheme. Additionally, women tend to have lower confidence in financial matters. This causes issues on two key levels; one being engaging in the retirement planning process and the other being less willingness to adopt risk with their investments.

How do we close the gender pension gap?

The government has made progress in closing the gender pension gap by encouraging workplace flexibility. Its aim is to support more women in managing a career alongside family responsibilities, financial education campaigns, childcare reforms to help mum’s get back to work and automatic enrolment into workplace pension schemes where earnings are above £10,000 per year.

As well intended as this is, history tells us we cannot rely on policy makers alone – so what can we do to help ourselves? If you are not already funding a pension then start, even if it’s just with something small.

Naturally any contribution will need to work within your affordability and the kind of retired life that you are aiming for but a good rule of thumb for starting pension contributions is to contribute half your age. For example, if you are starting a pension at age 20 then contribute 10 per cent of your income, if starting at age 30 contribute 15 per cent, age 40 contribute 20 per cent and so on.

An equal family life comes in many forms and there’s no one size fits all structure. However, sharing parental responsibilities equally frees up more opportunity for career choices that empower women to better fund their pensions. If parental responsibilities cannot be divided equally then another way to approach this is to have the breadwinning partner fund the others pension as part of household expenditure.

How equal is the State Pension?

The State Pension is dependent on National Insurance contributions. Gaps in employment cause gaps in your contributions record which leads to less State Pension. The government will allow an individual to make up gaps in their record with voluntary payments or, in some cases, credit the individual with ‘free’ contributions.

Engaging with a good financial planner can do wonders for building confidence with your financial health and get you well on your way to a financially secure retirement. Financial planners not only source the right product and investment strategy for you, but they educate to empower you on your financial journey. This can be particularly helpful for women when it comes to getting comfortable with risk. Taking the appropriate level of risk is how to make your wealth grow beyond just your contributions.

A financial planner will be able to assess your risk needs and maximise your growth potential within a range that is comfortable for you.

Top 9 ethical financial advisers in 2025

So if you want an ethical ISA (that’s one that prioritises the planet, people AND profit), where do you start?

1. Start with the everyday – your bank

A Cash ISA lets you earn tax-free interest on savings of up to £20,000 per tax year.

And if you choose an ethical Cash ISA, your provider will not be lending your money out to businesses or industries that harm the environment. Some go even further by only lending it to those that have a positive impact on the world.

While recent cuts in interest rates is good news for mortgage holders, unfortunately it’s not so good for savers. However, there are still some very reasonable rates out there and cash savings mean your returns will remain steady rather than rising and falling in value like stock market investments. Just bear in mind that if you don’t need your money for at least five years, you are more likely (though not guaranteed) to make higher returns by investing.

Cash ISAs also offer deposit protection from the Financial Services Compensation Scheme.

Here, we round up the six top-paying ethical cash ISA providers.

1. Coventry Building Society

• 6 Access ISA 4.30 per cent (Gross/AER/Variable)

Coventry Building Society is the first building society to achieve B Corp status. B Corp is a globally recognised certification for companies that meet high standards of social and environmental performance, accountability, and transparency, and are run for the benefit of all people, communities, and the planet.

Building societies are mutual organisations, which means they are owned by their customers and not shareholders.

Shareholder-owned companies tend to aim for maximum profits as quickly as possible, which can result in some dodgy decision-making, whereas building societies’ interests are the same as their customers’ interests, so good products and service are as important as profits (which go back to members anyway).

2. Gatehouse Bank

• One Year Fixed Term Woodland Cash ISA, Shariah principles – 4.25 per cent (Gross/AER/Fixed)

An Islamic Bank, Gatehouse avoids investing in industries considered to be unethical under Shariah principles, which in practice are the same as those frowned upon under Christianity. The firm states it will “only invest funds in ethical goods and services and, for example, does not invest in gambling, alcohol, tobacco or arms”. It invests in real estate and construction as well as sukuk, which are sometimes known as Islamic Bonds.

Additionally, for every Woodland Saver account opened or renewed, Gatehouse will plant a tree in a UK woodland on the saver’s behalf.

Under Shariah principles, interest cannot be earned but profit is generated instead. The profit shared is the expected profit rate at the time the account is opened. To date, Gatehouse has always generated and paid its customers the expected profit rate. Find out more about how it works here.

3. Nationwide Building Society

• 1 Year Fixed Rate Cash ISA – 4.10 per cent (Gross/AER/Fixed)

Nationwide is the UK’s largest mutual, meaning it’s owned by and run for the benefit of its members. Because of the way it’s run, it’s free to reinvest more profits into products and services that benefit members, rather than being driven by shareholders. It says doing the right thing by its members is at the heart of what it does.

4. Yorkshire Building Society

Easy Access ISA Issue 2 – 4.o5 per cent (Gross/AER/Variable)

Yorkshire Building Society is an official signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry.

The mutual has made a commitment to identify and measure the environmental and social impacts of its business activities, set and implement targets where it has the most impact, and regularly report publicly on its progress.

5. Triodos Bank

• Fixed rate ISA for two years – 3.75 per cent (AER/Fixed)

Ethical Bank Triodos has a Good Egg mark from Good With Money, awarded only to companies that make a positive impact in the world.

Triodos uses the money its savers deposit with it to lend out to real economy businesses making a positive environmental, social or cultural impact on the world. Also offering stock market investments, crowd-funded Innovative Finance ISAs (IFISAs) and ethical current and savings accounts, Triodos is a true leader in the field of ethical personal finance.

6. Ecology Building Society

• Ecology Cash ISA – 3.6 per cent (AER/Variable)

Ecology Building Society uses its savers’ deposits to lend out as eco-friendly mortgages for new-builds and renovation projects with the ultimate aim of helping make Britain’s housing stock more energy efficient.

Ecology also has a Good Egg mark from Good With Money.

The economic curveballs of the last few years – Covid, the energy crisis, runaway inflation and the Labour Budget to name a few – have taught us the hard way just how important it is to build up a cash savings buffer.

If you want to ensure your money is being used for good rather than funding destructive industries like fossil fuels, there are some worthy alternatives to the big high street banks.

On the green and ethical scale, they range from stand-out social and environmental pioneers, to member-owned institutions such as building societies, to neutral players that are simply more attractive than the Big Five banks, which remain driven by shareholder value and propped up by fossil fuel investments.

While you’re unlikely to find a cash savings rate that won’t later be eroded by inflation, it will at least remain steady rather than rising and falling in value like stock market investments. Cash ISAs also offer deposit protection from the Financial Services Compensation Scheme.

Here, we round up the best providers for a Good Cash ISA.

Easy Access ISAs

Skipton Building Society

• Cash ISA Base Rate Tracker  4.25 per cent (gross/AER/variable)

As well as not investing in fossil fuels, Skipton offsets more emissions than its operations produce. Since 2022, Skipton has committed to giving one per cent of its pre-tax Group profit to charity each year.

Ecology Building Society

• Ecology Cash ISA 3.5 per cent (gross/AER/variable)

Ecology Building Society uses its savers’ deposits to lend out as eco-friendly mortgages for new-builds and renovation projects with the ultimate aim of helping make Britain’s housing stock more energy efficient.

Ecology has a Good Egg mark from Good With Money, awarded only to companies that make a positive impact in the world.

Triodos Bank

• Online Cash ISA 2.85 per cent (gross/AER/variable) 

Ethical Bank Triodos, which also has a Good Egg mark from Good With Money, uses the money its savers deposit with it to lend out to real economy businesses making a positive environmental, social or cultural impact on the world.

Also offering stock market investments, crowd-funded Innovative Finance ISAs (IFISAs) and ethical current and savings accounts, Triodos is a true leader in the field of ethical personal finance.

Top 9 ethical current accounts

Fixed rate ISAs

Bear in mind that with these options, your money is locked away for the length of the term.

Nationwide Building Society

• 1 Year Triple Access Online ISA 4.00 per cent (gross/AER/fixed)

Nationwide is the UK’s largest mutual, meaning it’s owned by and run for the benefit of its members. Because of the way it’s run, it says, it’s free to reinvest more profits into products and services that benefit members, rather than being driven by shareholders. It says doing the right thing by its members is at the heart of what it does.

Yorkshire Building Society

• Fixed Rate Cash eISA until 31 March 2026 3.90 per cent (gross/AER/fixed)

Yorkshire Building Society is an official signatory of the UN Principles for Responsible Banking – a single framework for a sustainable banking industry.

The mutual has made a commitment to identify and measure the environmental and social impacts of its business activities, set and implement targets where it has the most impact, and regularly report publicly on its progress.

Gatehouse Bank

• One Year Fixed Term Woodland Cash ISA, Shariah principles 3.90 per cent (gross/AER/fixed)

An Islamic Bank, Gatehouse avoids investing in industries considered to be unethical under Shariah principles, which in practice are the same as those frowned upon under Christianity. The firm states it will “only invest funds in ethical goods and services and, for example, does not invest in gambling, alcohol, tobacco or arms”. It invests in real estate and construction as well as sukuk, which are sometimes known as Islamic Bonds.

Additionally, for every Woodland Saver account opened or renewed, Gatehouse will plant a tree in a UK woodland on the saver’s behalf.

Under Shariah principles, interest cannot be earned but profit is generated instead. The profit shared is the expected profit rate at the time the account is opened. To date, Gatehouse has always generated and paid its customers the expected profit rate. Find out more about how it works here.

Other options to consider for Cash ISAs with more ethically-minded providers include Chelsea Building Society, Coventry Building Society and Cooperative Bank.

Charity Bank

• Ethical 33-Day Notice Cash ISA 3.01 per cent (gross/AER/fixed)

Charity 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 and in ways that would make them happy. It invests its customers’ money into charities and social enterprises around the country.

It says on its website: “Charities have never been more needed, but also more challenged. That’s why our promise – of supporting charitable activities and helping people to save and do good – is more important than ever.”

Top 7 platforms for a green stocks and shares ISA

Only one per cent of clothing is recycled back into clothing after use, and 73 per cent is sent to landfill. In an industry that increasingly pushes a trend of over-buying and under-using, Peter Michaelis of Liontrust finds an exciting solution that makes much better sense for people, planet and profit.

Late last year I visited Fashion Enter, a promising social enterprise in North London, as part of our ongoing research into the circular clothing model. This is a key component of Delivering a circular materials economy, one of the 22 positive sustainability themes underpinning the Sustainable Future fund range and helping make our economy cleaner, healthier and safer.

The impetus to rethink today’s current ‘fast fashion’ system comes predominantly from how extraordinarily wasteful it is, and my conversation with Jenny Holloway and Caroline Ash, Fashion Enter’s founder and Chair respectively, was a sobering reminder of this.

Jenny estimated that the hourly wage in a Bangladeshi clothing factory is 36p compared to £12.21 in the UK. This comparative advantage explains why less than one per cent of the UK’s clothing is made domestically, and how a great quantity of overproduction can be sustained in the fashion industry.

A trend over over-buying and under-using

Low-cost manufacturing facilitates a trend towards consumers over-buying and under-using.

Instead of manufacturing clothes of high quality with a long life-cycle, it is more profitable for the majority of the industry to keep people shopping for new items by constantly updating their ranges and outdating consumers’ wardrobes, using advertising to promote the latest trends. At its worst, fast fashion drives a race to the bottom on price and quality.

The sheer volume of materials used to manufacture garments results in multiple negative environmental impacts and the associated embedded carbon impact is estimated be 10 per cent of the world’s greenhouse gases (source: European Environment Agency). Many clothes end up as waste due to the clothing industry’s systemic problem of over-production. In addition, there are many negative social issues, such as poor working conditions in garment factories.

Data from Euromonitor shows that the early part of this century saw global clothing production more than double from around 50 billion units in 2000 to over 100 billion units in 2015. This reflected trends for consumers to wear each item on fewer occasions – utilisation falling 36 per cent over the 15 years – and instead make around 60 per cent more purchases.

The potential solutions to clothing industry wastage

From a material efficiency perspective this level of overproduction is madness, but what can be done about it?

While there have been some signs of regulation to tackle textile waste through producer responsibility (such as the EU’s proposed Ecodesign Regulation to increase the durability of items), we believe that the main driver of circular clothing business practices will be shifting consumer appetite.

There are a number of business models which are consistent with a shift towards circular clothing:

• Clothing resale – the largest and most promising approach. The US apparel and accessory resale market is estimated by Morgan Stanley to already be worth $35 billion (£27.6 billion) and set to grow in double-digit percentages over the next few years.
• Considerate purchasing/slow fashion – consumer adoption of a focus on product quality and longevity in order to limit negative impacts of their purchases.
• Rental or subscription models – increasing the utilisation of clothes and satisfying consumer demand for new garments without causing additional production.
• Repair – extending garments life cycles by repairing or repurposing/upcycling.
• Recycling – creating new textiles. Currently, only one per cent of clothing is recycled back into clothing after use and 73 per cent goes to landfill.

Investing in companies that deliver a circular materials economy

Fashion Enter proposes an intriguing new approach, with aspects of some of the models described above. It looks to provide clothing which is fast and fashionable, yet limiting negative impacts due to a focus on high quality and local production.

Their idea is to use technology to produce clothing that is bespoke to each individual. By scanning your body, Fashion Enter aims to design and produce bespoke clothing that can be made in local factories. A 3D avatar models the clothes, giving confidence on how they will look and fit.

This production model reduces waste and is much preferable to the hit-or-miss fast fashion that is offered today. It also offers full traceability of all clothing through each stage of its production. Circularity also works well with this model, since the same local factory will be well placed to repair clothing that has been damaged.

It is so refreshing to hear of a solution that makes better sense for people, planet and profit than the current system.

In the Sustainable Future funds, we look to allocate our investors’ capital to businesses which are aligned with our sustainable themes and which can deliver profits through positive social and environmental impacts.

Within the Enabling Healthier Lifestyles theme a core position is On Holdings, a Swiss sports brand founded in 2008 which focuses on performance training shoes for running and other sports. While the company is well positioned to benefit from the trend towards people focus more on sports and activity, it has also developed its brand to focus on sustainability as well as performance. It constantly innovates to improve quality and reduce the impact of its products. Some of these innovations include a resale platform for used goods called Onward, and a subscription product service called Cyclon which is designed to close the loop in footwear and apparel, as well as aiming for 100% recycled or organic cotton and 100% recycled polyester and polyamide.

Another stock held widely within the Sustainable Future funds is Winmark, a standout success story of the circular clothing model. This US franchise retailer of second-hand clothes is valued by the market at $1.5 billion, and we think it has plenty of potential to grow from here, generating healthy investment returns.

Winmark extend the lives of clothing by buying high-quality second-hand items for cash and reselling in the same store. Customers bring in their clothing for cash and often choose to spend in store. This both extends the useful life of a piece of clothing and displaces a purchase of a new item, reducing the carbon footprint of the second-hand item by 25%.

Winmark’s business model is inherently a circular one – it profits and makes returns from enabling this buying and subsequent selling of used goods at scale.

Good for the environment, good for customers, and good for shareholders. To read more about Winmark, head to Harriet Parker and Sarah Nottle’s Stocktake company profile.

Risk warning: Past performance does not predict future returns. You may get back less than you originally invested. Reference to specific securities is not intended as a recommendation to purchase or sell any investment.

Ethical wealth manager EQ Investors has launched a new sustainable range of investments.

The ‘Sustainable World’ range of eight portfolios is designed for people who are keen to put their money to work in a broad range of sustainable investments. The portfolios aim to achieve long term financial growth while also making a positive impact on the planet and society.

The Sustainable World strategy brings together three key sustainable investment approaches:

Impact Solutions: specialist impact funds that invest in companies whose core products and services contribute towards the United Nations’ Sustainable Development Goals (SDGs).

ESG Leaders: funds investing in companies that are best managing ESG (environmental, social and governance) risks.

Climate Focus: funds investing in companies that show climate change leadership. This includes climate solutions, low carbon leaders, and those on a science-based pathway to the transition to net zero.

The strategy, co-managed by Damien Lardoux and Tertius Bonnin, will exclude ‘ESG laggards’ (companies falling behind on important ESG issues) as well as six controversial sectors.

Sophie Kennedy, Joint CEO at EQ said: “EQ has established the most comprehensive sustainable and impact investment offering in the UK wealth market, and we are very pleased to bring the Sustainable World strategy to the adviser market.

“Whilst our core investment philosophy to date has been to offer different solutions to cater for specific sustainability preferences, we realise that clients’ needs are always evolving, and this new strategy draws on the best ideas from EQ’s investment team who have over 10 years of experience investing across these sustainable pillars.

“This strategy has a high level of climate ambition, while also benefiting from other sustainable tailwinds, which will be reinforced through our active stewardship”.

The Sustainable World range adds to EQ’s Positive Impact Portfolios: a range of investments all designed to meet a range of environmental and social criteria.

By 2027, it is expected that intergenerational wealth transfers will nearly double from the current level of £69 billion to £115 billion every year. Investment portfolios are a common way that beneficiaries will receive assets – but what is the best thing to do with them?  Zoe Brett of ethical financial planners EQ Investors gives her top tips. 

Inheriting wealth can be daunting, particularly if you’re not used to having money or do not have any experience in the inherited asset type. Should you keep such a portfolio intact, cash it in or use it to rebalance what investments you own already?

Here we explore what to consider if you inherit a portfolio of shares or investment funds.

Will I have to pay Inheritance Tax?

When you inherit shares or investments, you shouldn’t have any immediate concerns about Inheritance Tax (IHT).

The Legal Personal Representatives (LPR’s) will already have paid inheritance tax and completed the administrative tasks of organising the estate. An LPR is the collective term for a person who has responsibility for administering an estate, either as executor or administrator.

This will typically take up to 18 months before the assets are distributed to the beneficiaries. 

Registering as the new owner

Following this, the LPR’s should work with you to register the investments into your name, assuming you are not going to gift them with a deed of variation, which we will come onto later. 

Re-registering shares and investment funds into a new name can take weeks or even months and typically involves the LPR’s sending the death certificate, legal documentation and completing forms with your personal information as the new owner of the assets.  

Once the assets are in your name, you need to decide what you would like to do with them; keep them, transfer them, gift them or cash them. 

A few of the key things to consider are what you want to achieve with the money, when you might need access to it and how the taxation of the inherited asset interacts with your current tax position.

Be sure to factor in your wider financial plans

It may be that you’d like to retain the investments and let them remain invested for growth potential until such time that you need the cash from them. It is important to ensure that retaining the investments is suitable for you. The deceased may have had different objectives such as generating an income or a different risk appetite.

At this stage, it would be helpful to engage your financial planner to assess how the investments fit in with your own goals and objectives and whether the investments fit with your own personal risk appetite. 

If you have your own investment portfolio, there may be the opportunity to transfer the inherited investments to your existing account to be managed in unison with your current holdings. This can usually be done either by transferring the assets in cash, in which case a professional tax analysis should be undertaken prior to moving anything or by re-registering the holdings from the deceased’s provider to yours. 

You may have your own financial objectives that need funding. For example, repaying debt, a large purchase or building your retirement fund. If the value of the inherited portfolio is going to help you achieve these goals, then cashing them in is an attractive option and some good financial planning will help minimise the value lost to tax. 

Deeds of variation

The inherited assets can also be passed on to someone else. Perhaps you don’t need the money, or you are trying to reduce your own inheritance tax liability. This is usually done via a Deed of Variation. This is a deed drawn up by a solicitor bypassing you as the beneficiary of the asset and passing it straight onto an individual or individuals of your choosing. A Deed of Variation must be done within two years of the deceased passing and once in effect, it cannot be revoked. 

Potential tax implications?

Capital Gains Tax (CGT) accrued during the deceased’s lifetime is written off by HMRC at the date of death. Whilst the estate is being administered, the estate is responsible for the CGT from gains accrued after the date of death which then becomes your responsibility once the assets are in your name. If the LPR’s realise a capital gain whilst in administration, they can use the annual CGT allowance of £3,000 in the year of death and the following two tax years, after which no further exemptions are given. 

Once the assets are transferred to you, you will also be able to use your annual CGT allowance for disposal, even if this is in the same tax year as the estate has used theirs. This can be a helpful planning tool if you want to sell the assets either for cash or for moving them into more tax efficient products like an ISA or pension. Any disinvestment realising gains above the annual CGT allowance will be taxed at 20% if sold by the estate or 10% if sold by you.

Inherited ISA?

If the assets are already in an ISA, the estate can continue to benefit from the ISAs tax advantaged status for a period with some conditions. The date of death must be after 6^th April 2018 and no further monies can be paid in post death. The ISA retains its income and capital tax exemptions until one of three things happens; the ISA is closed, the administration of the estate is finalised or three years after death, whichever is the sooner.

Additional Permitted Subscription 

If you are a spouse or civil partner inheriting the ISA, you will receive an Additional Permitted Subscription (APS). Assuming death occurs after 6 April 2018, this effectively increases your own ISA allowance by the value of the deceased ISA as at the date of death or the date the LPR’s distribute the assets. You must have held an ISA at the time of the deceased’s death. 

If you fund the APS with cash, the APS must be used by the later of three years following the death or 180 days of the estate administration finalising. If the APS is used by transfer of the shares and investment funds directly into your ISA this must be done within 180 days of the assets being distributed by the LPRs.

Speak to a professional

Navigating an inheritance can be complicated to do efficiently without professional expertise. To protect yourself and the legacy left to you, you should engage a financial planner to guide you through the process. 

A new report from Make My Money Matter reveals the extent to which our pensions are fuelling climate change.

According to the report, £88 billion of UK pension savers’ money is invested in fossil fuels – that’s around £3,000 per individual penision saver. Additionally, £300 billion of UK pension savers’ money is invested in companies with a high risk of driving desforestation.

The 2025 Climate Action report looks at publicly available documentation on the UK’s 12 largest (Defined Contribution – DC) workplace pension providers.

DC pensions are typically workplace stakeholder pensions or personal pensions – whereby money paid in by the pension holder or their employer is invested by the pension provider, and the ultimate value of the pension pot is determined by how much has been paid in over time, as well as how successfully the investment has performed during that time.

While this year’s report shows signs of progress in the sector, Make My Money Matter say. ‘the pace and scale of progress falls short of what is needed given the severity of the climate and nature emergency.’

Which providers are improving?

Pensions giant Aviva has this year slipped down to second place, losing out to the government-backed scheme Nest. Newer providers like Smart Pension and Now Pension move into the top five alongside another large, more traditional provider, Legal & General.

Average scores have risen across almost all environmental themes – for example, fossil fuel phase-out or deforestation and land use – compared to last year, and 4 of 12 providers now score 5 or above (‘adequate’) compared to only 3 providers last year. Aegon has made improvements, and progress by The Peoples’ Pension means no providers are scored overall red (‘poor’) this year.

Which providers remain climate laggards?

Royal London holds the bottom spot of the 12 providers analysed, with Standard Life, Fidelity, The People’s Pension and Cushon (owned by Natwest) forming the rest of the bottom five providers.

British savers want sustainable pensions

Make My Money Matter surveys show that 2/3 of British savers want a sustainable pension, one that doesn’t drive the climate and nature emergency, but instead helps to tackle it.

Luckily, later this year Make My Money Matter will join a coalition of organisations coordinated by the Finance Innovation Lab to run a campaign on pensions calling for planned government pensions reforms to:

1 Deliver decent pensions for all, through boosting savings in a way that reduces inequality in the system.
2 Fuel long-term sustainable growth through green investment.
3 Phase out destructive investment in fossil fuel expansion and deforestation.

Here at Good With Money we are delighted to support Make My Money Matter and the Finance Innovation Lab and urge our readers, savers and employers to engage with this campaign and demand better from your money.

To read the Climate Action pensions report in full, click here.

If you want more detailed ideas on how to make your pension GOOD, then download our FREE Good Guide to Pensions.

Global travel has increased every year since the pandemic and experts predict that more people will holiday abroad this summer than ever. With over-tourism becoming a major issue, it’s important to consider the impact we have on the planet and local communities.

A study released by Nature Climate Change estimates that tourism now accounts for a hefty eight percent of all carbon emissions worldwide; with transport alone accounting for nearly half of these.

Thankfully there are ways you can reduce the impact of your holiday, including choosing a travel insurer that helps to protect the planet and its people as well as you and your family.

Here are our top four:

Naturesave

Travel insurance broker Naturesave donates 10 per cent of the premium you pay to its dedicated charity The Naturesave Trust. The trust provides grants to environmental projects, funds sustainability advice for SMEs and plants a tree for every insurance policy taken out.

Naturesave has a unique no-fly holiday incentive scheme where its staff are encouraged to avoid air travel. All staff are offered up to four days extra paid annual leave (or ‘no fly days’) when they choose to travel overland instead of flying. The firm founded the Climate Perks campaign to promote the initiative to other businesses.

Through its ‘Campaign for Divestment’, the company lobbies the insurance industry to urgently divest from the fossil fuel industries that harm the planet and the people living on it.

Travel insurance is available either as a stand alone option, or as part of Naturesave’s Home Insurance package. The maximum period for any one trip is 60 days, with winter sports included for up to 17 days. Naturesave also plants a tree for every insurance policy it issues.

Naturesave’s policies are underwritten by AXA, which although far from environmentally perfect, is regarded by Naturesave as an industry leader because it is divesting from fossil fuel assets and refusing to insure new fossil fuel projects.

However, AXA is criticised by the Good Shopping Guide for financing Elbit systems, Israel’s leading arms company, which is known for supplying weapons that have already killed and injured many people, including children. In August, it was reported that AXA had divested from Elbit systems following pressure from activists. The company has also been called out for funding companies and industries implicated in human rights abuses, such as Qatari companies involved in the exploitation of migrant workers.

In June 2022, Totnes-based Naturesave was bought by Lloyd & Whyte, a broker within the Benefact Group. The Benefact Group is itself owned by a charity and all profits go towards good causes. The Benefact Group’s investments are handled by respected sustainable investment specialists EdenTree.

World Nomads

“If you think you’re too small to make a difference, you’ve never been in bed with a mosquito” – World Nomads quotes Anita Roddick of the Body Shop to portray the positive potential travel can have.

When you buy travel insurance with World Nomads, you have the option to add a ‘micro donation’ to your policy price to help fund a community development project.

World Nomads partners with reputable global charities and non-profit organisations such as Oxfam, Water Aid, Save the Children and Sea Turtle Conservancy to help you give back to the places you travel to. It absorbs the administration costs so that 100 per cent of your donation goes directly to the project of your choice.

Since 2004, the insurer has donated more than £3.2 million to 274 sustainability projects worldwide. It also has lots of handy articles and a Responsible Travel Guide on its website offering tips on how to be a more sustainable traveler.

World Nomads’ travel insurance policies are underwritten by XL Catlin Insurance Company UK Limited, which is fully owned by AXA and registered with the Financial Conduct Authority (see above for more on AXA).

Top 3 eco-friendly car insurers

Evergreen Insurance Services

Evergreen Insurance partners with Sun World and Just Travel Cover for travel insurance. It then donates a portion of its commission (up to 25 per cent, depending on how long you’ve been with them) to a wildlife or nature charity of your choice. This makes it an unusual entity in the world of insurance, which is traditionally driven by profit.

The charities spend the money in different ways; rehabilitation of animals, educating people, reducing waste and creating environments for nature to thrive. You can choose where you want your money to go from a panel of 24 organisations.

As well as travel insurance it also offers home, pet, life, car and gadget policies.

Sun World is underwritten by Inter Partner Assistance SA UK Branch (part of the AXA Group) and Just Travel Cover is underwritten by Liberty Mutual Insurance Europe SE

Responsible Travel

Ethical travel specialist Responsible Travel has teamed up with Columbus Direct to create an insurance product where you can get a discount and donate money to charity – you can choose how much you do of both.

Responsible Travel customers get a 20 per cent discount on normal Columbus rates to play with. You can choose between taking all the discount yourself, giving it all to charity, or taking half as a discount and giving half to charity.

Responsible Travel donates money from its travellers to four charities: The World Cetacean Alliance, Elephant Family, All Out Africa Foundation and Surfers Against Sewage.

It also screens all of its trips for their commitment to responsible tourism. You can read about the specific good they do on each holiday page. Plus, when you travel with Responsible Travel, it will fund a day out for a child from a disadvantaged background.

Fossil fuels – coal, oil and gas – are by far the biggest contributor to climate change, accounting for more than 75 per cent of all global greenhouse gas emissions.

If the world stands even a small chance of successfully turning the tide on climate change, it’s essential that we move to a net zero economy. One powerful way that you can help towards this goal is by moving your money to ‘fossil fuel-free’ investments.

Here we round up 11 trusted options:

1. Triodos Pioneer Impact Fund

Triodos says, “We have never – and will never – lend or invest in fossil fuel projects.” The Triodos Pioneer Impact Fund invests in a range of small and medium-sized stock market listed companies that are true innovators when it comes to meeting sustainability challenges.

The fund is managed by Triodos Investment Management, part of Triodos Bank, in line with the United Nations Sustainable Development Goals (UNSDGs). This means that every company it invests in contributes towards a brighter and more sustainable future.

The fund scores five out of five in Ethical Consumer’s Fossil Free Investment Funds Report. Triodos is a Good With Money ‘Good Egg’ company, which means it can prove it makes a positive impact on planet and people, as well as a certified B Corp.

Where to invest 

You can invest in this fund through the Triodos platform, use a third party platform such as The Big Exchange, interactive investor, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

Top 7 ethical pension funds

2. FP WHEB Sustainability Impact Fund

WHEB does not include fossil fuel investments in any of its funds. Its flagship FP WHEB Sustainability Impact Fund, for UK residents only, targets long-term growth by investing exclusively in companies providing solutions to sustainability challenges. It is multi-thematic and invests in global listed equities. The fund carries the ‘Sustainability Impact’ label from the Financial Conduct Authority under new anti-greenwashing rules.

Trading platform Morningstar gives the fund a five-star sustainability rating. It also scores five out of five in Ethical Consumer’s Fossil Free Investment Funds Report.

Where to invest

You can invest in this fund directly through the WHEB platform, use a third party platform such as The Big Exchange, interactive investor, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

Top 3 sustainable investment platforms

3. Castlefield Sustainable European Fund

Castlefield screens out fossil fuels and other destructive industries from all its sustainable investments. There is also a positive bias towards investments which contribute towards key sustainability themes and those which conduct their operations with due care and attention to the environment and society.

The Castlefield Sustainable European Fund aims to generate long-term shareholder returns through a “concentrated portfolio of high conviction ideas from European countries, which demonstrate strong ESG (Environmental, Social and Governance) practises”. Top holdings include teleradiology company Medica,

Where to invest

You can invest in this fund via a third party platform such as The Big Exchange, interactive investor, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

Top 7 ethical current accounts

4. EdenTree Sustainable Investment Funds

EdenTree’s sustainable investment funds do not invest in companies that are exposed to fossil fuel exploration and production. The Global Impact Bond, Green Future and Green Infrastructure funds all carry the ‘Sustainability Impact’ label from the Financial Conduct Authority under new anti-greenwashing rules. The Global Sustainable Government Bond carries the ‘Sustainability Focus’ label.

EdenTree says: We have a highly robust position as an asset manager on how we allocate capital and engage with companies to tackle climate change, seeking alignment with Paris. Our Responsible & Sustainable Funds have not invested in fossil fuels or mining for many years, we eschew investment in high carbon emitters (automotive, aviation, heavy industry), direct capital to long-term sustainable solutions and climate change is a permanent pillar of our engagement strategy.”

Where to invest

You can invest in these funds via a third party platform such as The Big Exchange, interactive investor, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

Top 9 ethical financial advisers

5. Impax Environmental Markets Plc

Impax is dedicated to investing in the transition to a more sustainable economy and its strategy is fossil fuel-free. The Impax Environmental Markets Plc is an investment trust rather than a fund, which you can find out more about here. Its focus is on environmental businesses.

The trust aims to allow investors to benefit from growth in the markets for cleaner basic services relating to energy, water and waste, and the more efficient delivery of them.

Where to invest

You can invest in this trust via a third party platform such as The Big Exchange, interactive investor, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

9 ways to make your money fight climate change

6. PensionBee Climate Plan

The Climate Plan has replaced PensionBee’s popular Fossil Fuel-Free Plan, which was one of the UK’s first mainstream private pension plans to completely exclude companies with proven or probable reserves in oil, gas or coal when it launched in 2020.

The new “upgraded” plan continues to exclude fossil fuels but goes a step further by also pro-actively investing in companies at the forefront of the transition to a low carbon economy.

The Climate Plan adds to the previous plan’s commitment not to invest in fossil fuels by tightening its exclusions. It will not invest in companies that have “ties to fossil fuels based on revenues, power generation and reserves”.

This is because companies without fossil fuel reserves can still have significant exposure to fossil fuels; for example many utility companies use fossil fuel-based power generation but don’t own the reserves themselves.

Where to invest

You can invest in this plan via PensionBee.

7. Artemis Positive Future Fund

The Artemis Positive Future Fund aims to grow investor’s capital over a five-year period by investing in the shares of companies around the world. The fund is actively managed and concentrated, typically holding 35-45 companies. The fund will not invest in fossil fuels or weapons. However, it recently removed its exclusions of nuclear power and animal testing.

The fund managers look to invest in innovative companies whose products and services are driving positive environmental and/or social change.

Where to invest

You can invest in this fund via a third party platform such as The Big Exchange, interactive investor, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

8. Janus Henderson Future Technologies

The Janus Henderson Future Technologies fund focuses on companies providing technology solutions that have a positive impact on the environment and society, therefore helping to build a sustainable global economy. Companies in the fund must get at least 50 per cent of their current or future expected revenues from sustainable technology.

Where to invest

You can invest in this fund via a third party platform such as The Big Exchange, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

9. Pictet Nutrition

The Pictet Nutrition fund from Pictet Asset Management aims to increase the value of your investments alongside having a positive environmental and social impact. The fund invests in equities (shares) in companies in the nutrition related sectors, especially those improving the quality of food production and access to a sustainable food chain. The fund invests in companies across the world, which includes emerging markets and mainland China.

Where to invest

You can invest in this fund via a third party platform such as The Big Exchange, interactive investor, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

Top-paying ethical savings accounts

10. Quilter Investors Ethical Equity Fund

This fund from Quilter “aims to achieve income and capital growth through investment in companies that demonstrate sound ethical practice and to outperform the MSCI World Index, net of charges, over rolling five-year periods”.

It has a five-star rating from data analysts Morningstar.

Where to invest

You can invest in this fund via a third party platform such as The Big Exchange, interactive investor, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

11. Schroder Global Energy Transition

This fund from Schroder invests in companies around the world that are involved in the transition towards a lower carbon world. It seeks to invest in a concentrated portfolio of 30-60 companies, providing exposure to low carbon energy production, distribution, storage, and transport as well as suppliers of associated materials, components, and technologies.

Companies that generate any revenue from fossil fuels, nuclear power, weapons, tobacco, or alcohol are excluded. Holdings must also meet the manager’s ESG (Environmental, Social and Governance) criteria.

The fund aims to only invest in companies directly involved in and actively contributing to the transition to a more sustainable energy system, namely companies that generate at least 50 per cent of their revenue from activities contributing to the transition, or those which play critical roles or are increasing their exposure to such activities.

This may include some that the manager engages with to challenge areas of weakness in ESG performance and is confident that they will improve their practices within a reasonable timeframe.

Where to invest

You can invest in this fund via a third party platform such as The Big Exchange, interactive investor, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

Risk warning: When you invest, your capital is at risk. The value of your investments and the income from them can go down as well as up and is not guaranteed at any time. 

Do you work for yourself? Here are five end of tax year considerations for the self-employed.

1. Take advantage of the dividend allowance

Because the rate of dividend tax is significantly lower than income tax, self-employed contractors who own a limited company often choose to pay themselves a minimum salary and the bulk in dividends. In the 2024/25 tax year, you won’t need to pay any tax on the first £500 of dividend income you receive. This is called the tax-free dividend allowance.

If your only income is from investments, then you can also use your tax-free personal allowance before you start paying tax on dividends. So, on top of the £500 dividend allowance, you could earn another £12,570 tax-

free in 2024/25. During the Budget it was confirmed that the existing freeze on income tax and National Insurance thresholds introduced by the previous government in 2021, will remain in place until April 2028.

2. Review your pension payments

Whether you’re a sole trader, in partnership with one or more others, or run a limited company, finding ways to minimise how much tax you pay should be an important aim right now.

A great way to reduce your tax bill while delivering a boost to your financial future in the process, is to make pension contributions – especially if you’ve enjoyed a good business year and have surplus profits.

Sole traders and partnerships

If you’re a sole trader or in partnership, the only way to pay into a pension is to make personal contributions into a pension. If you’re aged 75 or younger, you can usually contribute the lower of 100 per cent of profits or £60,000 and get an immediate 25 per cent boost in the form of basic-rate tax relief.

And if profits exceed £50,270 or £125,140, you might be able claim back an extra 20 per cent or 25 per cent, respectively, on the total contribution (net payment plus basic-rate tax relief) via self-assessment. An important part here is that you must remember to reclaim the tax.

Thousands of people don’t do this every year and lose out on the tax relief.

Private limited company directors

If you own and run a limited company, you have a couple of options when it comes to pension funding. You can either make personal contributions as laid out above or pay via the business. If you choose the latter, payments can be made from pre-tax profits, thus trimming your corporation tax bill. What’s more, if you planned to draw that money as salary, you’ll save national insurance too.

Importantly, the 100 per cent of earnings rule does not apply on company contributions. So, if you draw a small salary and take the rest in dividends for tax purposes, you can still pay up to £60,000 into a pension and get corporation tax relief.

And unlike personal pension contributions, where you need to be under age 75 to benefit from up-front tax relief, there is no age restriction on company contributions to save corporation tax.

Understand your accounting dates..

It’s possible that your company’s accounting period differs from the official UK tax year. For instance, it may run from 1 January to 31 December or 1 April to 31 March. This means that, to offset pension contributions against this year’s corporation tax bill, you must make the payment before the end of your accounting year.

3. Put your surplus profits to work

Utilise your excess profits effectively by putting them to work for your long-term financial future. If your business has surplus profits that you won’t need to access for several years, consider investing them wisely.

For sole traders and partnerships, surplus profits are treated as personal funds. You can take advantage of this by investing up to £20,000 before 5 April into an individual savings account (ISA) to protect future gains, dividends, and interest from HMRC.

While limited company funds cannot be invested in ISAs due to legal restrictions, directors can still invest their personal money into ISAs. Instead, consider investing company funds in the stock market to potentially boost returns on cash reserves, especially if inflation outpaces interest earnings.

Although investing company funds isn’t solely an end-of-tax-year activity, it can offer tax advantages. However, it’s important to note that investing in something like a general investment account (GIA) won’t qualify for corporation tax relief like pension contributions.

Keep in mind that investing company reserves exposes them to market fluctuations, and there’s a risk of receiving less than your initial investment.

Therefore, it’s crucial that your business doesn’t expect needing these funds within the next five years.

4. Make a charity donation now to reduce your tax bill

If you have the spare funds, making a charitable donation before 31 January 2026 could reduce your tax bill for the 2024/25 tax year. This is because donations can be claimed in either the current or previous tax year.

This is particularly useful if you paid a higher rate of tax last year and a lower rate this year – as you can still claim the higher rate of tax relief on your donation.

5. Correct and claim against previous tax years

You can claim a refund for any overpayments you’ve made in the last four tax years. So, if you come across something you could’ve claimed for previously, or if you spot a mistake in previous years’ tax returns, make a note.

Write to HMRC explaining that you’re making a claim for ‘overpayment relief’.

You’ll need to include:

• Proof you’ve overpaid tax through self-assessment.

• Signed declaration saying the details you’ve given are correct and that you haven’t previously tried to reclaim the refund in question.

• How you’d like the repayment to be made.

This article is from the Good Guide to Financial Planning 2025, which can be downloaded free here.

If you’re in your 40s, the chances are it doesn’t get better than this. That’s when it comes to your income, at least.

‘Peak earning’ is the age when you earn the highest wage relative to the hours you work. And it might come earlier than you think. The average age for women to hit this ‘sweet spot’ is 40, while men are slightly later at 44.

Between ages 40 to 49, women earn an average of £35,250, while for men it’s £42,260, according to the latest figures from the Office for National Statistics.

So, while your earnings are at their highest, and outgoings are potentially at their lowest, now is the time to iron out any debt and maximise your retirement savings. Here’s how.

1. Get out of debt

You may well have built up debt in your 30s that you are now potentially in a better position to pay off. If you have debt (which is normal: the average UK adult has £4,279 in unsecured debt as of August 2024, according to The Money Charity), choose a strategy for paying it off and see it through.

The snowball method involves focusing on your smallest debt first and funnelling as much cash as you can toward paying it off (while paying the minimum balance on the others). Once it’s paid off, move to the next smallest and so on.

Or, you could take the avalanche method, where you pay the debt with the highest interest rate first. This will minimise how much you spend on interest rates over time.

2. Build some emergency cash savings

If the past few years have taught us anything, it’s that you never know what’s around the corner. If you don’t have one already, start building a cash savings pot that you can fall back on in emergencies. Ideally, you will have three months’ worth of salary in an easy-access savings account – see our top-paying ethical savings accounts here. For money that you won’t need for one to three years, you could look at a (potentially higher paying) fixed-rate account – see our top ethical fixed-rate picks here.

3. Spring clean your pensions

Now is a good time to check that you are on track to retire comfortably. With people living longer than they used to (men on average can expect to live to 79, while for women it’s 83), planning for your retirement years as early as possible is key.

4. Check your National Insurance contributions

A state pension can give you the financial foundation for your retirement. You’ll usually need at least 10 qualifying years on your NI record to get any state pension. They do not have to be 10 qualifying years in a row. To receive the full amount, you will need 35 years’ worth of NI contributions. Check you’re on track by getting an online forecast from the DWP of the amount you could get, and the earliest date you could get it.

5. Consolidate your pension pots

Chances are that you’ve worked in quite a few places by the time you reach your early 40s, which means you’re likely to have a few forgotten pensions dotted around. It’s wise to find out where they are, because they could be sitting in a poorly-performing fund or in a scheme with horribly high fees. If you find having multiple pensions a hassle, consider moving them to one place. Providers such as PensionBee can help you with this.

Some schemes do come with valuable benefits such as guarantees – you will need to check this before moving your pot. Look for a provider that will easily tell you how much money is in your pension, as well as how your funds are performing and how much you’ll receive on retirement. This will make keeping on top of your contributions infinitely easier.

While you’re organising your pension pot, consider making it ethical. According to Make My Money Matter, greening your pension is 21x more effective at reducing your carbon footprint than giving up flying, going veggie and switching energy provider combined.

6. Max out your contributions

What you’re putting into your pension now will shape your later life, so it’s important to find the right level of contributions and keep them up.

Consider the balance of any existing pension(s), your planned retirement age and ideal retirement income to get a ballpark figure to start aiming at.

7. Consider a SIPP

To boost your pension savings, you can make extra contributions to your workplace pension, or alternatively, make contributions to a Self-Invested Personal Pension (SIPP). A SIPP gives you tax-relief on your savings. Basic and higher rate taxpayers receive 20 per cent (an £800 contribution gets topped up to £1,000 by the government), while additional rate taxpayers can claim 25 per cent. For the 2024/2025 tax year, the annual pension contribution limit for tax relief purposes is £60,000, or 100 per cent of your salary, whichever is lower.

While it’s good to have an understanding yourself of how to plan your finances, it’s worth considering using a chartered financial planner such as the sponsors of our new Good Guide to Financial Planning EQ Investors – or our other top ethical picks – to really help you make the most of your money.

This article is taken from the Good Guide to Financial Planning 2025, available to download free here. 

The vast majority of young people would rather work past the standard retirement age than fund industries that harm the planet and society, a new poll reveals.

An overwhelming 86 per cent of Gen Z (13 to 29-year-olds) and 73 per cent of Millennials (30 to 44-year-olds) said they would accept lower returns on their pension savings over helping to finance destructive activities. This compares to just 34 per cent of the general population.

The survey by digital wealth manager Moneyfarm found the industry most Brits want their pension to avoid funding is tobacco (44 per cent). This was followed by alcohol (31 per cent), defence and ammunition (25 per cent), fast fashion (22 per cent) and oil and gas (21 per cent).

Still, over half (52 per cent) of people said they would not have a clue how to find out if their pension was ethically invested or not. And 43 per cent do not actually realise they have the power to select and choose where their pension invests.

A new sustainable money app has launched offering a free personal account and debit card to climate-conscious consumers.

B Corp-certified app Zero offers an ethical alternative to the ‘Big 5’ high street banks, which in 2023 alone invested £20 billion in companies that are expanding fossil fuels.

Zero not only won’t invest your money in harmful activities, it is committed to helping shape a financial system where money is used as a force for positive change.

Richard Theo, Zero co-founder and CEO, said: “Our vision is a world where money is a force for the good of the planet, where money will never be used for anything that’s harming the planet such as fossil fuel production or deforestation.”

Zero aims to offer similar digital features to popular app-based banks such as Starling and Monzo, while also helping customers use their money more sustainably.

Theo, a serial entrepreneur who founded robo-adviser investment app Wealthify, said.”We’re aiming to fill a much-needed gap between digital banking features and effortless sustainability that simply isn’t available currently.”

Research commissioned by Zero has revealed almost two thirds (61 per cent) of Brits believe banks have a responsibility to help combat climate change. A similar number (59 per cent) want their own bank to use their money in a way that is good for the environment.

Just over half (51 percent) of those polled by Opinium feel individuals can make a positive contribution towards climate change with how they manage their finances. And yet only two in five (42 percent) feel their bank is committed to tackling climate change.

Measure your money’s carbon footprint

Zero says its free app helps people effortlessly make their money work for the good of the planet. A key part of this is its unique ‘GreenScore’ feature, which measures the carbon footprint of a customer’s money as a simple score. It then offers tips on affordable ways to reduce this score.

GreenScore tracks the carbon impact of a customer’s spending through their Zero debit Mastercard. If they choose to link other accounts and cards through Open Banking, the overall impact of their finances can be calculated too.

Zero plans to go even further in its next stage of development by enabling its users to contribute to projects that are tackling the climate and nature crisis.

A Zero account comes with no fees and the Mastercard can be used abroad free of the usual ATM or point of sale charges. The app has launched under e-money regulations but says it is looking at applying for a full UK banking licence in order to offer a wider range of products and services such as sustainable loans.

You can apply for an account with Zero via the App Store or Play Store now.

Zero is also offering its customers the chance to invest in the businesses via the crowdfunding platform CrowdCube.

Lisa Stanley, co-founder of Good With Money, is chief sustainability officer for Zero.

Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment, and you are unlikely to be protected if something goes wrong.

With President Trump now officially back in the White House, we’re seeing some certainty now materialising as to the policy platform the administration is building and the direction of travel for the next four years. While a lot had been discussed during the campaign, the market has been grappling with how large the gap would be between rhetoric and action.

As is custom, the new administration will have ambitious goals to achieve tangible outcomes in its first 100 days, so the speed at which President Trump has been signing Executive Orders is unsurprising. As part of this initial burst activity, we have seen the US withdraw from the Paris Agreement and the World Health Organisation, the declaration of a national energy emergency, a rollback of electric vehicle targets, and a raft of measures relating to immigration.

Tariffs

What was notably absent from the first policy wave was any formal announcements on tariffs with President Trump opting instead to start dialogues with Mexico, Canada and China to address trade imbalances. This topic has spooked markets given the inflationary nature of higher prices.

It’s expected that a new tariff regime will differ significantly from the first Trump administration in 2017. For example, the inflationary impact for consumers back then was broadly offset by a combination of companies absorbing rising costs within their margins as well as the currencies of targeted countries weakening against the US dollar. This time round, the scale and breadth of the tariffs being discussed are so much greater that there will be little companies can do to protect their customers without materially eating into profitability.

While the administration’s opening gambit is to put 25 per cent tariffs on Canadian and Mexican and 10 per cent on Chinese goods imports, many expect this to be far from reality with cross-sectoral deals being struck in areas such as immigration, the illegal drug trade, and investment in order to avoid fresh trade barriers.

Inflation Reduction Act

One topic many clients have asked about and one that is often discussed in the market is around the implications for the Inflation Reduction Act (IRA). The IRA is one of President Biden’s flagship policies passed in 2022 with the stated intention of lowering prescription drug prices and investing in domestic energy production. Within this piece of legislation were provisions for loans and tax credits to spur fresh investment.

By Executive Order, President Trump has curtailed financial provisions for new loans made possible by the Act but has so far fallen short of being able to make any changes to the far more substantial tax credit provisions. This is in part due to the technicalities of the US tax code, and an inability to make complex changes (as would be needed) without new legislation.

Though Republicans have majorities in both the House of Representatives and the Senate, there is significant support amongst congressional Republicans for the IRA as the law has stimulated large amounts of investment in Republican states. This means there is an incentive for Republicans to deny President Trump to make meaningful changes that would jeopardise investment and jobs amongst their voters.

A Junior ISA (JISA) is a great way to get your children interested in saving and investing from an early age. By choosing ethical investments for their JISA, it can also inspire them to make a positive difference to the world they will be growing up in.

According to Hargreaves Lansdown, by depositing £20 a week – less than the child benefit payment most people get for their first child – in a Stocks and Shares JISA from the week they’re born, you can amass an impressive £26,452 by the time they reach age 18 (assuming an average growth rate of five per cent on your investments).

That’s a pretty useful amount towards his or her further education or first home. Currently, the cost of tuition for the average university student in the UK is around £9,250 a year, while the average deposit on a first home is a shocking £58,303. With these costs rising fast, it pays to think earlier rather than later about the best way to meet them.

You can invest a maximum of £9,000 a year into a JISA, tax-free. Once you’ve opened the account, friends and family (and anyone who wants to) can deposit money into it too. Your child can access the pot once they reach the age of 18, and can start managing the portfolios themselves from age 16.

There are a number of online platforms where you can invest sustainably on behalf of children, while teaching them about overcoming environmental and social challenges in an age-appropriate way.

Here, we round up seven Good options for platforms offering ready-made portfolios for an ethical JISA (ie the investments are all picked for you, meaning minimum effort required):

Dedicated sustainable investment platforms/apps: 

The Big Exchange

Annual fee: 0.25 per cent
Fund management fees: Typically ranges between 0.8 per cent and 1.8 per cent, per year
Minimum investment: £25 per month or £100 lump sum

The Big Exchange, co-founded by The Big Issue, is an online investment platform which only lists funds that are proven to be making a positive difference to the planet and its people. All of its funds are actively managed, which means there is a human decision in every investment.

Every fund on the platform has passed an impact assessment so you can clearly see the type and level of positive impact they’re making to people and planet. Each one is awarded a gold, silver or bronze medal, with gold having the highest ability to bring about positive change. You can choose funds that tackle the issues you (and your child, depending on their age) care about most.

The Big Exchange is set to launch a new mobile app early this year to make its platform more user friendly.

For more on The Big Exchange, see our full review.

Simply EQ

Annual fee: 0.99 per cent for investments up to £100,000, then reducing
Fund management fees: Typically ranges between 0.25 and 0.6 per cent per year
Minimum investment: £1,000 per month or a £50,000 lump sum

For those who can put away a larger sum either to start with or every month, Simply EQ is a great option. It’s an online and phone-based investment service from Good With Money ‘Good Egg’ company EQ Investors.

You can choose from Simply EQ’s ‘Positive Impact,‘  ‘Future Leaders’ or ‘Climate Action’ portfolios for your child’s JISA. The Positive Impact portfolio actively screens for social and environmental impact and is designed to maximise profit while also making a positive difference to the planet and its people. Future Leaders “invests in the sustainable leaders of tomorrow,” and Climate Action invests to support the transition to a net-zero future.

The fact that Simply EQ’s online portfolios are actively managed means they come with a slightly higher charge than competitors such as Wealthify, which invests passively through low-cost ETFs. It also means that you can feel a little more confident about the positive difference your money is making.

For more information on Simply EQ, see our full review

Robo-advisers offering ethical JISAs:

Annual fee: 0.6 per cent
Fund management fees: Average of 0.7 per cent (much higher than its standard plans at 0.16 per cent)
Minimum investment: £1

Wealthify, a subsidiary of Aviva, is a UK-based robo-adviser which invests in ETFs to keep investors’ costs low. It uses an automated process to create portfolios to suit a client’s appetite for risk.

When you sign up, you can choose one of five ‘ethical plans’. These aim to avoid companies involved in four main activities that are harmful to society and the environment. They are tobacco, arms, pornography and gambling. Wealthify also aims to limit profits received from oil and gas.

Instead, it proactively invests in companies that are committed to making a positive impact through their ESG practices. Find out more about Wealthify’s ethical plans here.

Traditional providers offering ethical portfolios for a JISA:

Scottish Friendly

Hargreaves Lansdown

Annual fee: 0.45 per cent up to £250,000 then decreasing
Fund management fees: Varies depending on the fund from 0.2 per cent to 1.03 per cent
Minimum investment: £100 lump sum or £25 per month

As  the UK’s biggest DIY investment platform, Hargreave’s Lansdown offers a range of well-regarded sustainable funds that could be included in a JISA.

These include Aegon Ethical Equity, BNY Mellon Sustainable Real Return, Janus Henderson UK Responsible Income, Liontrust SF Corporate Bond and FP WHEB Sustainability Impact.

This article is from the Good Guide to Financial Planning, which is available to download free here. 

Children are wonderful – and expensive! The basic cost to a couple of raising one child to the age of 18 is now a whopping £166,000 for a couple or £220,000 for a lone parent, according to the Child Poverty Action Group.

Then you just need to multiply this cost by the number of children you want to have. Are your eyes watering yet?

As with all things that involve money, the more prepared you are the better. Costs are usually higher in the early years (depending on your schooling plans etc), so a little financial planning before you start a family can go a long way. Here’s what to prioritise:

1. Check your parental leave entitlement

If you’ve been working at your company for at least 26 weeks and earn £123 or more on average per week, you are entitled to Statutory Maternity or Paternity Pay (SMP). This is 90 per cent of your average gross weekly earnings for six weeks, followed by 33 weeks at £184.03 or 90 per cent of your average weekly earnings (whichever is lower).

Most larger companies will have their own (more generous) scheme. You can check your parental leave entitlement in your contract, or ask your HR department.

If you’re not eligible for SMP, you might be able to claim Maternity Allowance. You can get this if you’ve been either registered as employed or self-employed for at least 26 weeks in the 66 weeks before your baby’s due.

If you’re employed, you’ll get £184.03 a week or 90 per cent of your average weekly earnings (whichever is less) for up to 39 weeks.

If you’re self-employed, you can get between £27 to £184.03 a week for up to 39 weeks, depending on how many Class 2 National Insurance contributions you’ve made in the 66 weeks before your baby is due.

If you’re a dad, you could claim Paternity Pay. You can take one or two weeks off, all in one go, once the baby’s born. You’ll get £184.03 per week, or 90 per cent of your average weekly earnings, whichever is lower.

If you are sharing parental leave, you would qualify for Statutory Shared Parental Pay (ShPP). This is £184.03 a week or 90 per cent of your average weekly earnings, whichever is lower, and is paid for 50 weeks.

Best ethical Junior ISAs

2. Check your benefits entitlement

Some benefits are available to most families with children, such as child benefit, and others paid only to those on a lower income, such as Universal Credit.

Child benefit

You can get £25.60 a week for your first (or only) child and £16.95 a week for any additional children, up until their 16th birthday – or later if they stay in education or training. (From April 2025, these rates will increase to £26.05 and £17.25 respectively).

While child benefit is payable regardless of income, those who earn more than £60,000 a year must pay a tax charge. If you or the other parent earns more than £80,000, the charge cancels out the Child Benefit you receive.

Universal Credit

Universal Credit is the government benefits model for people on a low income that replaced Working Tax Credit and Child Tax Credit, plus several other means-tested benefits. You can use this free benefits calculator to work out how much you might get.

3. Start saving for the future

You can give your child the best possible financial start in life by opening a savings pot for them early. Putting aside just £10 a week from birth to age 18 in a savings account paying six per cent interest would turn into almost £17.000.

A Junior ISA allows you to save up to £9,000 a year tax-free. You can choose to save your money in cash or invest it in stocks and shares, which comes with higher risk but potentially greater returns. Consider investing ethically on behalf of your children – see our top ethical JISAs here.

It will provide a useful introduction to them of the impact money has in the wider world, where profits come from, and being responsible citizens and investors. Be aware that once your child reaches 18, they can access and withdraw the money themselves.

Another option is to use your own, or your partner’s, ISA allowance (up to £20,000 a year) to save for your children. You can pay up to £2,880 into a child’s pension per tax year. The government will add 20 per cent in tax relief, taking this up to £3,600.

4. Make a will!

If you haven’t already, you need to organise your will to protect your children’s future. Remember that if you’re not married or in a civil partnership, then your partner won’t receive anything from your estate (that isn’t jointly owned by them) unless this is specified in your will.

You should review your will whenever your circumstances have changed: for example, marriage can invalidate an earlier will. It is also a good idea to set up a Lasting Power of Attorney at the same time, as this will ensure someone you know can deal with your affairs if you lose the ability to do so.

5. Buying a house after children

People will go through their financial life stages in various orders, and this could mean having kids before buying a home. Bear in mind that having children first could dent your chances of getting the size of mortgage you need for a home. Lenders use affordability criteria (which can include childcare costs) to work out how much you can borrow.

Choosing an ethical business savings account is a powerful way to ensure your company’s finances reflect its commitment to sustainability.

While you earn interest, your deposits can be used to make a positive impact on the wider world – or at the very least, not contribute to harming it.

The ‘Big 5’ UK banks – Barclays, Lloyds Banking Group, Santander, HSBC, and Natwest – are the top culprits for investing in practices that are destructive to the environment such as fossil fuels, tobacco, oil, and/or weapons production.

Ethical banks, meanwhile, have greener investment and lending policies and pay their fair share of tax. They are also increasingly offering competitive interest rates compared to the Big 5. For example, Barclays Bank is currently offering its business customers savings rates of up to just 1.91 per cent – decreasing to 1.81 per cent from March.

It doesn’t have to be a hassle to move your business banking for good. If you own a small or medium-sized business (SME) with less than 50 employees and a turnover of up to £6.5 million, the Current Account Switch Service will take care of everything for you.

Here are our top eight options for an ethical business savings account.

(Interest rates correct as of January 2025)

Unity Trust Bank

If you’re a socially-minded business, the chances are you’ll love Unity Trust Bank.

Unity, a Good With Money ‘Good Egg’ firm, prioritises social good. It uses savings deposits made by your business to fund lending that supports the communities that you and it collectively serve. This means that by banking with Unity (the number one bank for Trade Unions), you are helping to contribute to economic, community and social change.

Unity offers two types of business savings accounts:

• Instant access accounts, for those who want to know they can access their savings at any time. The interest rate is 2.50 per cent AER (variable, which means it can go up or down).
• Fixed term deposit accounts. This for you if you’re happy for your business savings to be untouched for a fixed period and have £50,000 to deposit (rather than wanting to make regular payments). You’ll receive a set amount of interest when the account matures. Interest rates range from 2.96 per cent AER for a 30-day term to 4.25 per cent AER for a 12-month term.

Triodos Bank

Triodos, another Good With Money ‘Good Egg’ firm, provides specialist, sustainable finance for businesses and organisations that are working to tackle the world’s biggest challenges. Triodos publishes details of every organisation it lends to on its website, so you know how your organisation’s money is being used to achieve positive and lasting change.

While a relaunch of the popular business current account from Triodos still isn’t on the horizon, it recently launched two types of business savings accounts:

• Business and charity deposit accounts with a range of instant access or notice periods to suit your business. Interest rates start at 1.65 per cent gross/166 per cent AER for instant access on savings of up to £5,000, rising to 3.20 per cent gross / 3.24 per cent AER for 90 days notice on balances of £250,000 and over. To apply, you must be a UK-based business with a minimum deposit of £50,000 (if you’re a new customer).
• Fixed term deposit accounts, where you lock your money away for a fixed term in exchange for a higher interest rate. Interest rates are 3.80 or 4 per cent gross/AER for a six or 12 month term respectively.

Top 10 ethical business current accounts

Charity Bank

Charity Bank utilises your business savings to help create lasting social change in UK communities.

The bank invests its customers’ savings into small and large charities and social enterprises around the country. Therefore, your money might be used to build affordable homes, launch renewable energy projects or to foster peace among young people in divided communities – while also earning interest for you.

It offers four types of business savings accounts:

• Business Fixed Rate Account. For deposits of £10,000 t0 £500,000 the interest rate is 4.26 per cent AER over a one year term.
• Business Easy Access Account. With total flexibility over access to your money, the interest rate is 3.12 per cent gross / 3.16 per cent AER.
• Business Notice Accounts. Terms range from 40 to 100 days with interest starting at 3.01 per cent gross / 3.04 per cent AER.
• Community Investment Tax Relief Base Rate Tracker (Business) Account. This is available to organisations that are liable to pay corporation tax in the UK.

Reliance Bank

Reliance is part of The Salvation Army, and its mission is to “serve customers and communities with compassion and integrity”. As such, it is a bank with a socially responsible conscience. Reliance prioritises its business lending to organisations that are delivering positive social impact in the UK.

• Reliance offers a range of fixed-term business savings accounts from six months to two years with interest rates from 4.05 per cent AER to 4.45 per cent AER. Interest is calculated daily and paid at the end of the term.

Allica Bank

Allica is a bank designed especially for established businesses with between five and 250 employees.

The bank says it will not provide banking services “to any business that is heavily involved in industries we deem as harmful, such as extractive industries or animal testing.”

It offers an instant access Savings Pot paying up to 4.83 per cent AER (variable) as part of its Business Rewards Account. This rate includes a standard rate of 3.83 per cent AER, plus a 0.5 per cent boost each month if you make 15 bank transfers the previous month, and a 0.5 per cent boost for six months if you complete a successful switch with the Current Account Switch Service (CASS).

The Co-operative Bank

The Co-op will not provide banking services to organisations that conflict with its customers’ views on a comprehensive range of issues including human rights, environmental stability, international development and animal welfare, or those involved in irresponsible gambling or payday lending.

Last year it was bought by Coventry Building Society, which in 2023 became the first UK building society to achieve B Corp status.

The Co-op offers three business savings account options:

• 90 Day Notice, with an interest rate 2.40 per cent/ 2.42 per cent (variable) calculated daily and paid twice a year.
• 35 Day Notice, with an interest rate of 2.04 per cent AER (variable) calculated daily and paid twice a year.
• Business Select Instant Access, with an interest rate of 1.53 per cent gross/ 1.53 per cent AER (variable) calculated daily and paid twice a year.

Tide

Tide offers business current accounts provided by Clear Bank to companies of all shapes and sizes, including freelancers, small and limited businesses and those scaling up.

The money in your Tide account is held in a secure ring-fenced account. This account is not used for any type of investments therefore your money is safe, and not used to invest in harmful industries.

Tide offers an instant access savings account paying up to 4.07 per cent AER. This includes a 0.78 per cent AER boost for new customers until June 01, 2025. After this the rate reverts to 3.29 percent AER. There is no interest earned on balances over £75,000. 
You don’t need to have a Tide business current account to open a business savings account.

Cumberland Building Society

The Cumberland offers business banking to customers living in Cumbria, South West Scotland, West Northumberland and North Lancashire. Its building society status means it does not invest its members’ money in stocks and shares. Therefore, many of the issues normally associated with ethical investment do not apply to it.

The Society offers four business savings account options:

• Cumberland Business Instant Access, with a variable interest rate up to 2.95 per cent Gross/AER
• One Year Fixed, with a fixed interest rate of 3.85 per cent Fixed Gross/AER until 28 January 2026
• Cumberland Business eSaver, with a variable interest rate up to 3.15 per cent Gross/AER
• Cumberland Business 30 Day Notice, with a variable interest rate up to 3.45 per cent Gross/AER

With all of the above options, your money is protected by the Financial Services Compensation Scheme up to £85,000.

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.

Investing ethically can pay off both for the planet and you. Despite a challenging market, the latest Good Investment Review reports that responsible funds have brought similar returns to their traditional peers over the last five years – while ALSO making a positive environmental and/or social impact.

Financial advisers who understand how to invest in this area are experts in picking the right green and ethical funds to make a positive difference to the planet and society, while also achieving attractive returns. Here are nine of the best.

Jeannie Boyle, EQ Investors

EQ Investors (EQ) has a commitment to ethical investing, has its own charitable foundation and was one of the first recipients of the Good With Money Good Egg mark. Jeannie is a Chartered Financial Planner and Fellow of the Personal Finance Society at the firm.

She launched EQ’s Positive Impact Portfolios, which are invested in a well-diversified mix of targeted funds that are actively managed. They can be held both in ISAs (tax-free savings) and SIPPs (personal pension). These portfolios invest in companies that intend to have a good impact on the planet, and actively avoid those that don’t.

In September, EQ was named among the top 10 FT Adviser Top 100 Financial Advisers list for 2024.

EQ offers a free initial consultation.

Path Financial

Path Financial is the first financial planning firm set up purposefully to tackle climate change and make a positive difference in the world rather than focusing on performance and profit alone. The company has a Good Egg mark from Good With Money. It has also achieved B-Corp status.

Founder David MacDonald set up the business in 2019 with the aim of revolutionising savings and giving power to people who care about making a difference with their money.

In 2021, Path Financial launched the UK’s first a Climate Solutions Portfolio, created specifically for people looking to tackle the climate emergency with their pensions and investments. The firm offers a free initial consulation.

BlueSphere

BlueSphere was founded to support clients in making the world a better place, by aligning their investments with their values and beliefs. It has earned the Good With Money Good Egg mark and is also a certified B Corp company.

The firm enables clients to generate a return on their investment and at the same time, support the companies that are creating the solutions to some of the world’s biggest challenges. All investments made through BlueSphere are put into companies that are working hard to help achieve the United Nations Sustainable Development Goals.

Switchfoot Wealth

Launched in 2018, Switchfoot Wealth provides independent financial advice and wealth management services for private clients, businesses and fiduciaries. What sets it apart from others is its belief that “all financial planning should be sustainable financial planning.”

It shows clients the environmental and social impact of their money and supports them to make better long-term choices – for their own future and for the planet’s. The services it offers includes pension planning, life assurance, income protection, and investments/regular savings.

As well as being a Good With Money ‘Good Egg’ firm, Switchfoot Wealth is also a certified B Corp – a growing group of future-focused companies that make up a global movement of people using business as a force for good.

Switchfoot Wealth offers a free initial phone consultation.

Ethical Futures

Ethical Futures was founded in 2005 on the belief that money has the power for good. Based in Edinburgh, the small but growing team helps clients to align their investments with their values while also building a solid financial foundation for their own futures.

Ethical Futures only offers investments that are responsibly managed, ethically screened, or thematically focused to make a positive impact on the planet and society.

The firm offers its services to people from all walks and stages of life. There are no minimum income or investment requirements and the first meeting with one of its experienced financial planners is free.

Castlefield

Castlefield is a family of investment and advisory businesses with a focus on clients’ values. It calls this approach “thoughtful investing.” Established in 2002, the core team came from the UK fund management arm of a pan-European private banking group. Managing investments for charities was a major focus and it still is today.

Following the acquisition of the UK’s two oldest ethical advice firms, it is now an integrated advice and investment management group, widely recognised for its expertise in responsible and sustainable investment. It also funds a grant-making charitable trust that shares in the business’s profits.

Castlefield partners with The Charity Service to offer the Castlefield Individual Philanthropy Account, a philanthropy service to help clients give money to charity in an easy and meaningful way.

Tanya Pein, In2 Planning

Tanya offers financial advice mostly to charities and individuals with larger portfolios. She specialises in sustainable investment and holistic financial planning, and has been a Board Director of the UK Sustainable Investment & Finance Association (UKSIF).

Tanya is Board Director of The Learning Planet Institute, an organisation that looks at new ways of learning and cooperating that respond to the needs of youth and the planet.

She also provides training on Environmental, Social and Governance standards for charities.

Cleona Lira, Conscious Money

Cleona Lira is an independent chartered financial planner specialising in ethical investing. She works with a small client base, helping them to build an investment portfolio in line with their core values. With a psychology background, she also enjoys helping people develop greater awareness around their attitudes to money.

Cleona works with clients who have a minimum of £400,000 in assets to manage (as an individual or couple). Her fees start at £2,000.

Amber River True Bearing

Amber River True Bearing is an independent firm of chartered financial advisers based in the north west of England. In January 2022 it joined forces with a number of regional IFAs across the UK, who are collectively called Amber River.

The firm provides regular, thorough training for its 22 staff in sustainable investment.

Do you think your firm should be on this list? Email lori.campbell@good-with-money.com.

If you’d like to find out more about the above providers, a Which? membership gives you access to in-depth, expert reviews, ‘Best Buys’ and ‘Don’t Buys.’ 

If you want to have a savings account, insurance policy, investment fund or mortgage from companies that do the right thing, check out our Good Eggs.

These are companies that have passed strict (independent) criteria to prove they make a positive impact – to the planet, society, and you. 

If you’re horrified by recent catastrophic weather events fuelled by climate change, the rapid loss of our natural world, and global poverty and inequality – you might want your money to support investments that are tackling these issues.

Remember that investing should always be for the longer term, meaning your money stays locked away whether the markets are high or low. As the saying goes, “it’s not about timing the market, but about time in the market”. There’s one thing we do know for certain – the earlier you start the better.

So, if you’ve been thinking that now is the time to start investing sustainably, but don’t know where or how to do it, here are our thoughts on the top three easy-to-use sustainable investment platforms.

For your complete guide to the best ethical and sustainable investment funds available to UK investors, see the latest full Good Investment Review, produced in partnership with Square Mile Research and The Big Exchange. 

Simply EQ

Investments: Equities, bonds, property, commodities, alternatives and cash
Annual fee: 0.99 per cent for investments up to £100,000, then reducing

A small and unexpected reduction in inflation has sparked excitement among first home buyers about a potential cut in interest rates next month – which means mortgages should, in turn, become cheaper.

But, is this the right time to buy your first home.. or should you wait longer?

Buying your first home can be an exciting time, but also daunting – especially in a time of economic flux, higher mortgage interest rates and rising house prices.

Thankfully, there are steps you can to get your finances in shape and make your first home a reality.

Buy now or wait?

Many first time home buyers put their plans on hold last year to see what would happen with interest rates, which hit a 16 year high in November 2023.

The Bank of England base rate – which mortgages are linked to – has slowly come back down, which ‘should’ make buying a first home in 2025 more affordable. However, inflation is proving sticky so it’s hard to predict whether rates will fall further.. and when.

This is the tricky part. It might be tempting to wait for interest rates to fall further so you can get a cheaper mortgage – but on the flip side, house prices are rising fast.

Average house prices – which had been falling due to less demand – could increase by as much as £84,000 over the next five years, according to Savills. This means that even if you secure a cheaper mortgage, you’ll be borrowing more. The threshold for stamp duty is also set to drop from March 2025 (see below), making a first-time move more expensive.

It’s all about getting the balance right. Whether you should buy now or wait will depend on your individual circumstances, including the size of your deposit, and how much any rent you currently pay is costing you.

Saving for a deposit

The average asking price for first homes in the UK is now £249,100, according to Zoopla. The average first-time buyer puts down a £56,000 deposit and takes out a 30 year term. It’s no surprise then, that it now takes the average first-time buyer 11 years and 3 months to save a deposit – compared to just three months in 1974.

The cost of a first home (and therefore the deposit you’ll need) will vary hugely depending on where you live – from an average of £126,000 in the North East of England and £176,500 in Wales to an eye-watering £411,900 if you’re looking to buy in London.

The bigger, the better

Most lenders require a minimum deposit of at least 10 per cent of the property value, though some will go as low as five per cent. However, be aware that the less deposit you put down, the higher your interest rate is likely to be. So if you can bear to hold on and grow your pot, it could be well worth it in the long run.

Start saving early

When it comes to saving for your deposit, the earlier you start, the better. We really can’t stress the importance of this. With time on your side, you can save far more than those who save higher amounts than you but start later in life. This is because of a brilliant effect called ‘compounding,’ where you get to earn interest on the interest you already have.

As soon as you can (ideally when you start your first paid job – but whatever age you are, just start NOW), put a fixed amount that you can afford aside each month. Set up a standing order for pay day, and you won’t notice this money not being available to you.

As Warren Buffet said, “Do not save what is left after spending; instead spend what is left after saving.”

Think carefully about where you save your deposit. The upside of a period of higher interest rates is that savers can finally get better returns on cash savings accounts. Just make sure you shop around, as many high street banks haven’t been forthcoming in passing on rate rises to savers.

If you care about the future of the planet as well as your own, then interest rates won’t be the only important factor you consider when choosing a cash savings account.

Ethical banks and building societies will not invest in fossil fuels and other destructive industries like tobacco and weapons, and some go so far as to only lend your money to businesses and projects that are making a positive impact on the planet and society. See our top ethical savings accounts here.

Consider a Lifetime ISA

If you’re aged between 18 and 39, and your first home will cost under £450,000, you can benefit from saving into a Lifetime ISA (LISA). The government will top up your savings (up to £4,000 a year) by a generous 25 per cent – so for every £4,000 you save, you will get a £1,000 bonus.

You can also save up to £20,000 a year tax-free into a regular ISA (the money you put into a LISA will count towards this). See our top ethical LISAs here.

Leave investing for the long term

Deciding whether to invest your house deposit should largely depend on when you plan to buy. When you invest your money, you put it at risk of falling in value and potentially losing some – or even all – of it.

While over the long term, any falls are likely to even out and potentially bring you higher returns than the banks, over the shorter term the stock market is too fickle to rely on. A good rule of thumb is that if you need the money within the next five years, then stick to cash savings.

From the Good Guide to Financial Planning 2025 – download free here.

Okay, so it may not be the most romantic of activities, but talking about money with your partner is important if you want to avoid problems down the line – especially if you plan to get married.

Discussing money can help you and your spouse-to-be plan for the longer term and make sure your financial goals are in harmony.

Here are the best ways to cover the money conversation and nine key questions to ask your partner.

(While we talk here about marriage, the same guidelines apply to civil partnership as it carries the same rights and responsibilities).

Planning your finances BEFORE you tie the knot

Once you know you want to spend your life with someone, don’t shy away from talking about money. According to counselling service Relate, money worries are the most common reason for relationship difficulties. “Tackling the topic early on avoids the potential for resentments to emerge later and lead to more destructive arguments,” says a Relate counsellor, Peter Saddington.

Marriage or civil partnership (which carries the same rights and responsibilities) is much more than an emotional commitment, it’s also a huge financial and legal one. You may be head over heels in love, but you need to understand the practical risks (and benefits) of legally binding yourself to another person.

It might not be the most fun date night you can think of, but the decisions you and your spouse-to-be make now about how to handle money will have major long-term repercussions for you both.

Key points to discuss

• You should both disclose your full financial situation. Don’t leave anything out! Include all assets (bank balances, pensions, savings, investments etc), debts (credit cards, loans, car payments etc), credit ratings, and monetary responsibilities for any children from previous relationships.
• Work out how being married or in civil partnership can benefit you financially, for example reduced living costs, savings on health insurance and lower car insurance premiums.
• Talk about how you will share any assets you both already have. Where will you live? Will one of you need to sell a property?

Do you need a pre-nuptial agreement?

If one partner has considerably more assets or income than the other, is likely to come into a large inheritance, or owns a business, you might want to sign a prenuptial agreement.

This is a contract that can protect premarital assets and provide for children from previous relationships. It can also set out responsibility for debts acquired before marriage and prearrange spousal support in case of divorce (or dissolution, in the case of civil partnership).

Make a plan for paying off debt

If either or both of you carry a lot of debt, draw up a plan for paying it off. One spouse’s premarital debt does not automatically become the other’s upon marriage, but that debt will affect your joint finances – and potentially your relationship.

Improve your credit ratings

While marriage itself has no impact on your credit score, once you tie the knot you might want to apply for joint mortgages, car loans, and/or bank accounts.

When you borrow jointly but one person has poor credit, a lender may charge higher interest and fees than the other person with a good credit score could have been eligible for on their own. So – if one of you has a poor credit score, get started on improving it.

Set joint financial goals

You may already be living together, but it’s important to set out (and agree on) your financial goals BEFORE you take your vows.

Here are nine key questions to cover:

1. What are your long-term career goals and prospects?

2. Will either of you need financial support for further education or retraining?

3. Will one of you stay at home full or part-time to care for children?

4. If either of you have children from a previous relationship, what are your financial responsibilities and how are these likely to change?

5. Are either of you likely to be called on to care for elderly relatives?

6. What are your money priorities? Eg. holidays abroad, a nice car, or big house?

7. At what age do you hope to retire, and what kind of retirement are you aiming for?

8. What are your attitudes towards saving and spending? How will you manage any differences?

9. How much financial independence do you want? Will you combine your finances completely or keep certain parts separate?

You probably won’t have all the answers, but you’ll get a good sense of where you both stand and any compromises you might need to make to achieve your financial goals.

Part of this content is from our new Good Guide to Financial Planning 2025, in partnership with ethical financial planners EQ Investors. Download your free copy here. 

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.

Top 7 ethical pension funds

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.

Who knows what the future holds? We are living in times of uncertainty, with an economic landscape that seems to keep changing before our eyes. 

The last couple of years alone have thrown us a cost-of-living crisis, rising interest rates to combat runaway inflation, a change of government and a Budget that is likely to affect us all. 

Keeping on top of all this to make ends meet month-to-month is no easy task – let alone making a financial plan for the future. 

Despite this general unpredictability of life, having a semblance of a plan is a very good idea – and revisiting it regularly is equally as important. 

Crucially, having a plan can make whatever money you have stretch much further and give you a solid financial foundation to cope with whatever life has in store. And it doesn’t have to be daunting. 

This guide – sponsored by ethical financial planners EQ Investors – can help you get started with making your own plan from scratch, or you can dip into it at whatever part is most relevant to you.

To make it easy to navigate, we have separated it into six key life events: buying a home, getting married, having kids, the ‘peak earnings’ years, and a financial curveball: divorce. Of course these events won’t necessarily happen to you in that order, and indeed not necessarily at all.

Not everyone’s lives pan out according to national averages. But whenever big life events do happen, the chances are you will have them and there will be opportunities to both spend and save large amounts of money along the way – and avoid losses that might otherwise have occurred without a plan.

The trick is spotting the savings and investment opportunities and taking them – as early as possible. Part of that is knowing what’s likely to be around the corner.

Being more conscious about your money also means you can consider how it impacts the world around you. When you save, spend and invest in the right places, you can make a positive difference to the planet’s future as well as your own.

So dive in. Get planning! Life happens – but if you’re ready for it, your finances will help rather than hinder your plans.

Download your free guide here:

Good Guide to Financial Planning 2025

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YouGov used AI to analyse the top resolutions Brits have pledged at the start of 2025. Top of the list was improving finances, with 21 per cent of respondents stating this would be a priority for them.

Our finances are so intertwined with our security and happiness that it’s easy to see why so many people are making this their focus for the year ahead. Here are five key tips that will keep you on track on your way to financial peace.

Make a budget and stick to it

The foundation of any good financial plan starts with a realistic budget that you can stick to. Knowing where your money is going will provide the clarity required to strategically allocate your resources to build a better financial future for yourself. You’ll be able to see if your over-spending in certain areas and what you could potentially redirect to creating wealth and financial security.

At EQ Investors, we offer a service called cashflow modelling whereby we use software to analyse your financial stability over your lifetime based on a range of assumptions.

Save for emergencies

Once your budget is set and you have a good idea of your surplus income, it’s time to turn your attention to future proofing. Financial emergencies can come out of the blue and often at the worst of times. Being prepared for an unplanned expense takes a significant amount of stress out of life and keeps your financial goals on track preventing the need to go into debt or dip into investments.

A good rule of thumb is to keep three to six months of expenditure in an instant access savings account, preferably with a good interest rate to help offset the effects of inflation.

Top-paying ethical savings accounts

Maximise your allowances

There are a number of allowances available to help you on your financial wellness journey. Some of the key ones are as follows:

– Personal Allowance: The majority of people can have income of £12,570 per tax year without the need to pay income tax. Ensure you are making the best use of this with strategic withdrawals from drawdown pensions if you are retired. If you or your spouse/civil partner are not making full use of their personal allowance, 10 per cent of this can be transferred between you. If you earn more than £100,000, you lose your personal allowance at a rate of £1 for every £2 over this threshold.

This means that once your adjusted income reaches £125,140 you lose your full personal allowance. This can be mitigated, in full or part, by making pension contributions which effectively extend your basic rate income tax band.

– Pension Allowance: Most individuals can contribute up to £60,000 into UK registered pensions. Pension contributions attract tax relief at the person’s marginal rate of income tax (20 per cent for non-taxpayers). Additionally, assets invested in pensions grow free of income and capital taxes. If an individual has no earnings, they can still contribute £2,880 per annum and receive tax relief at 20 per cent. People earning over £260,000 have slightly different limits for pension funding. Your EQ financial planner will be able to calculate your personalised allowance for you.

– ISA Allowance: UK individuals can contribute up to £20,000 per annum into ISAs. ISAs are particularly tax efficient as not only do they grow free of income and capital taxes, there is no tax to pay upon withdrawal of the ISA assets either. You can invest £20,000 into a cash ISA, stocks and shares ISA or combination of the two. There is also the option of a Lifetime ISA which has a limit of £4,000 per annum (accounted for within the overall £20,000 annual subscription) and receives a bonus payment of 25 per cent from the government. Unlike traditional ISAs, the Lifetime ISA is specifically designed for first home purchases and retirement.

– Capital Gains Tax Allowance: The current Capital Gains Tax allowance is £3,000. This means you can take investment gains of up to £3,000 per tax year without the need to pay Capital Gains Tax, which is currently 18 per cent for investments of basic rate taxpayers or 24 per cent for higher and additional rate tax payers. If you have investments chargeable to Capital Gains Tax, talk to your EQ financial planner about realising gains to make use of your available Capital Gains Tax allowance.

– Dividend Tax: The Dividend Allowance for tax year 2024/25 is £500. Any dividends received above this will be chargeable to Dividend Income Tax. Basic rate tax payers pay 8.75 per cent on dividends, higher rate tax payers pay 33.75 per cent and additional rate taxpayers pay 39.35%. Ensure
your investments are structured to account for this and use the Dividend Allowance efficiently.

Top 7 platforms for a green stocks and shares ISA

Review your protection needs

Protecting your future against financial loss on death, diagnosis of a critical illness, or loss of income in the event of sickness can be done with the use of protection policies. These can be set up to pay an income or lump sum at the time you and your family need it most ensuring that misfortune does
not lead to financial hardship.

If you have protection in place already, make sure it still meets your needs. Life moves fast and our circumstances change rapidly. Ensuring your cover is in tune with your life at every stage is key to ensuring the financial security of you and your family.

Create or update your Will and Power of Attorney

The rules of intestacy can lead to your wealth being distributed in a manner outside of your wishes.

To ensure your wealth passes onto the right people you need to have a Will in place. Additionally, Wills can be used to give instructions for who will take care of young children should you pre-deceased their adulthood and can even tell your family what kind of funeral you would like. In addition to a Will, the other key legal document everyone should have is a Lasting Power of Attorney. This elects someone you trust to make decisions for you in the event of you losing mental capacity. There are two types of Lasting Power of Attorney, one for finances and the other for medical care.

Without having these in place, it can take upwards of six months for a loved one to attain such permissions causing unnecessary suffering at an already difficult time.

4 reasons NOT to put off writing a will

Providing for your own future need not mean you have to compromise on your principles. In fact, greening your pension is one of the most powerful actions you can take for the future of the planet (alongside your own).

According to Make My Money Matter (MMMM), greening your pension is 21x more effective at reducing your carbon footprint than giving up flying, going veggie and switching energy provider combined. Research by MMMM has also found your pension is likely to be contributing to deforestation, with £2 out of every £10 you pay in helping to fund it.

Saving into a pension is a wise decision, and one you should prioritise at an early age to ensure that you take full advantage of tax breaks and compound interest (this is where you earn interest on your interest, which over time makes a huge difference to your pot).

You can build your own pension portfolio using any number and combination of sustainable funds, trusts and shares through a SIPP (self-invested personal pension) – see the Good Investment Review for more – or through a normal private pension.

Here are some Good options to consider.

1. PensionBee Climate Plan

PensionBee’s planet-positive Climate Plan was launched in 2024 to replace the popular Fossil Fuel-Free plan.

The Fossil Fuel-Free Plan was one of the UK’s first mainstream private pension plans to completely exclude companies with proven or probable reserves in oil, gas or coal when it launched in 2020.

The new “upgraded” Climate Plan continues to exclude fossil fuels but goes a step further by also pro-actively investing in companies at the forefront of the transition to a low carbon economy.

It adds to the previous plan’s commitment not to invest in fossil fuels by adding to the types of companies it won’t invest in. It will not invest in any firm that has “ties to fossil fuels based on revenues, power generation and reserves”. This is because companies without fossil fuel reserves can still have significant exposure to fossil fuels; for example many utility companies use fossil fuel-based power generation but don’t own the reserves themselves.

The move came in response to feedback from PensionBee customers that they wanted to send a stronger message to big polluters by excluding fossil fuel producers and other sectors while also investing in companies better prepared for the shift to a low carbon economy.

The plan is designed and run by global asset managers State Street Global Advisors. It follows the ‘EU Paris-aligned’ benchmark, which ensures its investments are aligned to the Paris Agreement goal to limit the rise in global temperatures to below 2°C on pre-industrial levels.

Like the Fossil Fuel Plan, the Climate Plan is 100 per cent invested in equities (company shares) and therefore considered a higher-risk option than PensionBee’s other plans.

What’s the cost? 

You’ll pay one annual fee of 0.75 per cent. This fee is halved on any amount in your pot over £100,000.

2. NEST ethical fund

NEST, the National Employment Savings Trust, is a not-for-profit organisation set up by the Government as part of its commitment towards auto-enrolment. Its pension funds are only available to people who are either self-employed, or who have been enrolled by their employer.

The ethical fund, which NEST says is slightly higher risk than its standard fund, invests in companies with positive records on human rights, fair labour practices and fair trade policies – especially with developing countries and the environment.

NEST is fully transparent with its investors about where their money goes and has a comprehensive exclusions policy. It avoids investing in tobacco, arms and corrupt states including those with a bad human rights record, as well as companies that damage the environment. NEST announced in 2020 that it will decarbonise all of its investments, making it an industry leader in this area. It also scores comparatively well for its climate action plan in Make My Money Matter’s climate rankings table.

On deforestation, NEST says: “We’ve joined Global Canopy’s Deforestation-free pension funds guidance working group to help develop guidance on and help us work towards reducing deforestation exposure across our investments. We’ve already started work to identify deforestation risks across our portfolio and are currently undertaking a market warming exercise to consider whether we will invest directly into forestry (natural capital).”

On food sustainability, it says: “We’ve joined the Farm Animal Investment Risk and Return (FAIRR) initiative, a network of investors managing over $69 trillion (£54.8 trillion), to push companies like Tesco and Sainsbury’s away from intensive livestock production and unsustainable business practices.”

Research by Ethical Consumer magazine has found that NEST gives excessive remuneration to its top level staff, with its highest paid director paid over £337,000 in total compensation in the tax year 2021/22.

However, the NEST ethical fund still tops the magazine’s table for ethical pensions.

What’s the cost? 

NEST’s 0.3 per cent annual management charge (AMC) is one of the lowest on the market, though there is a 1.8 per cent charge for contributions (it’s free to transfer existing pots in or out).

So if you paid £1,000 into your pot over a year, the contribution charge would be £18. If your pot was then worth £10,000, you’d pay an AMC of £30.

See our full review of the NEST ethical fund

3. Penfold Sustainable Plan

The Penfold Sustainable Plan uses a mix of ESG (environmental, social and governance) screening and enhancing as well as a focus on socially responsible investing. It invests a larger percentage in companies with the highest ESG rating compared to their peers and removes any investments that underperform.

The plan is based on BlackRock’s MyMap 5 ESG fund, which aims to reduce its portfolio’s carbon emissions intensity by 30 per cent compared to an equivalent non-ESG fund.

The fund must invest at least 80 per cent of its assets in sustainable strategies and at least 80 per cent of its government bonds into sovereigns issuers with ESG sovereigns who have improved their ESG credentials.

While Penfold does apply screening to its Sustainable Plan, research by Ethical Consumer found it had no detailed company-wide exclusions of destructive industries and practices. It also didn’t make clear how (or if) it was addressing issues such as water usage, waste, pollution, biodiversity, and other environment issues within its own operations or portfolio companies.

What’s the cost? 

You’ll pay one annual fee of 0.75 per cent on savings under £100,000, and 0.4 per cent on anything over £100,000.

UK pension firms’ climate rankings

4. Aviva self-select pension

Pensions giant Aviva has a huge number of ethical funds that can go into a personal pension. Top performers with strong sustainable investment policies include the Liontrust Sustainable Future range, all of which are available through Aviva (you can also invest in the Liontrust Sustainable Future range directly through Liontrust).

Others include Royal London Ethical Bond, Rathbone Ethical Bond, Baillie Gifford Responsible Global Equity funds, and the Pictet Multi-Asset Portfolio. For more on these funds, see Good With Money’s latest Good Investment Review. Aviva topped the table in Make My Money Matter’s climate rankings.

What’s the cost? 

You’ll pay an annual fee of up to 0.40 per cent (depending on the size of your pot) plus fund charges.

Top 9 ethical financial advisers

5. Royal London pensions

Royal London runs both a workplace and a personal pension plan. The former will be decided by your company while the latter is available to buy through a financial adviser. The firm has a number of ethical and sustainable funds, including its ethical bond product, as well as Royal London Sustainable World and UK Ethical Equity.

What’s the cost? 

See the full list of fees here.

6. Zurich Henderson Global Sustainable Equity Pension

The Henderson Global Sustainable Equity fund, which has a five star sustainability rating with data providers Morningstar, is available through the Zurich pension scheme. After the Liontrust Sustainable Future range available through Aviva, it is one of the better ethical pension funds.

Unlike most, the fund does not invest in oil and gas with the manager seeking to actively invest in global companies whose products and services are considered as contributing to positive environmental or social change. It also regularly publishes all of its holdings as well as an annual Impact Report.

Zurich says it aims to be one of the most responsible and impactful businesses in the world. This includes cutting down on paper and single-use plastics, using 100 per cent renewable energy in its offices, and planting trees on behalf of its policyholders.

What’s the cost? 

You’ll pay an annual fee of 0.75 per cent.

The Good Guide to Pensions

7. Aegon pensions

Aegon offers a range of ethical pension funds, including the Ethical Equity Fund, which all screen out companies involved in activities that harm the environment or society. These include animal testing, alcohol, the extraction of fossil fuels, nuclear power and oppressive regimes.

They also invest in sustainable themes such as education, good health and well-being, environment, climate change and renewable energy, social housing and infrastructure, and software delivering solutions.

Aegon conducts a survey on ethical and sustainable investing every two years that asks investors and advisers for feedback on its approach, and makes tweaks when necessary. In its most recent survey, Aegon found that 71 per cent of respondents are already investing ethically.

However, Ethical Consumer found Aegon’s policy left it able to invest in fossil fuels. It says: “Its exclusions policy only restricted companies that generated more than 25 per cent of their revenues from the exploration, mining, and refining of thermal coal. While Aegon was gradually lowering these thresholds, Ethical Consumer considered any new investment in thermal coal to be highly damaging.”

What’s the cost?

You’ll pay an annual management charge of up to 0.6 per cent depending on the size of your pot.

If you’d like help with building an ethical personal pension, look for a financial adviser that is skilled in this area. Our Good Egg companies EQ Investors, Path Financial, Bluesphere Wealth and Switchfoot Wealth are all great options.

Risk warning: With pensions, as with all investments, your capital is at risk. The value of what you put in may go down as well as up.

Benedict Cumberbatch has stripped down to a towel to play chief executive ‘Benedict Lumberjack’ for an advert spotlighting the role of pension funds in fossil fuel projects.

The Sherlock Holmes actor, 48, is heard saying “I’m so hot right now” as he sits in a sauna and watches the world’s forests burn in a video created for pensions campaign group Make My Money Matter.

Lumberjack encourages people to not “change a thing” and to “keep your pension cash pouring in” because it will benefit people like him and “keep the fires of profit burning”.

“The business of deforestation is on fire and it’s all thanks to you,” Lumberjack says.

“We’ve taken billions of your hard-earned pounds and used them to fuel our exploits through the Amazon and beyond. The money from your pension has helped scorch, slash and burn entire rainforests, and our profits are growing like, well, wildfire.

“Some parts of the world are literally burning, but you know, it’s just the bits that nobody cares about. Look, if you can’t stand the heat, get out of the rainforest.”

The advert, created by agency Lucky Generals and directed by Sophia Ray, aims to raise public awareness of the role the UK pensions industry plays in funding companies that help to drive the climate crisis.

Research from the campaign group found UK pension schemes invest around £88 billion in fossil fuel companies.

Ray said: “It was a dream to direct a project like this. A strong idea for an extremely important cause, brought to life with a mesmerisingly powerful talent like Benedict. It’s a strong reminder that we can align our financial decisions with our values, and I’m proud to be part of this important conversation for change.”

Cumberbatch is known for playing Sherlock Holmes in the BBC drama series and Doctor Strange in the Marvel films. He received Academy Award nominations for his roles in The Imitation Game (2014) and The Power Of The Dog (2021).

Last year, Oscar-winning actress Olivia Colman dressed as latex-wearing oil executive ‘Oblivia Coalmine’ in a campaign video from the group.

Benedict and Olivia are set to star together in a remake of Hollywood classic War Of The Roses.

Want to know where your pension goes? Meet Benedict Lumberjack here.

To move your pension to a forest-friendly alternative, see our top ethical pension funds and the Good Guide to Pensions.

UK interest rates have been falling in 2024 after a year sat at the 16-year high of 5.25 per cent. Inflation is still proving tricky though, which makes it difficult to predict whether the Bank of England base interest (which affects your savings rate) will stick at 4.75 per cent or keep going down.

If you’re prepared to lock your savings away for a set term (and won’t need to access your money during that time), you could make a higher return on a fixed rate account over time than with an instant access one.

Here are our picks for the highest-paying ethical fixed-rate savings accounts:

1. Raisin

If you have a substantial sum in savings, Raisin is offering Good With Money readers a FREE £100 cashback offer. Use the code ‘SAVINGS100’ until December 16, 2024 – you must fund your first savings account with £10,000 before December 31, 2024. Use this link to claim yours. 

Raisin UK is a ‘savings platform,’ which works with a selected number of banks and building societies to help source savings accounts for you.

• One year fixed term deposit account with Al Rayan – the world’s oldest Sharia-compliant bank – offering 4.80 per cent/AER/Gross

Why is it ethical?

Raisin UK enables you to compare savings rates from ‘ethical’ banks. It offers savings deals with building societies, which are by nature more ethical than banks, Sharia-compliant accounts (such as Gatehouse and QIB UK) as well as Tandem (see below), which says it is aiming to be a ‘Good Green Bank’.

2. Tandem Bank 

Key terms: Minimum deposit is just £1. Shoal accounts are provided by Algbra Group Limited. Your money is protected by the FCA Safeguarding regime and by the Financial Services Compensation Scheme (FSCS).

If the thought of little Delilah growing up in debt to payday lenders and renting a tiny room in Deptford fills you with utter despair, take note: there are subtle ways you can improve your child’s financial literacy without them even knowing. You just have to buy them the right games.

Here are some ideas for Christmas gifts they’ll love.. that will also secretly teach them vital money lessons.

Games

The Game of Life

This game helps children get to grips with the impact of their decisions on their finances. So, for example, they learn that studying can pay off in the long run with a better-paid job, and that the value of property can fall as well as rise.

Monopoly

Unsurprisingly there are seemingly endless money lessons to be learned from this game. It reveals the risks of going on a spending spree and leaving no emergency cash buffer. It highlights the importance of regular income, and when it comes down to trading properties, it teaches valuable negotiation skills.

Pop to the Shops

For the younger primary-school-age child, this handy game from Orchard Toys can help them get to grips with handling money and counting change.

Scrabble

For the child who couldn’t imagine completing numeracy and literacy challenges in their spare time, this is a brilliant way to improve not only their vocabulary and spelling, but also their ability to do fairly complex mental arithmetic at speed.

Money

Cash

It’s not the most subtle lesson, but it can be a brilliant one for an older child with multiple demands. It helps them appreciate the importance of prioritising needs over wants. It also avoids the horror of spending a small fortune on an ungrateful child who complains they didn’t get the one thing they really wanted.

Cash – with strings attached

Some kids find that money burns a hole in their pocket, so giving them cash teaches them nothing other than the joy of spending. If that is the case, you can give them money with strings attached. You could, for example, agree to double any money they choose to put into a savings account for a few months, or match anything they have left over by 1 February.

Shares

You can buy shares for the benefit of a child under 18 through a Junior ISA. They might not be terribly excited by the prospect on Christmas Day, but you can soften the blow by choosing a company they have a connection with – like their favourite shop or tech firm. You could also choose a sustainable JISA so they can appreciate the impact they make on the wider world as well as on their finances. Whatever you choose, it’s a powerful way to teach them about the rewards of long-term investment.

Top 7 apps to help children manage money

Books

Harry Potter and the Philosopher’s Stone

Among the many surprising things Harry learns around his 11^th birthday, is that while he has spent his childhood wearing hand-me-downs and living in a cupboard under the stairs, he is actually rich. His financial decisions from there set a brilliant example to Potter fans. He doesn’t take too much from his pile of gold; he shares with his friends; he doesn’t rush out and buy the latest broomstick; and the presents he most cherishes are home-made.

Charlie and the Chocolate Factory

It may seem like a book about a health and safety nightmare during a factory tour, but actually it’s about the consequences of indulging our worst instincts. It teaches children that unless they conquer their greed, materialism and gadget obsession they will end up sucked into a pipe, attacked by squirrels, or shrunk to an inch tall. In the real world, these risks may be slightly less prevalent, but overcoming these character flaws will save them from a lifetime of overspending and debt.

The Little Red Hen

This is the story of a hen who asks the lazy farm animals for help making bread, and receives none. Then when the bread is made, she has plenty of volunteers who offer to help her eat it, but she refuses. She points out that if they’d wanted to share the fruits of her labour, they should have helped earlier.

For younger children, who are struggling to make the connection between the effort they put in and the rewards they reap, this is a brilliant tale. It’s also a welcome read for any parent who thinks that every once in a while, they ought to prioritise their own needs – and spend some money on their own savings and investments rather than funnelling every penny into meeting every desire of their children at Christmas.

This article is from the latest Good Investment Review, which you can download free here.

WE HAVE A PROBLEM!

We need to produce more food for a growing population, but continuing to produce food in the way we do currently may not be sustainable. Food production is a major contributor to greenhouse gas emissions and biodiversity loss.

However, the amount of food we are producing will not be enough to meet global demand as emerging market economies develop, the population increases and more people around the world see their incomes rise. It is a big challenge, perhaps one of the biggest that we face collectively. However, finding innovative solutions to global challenges can be profitable. Baillie Gifford’s impact strategy, Positive Change, was established to do just that.

The world stands at a critical juncture. To meet the food demands of a projected 9.73 billion people by 2050, global food production must increase by up to 70 per cent from a 2007 base. However, this daunting task is compounded by climate change, urban sprawl, and soil degradation, which threaten to reduce the amount of arable land available for farming.

The problem is clear: We need to do more with less and find ways to reduce the negative impacts of agriculture, which contributes up to 15 per cent of global greenhouse gas emissions. Large-scale farming is often highlighted as a big part of the problem with negative environmental consequences that putting food on our tables produces.

However, large-scale agriculture seems unavoidable if we are to feed a large and growing global population. Large-scale agriculture produces approximately 70 per cent of food consumed globally and is reportedly responsible for up to 10 per cent of global greenhouse emissions as well as significant biodiversity loss. Making large-scale agriculture better must be a priority and doing so will have tangible benefits.

Innovative companies are stepping up and pioneering solutions that promise to revolutionise food production. Deere is one such innovative company. Most people associate Deere, a nearly 200-year-old company, with big green tractors. However, this is a company driving a very modern approach to producing food that offers one solution to the problem posed by the need to provide more food for a growing global population without destroying the environment on which we depend to feed ourselves.

Deere has been at the forefront of precision agricultural technology, focusing on automation, remote sensing, and the integration of machine learning with computer vision. These technologies enable selective spraying of individual crops, significantly increasing yields while reducing the environmental harm associated with chemical inputs.

Deere’s See & Spray technology uses cameras and machine learning to target herbicide solely on weeds, rather than the entire field. In 2023, this technology was used on over one million acres of land, saving approximately eight million gallons of herbicide. Its technology can reduce fertiliser use by 60 per cent, and through its connected operations centre and analytics offering, it can provide insights that help farmers manage soil health as well as reduce the carbon emissions of their activities. This is the future of farming. With the need for higher yields and lower input costs, Deere has a role to play in facilitating food production at a scale that can meet all our needs.

The journey towards feeding the world more sustainably is fraught with challenges, but it also presents significant opportunities. By some estimates, this is a market opportunity worth $10 billion (£7.9 billion) in 2024, but it could be worth three times as much within the next ten years, driven by the push towards more sustainable farming practices, growing demand in emerging markets, technological advancements that enable autonomous vehicles, and more effective real-time analytics.

Companies like Deere are leading the way with innovative solutions that promise to increase food production and enhance environmental sustainability, potentially generating attractive returns for investors. As we look to the future, the role of such companies in addressing the global food challenge will be crucial. By investing in these pioneers, we not only contribute to solving one of the most pressing issues of our time but also position ourselves to reap the rewards of a more sustainable and prosperous world.

Risk warning: this article should not be seen as advice. The value of investments can go down as well as up, and your capital is at risk. 

This article is from the latest Good Investment Review, which you can download free here.

We are living in turbulent times. A bit of turbulence is nothing new, but the speed with which change is happening in today’s world can catch businesses and investors off guard if they’re not well prepared.

The quote “It is not the strongest of the species that survives… it is the one most adaptable to change” – often attributed to Charles Darwin – holds true in business as much as it does in the natural world.

Businesses and industries that rely on exploiting the earth’s finite natural resources might make strong gains in the short term. But those that can adapt to change and work to solve our most urgent challenges are best placed to survive and thrive in the long run.

Staying focussed on the long term

A classic definition of responsible (or sustainable) investing, according to Liontrust, is: “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”.

Research shows we have already overstepped six of our planet’s boundaries. These are: climate change, biodiversity, freshwater availability, land use, nutrient pollution and novel entities (human-made pollution/microplastics and radioactive waste).

Therefore, the global economy will increasingly favour companies that contribute to – and benefit from – a more sustainable future and, just as importantly, are resilient to risk (such as that brought by climate change). This is where the opportunities lie for responsible investors.

It’s no secret that the performance of many responsible funds has struggled recently – after they outperformed their traditional peers on average over a turbulent 2020 and the previous five years, according to the Good Investment Review.

Russia’s war with Ukraine, higher interest rates, soaring energy costs and a subsequent loss in valuation of tech and growth stocks (which responsible funds tend to be invested in), led to a tricky 2022 and 2023.

Interest in sustainable investment is on the rise

But there are now signs of recovery, and data shows that investors looking to do good with their money are not put off by dips in short-term returns – in fact, interest in responsible investment is on the rise.

A recent “Sustainable Signals” report by Morgan Stanley found that 77 per cent of individual investors globally are interested in investing for positive social and/or environmental impact alongside market-rate financial returns.

In addition, 57 per cent say their interest has increased in the last two years, while 54 per cent say they anticipate boosting allocations to sustainable investments in the next year.

This mirrors wider industry sentiment that responsible investing is very much here to stay – far from being a niche interest, sustainability is fast becoming a central consideration for all businesses and investments.

A survey in May by Morgan Stanley found that 85 per cent of companies view sustainability as a way to create value within their long-term corporate strategies. And they’re acting on it, too. An analysis in August of corporate climate actions published in the Harvard Business Review found that nearly three quarters of commitments announced in 2021 had been fully or partially achieved.

These changes don’t come from pure altruism. Companies stated their primary motivations as having to adhere to regulations and fulfil corporate ethical obligations, as well as increased expectations around sustainability from external stakeholders and broader society.

This means that responsible investors who are asking more of the businesses they put money into are making a real difference.

Being responsible also makes financial sense 

But investing for good isn’t about making a positive impact on the planet and society at the cost of making a profit. It’s also a logical financial strategy.

Responsible funds look to understand future trends and invest now for long-term growth (and investing should always be for the long term – at least five to 10 years).

After all, global challenges won’t be resolved overnight. New solutions are needed to tackle ESG (environmental, social and governance) issues, while some sectors need time – and investment – to transition towards climate goals or biodiversity targets, or to align with evolving regulation.

Also, by avoiding companies involved in activities that could be subject to regulation, controversy or long-term environmental risks, responsible investors can protect themselves from potential losses.

For example, the fossil fuel sector has faced increasing regulatory pressure as well as consumer boycotts of companies associated with it.

But while responsible investing continues to prove its worth, those looking to make a positive difference with their money are no longer happy with simply being told a fund is ‘green’ or ‘sustainable’ – they want to know it is doing what it says it is.

This issue of greenwashing (where a provider claims its products are more environmentally friendly than they are) is being tackled by the Financial Conduct Authority’s new Sustainable Disclosure Regulations (SDRs).

While this takes time to filter through to investors, it’s important to do careful research and/or choose trusted funds and providers – such as those listed in this Review.

Important information: This article is journalistic and should not be viewed as financial advice. Remember that when you invest, your capital is at risk and the value of investments can go down as well as up.

Science is not only a foundation for humanity’s progress but also a key driver for creating strong investment opportunities. By addressing global challenges through innovation, collaboration, and adaptability, science helps to build a future that is cleaner, healthier, safer and ultimately more sustainable. This approach is not just morally important; it also delivers strong financial returns.

The pale blue dot: a lesson in fragility

In 1990, a photograph taken by NASA’s Voyager 1 spacecraft reshaped our understanding of Earth’s place in the universe. The image, known as the “Pale Blue Dot,” captured our planet as a tiny speck suspended in the vast, hostile vacuum of space. This image emphasised Earth’s fragility and humanity’s dependence on its thin atmosphere, a protective layer delicately balanced by billions of years of life’s evolution.

The atmosphere’s composition has changed drastically over millennia, influenced by biological processes. For example, 2.4 billion years ago, cyanobacteria began producing oxygen through photosynthesis. Although this shift enabled the rise of oxygen-breathing organisms, it also triggered the ‘Great Oxidation Event’ − a mass extinction of oxygen-intolerant species.

The ozone crisis: a model for collaboration

This ancient lesson serves as a warning: altering the atmosphere is fraught with peril. Yet, humanity faced a similar challenge in the late 20^th century, when Voyager took that photo, when the ozone layer, which acts as the planet’s natural sunscreen, began to thin. Chlorofluorocarbons (CFCs), a class of industrial refrigerants, were found to be the culprits, depleting ozone and allowing harmful ultraviolet radiation to penetrate Earth’s surface.

The consequences included increased rates of skin cancer, cataracts, and DNA damage to living organisms. However, unlike ancient bacteria, humanity had the tools to address the crisis: science; government and society; and crucially for us as investors, profit-seeking businesses.

The solution to the ozone crisis exemplifies a powerful synergy between science, governments, and business. Scientific research identified the ozone layer’s function, uncovered the harmful effects of CFCs, and tracked the resulting ozone depletion over Antarctica. Governments then acted on this knowledge, drafting the Montreal Protocol in 1989, which mandated a gradual phase-out of ozone-depleting substances.

Businesses, far from being adversaries, became crucial allies, developing and manufacturing safer alternatives to CFCs. The result is a remarkable success story: CFC concentrations in the atmosphere are now declining, and the ozone layer is on track to recover by mid-century.

CFC concentrations in the atmosphere

Source: S. J. Allin et al.: Chlorine isotope composition in atmospheric, CFC-11, CFC-12 and CFC-113. Emissions estimates for CFC-11 (gold), CFC-12 (green) and CFC-113 (orange), based on global tropospheric mole fractions (SPARC, 2013). Each species is represented by three lines. The two emissions estimates from this study (solid lines) are produced using the stratosphere–troposphere exchange flux calculations of Holton (1990) and Appenzeller et al. (1996), with the latter giving slightly higher emissions. These are compared to values from Velders and Daniel (2014) (dashed lines)

This collaboration between science, government, and business extends far beyond the ozone crisis. It has driven improvements in urban air quality, doubled life expectancy over the past century, and significantly reduced workplace fatalities. Businesses that innovate to solve global challenges are often characterised by rapid growth, strong market positions, and long-term profitability. These qualities make them attractive for investment, particularly for those focused on sustainable themes.

Advancing healthcare through genetics

Healthcare is one area where scientific advancement is revolutionising industries. Disease arises from a complex combination of genetic and environmental factors. Approximately 40 per cent of diseases are driven primarily by genetics, while the remainder stem from a combination of the two. Advances in genomics have transformed our understanding of the genetic basis of disease.

Faulty genes can produce malfunctioning proteins, disrupting bodily functions and causing illness. Sequencing the human genome, an achievement first made possible in the early 2000s, has unlocked new ways to diagnose, treat, and even cure genetic disorders.

The cost of genome sequencing has plummeted dramatically − from over $100 million (£79 million) in 2001 to less than $500 (£396) today − thanks to businesses scaling the technology and reducing unit costs. This affordability was critical in developing the Covid-19 vaccine, enabling researchers to sequence the virus, monitor mutations, and create vaccines at unprecedented speed.

Beyond public health emergencies, genomics is enabling targeted therapies for inherited disorders, some cancers, and diseases like inherited deafness and blindness. Early diagnosis, made possible by genetic insights, is helping to detect and treat diseases more effectively, significantly improving patient outcomes.

Cost per human genome

Source: National Human Genome Research Institute, Cost per genome data – 2021

The healthcare revolution has also created valuable investment opportunities. Companies producing laboratory equipment for genetic research are essential to the industry’s progress. For instance, ThermoFisher Scientific, a major player in this space and a company held under our Enabling innovation in healthcare investment theme, exemplifies how such businesses thrive by meeting the demands of cutting-edge research.

Pharmaceutical giants like Roche are integrating genetic components into their diagnostics divisions, further advancing early disease detection. Additionally, companies specialising in drug delivery systems, such as West Pharmaceutical Services, are developing innovative solutions for administering complex therapies.

The energy transition: science tackles climate change

Another transformative area is the energy transition, where science is helping reduce carbon emissions and mitigate climate change. Global average temperatures have risen steadily since the Industrial Revolution, with human activity now recognised as the primary driver of climate change.

To avoid catastrophic impacts, emissions must be halved every decade − a daunting challenge. Yet science offers reasons for optimism. Energy efficiency alone could reduce greenhouse gas emissions by 40 per cent while lowering energy costs.

Renewable energy technologies, particularly wind and solar, have experienced remarkable cost reductions due to learning curves: for every doubling in solar capacity, costs have fallen by 20 per cent. Wind energy has followed a similar trajectory. Unlike fossil fuels, renewable energy sources have no fuel costs, meaning technological advancements directly translate into lower costs and greater adoption. These dynamics have driven an exponential increase in renewable energy deployment, displacing coal and nuclear power as primary energy sources.

Electricity from renewables became cheaper as we increased capacity – electricity from nuclear and coal didnot

Source: IRENA 2020 for all data on renewable sources; Lazard for the price of electricity from nuclear and coal – IAEA for nuclear capacity and Global Energy Monitor for coal capacity. Gas is not shown because the price between gas peaker and combined cycles differs significantly, and global data on the capacity of each of these sources is not available. The price of electricity from gas has fallen over this decade, but over the longer run it is not following a learning curve. OurWorldinData.org – Research and data to make progress against the world’s largest problem.

The transition to renewable energy also includes advancements in electric vehicles, where battery costs are rapidly declining. The energy shift extends to almost every sector of the economy, creating vast investment opportunities. Vestas Wind Systems, a Danish wind turbine manufacturer, exemplifies the potential for growth. Since its listing in 1999, the company has installed 181 gigawatts of turbines, growing its market capitalisation tenfold. Meanwhile, infrastructure investments, such as modernising aging electricity grids, are becoming increasingly critical.

Companies like National Grid and Greater Gabbard – whose bonds are held in our corporate bond strategies – are investing billions to support the electrification of energy systems, enabling them to meet the demands of a decarbonised economy.

A bright future for sustainable investment

The lessons from these industries underscore the immense potential of aligning investment strategies with scientific and technological advancements. By focusing on companies driving positive change, sustainable investment funds can deliver strong financial returns while addressing global challenges.

Looking ahead, the interplay of science, society, and business innovation will continue to reshape the global economy. Climate change, perhaps the most pressing challenge of our time, requires the same collaborative approach that solved the ozone crisis. While the task of decarbonising the economy appears daunting, it is far from insurmountable.

Technologies that enable renewable energy and energy efficiency are already commercially viable, and their adoption is accelerating. Indeed, the declines in emissions from some developed countries such as the UK, appear to be following an exponential path – just as CFCs did as a consequence of the Montreal Protocol. We believe this is an early sign that the global transition to low-carbon energy is poised to gain momentum.

The future of sustainable investment is bright. Scientific progress shows no signs of slowing, and governments and businesses remain committed to creating a better world. Companies leading the way in healthcare innovation, renewable energy, and energy-efficient infrastructure will continue to grow, delivering both financial returns and tangible benefits to society.

By harnessing these opportunities, sustainable investment strategies not only provide strong returns but also ensure that Earth − our fragile “pale blue dot” − remains a thriving home for future generations.

Risk warning: Past performance is not a guide to future performance. The value of an investment and the income generated from it can fall as well as rise and is not guaranteed. You may get back less than you originally invested.

The issue of units/shares in Liontrust Funds may be subject to an initial charge, which will have an impact on the realisable value of the investment, particularly in the short term. Investments should always be considered as long term.

This article is from the latest Good Investment Review, which can be downloaded free here.

As the world navigates urgent environmental and social challenges, the case for sustainable investment has never been stronger – writes Jake Moeller of Square Mile Research. 

Fashions come and go – even in investments. Yet, despite a challenging period for sustainable fund performance over recent years, it’s clear that responsible investing isn’t just a passing trend. In fact, it’s now positioned for enduring growth thanks to:

• Increasing regulatory support
• Technological advancements
• Shifting global priorities toward carbon reduction and resource efficiency

So, while short-term fluctuations may impact returns, long-term tailwinds look set to reinforce the value of patient capital in this field. Those long-term tailwinds are blowing in from all sides of the globe, too.

For instance, whatever the controversies around events like COP 29, they emphasise ambitious climate finance goals and increased investment in renewables and energy efficiency, encouraging nations to align with sustainable investment pathways​.

What are the key drivers behind sustainable investing?

Bearing this backdrop in mind, delving into those tail-winds in more detail helps emphasise why responsible investing is, by no means, a fad.

Governments and regulatory bodies are increasingly encouraging sustainable investments. In the U.S., the Inflation Reduction Act (IRA) is mobilising substantial capital towards renewable infrastructure and clean energy, providing billions in tax incentives that catalyse private sector investment​.

Similarly, the EU’s Sustainable Finance Disclosure Regulation (SFDR) and the UK’s Sustainable Disclosure Regulations (SDRs) are fostering transparency, helping investors make more informed, reliable choices in sustainable funds. This shift reduces “greenwashing” and will continue to build trust in sustainable funds.

Technological innovation is another powerful force driving sustainable investments. AI advancements, for instance, promote sustainability by optimising energy use, reducing costs, and increasing efficiency, particularly within data centres.

Additionally, improvements in renewable technology (like solar and wind) enable the scaling of low-carbon power sources. Investments in circular economy initiatives, such as biofuel production and waste management, further highlight how resource efficiency drives returns and reduces environmental impact​.

The transition from fossil fuels to cleaner energy sources remains essential to achieving global climate goals. The transportation, construction, and manufacturing sectors are all expected to decarbonise over the coming decades, which requires substantial capital for new technologies and infrastructure, offering growth opportunities for sustainable investors.

While large-scale energy transitions require prolonged periods for infrastructure adaptation and regulatory alignment (making patience essential for investors looking to realise gains), geopolitical and energy security concerns underscore the need for domestic renewable energy sources, adding a layer of strategic importance to sustainability investments​.

Carbon markets also play a critical role in meeting climate targets by attributing a cost to emissions. However, issues like fraud have historically undermined carbon market credibility. The development of more robust trading standards and technology improvements are expected to address these challenges, enhancing the markets’ effectiveness and integrity.

What does the future hold for sustainable investments?

​Fund gatekeepers, such as us at Square Mile, are increasingly selective of which fund managers we will have relationships with. Square Mile’s 3D model of avoiding harm, doing good and leading change is now integrated into our broader fund selection process. Fund groups that score well on these criteria are likely to be the ones with whom we form closer relationships for our investors.

Elsewhere, shareholders are also increasingly realising that bad actors can destroy shareholder value, so are consequently demanding sustainable practices be followed. Pressure on company management to do good, avoid harm and lead change is resulting in changes to the way companies are run and influencing the products and services they offer.

So, when this style of stewardship is coupled with the convergence of regulatory frameworks, technological advancements, and a global commitment to decarbonisation, the case for sustainable investing has never been stronger. Now, therefore, as the world navigates environmental and social challenges, sustainable investing provides a critical avenue for resilient, patient capital, securing both financial returns and societal benefits in the long run.

The average Brit will fork out an eye-watering £611 on Christmas presents this year – up £42 from 2023.

Many of us want to make the festive season extra special by treating our loved ones. But when you consider that £42 million of unwanted Christmas presents are thrown into landfill each year, that’s a lot of money (and packaging) simply going to waste.

If you aren’t feeling inspired by the latest lego or Barbie toy for the kids, or the usual scented candles, bath sets or chocolates for friends and family, then a financial gift could be the perfect – packaging-free – alternative. The added good news is, you can order it online.. right up to the last minute!

Here’s how to pick the gift that will keep on giving.

1. A savings account

Is there something big that an important person in your life would love but is putting off saving up for? It could be a dream trip, a new car or a vintage didgeridoo. It might be beyond your budget but you could start them off on the right path by setting up a savings account. Comparison sites such as Raisin are offering interest rates of up to 4.8 per cent and have ethical options – such as building societies and Sharia-compliant banks – if you’d like to ensure your gift is good.

If you, or the person you’re gifting to, already has some savings to transfer, Raisin is offering Good With Money readers a FREE £100 cashback offer. Use the code ‘SAVINGS100’ until December 16, 2024 – you must fund your first savings account with £10,000 before December 31, 2024. Use this link to claim yours. 

Including the cashback, this amount saved at an interest rate of 4.8 per cent over just one year (with no additional contributions) would turn into £10,584.80. 

Other options we like include Tandem Bank, Triodos Bank and Nationwide Building Society, which all offer competitive rates while not harming the planet and/or society.

Top-paying ethical savings accounts

2. A Junior ISA (JISA)

A Junior ISA, or JISA, is a great way to help provide your child or grandchild with a secure financial future. Sure, it might not get them jumping for joy on Christmas morning, but we promise they’ll thank you when all the flashy plastic toys are long forgotten.

JISAs are tax-efficient savings accounts for children, who can only access the money in them when they reach 18.

While only parents or legal guardians can open one for their child, anyone can pay into it. JISAs were introduced in 2011 to encourage families to build a nest egg for their children that can be used to pay for big outlays such as university costs or buying a car or first home.

What’s more, if you choose a sustainable stocks and shares JISA, such as one from Simply EQ or The Big Exchange, then the money in it will be contributing to a better world for your child to live in.

If you’re still torn by one of this year’s top toys, the Lego NASA Space Shuttle play set at £169.99, just think – if you invest that cost in a JISA every Christmas from when your child is age five until they are 18, they could have £37,103 (assuming a five per cent annual return), according to the investment firm Hargreaves Lansdown.

Best ethical Junior ISAs

3. Lifetime ISA

Helping your older child to afford their first home makes for a pretty valuable Christmas present. The Lifetime ISA allows anyone aged between 18 and 39 to save up to £4,000 every tax year and receive a 25 per cent bonus from the government to help pay for a house deposit.

So, for every £4,000 saved, they’ll get a £1,000 bonus. Bear in mind that the money you put into a LISA will count towards their yearly £9,000 tax-free ISA allowance.

3 ethical Lifetime ISAs (LISAs)

4. A debit card

Gifting your child their own debit card and account for Christmas can help them develop important financial skills for life. Apps such as goHenry, Rooster and Beanstalk give children as young as six the freedom to earn, spend and save their money in a fun and engaging way, under the supervision of their parents.

It’s also possible for friends and family to gift money onto the card along with a Christmas message. You can personalise the card with their name and choose a picture to suit their personality. goHenry is currently offering a Paddington in Peru-themed card alongside its usual pets, superhero and sports themes.

Top 7 apps to help children manage money

The latest edition of the Good Investment Review is published today.

The November 2024 review reports that responsible funds have performed comparably well to their traditional peers this year so far and over the last five years, despite rocky global markets. The figures show that it is possible for investors to balance profit with making a positive impact on the planet and society.

It says: “Against this backdrop, responsible Investment funds continue to demonstrate their ability to make comparable returns to traditional investments.”

The review adds that despite “short-term fluctuations,” patient investors who want to do good with their money are well placed for growth over the longer term.

Positioned for ‘enduring growth’

Jake Moeller, Associate Director of Responsible Investment at Square Mile Research, said: “Fashions come and go – even in investments. Yet, despite a challenging period for sustainable fund performance over recent years, it’s clear that responsible investing isn’t just a passing trend. In fact, it’s now positioned for enduring growth..”

He said the key drivers for responsible investing will be increasing regulatory support to combat greenwashing, advancements in technology, and global commitments to reducing carbon.

“Whatever the controversies around events like COP 29, they emphasise ambitious climate finance goals and increased investment in renewables and energy efficiency, encouraging nations to align with sustainable investment pathways​,” Moeller added.

This year so far, the ethical Global Equity funds monitored in the review have returned an average of 9.21 per cent compared with 9.95 per cent for all funds in the sector.

Meanwhile, the ethical UK All Companies funds monitored have brought average returns of 6.82 per cent compared with 7.12 per cent for the sector. The Sterling Corporate Bond funds have brought 1.7 per cent returns compared with 2.1 per cent for the sector.

The long-term outlook for ‘good’ investors

The latest review from Good With Money and Square Mile Research explores the long-term outlook for responsible investing.

It includes essential commentary from key sponsors, including:

Baillie Gifford – The opportunity to reap rewards by feeding the world sustainably

Goldman Sachs Asset Management – Green bonds: financing the transition to a low carbon economy

Liontrust – The science of sustainable investing

Ninety One – Powering the AI revolution

Wellington Management – Unlocking the full value potential of stewardship

Good With Money – Why responsible investment is here to stay

Read it here!

The first snow of the season is set to sweep across the country this week – and as the mercury dips, energy bills will inevitably rise.

The colder months mean ramping up the central heating and relying more on power-guzzling appliances, which means using a lot more gas and electricity.

While energy prices have fallen since the peak of summer 2023, they are still well above pre-‘energy crisis’ levels and are set to be hiked again in January.

It therefore makes sense to use as little energy as possible. The most effective way to do this, while staying warm, is to retrofit your home – this means making changes to an existing building to improve its energy efficiency.

This in turn, reduces carbon emissions, making it a smart move for the planet as well as your pocket (it should increase the value of your property, too).

Find your home’s EPC rating and personalised recommendations for making it greener

Here are six key retrofit steps that will make a big impact on your energy bills:

1. Find out how energy efficient your home is

First, find your home’s EPC rating so you can see how energy efficient it is. This will give you a good starting point for any upgrades you want to make, and help you calculate how valuable they could be.

2. Make the easy, low cost upgrades first

Upgrade to more efficient appliances like fridges and dishwashers with an A+++ rating, get a smart thermostat installed and programme your heating to match your schedule. Replace any traditional or halogen lightbulbs with energy-efficient LEDs.

3. Change your windows and doors

Replace any single-glazed windows or doors (which let out a lot of heat) with A-rated double glazing or triple glazing. Or, add secondary glazing to existing single-glazed windows.

4. Insulate!

The walls: Cavity walls are the easiest to insulate, as insulants can be injected into the cavity from the outside. It’s still possible to insulate solid walls, but this will need to be done either internally or externally.

The loft/roof: The recommended minimum depth for loft insulation is 270mm. So while your roof or loft may already have some insulation, it’s worth checking that it reaches this depth. Topping up from 120mm to at least 270mm of insulation can cut annual carbon emissions by as much as 55kg annually (equivalent to the carbon created by 26 weeks of laundry!). Of all the ways of insulating a home, loft and roof spaces are the most affordable improvements, and the easiest to carry out.

The floors: Around eight per cent of heat is lost through the floor in an uninsulated home. This figure rises if you have an insulated roof and walls. Suspended floors, usually floorboards, rest on joists above an empty space and can be insulated using rigid boards, mineral wool, or spray foam. Solid floors are generally stone or concrete and a layer of rigid insulation can be laid on top.

5. Install renewable energy systems

Installing renewable energy solutions such as solar panels means your house can generate its own electricity. In some cases, you can even make money by selling unused power back to the grid.

6. Switch to a low or no-carbon heating system

Air source or ground source heat pumps are no-carbon alternatives to gas boilers. You could also replace an inefficient gas boiler, such as a G-rated version, with an energy-efficient A-rated condensing boiler. While this option still uses gas to heat a home, a newer, more efficient version will use much less power to keep your home warm and your water hot.

Find out how to make YOUR home greener – and exactly how much it could save you

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.

A group of UK wealth managers has issued a collective call for others in the industry to act now on climate change.

The UK Wealth Managers on Climate Group has signed an open letter urging all asset managers to speed up their progress to net zero and support the financial sector’s crucial role in tackling the climate crisis.

The group was formed in September 2023 to bring together wealth managers already working to make a positive impact on climate change and to encourage others in the sector to step up their actions.

Today, the UK wealth management industry controls over £1 trillion. The investment decisions made by asset managers have tremendous influence over whether the fight against climate change can be won – or not.

With rising temperatures posing an ever-increasing threat to global ecosystems, the UK Wealth Managers on Climate group brings sustainably-minded wealth managers together to speak with one voice.

Now, the nine members of the group (EQ Investors, Cazenove Capital, Paradigm Norton, Quilter Cheviot, Sarasin & Partners, Greenbank, 7iM, LGT Wealth Management and Tribe Impact Capital) – who together, look after £165 billion in assets – have co-signed a letter to the industry.

It outlines three urgent actions asset managers must take on net zero:

1. Improve ambition

Set a net zero commitment and ensure your targets are clear and transparent

2. Build action

Ensure that their approach is understood by their wider business and communicated to their clients

3. Increase influence

Strengthen links between their net zero commitments and stewardship activities to focus on outcomes

The letter says: “As managers of assets ourselves, we are aware of the complex implications of setting long-term net-zero commitments and interim targets on investments. Methodologies, timeframes and ambition all vary greatly across our industry – and different expectations from wealth managers like ourselves have historically complicated the landscape further.

“We would ideally like to see progress against these steps within the next 12 months, but understand that there may be challenges in doing so for some of our managers. We strongly welcome feedback and further discussion with you as we navigate this complex space together.”

Louisiana Salge, Head of Sustainability at EQ Investors, said: “As the world moves to a net zero carbon future, we are committed to playing our part in addressing climate change, both as a business and as stewards of our clients’ assets. EQ Investors is proud to be part of this important initiative and contribute to an industry-wide push to accelerate accountability and disclosure.”

The UK Wealth Managers on Climate initiative is open to all wealth management firms in the UK that share a commitment to a more sustainable future.

Members of the UK Wealth Managers on Climate group:

Last week, Chancellor Rachel Reeves delivered Labour’s first Budget in 14 years. Here, Johnny Bowie, Sustainability Analyst at ethical financial planners EQ Investors, picks out the key announcements that affect the planet and society, and what they might mean for sustainable investors.

Clean energy

Reeves announced that a significant portion of the Budget will be dedicated to advancing the UK’s clean energy sector, including a £70 billion private investment initiative through the new National Wealth Fund.

This investment will be aimed at projects in renewable energy, battery production, and port upgrades for green hydrogen infrastructure.

Great British Energy will receive £125 million in funding for 2025-26 – significantly short of the £8.3 billion that was promised in Labour’s manifesto.

Despite this, the announcements are a reassuring signal for companies and investors in the renewables value chain, the grid, and its smart management.

Electric vehicles

Tax incentives will continue for electric vehicles (EVs) but will exclude hybrid vehicles in a bid to encourage a shift towards fully electric options. There is also £200 million for EV charging infrastructure between 2025-26 and a £120 million scheme to support people buying electric vans. With EV sales having slowed in recent months, this may help to boost sales.

Labour is also committed to ending new internal combustion engine vehicle sales by 2030, with a full transition to zero-emission vehicles by 2035.

Reeves did announce a freeze on fuel duty tax for polluting vehicles, however we see this as a short-term solution to ease the cost of living while the UK transitions to EVs and low- carbon vehicles.

Carbon capture and nuclear power

Carbon capture and storage (CCS) projects will receive £3.9 billion in funding, reflecting the government’s intention to decarbonise industry while leveraging the UK’s geographic assets for CO2 storage.

Labour also reaffirmed its support for nuclear energy with a £2.7 billion investment for nuclear power station Sizewell C, alongside ongoing support for fusion research. This signals that nuclear energy is seen as a core element of the UK’s low carbon energy mix.

Carbon border policies

The Budget confirmed the UK will implement a carbon Border Adjustment Mechanism (a policy that aims to cut greenhouse gas emissions by accounting for the carbon cost of imported goods) – from 1 January 2027. This will cover aluminium, cement, fertiliser, hydrogen, iron, and steel sectors.

This will benefit sustainable investors by creating a more level playing field for green investments in the UK, encouraging both domestic and foreign businesses to lower emissions.

North Sea oil

The current windfall tax on energy producers operating in the North Sea will rise from 35 per cent to 38 per cent. This hurts profit margins of oil and gas exploration companies, which are not held across EQ’s sustainable portfolio ranges. The Budget also includes measures encouraging North Sea companies to invest in low-carbon projects.

For example, companies may receive tax breaks or reduced levies if they invest in CCS or offshore wind, helping them move towards cleaner energy sources.

Homes and building standards

£3.4 billion has been allocated to the Warm Homes Plan, which aims to enhance the energy efficiency for up to 350,000 homes across the UK and upgrade five million homes by 2030, with a particular focus on low-income households. When coupled with Budget increases to the Boiler Upgrade Scheme, this should help to reduce energy costs across UK households.

Some of our portfolio companies provide the technologies or know-how for greener buildings, and could benefit from this.

Social impact investment vehicle

The Budget introduced a new social impact investment vehicle to attract private investment for social goals. Supported by the social investment sector, this initiative aims to drive Labour’s five key missions: economic growth, clean energy, crime reduction, educational reform, and health system improvement. Although details and funding specifics will follow in the spring, this has been welcomed by the impact investing community.

In summary

While markets are still digesting the Budget news, and we are still awaiting important details, the reassurance provided by the new government provides a more positive outlook for many sustainable businesses. The commitment to addressing climate change and social inequalities offers notable steps towards a sustainable future.

Last week’s Budget had most of us talking about money. But while it might feel easy to have high-level debates on tax and government spending, personal money conversations can be much tougher.

A new survey by Hargreaves Lansdown reveals that one in four (26 per cent) Brits wouldn’t talk to anyone if they had money worries. This rises to 30 per cent among men and 36 per cent among those aged 55 and over.

Just 13 per cent would speak to a debt charity like Stepchange or Citizen’s Advice, while 12 per cent would speak to their parents, nine per cent to friends and six per cent to a sibling. Meanwhile, one in ten would use social media to talk about their money concerns.

“When you’re going through a difficult time financially, it can be difficult to open up about it, says Sarah Coles, head of personal finance at Hargreaves Lansdown. “You might be embarrassed about the issues you’re facing, or not want to worry anyone. However, burying your head in the sand will only make things worse.”

It might feel daunting, but getting grips with your finances starts with having a conversation. Sarah says: “It doesn’t have to begin with your family if you can’t face it. If it’s not a shortage of money, but a problem with how you’ve set things up, or how you’ve prioritised, then you might benefit from talking to a financial adviser. If you have a spending or debt issue, you might want to approach a debt charity.

“If you choose the relative anonymity of social media, be very careful not to assume your online contacts know enough to give you good advice. It may be where you want to share your experiences, but it’s not somewhere you can guarantee to get qualified or informed opinion.”

To mark Talk Money Week, which encourages people to open up about their finances, here are five tips for starting tricky conversations:

1. Pick your moment

Is this the kind of general chat you can drop in conversation, or do you need to set aside a specific quiet time to address it properly? You can’t rush some of these sensitive conversations, so find a time that works for you both.

2. Think about what you want to say before you start

Whether you’re concerned about someone else or you’re talking about a problem you have, consider how to introduce the subject thoughtfully, and think about how they might feel and respond. Don’t let this be an excuse for putting it off, but it can help to have plotted a way through the more difficult aspects of the conversation.

3. Be honest

This is not the time to fudge the truth, or hold things back. If it all emerges over time, they’ll feel you weren’t being honest, and it makes it much harder to help if they only have half the truth. It’s not going to be pleasant, but rip that band-aid off.

4. Don’t get dragged into blame and recriminations

If you suspect someone has a problem and they admit to it, try not to head down a cul-de-sac of blame. You have every right to be upset, but try not to let it derail your efforts to find a solution together. If you’re coming clean about a financial problem, and the person you’re telling is upset, then it makes sense to recognise this, and take responsibility for anything you’ve done. However, there’s nothing to be gained from a shouting match, so as soon as you can, try to steer them towards the next part of the process – where you try to find a solution.

5. Focus on the solution

The purpose of the conversation should be to start putting things right. It makes sense to do some research first, so you know where you stand. This means knowing what you have, and where, and being on top of your debts. Otherwise, you may not be able to have a particularly constructive conversation.

Don’t assume this will show you exactly what to do. You both need the space to share your perspective, and you may be able to come up with a better solution together.

4 apps to help you cut the cost of living

If you run an ethically-minded business, it makes sense to bank with a provider that shares your values.

But when it comes to business banking, the big High Street banks have a monopoly – 83 per cent of the main accounts of small and medium-sized businesses are held by the ‘Big 5’. These are Barclays, Lloyds Banking Group, Santander, HSBC, and Natwest.

Unfortunately, these banks are the top culprits for investing in practices that are harmful to the environment such as fossil fuels, tobacco, oil, and/or arms production.

According to Make My Money Matter, a campaign led by Love Actually director Richard Curtis, the Big 5 banks have provided a massive $37 billion (£29.7 billion) to fossil fuel companies in the last 12 months.

In contrast, ethical banks have greener investment and lending policies and pay their fair share of tax.

While still harder to find than ethical personal current accounts, green business banking alternatives DO exist in the UK.

It doesn’t have to be a hassle to move your business account for good. If you own a small or medium-sized businesses with less than 50 employees and a turnover of up to £6.5 million, the Current Account Switch Service will take care of everything for you.

The providers below rank highly on the ethical stakes. All are covered under Financial Services Compensation Scheme (FSCS), meaning your assets are protected up to £85,000.

1. Unity Trust Bank

If you’re a socially-minded business, chances are you’ll like Unity Trust Bank.

It has a clear aim to prioritise social good, using deposits made by your business to fund lending that supports the communities that you and it collectively serve. This means that by banking with Unity (the number one bank for Trade Unions), you are helping to contribute to economic, community and social change.

In 2023, Unity committed over £260 million to 162 organisations across the UK that are contributing to the United Nation’s Sustainable Development Goals (SDGs). Almost half (45.3 per cent) of this went to organisations delivering services in high deprivation areas across the UK; £21.9 million more than in 2022.

Unity offers a range of current and savings accounts, day-to-day banking services and loans to organisations that share its values. You’ll get fast, secure and easy-to-use online banking with the option to set up single, dual and triple authority of payments.

It does not, however, offer a debit card for its business current accounts. You can pay in, or withdraw cash from your local NatWest (England and Wales) or RBS (Scotland).

Unity has also partnered with Lloyds Bank (a ‘Big Five’ bank that doesn’t have such squeaky clean sustainability credentials) to offer a Unity Corporate MultiPay Card – a charge card that is subject to credit approval.

The bank offers three business current accounts, according to annual turnover. There is a monthly fee starting at £6 (charged quarterly) and the minimum opening deposit is £500. A full list of other fees is here.

Unity Trust Bank: 40 years of banking for impact

2. Co-operative Bank 

The Co-operative Bank is currently offering a £200 reward for business current accounts opened before October 31, 2024. 

The Co-operative Bank took a major hit to its ethical reputation when it was bailed out by a giant US hedge fund in 2017.

However, in May 2024, the bank emerged from this cloud over its ethics when it was bought by Coventry Building Society for £780 million.

Both organisations will continue to operate under their current names and branding while they are integrated, which is expected to take several years. Eventually, Co-operative Bank customers will be migrated to become Coventry society members. Coventry – the first B Corp building society – does not offer its own personal or business current accounts.

The deal means Co-operative Bank will return to a mutual structure, where it is owned by individual members rather than shareholders and investors like most UK banks.

Despite changes in its ownership, the Co-operative Bank has maintained a solid, customer-led ethical policy. It will not provide banking services to organisations that conflict with its customers’ views on a comprehensive range of issues including human rights, environmental stability, international development and animal welfare, or those involved in irresponsible gambling or payday lending.

It says: “We’re committed to not providing banking services to businesses and organisations that conflict with our Ethical Policy. We’ve previously stopped an organisation from joining The Co-operative Bank on the grounds of their involvement with fossil fuel extraction, and declined services to businesses that conflict with our stance on human rights and animal welfare.” You can read its latest sustainability report here.

The Co-op also has a small (but diminishing) branch network and a co-operative union of customers. It offers a range of business current accounts – including a specialist account for members of the Federation of Small Business and one for charities, co-operatives and credit unions – to suit the type and needs of your small business.

3. Cumberland Building Society

The Cumberland is a building society based in Cumbria. It offers business current accounts to customers living in Cumbria, South West Scotland, West Northumberland and North Lancashire. It has two business account options, depending on your type of business and the value of your daily transactions. Its business banking calculator will help you work out which one is best for you.

Cumberland’s business account offers a debit card, standing orders and direct debits, free daily cash withdrawal up to £300 per day (or £500 at its branches), online banking, and an arranged overdraft facility with a 12.73 (variable EAR) per cent fee, per year. It supports the UK’s leading online accounting software, Xero, and offers an e-savings account to its business online banking customers.

Its building society status means it does not invest its members’ money in stocks and shares. Therefore, many of the issues normally associated with ethical investment do not apply to it. Cumberland gives 1.5 per cent of its profits to charity. It uses 100 per cent renewable energy in its offices and aims to be a carbon neutral business by 2030.

Cumberland’s business accounts come with a monthly fee (from free to £3-5 per month depending on the account you choose) and other charges. The building society is currently offering 12 months’ free banking to businesses with a turnover up to £250,000 per year (t&c’s apply).

Top 7 ethical current accounts

4. Starling Bank

App-based bank Starling scooped Best Banking App at the British Bank Awards 2024.

The digital bank expressly avoids investing in fossil fuels, mining, arms and military, and instead invests in “government securities and other high quality liquid assets”.

Since Starling is a paperless, branchless bank, its carbon footprint is significantly lower than some of its competitors.

Starling’s basic business current account comes with no monthly fees or UK payment charges, free 24/7 customer support, and integration with Xero, Quickbook and FreeAgent accounting softwares. You can then customise your account with paid-for add-ons such as a ‘Business Toolkit’ to streamline your bookkeeping, and linked multi-currency business accounts. It’s an nice approach which means you pay for what you need.

It is worth noting, however, that despite its longstanding opposition to fossil fuels, in March 2021 Starling accepted funding from Qatar’s sovereign wealth fund. The fund was set up in 2005 to invest Qatar’s substantial oil and natural gas revenues around the world.

A spokesman for Starling Bank said that “one of the key roles of QIA is to reduce Qatar’s dependence on revenues derived from oil and gas and to expand investment into non-hydrocarbon sectors. That’s one reason why it has been investing in a range of well-known British brands in addition to Starling.”

Starling recently closed its One-Year Business Fixed Saver account.

Read our full review of Starling Bank

5. Tide

Tide offers business current accounts provided by Clear Bank to companies of all shapes and sizes, including freelancers, small and limited businesses and those scaling up. Tide helps to support small businesses by offering free business current accounts that you can then upgrade as your business grows.

Your Tide account will automatically tag your income and spending, with customisable labels to suit your company. You can upload receipts, auto-match them to transactions, and add a digital note if you wish. You can link to accountancy software like Xero, QuickBooks and Sage, and send, pay and track your invoices all in the app.

While a starter account is free, upgrading to £9.99 a month will get you one free expense card and 20 free transfers in and out per month. A ‘Cashback’ account, which costs £49.99 a month comes, with three free expense cards, unlimited free transactions, and 0.5 per cent cash back on your Tide card. Tide also recently introduced a ‘Pro’ account at £18.99 per month which includes two free expense cards and unlimited transfers in and out.

You can find out more about account options and pricing here.

The money in your Tide account is held in a secure ring-fenced account. This account is not used for any type of investments therefore your money is safe, and not used to invest in harmful industries.

Top 9 ethical savings accounts

6. Reliance Bank

Reliance is part of The Salvation Army, and its mission is to “serve customers and communities with compassion and integrity”. As such, it is a bank with a socially responsible conscience. Reliance prioritises its business lending to organisations that are delivering positive social impact in the UK.

Its business current account is a simple and practical current account for managing day-to-day banking transactions. It comes with a Corporate Visa debit card and chequebook for making payments, dual i-bank authorisations if you need them, a paying-in book for making deposits at any branch of Natwest or RBS, and access to i-bank (internet banking) so you can view statements and make payments online.

Reliance topped the 2022 Charity Finance Banking Survey for customer satisfaction for the fourth year in a row.

Its current account has a £5 monthly fee and there are also charges for facilities such as paying in cash or cheques and making debit card payments and cash withdrawals. You can see the full list of fees here.

Reliance also offers instant access and notice business savings accounts.

7. Monzo

App-based bank Monzo says it takes pride in being a socially responsible business.

It invests its customer deposits “safely and ethically”, does not engage in any artificial tax planning, and has “a zero tolerance approach to modern slavery and human trafficking“.

Monzo is transparent about where it invests customers’ money and the majority of deposits are held at central banks. It says: “Our investments are only in safe, high quality government bonds and quasi-government bonds (such as development banks).” Crucially, it does not invest in fossil-fuel based energy companies, arms companies or tobacco companies.

As a branchless, digital bank, Monzo has a relatively low carbon footprint, and it has a goal of reaching net zero carbon emissions by 2030.

Monzo offers a business “Lite” account which has no monthly fee and gives you the basics such as making card payments with a business debit card, free UK bank transfers, and the ability to create “pots” to separate your money. For £5 per month, its “Pro” account also offers features such as tax pots, integrated accounting, multi-user access (for limited companies) and “exclusive offers”.

Monzo offers a Business Instant Access Savings account offering 1.60 per cent interest AER/gross.

Although Monzo does not invest in fossil-fuel-based energy companies itself, it does offer savings accounts via third-party banks that do. Its partner Shawbrook Bank has been criticised by Ethical Consumer magazine.

Read our full review of Monzo

8. Tred

Tred is a new mobile app (not a bank) offering green business current accounts. Not only will it never use the money you hold with it to invest in fossil-fuels, it also donates a portion of the revenue it makes on every transaction made through Tred cards to reforestation projects. Tred offers instant payment notifications, card freezing, quick online payment verification, “and much more”.

You can connect your other bank accounts and cards to Tred with through a secure open banking connection, so that you can keep tabs on all of your business’ finances in one place.

9. Glad

Glad – due to launch soon – is a carbon removal payment card for businesses. It says it works like any other payment card, except every time your business spends money using Glad you do your bit for the planet. Glad is specifically aiming to help businesses with monthly digital advertising, hosting and SaaS bills (recurring payments) to have a positive impact on the planet.

One per cent of everything your business spends automatically helps remove carbon from the atmosphere. Glad has an ambitious goal to remove one billion tonnes of carbon (or equivalent greenhouse gases) from the atmosphere by 2050. So far, it says, combined global efforts have removed just 11.8 billion tonnes.

You can join the waiting list here.

10. Allica Bank

Allica is a bank designed especially for established businesses with between five and 250 employees.

Allica says it will not provide banking services “to any business that is heavily involved in industries we deem as harmful, such as extractive industries or animal testing.”

Its business current account offers a dedicated relationship manager, no monthly fees, and up to 1.5 per cent cashback on all eligible card spend. There is also access to an instant access savings pot with 4.33 per cent AER (variable) interest.

If you want to have a savings account, insurance policy, investment fund or mortgage from companies that do the right thing, check out our Good Eggs.

These are companies that have passed strict (independent) criteria to prove they make a positive impact – to the planet, society, and you. 

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.

Chancellor Rachel Reeves announced £40 billion of tax rises and pledged to improve public services as she delivered Labour’s first Budget in 14 years. 

With fevered speculation about precisely where tax increases would land, the chancellor unveiled big reforms to pensions, inheritance tax, national insurance and capital gains tax, but some pre-Budget rumours proved wide of the mark. 

Here, Katharine Lindley, Head of Advice at EQ Investors explains the key points and what the announcements could mean for you.

Pensions 

Reeves announced she would close the loophole on inherited pensions, which will have inheritance tax (IHT) added from April 2027. The exemption for spouses and civil partners will remain.  

The annual allowance that caps tax-efficient pension contributions stays at £60,000 with no change to the tapering rules for high earners. 

Meanwhile, the triple lock (where the state pension has to go up each year by either 2.5 per cent, inflation, or earnings growth – whichever is highest) will remain in place for the duration of this Parliament.

The State Pension will rise by 4.1 per cent in April 2025. 

Inheritance Tax 

The IHT nil rate band of £325,000 and residence nil rate band of £175,000 will be frozen for a further two years to 2030. From April 2026, the 100 per cent rate of relief from IHT will continue for combined agricultural and business assets up to £1 million, and relief will be 50 per cent on funds over £1 million (an IHT rate of 20 per cent).  

UK stocks listed on the Alternative Investment Market (AIM) will qualify for 50 per cent relief with IHT at 20 per cent.  

From April 2027 almost all pensions will be brought into the IHT net. Following pension freedoms, pensions are increasingly used to pass on wealth and estate planning will need to be reviewed.

At present, most pension death benefits are paid out at scheme discretion which means they do not form part of the estate. The proposed changes mean that schemes with discretionary disposal are included for IHT. Dependant scheme pensions and charity lump sum death benefits will be exempt. If pension benefits are paid to a spouse or civil partner, then exemptions will apply.

Despite the changes, pensions are a very tax-efficient way of building up funds for retirement. There have been no changes on tax-free cash, contributions continue to qualify for marginal rate tax-relief, the standard annual allowance for contributions stays at £60,000, and income and gains continue to roll up tax-free.

The consultation runs until 22 January 2025. The proposals will increase the administration burden on personal representatives and pension scheme administrators so the practical details could change before this comes into force.

Capital Gains Tax 

The chancellor announced that the lower rate of Capital Gains Tax (CGT) will rise from 10 per cent to 18 per cent, and the higher rate from 20 per centto 24 per cent. The changes will apply from today. 

Rates of CGT on residential property sales (excluding the main home) will remain at 18 per cent for basic rate taxpayers and 24 per cent for higher and additional rate taxpayers.  

There were no changes announced to the tax-free CGT allowance of £3,000. 

The £1million lifetime limit on capital gains from the sale of all or part of a company under business asset disposal relief (BADR) stays. However, the CGT rate will rise from 10 per cent to 14 per cent from 2025 and 18 per cent from 2026.  

The CGT rates on carried interest will increase to 32 per cent from April 2025, with further reforms due from 2026. 

From 30 October 2024, the main rates of CGT have changed:

• Lower rate increased from 10 per cent to 18 per cent
• Higher rate increased from 18 per cent to 24 per cent

These new CGT rates will match the residential property rates.

The annual exempt amount is unchanged at £3,000, having reduced from £12,300 in 2022/23.

This means that unwrapped investments will suffer higher taxes. There is no differentiation in treatment for gains built up over time nor protection from inflationary gains. It will be increasingly important to use of tax-efficient investment allowances, such as ISAs, and consider the most suitable investment wrappers and how to distribute family investments.

It was rumoured that the CGT uplift on death would be removed. No changes were announced so there is still no CGT payable on death.

Business Asset Disposal Relief (BADR) and Investors’ Relief (IR)

Business Asset Disposal Relief (BADR) and Investors’ Relief (IR) means that certain gains are taxed at a lower rate of CGT. The CGT rate for these two reliefs will increase gradually, from 10 per cent now, to 14 per cent from April 2025, and 18 per cent from April 2026 for gains up to a lifetime limit of £1million. Standard CGT rates apply on lifetime gains above £1million.

Business owners are unlikely to sell their business based on CGT rates alone. However, those approaching retirement and already intending to sell their business may opt to retire sooner and sell at reduced CGT rates.

Employers’ National Insurance hike 

Employer National Insurance (NI) will be increased to 15 per cent and the lower earnings threshold at which companies pay will reduce from £9,100 to £5,000. This will raise an extra £25 billion in tax revenue. This increase in costs for employers is likely to affect employees by scaling back pay increases or hiring plans. 

The employment allowance will increase to £10,500 from £5,000, meaning some businesses will not pay any Employer NI next year.

Stamp duty 

The stamp duty surcharge on second homes and investment properties will be increased from 3 per cent to 5 per cent tonight.  

ISA allowances

ISA thresholds have also been frozen until 2030. 

The limits will remain at £20,000 for the ISA, £4,000 for the Lifetime ISA, and £9,000 for the Junior ISA and Child Trust Funds respectively. 

VCTs & EIS commitment 

The Chancellor reiterated the Government’s commitment to the tax-efficient Venture Capital Trust and Enterprise Investment Schemes – extending these through to 2035. 

Domicile 

The concept of domicile will be removed from the tax system from April 2025 and be replaced with a new residence-based regime.  

Income Tax 

Reeves announced she would not extend a freeze on personal income tax thresholds, which has dragged millions of workers into higher tax bands. Instead from 2028-29, thresholds will rise in line with inflation, giving workers more headroom for salary growth before they hit the next income tax band. 

VAT on private school fees 

The Chancellor reconfirmed that VAT at 20% will be introduced on private school fees from January 2025 and business rate relief will be withdrawn from April 2025.  

Child Benefit still based on solo income

Child benefit will continue to be based on individual income rather than household income, meaning anyone earning £60,000 or more before tax each year must pay a high-income charge above that threshold. It means the system that punishes single earners will remain. Currently, a sole earner on £80,000 gets no Child Benefit, while two workers each on £59,000 get the full benefit.

Other measures 

The government has committed £1.8 billion to expand childcare services in a move that is a continuation of its predecessors’ plan to roll out 30 hours of free childcare for parents with children aged over nine months in England from September 2025. 

Fuel duty will remain frozen next year, and the chancellor will keep a temporary 5p cut that was introduced in 2022 after energy prices rose following Russia’s invasion of Ukraine. 

The national living wage for workers aged 21 and above will increase to £12.21 per hour from April next year. Announced on Tuesday, the rise is a 6.7 per cent increase for those aged over 21. For 18- to 20-year-olds, the hourly rate will rise by £1.40 to £10.00 per hour as the government moved towards a single adult rate. 

Clean energy mission 

Reeves confirmed plans to invest in battery gigafactories, carbon capture and storage projects, electric vehicle supply chains, domestic energy efficiency upgrades, and new green hydrogen production plants, as she promised to deliver on Labour’s pledge to turn the UK into a ‘clean energy superpower’. 

This article is sponsored by EQ Investors

Chancellor Rachel Reeves has delivered her highly-anticipated ‘tax and spend’ Autumn Budget.

For Labour’s first Budget in 14 years, Reeves announced £40 billion in tax increases – the biggest in a generation.

Here’s what it means for your personal finances and the environment.

Employers will pay higher national insurance

In what will be a big blow for owners of small businesses, national insurance (NI) contributions by employers will rise from 13.8 per cent to 15 per cent from April. The salary threshold from when employers must start paying NI will also fall from £9,100 to £5,000. These measures are expected to raise £25 billion.

Income tax threshold will go up – but not yet

Meanwhile, in a surprise move, personal tax thresholds on income tax and NI will rise in line with inflation – but not until the 2028-29 tax year.

Capital gains and inheritance tax to rise

The lower rate on capital gains tax will rise from 10 to 18 per cent, while the higher rate will rise from 20 to 24 per cent. The threshold for inheritance tax will be frozen, allowing £325,000 to be inherited tax free. Inheritance tax will also now be applied to pensions.

Minimum wage goes up

The “national living wage” – the legal minimum pay for over-21s – will rise by 6.7 per cent to £12. 21, amounting to £1,400 a year more for an eligible full time worker. For 18 to 20-year-olds, the minimum wage will rise from £8.60 to £10.

State pension to rise

The state pension will rise by 4.1 per cent from April. This means that next year’s full new state pension is set to reach £11,975.60 annually, an increase of £473.

Tax on vapes while a pints are a penny less

A tax will be introduced on vapes to bring them in line with tobacco and help curb their appeal to young people. Meanwhile draught duty will be cut by 1.7 per cent – equating to a penny off a pint in the pub.

Fuel duty frozen

The freeze on fuel duty has been extended for another year.

VAT added to private school fees

VAT will be brought in on private school fees in January 2025.

What about the environment?

11 green hydrogen production projects will benefit from funding support under the Hydrogen Business Model. Reeves allocated £125 million to Great British Energy, a new state-owned clean energy body to be based in Aberdeen. There will also be £134 million to support the delivery of port infrastructure for floating wind farms.

A further £3.9 billion has been earmarked in 2025/26 for the first carbon capture and storage clusters in the UK.

Oil and gas companies will have to pay more tax on their profits – up from 35 to 38 per cent. The 29 per cent investment allowance will also be removed.

Meanwhile, £3.4 billion has been allocated for the warm homes plan to upgrade older buildings and lower energy bills.

In a move welcomed by climate activists, there will be a 50 per cent rise in air passenger duty for private jet trips from 2027-28. This will make the tax on a single private jet trip from London to California around £450.

Carbon offsets are a way to “cancel out” your carbon emissions by paying towards projects that reduce emissions elsewhere – such as reforestation or renewable energy. But, unfortunately it isn’t quite that simple as that, as not all carbon offsets are created equal. Here, Katie Woodhouse, investment analyst at WHEB, explains how some carbon offsets can in fact do more harm than good, and how to find ones you can trust. 

As the world grapples with climate change, reducing greenhouse gas emissions (GHG) is at the forefront of global conversations. Carbon offsets have emerged as one tool to help tackle this problem. They offer a way for individuals and businesses to balance out their emissions by investing in projects that reduce or capture GHGs elsewhere.

Put simply, carbon offsets let you make up for your emissions by funding projects that remove or reduce an equivalent amount of carbon dioxide (CO₂) from the atmosphere. So, for example, if you take a flight that can’t be avoided, you could buy carbon offsets that support reforestation or renewable energy projects to “cancel out” the GHGs associated with your flight.

However, there’s a catch – not all carbon offsets are created equal. If we want to make a real difference, we need high-quality carbon offsets that deliver genuine, long-term benefits for the climate that are only used for residual emissions that remain after all feasible direct emission reduction actions have been taken.

The problem with low-quality carbon offsets

While carbon offsets can play an important role in providing flexibility and reducing the cost of a GHG reduction programme, the reality is that most offsets don’t live up to this promise. Low-quality carbon offsets can do more harm than good, for several reasons:

1. Lack of additionality: This is when a project would have happened anyway without the funding from carbon offsets. If the offset doesn’t lead to extra emission reductions, then the extra capital is wasted.

2. Permanence issues: Some projects, like tree planting, sound great, but what if those trees are cut down or destroyed later? The carbon they captured gets released back into the atmosphere, removing the initial benefit. This risk is all too evident in many areas of the world. In California this summer, 45,000 acres of trees that had been allocated for conservation and sold as carbon credits were destroyed in wildfires¹.

3. Weak monitoring: Without strong oversight, it’s hard to know if the projects are doing what they claim. Poor-quality offsets often lack the proper checks to make sure emissions are really being reduced. For example, an FT investigation found that a Shell-operated carbon capture project in Alberta registered carbon credits equivalent to double the amount of GHGs that were actually being captured by the facility².

Carbon offset best practice

A current debate in the industry revolves around when and how much a company should offset its emissions. The Science Based Targets initiative (SBTi) has traditionally taken a strict view on offsets, requiring companies to meet emission reduction targets primarily through direct reductions in their operations and supply chains. Offsets have been permitted only for residual, unavoidable emissions. And even here they have been limited to 10% of base-year emissions.

However, the SBTi recently announced an intention to revise its Corporate Net-Zero standard to enable an increased use of carbon offsets by companies to meet their goals. This prompted an immediate backlash from both SBTi employees and signatories concerned with greenwashing³. In response, the SBTi clarified that no immediate changes to the standard had been made⁴.

At WHEB, we believe that a reliance on offsets without a strong commitment to reducing emissions can delay meaningful climate action. We encourage all of our portfolio companies to research credible offsetting providers and to use offsets as a last resort, rather than a tool to postpone the more difficult task of reducing emissions.

For example, we recently engaged with Arcadis, an environmental consultancy firm held in our Global and European strategies. Arcadis currently offsets all scope 1 and 2 emissions, and its management has confirmed that they will be “ramping up” efforts to directly reduce emissions to meet a 90 per cent reduction target by 2035, with the remaining 10 per cent of emissions covered by carbon offset projects⁵.

Our Offsetting Partners

WHEB’s approach to offsetting our operational emissions, is based on a review we conducted in 2023 to identify high-quality projects and providers that we could partner with on a long-term basis. In the end we chose two providers to offset our residual emissions.

Make it Wild⁶: Make it Wild is a family-run business that purchases degraded agricultural land across North Yorkshire in the UK to regenerate natural woodland and create wetland habitats. As credits are sold, new trees are planted, photographed and mapped by drone and allocated to each buyer.  The amount of carbon sequestered is based on research from the University of Leeds and the drone mapping process prevents double-counting.

Wilder Carbon⁷: Wilder Carbon is a not-for-profit organisation that provides high-integrity, nature-based carbon offsets to buyers who are demonstrably reducing their own emissions. Wilder Carbon conducted due diligence on us as a potential purchaser of offsets. The process ensures that Wilder Carbon only work with organisations that align with the Wilder Carbon principles. The projects available on the Wilder Carbon platform all deliver multiple benefits such as locking up carbon and regenerating biodiversity as well as benefiting local people and communities, for example through flood prevention. The projects are externally validated to ensure the projects meet the Wilder Carbon Standards as well as their carbon and biodiversity uplift targets.

As more companies look to carbon offsets to meet their climate goals, we encourage buyers to focus on quality over quantity. Offset buyers should have access to detailed information about the projects they’re supporting. Whilst no carbon credit is perfect, knowing how emissions reductions are calculated, verified, and monitored is key to making sure the offsets used are effective.

¹ https://www.ft.com/content/a3eb4cd4-b9df-458a-83c0-9a38d5202a48
² https://www.ft.com/content/93938a1b-dc36-4ea6-9308-170189be0cb0
³ https://www.theguardian.com/environment/2024/apr/11/climate-target-organisation-faces-staff-revolt-over-carbon-offsetting-plan-sbti
⁴ https://sciencebasedtargets.org/news/statement-from-the-sbti-board-of-trustees-on-use-of-environmental-attribute-certificates-including-but-not-limited-to-voluntary-carbon-markets-for-abatement-purposes-limited-to-scope-3
⁵ https://sciencebasedtargets.org/companies-taking-action#dashboard
⁶ https://www.makeitwild.co.uk/
⁷ https://www.wildercarbon.com/how-it-works/

Are you brave enough to play trick or treat with your finances this Halloween? Find out if you’ve been tricked and how you can treat yourself (and the planet) to better money choices.

TRICK: Your money is with one of the Big Five high street banks

So you chose a big high street bank when you turned 18 because it offered a good deal on student finances, or your parents had always banked with them – and you’ve been loyal to them ever since. That’s all good, isn’t it? TRICK! If you bank with one of the Big Five banks (Barclays, Santander, Lloyds, NatWest or HSBC), your money is almost certainly helping to fund climate change. According to campaign group Make My Money Matter, in 2023 alone, these banks provided a terrifying $55 billion (£43 billion) to fossil fuel companies – the biggest contributor to climate change.

TREAT: Move your money to an ethical bank or building society

Ethical banks and building societies are committed to not investing in industries that damage our planet or society. Some, like Good Egg firm Triodos, go even further by only investing in companies and organisations that make a positive impact. These providers believe that profitability should not only be measured in financial terms, but also in social and environmental terms. Moving your money to a more responsible provider increases pressure on those that support destructive industries to reduce these investments.

The UK’s most ethical banks and building societies

TRICK: You don’t know where your pension is invested

When it comes to pensions, it can be tempting not to give it too much thought – as long as you’re paying into one that’s the main thing, right? TRICK! Yes, having a pension at all is a major win. But when you consider this is probably the biggest pot of money you’ll ever have, it matters where it’s invested. Not just for your own financial future, but for the planet’s. There is currently £3 trillion held in UK pensions, but right now, it’s mostly invested in companies driving deforestation and funding fossil fuels. UK pension schemes invest a shocking £88 billion in fossil fuel companies. That’s £3,000 per pension holder in businesses like Shell and BP. Plus, for every £10 you put in your pension, £2 is linked to deforestation.

TREAT: Green your pension

Greening your pension is THE most powerful thing you can do to help protect the planet. Our pensions have the potential to invest £1 trillion in climate solutions – like renewable energy – by 2035. This is HALF of the money needed to reach the UK’s 2050 net zero goal, and would not just help the planet, but your wallet too. See how your pension provider ranks on the climate here and if you’re not happy with the result, make a change.

Top 8 ethical pension funds in 2024

TRICK: You haven’t moved your savings in a while

So you put a bit of money aside each month, and it’s easy just to use the savings account provided by your bank. But do you know what the interest rate is, and what your money is being used for? If not, you’re being TRICKED! Recent research by Invested Bank shows that more than two out of five savers have not moved any of their cash to accounts paying higher rates during the past two and a half years despite Bank of England base rate changes. Not only is this a bad deal for your pocket, if you bank with one of the Big 5, it’s also a bad deal for the planet. They are beset by issues such as investment in fossil fuels, executive pay and fair treatment of customers.

TREAT: Choose sustainable 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. They are also most likely to give their customers fair interest rates on savings. See our top-paying sustainable savings accounts here.

Top 9 ethical savings accounts in 2024

Did you get a fright? Don’t be too spooked, making more conscious choices with your money means you’ll be haunted no longer.. 

Want more? Follow these eight easy steps to greening your money.

Risk warning: Your capital is at risk and unlike other ISAs, IFISAs are not covered by the Financial Services Compensation Scheme (FSCS)

If you’re keen to invest directly in projects that are working to create positive change in the UK, you can do so through an Innovative Finance ISA (IFISA).

An IFISA is a type of ISA that allows you to include investments that have been made via crowdfunded bonds or peer-to-peer loans. As with any ISA, you can invest up to £20,000 per year without paying any tax on your returns or interest. They can be a great way to add some variety and colour to your investment portfolio.

Bear in mind that IFISAs are riskier than cash savings and the level can vary dramatically, so make sure you read the risk description of the one you are interested in carefully.

Here we round up our top four investments for a green IFISA:

Ethical loans – Ethex

Ethex has a share offer with Salad Money, an award-winning ethical alternative to high-cost credit loans, providing people excluded by mainstream finance with appropriate, fair and affordable credit.

All funds raised will go towards new lending, facilitating over £60 million of affordable loans over five years for people hampered by poor credit scores. This means more people will be able to access fair and affordable finance, helping them avoid high-interest and unethical lenders. Salad Money aims to change the face of consumer credit by pressing for regulation and supplying an alternative to high-cost lending.

The target raise is £400,000 and minimum investment is £100. The target return is nine per cent, dependent on Salad Money’s performance.

Renewable energy/ fuel poverty – Ethex

Ethex has a bond offer with Energise Barnsley, a local authority and community energy rooftop solar and battery storage project in the UK.

The target raise is £3,175,000 and minimum investment is £500. The target return is six per cent, dependent on Energise Barnsley’s performance.

Education finance – Lendwise

Lendwise, which launched in 2018, matches private investors with borrowers who want to fund their studies to further their career and therefore their earnings potential. It is the UK’s only peer-to- peer lender to specialise in education finance.

The platform provides fair and flexible loans to students who have the personal merit to take postgraduate courses at top business schools and universities in the UK or internationally – but maybe not all of the funding.

Meanwhile, lenders can target a competitive return on their investment of up to nine per cent per year while also making a positive social impact. The minimum initial investment is £1,000.

The Good Guide to the IFISA

Net zero councils – Abundance Investment

Sustainable investment platform Abundance is offering a five-year investment in Southwark Council to help fund green and nature upgrades across the borough. Southwark Council has an ambitious plan for the whole borough to be carbon neutral by 2030.

The money invested will help fund climate projects such as:

• Expanding the ‘Library of Things’ (where you can hire useful household items) to new parts of the borough, which will help reduce waste and save residents money
• Key nature projects to protect and improve Southwark’s green spaces for plants and wildlife
• Green drainage projects like rain gardens that will tackle flooding
• A major green upgrade to Camberwell Cemeteries and Crematorium

The target raise is £6 million with a forecast return of 4 per cent per year, dependent on the council’s performance. Minimum investment is just £5.

Other options:

Triodos Bank – a Good With Money Good Egg company – regularly offers investments that are eligible for an IFSA. Check their website for upcoming opportunities.

Risk warning: Don’t invest unless you are prepared to lose money. These are considered high-risk investments. You may not be able to access your money easily and are unlikely to be protected if something goes wrong.

While we all know it’s something we have to do, many of us put off writing a will, leaving it until later in life. In fact, new research reveals that nearly 60 per cent of UK adults (31 million people) have not yet made a will.

But putting off writing a will means that if the worst were to happen unexpectedly, your loved ones can be left not knowing what your wishes are – and potentially with a big tax bill, too.

This World Financial Planning Day, author and expert tax planner Stuart Ritchie of Ritchie Phillips LLP Chartered Accountants, rounds up four essential elements to consider when planning your will and estate.

“Financial planning is essential, especially around your estate and final wishes,” said Ritchie, author of “Who Will Get My Money When I Die?.

“When you create a will or update it, you can look after your loved ones and those you wish to benefit under your will. It can provide a pathway to follow after you pass so that your financial affairs are properly wrapped up and no loose ends are left. This can help to ease some of the strain at a very challenging time.”

1. Determine who will manage your Estate

When you write your will, you have the opportunity to name your executor, or more likely, executors. These are the people who are responsible for wrapping up your estate and should be the people you trust to carry out your wishes. If you die intestate (i.e. without a will), you will not have executors as such, but rather certain individuals related to you will be entitled to apply for what is known as a Letter of Administration. Those individuals may not necessarily be the ones you want to administer your estate, therefore naming them in advance is essential.

2. Decide who – and who does not – get your assets and property

‘Testamentary freedom’ is an important principle in English and Welsh law. This provides people with the freedom to leave their estate to whomever they choose in their will, and without any legal obligation to provide for any particular family member or other individual. You can therefore name people as beneficiaries for specific assets. You can also name beneficiaries for any property you don’t list, otherwise known as the residue of your estate. Therefore it’s crucial to spend time considering who you do – and do not – want to receive your assets and property to ensure this is carried out as you wish.

This can also be a way to leave behind a legacy. Once we are gone, most people want to leave a positive impact on the world. A great way to do this is to support the charities or causes closest to our hearts. By having a will, you can leave a legacy to the charities or causes you wish to support and any amount given will most likely be tax efficient.

3. Choose who will look after your minor children and pets

The surviving parent will usually get sole custody of any children if one parent dies, but if both parents die, you can use your will to nominate a guardian for your minor children. Failing to nominate guardians in a will means that the care of minor children will be decided by the courts, and in turn that could mean that someone you would not have chosen will be raising your children.

For some, their pets are like their children, but contrary to perception, the law considers a pet to be property, so you can name them as a legacy in your will. As a legacy, you can name a beneficiary for your pet leaving them to a trusted friend or family member. In addition, you can even leave funds to provide for your pet’s care.

Being able to make provisions for any dependents helps give many people peace of mind, making it one of the most important reasons to have an estate plan and to write your will.

4. Safeguard your digital assets

Digital accounts and purchases, such as photographs, home videos, music and video downloads and websites form part of your property. It can feel as if they have disappeared into a digital blackhole if you do not provide for access after you have passed away.

You can decide if you want any information preserved or destroyed, but to do so there will need to be a record of your usernames and passwords, often best recorded in a password manager made available to your executors. With so much of our lives now online, this is a vital step that is often missed by many.

Ritchie said: “Whilst having these conversations is not easy or comfortable, it is essential that we break this taboo to ensure that we are able to enact the wishes of our loved ones as they would like. Estate planning is a responsible, caring and loving action, to secure your legacy and the legacy of others.”

Many DIY investment platforms now offer ‘green’ options for stocks and shares ISAs. These pool investors’ money together to put into companies and projects that are working to solve the world’s most urgent problems and build a cleaner, more sustainable world. It means you can actively choose investments that are targeted to help with the issues you care about most.

You can invest up to £20,000 into an ISA each tax year (you have until April 5 to use this year’s allowance), or up to £9,000 into a Junior ISA (JISA) on behalf of a child aged under 18. You can choose to use all of your allowance in a stocks and shares ISA or share it between different types, such as cash or Innovative Finance ISAs.

To get started, simply open an account online with the platform provider you want to invest with. Then choose the funds you want to put into your ISA.

Here are seven platforms on which you can go green with your stocks and shares ISA (in alphabetical order):

AJ Bell

Annual fee: 0.25 per cent capped at £3.50 per month (up to £250,000 invested, then at decreasing rates)
Minimum investment: £25 per month

The AJ Bell platform is fairly easy to navigate (it has a Which? award for ‘ease of use’ to prove it) and has some nice guides and articles. Within its large range of funds you’ll find a good selection of sustainable options. It currently has seven ethical funds in its ‘favourite funds’ list, which is hand-picked by experts as being most likely to bring you a steady profit. These include the highly regarded Liontrust Sustainable Future Global Growth, Royal London Sustainable Leaders and Janus Henderson UK Responsible Income funds. As well as a Stocks and Shares ISA, AJ Bell offers a Self-Invested Pension (SIPP), Junior ISA, Lifetime ISA and Dealing Account.

The Big Exchange

Annual fee: 0.25 per cent
Minimum investment: £25 per month or £100 lump sum

The Big Exchange, co-founded by The Big Issue, is an online investment platform which only lists funds that are proven to be making a positive difference to the planet and its people.

Its ever-growing list of investment funds are all rated against the United Nations Sustainable Development Goals, or “Global Goals”, for the type and level of positive impact they’re making to people and planet. Each one is awarded a gold, silver or bronze medal, with gold having the highest ability to bring about positive change. You can choose funds that tackle the issues you care about most. You can invest on The Big Exchange from £25 a month or a lump sum of £100.

Hargreaves Lansdown

Annual fee: 0.45 per cent
Minimum investment: £25 per month or £100 lump sum

Hargreaves Lansdown, or HL, is a stalwart brand, and with 1.8 million clients it’s the biggest DIY platform in the UK for personal investors.

HL is beginning to make sustainable investment a bigger part of its offering, relaunching its Wealth Shortlist in June 2020 to include responsible funds for the first time. The list is made up of funds chosen by experts as having the greatest potential to financially outperform their peers over the long term.

There are currently 13 funds in the ‘Responsible Funds’ category, which include the Liontrust SF Corporate Bond, Aegon Ethical Equity, BNY Mellon Sustainable Real Return, Janus Henderson UK Responsible Income and the Troy Trojan Ethical Income (Class X).

Simply EQ

Annual fee: 0.99 per cent for investments up to £100,000, then reducing
Fund management fees: Typically ranges between 0.25 and 0.6 per cent per year
Minimum investment: £250 per month or a £1,000 lump sum

Simply EQ is an online and phone-based investment service from Good With Money ‘Good Egg’ company EQ Investors.

You can choose from Simply EQ’s ‘Positive Impact‘ or ‘Future Leaders’ portfolios for your ISA. The Positive Impact portfolio actively screens for social and environmental impact and is designed to maximise profit while also making a positive difference to the planet and its people. Future Leaders “invests in the sustainable leaders of tomorrow.”

Triodos Bank

Annual fee: 0.4 per cent on investments up to £250,000 and 0.20 per cent on balances over this.
Minimum investment: £250

Triodos Bank, a pioneer in sustainable finance, offers four impact investment funds for you to invest in through its Ethical Stocks and Shares ISA – the Triodos Global Equities Impact Fund, Triodos Pioneer Impact Fund, Triodos Sterling Bond Impact Fund and the Triodos Future Generations Fund.

Find out more about Good With Money ‘Good Egg’ company Triodos here.

Renewable energy company Thrive Renewables has been awarded the Good Egg mark from Good With Money for the eighth year running.

Thrive Renewables invests in, develops, constructs and operates small to medium scale renewable energy projects, then offers accessible opportunities to directly invest in these clean energy projects and in Thrive itself.

The company has more than 6,300 UK investors and to date has generated more than 2.2 million MWh of clean energy. It was first awarded a Good Egg in September 2017 for its renewable generation capacity and contribution to reducing demand for fossil fuels, as well as its community engagement.

Since then it has gained B Corp status and been awarded ‘Best for the World – Environment’, putting it in the top three per cent of all UK B Corps.

The Good Egg mark: why it matters

Matthew Clayton, Managing Director at Thrive Renewables plc, said: “We are feeling very honoured to once again be awarded ‘Good Egg’ status for the eighth year running. We’re celebrating our thirtieth birthday this year, kicking off with a community open day and school visits to our largest wind farm, near Lancaster.

“With ambitious plans to double our clean energy capacity within five years, we’re excited to be developing new onshore wind projects, rolling out more rooftop solar projects and looking forward to the UK’s first deep geothermal electricity generation coming on stream later in 2025.”

The Good Egg mark is awarded to financial providers that measure up against a range of strict environmental, social and industry impact factors, taking into account the size and history of the firm and its performance.

Thrive Renewables has been successfully re-assessed by Ethical Screening, the ethical research specialist, on behalf of Good With Money. It is particularly commended for its environmental impact, which is given a rating of ‘High’. All of Thrive’s investments are in renewable energy projects (wind, solar, hydro and battery storage), reducing demand for fossil fuels and associated pollution, and therefore helping to tackle the climate crisis.

The company has built or funded 39 renewable energy projects in total in the UK, and currently has £129 million assets under management.

Other Good Egg companies include sustainable bank Triodos, online pensions provider PensionBee, ethical mortgage and savings specialists Ecology Building Society, and financial planners EQ Investors, Bluesphere Wealth, Switchfoot Wealth and Path Financial.

If you’re looking for financial providers that make a positive impact in the wider world as well as on your own pocket, our Good Egg firms are as good as it gets.

Our Good Eggs go through a strict independent screening process every year to prove that they are doing what they say they are.

But – when you’re on a mission to change the financial industry (and the world) for the better, there’s no time to rest on your laurels.

To mark Good Money Week 2024, we look at what some of our Good Egg firms have been up to in the last year, and their plans for the next.

Switchfoot Wealth

PensionBee

Romi Savova, Founder and CEO at PensionBee, said: “2024 has been an incredibly busy and successful year for PensionBee. One of our biggest milestones to date was launching our business in the US, which is the largest Defined Contribution pension market in the world.

“With around 80 per cent of the global total and a $22.5 trillion (£16.8 trillion) in assets, we’re stepping into a market full of opportunities. We’ve now also set-up our US office in New York City and partnered with State Street Global Advisors (SSGA), one of the biggest global financial institutions as we start bringing PensionBee’s simple, customer-first approach to millions of savers in the US in order to help them have a happy retirement.

“In the UK, we’ve also been growing strongly. Earlier this year we achieved Assets under Administration of over £5.2 billion with more than 252,000 Invested Customers. These milestones show the value consumers place on planning for retirement in a simple, easy-to-understand and transparent way.

“Looking ahead to 2025, we’re gearing up for even more exciting developments. In the UK, we’re preparing to launch our new Climate Plan, which will dynamically reduce investment in heavy carbon-emitters over time. This plan is part of our ongoing commitment to sustainable investing and ensuring that our customers’ have investment options that align with their needs. In the US, we’re focused on growing our market share and establishing ourselves as a major player in the pension space.”

Path Financial

David Macdonald, Founder of Path Financial, said: “I’m delighted to say that we have continued to see strong inflows into our unique ‘positive impact’ portfolios over the past year and we have also seen a lot of interest in our bespoke, discretionary portfolios which we have devised for clients with larger portfolios who require a more nuanced and granular approach to their specific values and moral standpoint.

“We saw an extraordinary capitulation to the government’s net zero commitments at the tail-end of the last administration. A world of fear, conflict and dare I say it corruption sees the old ‘dinosaur’ industries prevail at the expense of more caring and progressive solutions and that’s what we have lived through for the past couple of years. However, it’s been pleasing to see the resurgence of confidence in solutions and greener investments over the past few months. Not just in the UK but globally. And, potentially, as a new zeitgeist.

“We’ve seen strong returns from more mindful investments in recent weeks as well as a retreat in oil prices. I’m sure it’s no coincidence that this has occurred just as we’ve passed some tipping points where the provision of renewable energy seems to be emerging as the inexorable winner. After all – why would we pay a fortune for oil if there were abundant ‘free’ energy?”

EQ Investors

Ben Faulkner, Communications Director at EQ Investors, said: “October 2024 marks ’10 years in business’ for EQ Investors (EQ) and we are excited to be celebrating such a great milestone.

“The vision for EQ was to build a company that was more than just offering financial planning and investment management services. John Spiers, our Chair wanted to create a company with a strong focus on developing great relationships with clients – and to make sure everyone received a fantastic service, with shared values, shared goals, and shared purpose.

“As a staff-owned B Corp and Good Egg, we are part of a community of businesses worldwide building a more inclusive and sustainable economy. Encapsulated in our unique business model is the commitment to donate 20 per cent of our profits to charitable initiatives through the EQ Foundation. We partner with charities in the UK and overseas on a wide range of causes and projects.

“In the last few weeks, EQ has been named among the top 10 in this year’s FT Adviser Top 100 Financial Advisers list. The prestigious list reflects the leading firms in financial advice and was announced at FT Adviser’s Financial Advice Forum event in London yesterday. This is a credit to the outstanding work of our entire team who consistently provide a high-quality service to our clients.”

Thrive Renewables

Matthew Clayton, Managing Director at Thrive Renewables plc, said: “We’ve seen great progress on onshore wind this year with planning consented to extend one of our Scottish wind farms – built on the site of an old open cast coal mine – to potentially triple its generation capacity and development started on a new three turbine project in South Wales.

“Exciting progress too on some of our other investments including construction of a community-owned wind turbine in North. Ayrshire and the installation of the power plant at the UK’s first deep geothermal electricity generation project down in Cornwall, which is due to go into operation next year.

“With ambitious plans to double our clean energy capacity within five years, we’re not resting on our laurels; we have a growing pipeline of other innovative projects to be funded and built in 2025 and beyond. Operating our business as a force for good in the world is a key part of our mission too, so we were delighted to re-certify as a B Corporation earlier this year, cementing our place in the top three per cent of all UK B Corps.

“Local communities continue to be a key focus for us, both those who host our projects and also those seeking to build their own. We’re now funded £21m of community owned renewable electricity generation projects, awarded up to £30,000 in energy efficiency grants to help make shared buildings like village halls and community centres warmer and cheaper to run, and have also donated £5,000 to the Centre for Sustainable Energy’s Green Match Fund, which aims to provide more communities with the tools and resources they need to create sustainable, resilient places to live – from improving energy efficiency to preserving natural spaces and setting up social enterprises for community energy.”

Triodos Bank 

Roger Hattam, director of retail banking at Triodos Bank UK, said: “During the past year, we have continued to focus on financing positive impact, while also ensuring that we meet the needs of our retail customers.

“The money that customers entrust with us has been used to finance a wide variety of sectors including social housing, care homes, and charities. The bank has been at the forefront of private finance to support nature restoration – such as lending to tree-planting charity Avon Needs – and has also earned the top spot globally for being the most active lead arranger for clean energy projects, with customers ranging from Ember, an all-electric bus service in Scotland, to battery storage developer Harmony Energy.

“We’ve launched the Triodos Future Generations Fund, a thematic fund aimed at improving the wellbeing and development of children worldwide. Given the huge importance of creating a healthy and just future for young people, the addition of this fund to our existing portfolio provides investors with another opportunity to increase the positive impact their money has.

“Research that we commissioned earlier this year shows that 59 per cent of consumers are concerned about greenwashing in the financial services industry. Looking ahead, we expect the impact of the new FCA rules on greenwashing, combined with savers and investors’ growing awareness of the issue, to be significant in shaping green finance.”

Ecology Building Society

Gareth Griffiths, Chief Executive Officer at Ecology Building Society, said: “We were founded in 1981 by people who wanted to build a greener society, challenge the norm, and agitate for positive change in our industry. These principles still govern our decision making and our mission remains the same, but this year we’ve restated our Purpose: in a world that doesn’t add up, daring to be different is our calling, lending our power so everyone’s story gets a chance to thrive.

“We want to show how we do things differently from the rest of our industry and drive positive social and environmental change while we operate as a secure, sustainable business. In part, that will be down to our significant ongoing investment in a new technology platform, which is going to make us much easier and quicker to deal with.”

See our full list of companies with a Good Egg mark

Could your company be our next Good Egg? Get in touch.

This Good Money Week, Zoe Brett of ethical financial planners EQ Investors, rounds up three easy ways to make your money good.

As we grow ever more concerned about the world around us and our impact on it, many of us are turning our attention to how we can play our part. We donate old clothes, we recycle our waste, some of us even grow our own food. But is there a way of putting your money to work in this battle for a sustainable future? 

Not all of us have millions of pounds to donate to the endless list of causes that need support. However, that doesn’t make us powerless. Here are three things you can do to manage your finances in a sustainable way. 

Ethical Banking

In today’s world, everyone needs a bank or building society account so this can be a great place to start with managing your finances in a sustainable way. When you pay money into your current or savings account the bank doesn’t just leave it be, they effectively borrow the money until you need to withdraw it and lend it to other people and businesses.

A key consideration is where your bank or building society is lending your money. The benefactors of such loans may not be in line with your sustainability views. For example, perhaps a bank is lending to oil companies or the tobacco industry. Thankfully, finding a sustainable bank or building society is fairly easy with the likes of Good With Money doing the hard work for you and compiling a list of banks and building societies that have committed to either avoiding lending to certain harmful industries or specifically lending to particular causes.

Ethical Investing

Banking is not the only way you can put your money to good use until you need it. Investing for your future can also be aligned to your sustainability goals. Almost any investment type now has access to some form of ethical investment mandate, even many workplace pensions. Unfortunately, sustainable investment funds have been in the limelight recently for greenwashing. However, the Financial Conduct Authority has been hot on the tail of this issue and recently introduced regulations aiming to stamp this practice out.

That said, the process of selecting truly sustainable investments that will also provide a good return can be overwhelming. A good financial adviser will be able to cut through the noise for you and source a portfolio that you can have confidence in. These can range from a single fund through to well diversified portfolios of funds targeting a range of issues. Some of this may focus on a particular agenda such as climate change and others may be broader, driving positive impact across many sustainability concerns. 

Ethical Spending

Of course, managing your finances is not just about the wealth you build but also the wealth you spend. It can be difficult to know what products and companies are good eggs and which are bad, but there are now a number of ethical certifications awarded to companies products that are meeting certain ethical standards. Below are a few to look out for but there are many more depending on the cause. 

B Corp companies are assessed and ranked by B Lab on their social and environmental standards, transparency, and accountability. The purpose of B Corp is not just to be a profitable business but also be a force for good across many categories including workers, communities, customers, and the planet.

Fairtrade aims for a fair deal for all in the supply chain of products, as well as working with businesses and governments to raise workers’ standards. 

Leaping Bunny certifies a product as ‘animal cruelty free’, meaning that in no stage of the process have products or their ingredients been tested on animals.

Rainforest Alliance focuses on products that are derived from practices that protect against deforestation and protects the rights of farmers and communities. 

There are many more of these certifications to help provide consumers reassurance on the products they buy and encourage companies to move to a more sustainable model. Whether you’re moving energy suppliers, booking a holiday or grabbing your morning coffee, a quick google can help find certifications to ensure you are not unwittingly supporting something that breaches your ethical values. 

The world is changing. We are much more informed about how our money is used, what it supports, where our products are sourced and the impact of our life on this beautiful planet. Being informed and able to make meaningful choices about our time here has never been more accessible and empowering. As savers, as investors, as consumers and as humans we have the collective power to force change for the good of our planet and its inhabitants. 

This Good Money Week, Mike Appleby, Investment Manager in the Liontrust Sustainable Investment team, looks at the outlook for sustainable investment in the coming years – and how it can accelerate the positive change we urgently need. 

It is looking increasingly unlikely that the target to keep global warming to a maximum increase of 1.5C is going to be achieved. This target was agreed by almost every country in the world through the Paris Climate Agreement in 2015.

Record high temperatures have regularly been reached and there is no doubt we are changing the climate of our only planet. The consequences are predicted to be severely negative – with the added possibility of tipping points taking us into a completely new state of climate.

The energy transition

The energy transition has not stalled, however, and is making positive progress. Encouraging companies to decarbonise and investing in businesses that can drive forward the energy transition both have important roles to play in accelerating this progress. 

We invest in a total of 22 sustainable investment themes that help make our economy cleaner, healthier and safer. These themes help us understand the shifts happening and identify potential areas of structural growth, as well as areas of secular decline to avoid.

An example of the positive developments within energy transition is coal, which is plentiful, but also dirty and dangerous. In the UK, it has fallen from 66 per cent of the electricity generating mix to just two per cent over the last 30 years. In the US, usage has dropped from 55 per cent to 20 per cent. It is being replaced by cheaper and easier-to-deploy clean wind and solar. Solar is consistently cheaper than new coal or gas-fired plants in most countries, and solar projects now offer some of the lowest cost electricity ever seen with the price of its panels falling by around 95 per cent in the last 10 years. 

The war in Ukraine has been a big catalyst to wean Europe off politically risky hydrocarbons, especially natural gas from Russia. This has spurred even greater initiatives to reduce the amount of energy we waste by promoting energy efficiency, as well as replacing fossil fuel electricity generation with economically competitive renewables. Wind turbines and solar panels overtook fossil fuels to generate 30 per cent of the EU’s electricity in the first half of 2024.

The renewables genie is out

We believe the genie is out of the bottle for renewables. The International Energy Agency observed that 2023 was a record year for the installation of renewables with 507GW, an increase of almost 50 per cent, on the previous year. This is about 10 times the UK generating capacity. 

These examples demonstrate that the era of burning things for energy is coming to an end. Therefore, it is naïve to invest in the incumbent fossil fuel industries given they are going to struggle to compete economically as well as being diametrically opposed to the aim of a huge reduction in the amount of fossil fuels we burn. 

The vast majority of the technology we need to reduce emissions is available and cost competitive today. We are thus seeing the energy transition to lower carbon happening now and believe there are ways to invest in businesses driving this transition. 

Investment opportunities

By understanding which companies will experience long-term structural growth from this trend, as well as if that growth will be profitable, we now see a great investment opportunity in those businesses which help move us to a much lower carbon energy system. 

The first example is Sustainable Energy Efficiency Income Trust, which has unique projects in energy efficiency, waste streams and olive oil. One such project is in Spain with the olive oil industry. Only 10 per cent of an olive is used to produce extra virgin olive oil, with the other 90 per cent going to waste. The Sustainable Energy Efficiency Income Trust project takes the waste – olive pomace – and from that produce extra olive oil called orujo. They are then left with the waste of that process in a biomass which is used to power electricity and the heat required in the production of olive oil. At the end of the process, there is only electricity and olive oil remaining, no more waste and this is a great example of a circular economy. They are producing more olive oil without consuming any more electricity and such use of waste can be replicated for the production of other foodstuffs. 

The second example is a fund called the Atrato Onsite Energy plc and a solar farm it developed last year in Northamptonshire. This site used to be a quarry and comprises about 100 acres of land. Atrato obtained planning permission and a grid connection for a solar farm. Over the course of the last year, Atrato has installed around 55,000 panels, energised the plant in January 2024 and this energy is now supplying Britvic, the drinks company. This one solar farm can decarbonise Britvic’s UK operations by 75 per cent.

Humanity faces an enormous challenge to stabilise the climate. While we will almost certainly exceed 1.5C in warming in the coming years, every 0.1C of warming we can avoid is critical.

Sustainable investing is one point of influence that people can use to accelerate the change.

The majority of Brits have financial regrets, according to a revealing new study – but one looms larger than others.

The most common regret, cited by 56 per cent of those surveyed by Shepherd’s Friendly, is not saving more money when they were younger.

Not investing sooner came in second, with 47 per cent saying it was their biggest regret, followed by not teaching themselves about money sooner, given by 43 per cent.

The survey also highlights big differences in financial regrets between Gen Z (aged 18 to 24) compared to their parents in Gen X (aged 55 to 64).

More than two thirds (67 per cent) of Gen Z have significantly more regret about not building up savings when they were younger compared to Gen X (52 per cent), showing a stronger concern among young people about their financial stability.

Almost half (46 per cent) of Gen Z were much more likely to regret comparing their financial situation to others, whereas only 15 per cent of respondents in Gen X expressed this regret. This suggests that younger generations are more influenced by social comparison, possibly driven by social media.

The majority (58 per cent) of Gen Z felt more regret about not investing sooner compared to 46 per cent of Gen X. It appears that younger generations are more aware of the benefits of early investing due to greater access to financial information now, while older generations, with longer investment histories, experience less regret.

Top-paying ethical savings accounts

Gaps in financial knowledge

The findings also make the link between financial and emotional wellbeing, with more than one in six of those polled reporting that financial worries negatively impact their mental health. This emphasises the importance of financial education, with 60 per cent of respondents advocating for its inclusion in school curriculums. A notable 45 per cent also believe young people lack adequate opportunities to learn about personal finance.

The survey revealed that while 87 per cent of Brits said they are confident in their financial knowledge, just 49 per cent passed the financial literacy test.

Age played a crucial role in financial understanding, with only 14 per cent of 18-24 year olds passing the test, compared to 67 per cent of those aged 65 and over. Additionally, gender differences were observed, with 54 per cent of men passing the test versus 46 per cent of women.

Graham Drummond, Head of Communications at Shepherds Friendly, said: “Our survey showed that many people are unsure about things like budgeting, investing, and understanding financial products that can help them prepare for the future, such as ISAs and investing. It’s not just about knowing the terms, but really feeling confident in making decisions that affect our financial well-being. To close these knowledge gaps, we believe it’s crucial to start teaching financial literacy in schools and continue promoting it throughout our lives.

“Whether you’re looking to improve your money skills or just starting out with building up your savings, there are plenty of ways to learn. You can explore online resources, join a workshop, or chat with a financial advisor. By boosting our financial knowledge, we can all make smarter choices, feel more secure, and build a better future for ourselves and our families.”

Best auto-savings apps 2024

Two social impact organisations in the UK have received vital funding boosts from sustainable bank Triodos.

Independent care home operator Curo Care Group has bought four new care homes with a loan from Triodos Bank UK, while clean energy company Solar for Schools will be growing its network of solar-powered schools across the country with a £3 million loan.

New care homes in areas of high demand

Curo’s new homes – two in Cumbria and two in Stockport – will offer palliative, residential and respite care as well as dementia and mental health support. The four new homes have a Care Quality Commission (CQC) rating of ‘Good’ and bring Curo’s portfolio to nine homes across the North West and Yorkshire.

As with all homes owned by Curo, the four newly acquired homes will be managed as individual, independent homes with strong links to their local communities.

Curo Managing Director Mike Kneafsey was raised in one of the homes now owned by the company and continues to manage the home together with his wife Beverley.

He said: “It’s a responsibility and a privilege to give our residents a home and we take great care to make sure each of our care homes have a welcoming, friendly atmosphere where employees are supported and empowered and where strong bonds are formed with local communities. We look for homes that share this ethos and where we can give management teams the autonomy they need to provide personalised care that’s best for their residents. Each of the new homes are ideal additions to the group.”

Tom Procter, Senior Relationship Manager at Triodos Bank UK, added: “As a bank that finances organisations working for a world where everyone can thrive at any stage of life, we have extensive experience in the care sector. Curo’s ethos as a care provider is closely aligned with our own values as a bank, including its efforts to prioritise environmental responsibility such as its work towards improving the EPC ratings of its homes. As demand for care home spaces continues to rise across the country, we welcome the opportunity to support organisations like Curo in their ambitions to grow.”

Bigger network of solar-powered schools

Meanwhile, Solar for Schools Community Benefit Society will be continuing its mission to decarbonise schools across the UK with its new funding.

The Solar for Schools CBS, which is owned and governed by the schools themselves, enables schools to make savings on energy bills, reductions in CO2 emissions; and helps local authorities to progress towards their net zero targets.

While The Solar for Schools CBS currently owns and operates over 150 rooftop installations, it has over 100 schools on its waiting list. The new senior debt from Triodos Bank will be combined with crowdfunding bond finance to help the non-profit accelerate its work with around 30 more schools, including those in some of the most disadvantaged areas of the UK.

Robert Schrimpff, Co-founder of Solar Options for Schools and voluntary director of the CBS, said: “There are nearly 25,000 schools in the UK alone, requiring about £2 billion to install solar on all sensible roofs. But individually, these schools are far too small to attract low-cost project finance. Creating a funding structure that addresses the needs and limitations of each school, the councils and the Department for Education, while meeting the strict requirements of institutional lenders is therefore key to unlocking solar across the educational estate.

“Getting Triodos onboard is a vital milestone in proving that we have created such a structure. It will enable more funders to support schools with confidence. We can now focus on replicating this structure for church-owned schools, larger councils and other community energy groups to enable thousands of schools to go solar.”

Amandine Tetot, head of energy and project finance at Triodos Bank UK, added: “We’re pleased to support an incredible organisation that is not only focused on generating more clean energy, but is doing it in way that educates the next generation about the environment, energy, electricity and photovoltaics through really engaging and hands-on tools. This aligns with our mission as a bank to support projects and organisations that have the power to make a meaningful difference to the environment and peoples’ lives. We hope to be able to do a lot more lending like this in future.”

Triodos Bank – a Good With Money ‘Good Egg’ company – has been lending to renewable energy projects in the UK for nearly 30 years and has lent £85 million to over 30 community energy projects.

Are you still saving for your retirement or getting ready to draw your pension, but mystified by the jargon involved?

Just what on Earth does ‘annuity,’ and ‘defined contribution’ even mean – and why should you have to know just to get your hands on your own pension savings? If pension jargon leaves you feeling baffled and overwhelmed, you’re not alone.

New research has revealed that the majority of people at or nearing pension age in the UK are unsure of basic pension terms.

Jargon is a ‘barrier to pension planning’

The survey of retirees aged 45 to 75+ by Legal & General Retail found that around one in five (22 per cent) find complicated terminology a significant obstacle when researching pension options.

Three in 10 (29 per cent) did not fully understand the term ‘State Pension,’ almost three quarters (73 per cent) struggled with the term ‘annuity’ and even more (82 per cent) had limited knowledge of what ‘defined contribution’ means.

The research, conducted with the University of Sheffield, found that confusion over pension jargon can be a barrier to appropriate pension planning.

Alberto Montagnoli, Professor of Economics at Sheffield University said: “It’s worrying to see that financial terms are misunderstood. This could potentially lead to individuals failing to plan appropriately for their retirement. We need to make financial language easier for everyone to understand.”

The survey found that around one in five retirees (22 per cent) believe complicated terminology is an obstacle to researching pension plan options. This issue was more common among people in their 40s and 50s taking early retirement, who reported that they were most confused about complex jargon and an overload of information.

6 ways to get your pension on track sustainably

New free tool

Legal & General has created a free tool – Deciding How To Use Your Pension – to help people navigate pension income jargon. It includes explainers, links to PensionWise and expert guidance and is designed to help every retiree get the best from their pension income.

Lorna Shah, Managing Director Retail Retirement, Legal & General Retail said: “Clarity of pension terminology and the options available at retirement are key to effective planning. We are committed to providing clear, accessible information and resources to guide our customers towards informed decisions. Across our website and content, we have made a conscious effort to reduce the use of pension jargon to make it more accessible.”

Most-used jargon, busted

Let’s decode some of the jargon that you’re most likely to come across when exploring your pension options.

Defined contribution pension: These schemes take contributions from both you and your employer and invest them to provide a pot of money at retirement. Individual savers bear the investment risks.

Defined benefit pension: Also known as a ‘final salary’ pension scheme. These provide a guaranteed income after retirement, which is inflation linked (though this is sometimes capped) and usually continue paying out to spouses after you die.

Often referred to as ‘gold-plated’ due to their generosity compared with stingier and riskier defined contribution schemes, they have mostly died out in the private sector but are still often available to those working in the public sector.

Annuity: An insurance product that provides a guaranteed income for life. They are unpopular and widely condemned for being restrictive and offering poor value, but interest rate rises led to annuities becoming more attractive again.

However, many people don’t shop around for the best deal, or mistakenly buy unsuitable products that don’t take account of their health or provide for their spouse after death.

Pension freedoms: These were introduced in 2015 and apply to anyone who has a defined contribution workplace pension today. The freedoms allow you to flexibly access the money saved in your pension plan. They initially came into force for pension savers from the age of 55, but this will rise to 57 from April 2028.

Whether you’re a struggling student or the parent of one, here are our top tips to being good with money (in every way) while at university.

1. Your current account

Think about the organisation that ‘looks after’ all your worldly wealth (or lack of). Why did you choose this bank? Was it because it was the one your parents have always banked with? Or did they offer you the biggest overdraft? Maybe you were swung by a discount student rail card or even a free pizza or two? Well there’s no shame in any of that. But have you ever thought about where the money you use for your beer, new clothes, daily chai lattes, or the odd Uber, actually comes from?

Has this bank got fat on the profits of palm oil fields and fossil fuels? Is it funding tobacco, alcohol, porn or even darker industries such as child labour or fracking? To give you an idea, if you bank with one of the ‘Big Five’ high street banks (which almost three quarters of British adults do), chances are it has its fingers in some of the above not-so-palatable pies.

If you’re comfortable with that, then cool, but if not, you may want to opt for a nicer bank that doesn’t have quite the same marketing budgets to spam you with freebies into not caring. They DO exist.

Check out Banktrack to see which industries your bank funds. And then check out our top ethical current accounts that are making a more positive contribution to the environment or society.

2. Your overdraft

An overdraft, and the challenge of staying within one, is likely to feature heavily in your student finances. But not all overdrafts are the same. It can be confusing, of course. And what’s a percentage point or two between friends, eh? Well, once you’ve graduated off into the sunset, it could make all the difference in terms of what you’re paying back each month and how long that debt is allowed to linger.

3. Spending

There’s a few essentials, sure, but it is possible to economise and still be green.For example, if you have a car, do you really need it? Can you cycle, walk, or use buses and trains – often with a decent student discount. It could save you a LOT of money in running costs and you’d be making less of an impact on the planet, too.

Clothes shopping – it’s amazing what you can get barely worn on sites like eBay, Preworn and Vinted etc – this will save you money, too. If you must own the latest fashions, then think about where you shop – fast fashion may be cheap for you but not so cheap for society or the environment in the long run. For the student staple of jeans, see our top ethical options here.

Food – meat and fish (especially compassionately raised) can be expensive, but it is possible to cook some very nutritious and wholesome meals on a budget if you’re a veggie – even a part-time one. Check out Jack Monroe’s (A Girl Called Jack) Cooking on a Bootstrap for delicious budget meal ideas.

4. Saving

Saving when money’s already so tight is no mean feat. But anything you manage to put by could help out big time further down the line. To start with, it’s worth moving all the cash you don’t need in the next month to an instant access savings account. That way, it can be earning interest while you’re not using it. The interest won’t make you a millionaire, but might finance a few coffees. Just don’t forget to move it back to your current account before you need it.

For a more substantial rainy day fund, try to put aside a set amount every month. What happens if you break your phone? Or your bike gets nicked? Or your car breaks down? Anything you can manage to put by can help you out in the future.

Save money while you spend money. Auto-savings apps can round up whatever you spend on your debit card and save it into a savings account, tax-free Cash ISA or Stocks and Shares ISA. Easy as pie.

And, if you do care about the planet, you don’t have to choose a savings provider that’s helping fund the wrecking of our world while you’re spending your years trying to work out how to save it. Check out our top ethical savings accounts here, and top-paying picks here.

4. Divest, divest, divest!

You might have seen this word around campus on campaign boards or social network groups. Don’t turn off and think you can’t do anything. If you care about the future of the planet you’ll be living on for the next 60 plus years, then helping your alma mater get down with divestment – the withdrawal of funding from fossil fuel companies as a protest about their activities, could make a huge difference.

Fossil Free is a growing international divestment movement calling for organisations, institutions and individuals to demonstrate climate leadership and end their financial support for the fossil fuel industry. Already, a growing number of universities, cities, religious institutions and organisations around the world have committed to divestment. From Tobacco to Apartheid South Africa, history shows us that divestment can make real change.

Don’t forget your own money – see our easy ways to make your money fossil fuel free here.

Here’s what we think of PensionBee – an online platform that helps customers take control of their retirement by combining their existing pension pots into one new plan.

The deal

PensionBee is on a mission to transform the pensions industry by helping people take control of their retirement savings. Launched in 2016, it is now a global leader in the consumer retirement market with over $6 billion (£4.6 billion) in assets on behalf of more than 250,000 customers.

With a ‘job for life’ now mostly a thing of the past, many people end up with various pots of pensions that become increasingly difficult to keep track of as the years go by. PensionBee will help you locate all of your old pensions and combine them into one brand new, easy-to-manage plan.

You can choose from PensionBee’s range of pension plans – including planet-friendly Impact and Climate Plan options – or, if you’re not sure which one to go with, you’ll be placed in its Tailored Plan. This automatically adjusts its mix of investments to maximise growth while you’re younger and reduce risk while you’re older. Bear in mind that PensionBee does not offer financial advice, so can’t recommend a specific plan to you.

Once your pension has been set up, it will be managed by one of PensionBee’s partners including BlackRock, HSBC, Legal & General and State Street Global Advisors.

PensionBEe is a Good With Money ‘Good Egg’ company, which means it can prove it makes a positive difference to the planet and society as well as to its customers and staff.

Top 6 ethical pension funds in 2022

User-friendliness

PensionBee was born from a desire to make pensions simple and accessible to everyone, so user-friendliness is its key selling point.

Once you’ve registered by providing some basic personal details, the first step is to work out where all your existing pension savings are. If you can’t find them or don’t have the time, tell PensionBee the names of your past and current employers and your personal ‘beekeeper’ will track them down for you.

If there is an exit fee of more than £10, your beekeeper will let you know so you can decide whether to still go ahead. Also, if your old pension has guarantees – such as guaranteed annuity rates or a final salary promise – you will be sent the relevant paperwork to consider before you transfer.

On average, it takes about 12 weeks to transfer all your old pensions over. From your online ‘beehive,’ you can see your current pot balance, your projected retirement income, and set up regular or one-off contributions.

Sustainable investing options

PensionBee’s Impact Plan invests in companies tackling some of the world’s greatest social and environmental problems such as achieving better healthcare, housing, education and cleaner energy. Companies in the Impact Plan are working to support underserved communities and tackle unaddressed challenges, to help improve lives and create a better planet.

Its new planet-positive Climate Plan, launched in July 2024, replaces the popular Fossil Fuel-Free plan.

The Fossil Fuel-Free Plan was one of the UK’s first mainstream private pension plans to completely exclude companies with proven or probable reserves in oil, gas or coal when it launched in 2020.

The new “upgraded” Climate Plan continues to exclude fossil fuels but goes a step further by also pro-actively investing in companies at the forefront of the transition to a low carbon economy. Find out more here.

Both plans are considered to be higher risk than PensionBee’s other plans.

Unique selling points

• Planet-friendly options. PensionBee’s Impact and Climate plans mean you can grow your retirement savings while also helping to protect the planet for yourself and future generations.
• Simplicity. You won’t have to deal with confusing jargon or complicated processes.
• Accessible to everyone. Even if you don’t have any previous workplace pensions or are self-employed, you can use PensionBee to open a new one.

The plus points

• No minimum. There is no minimum contribution so you can pay in as often or as little as you want.
• Automatic tax relief. PensionBee will automatically claim your 25 per cent tax top up from HMRC and add it to your balance (so long as you’re eligible).
• Easy withdrawals. From age 55 (57 from 2028), you can take your pension out online through the PensionBee drawdown. Or, if you’d rather receive a regular income throughout your retirement, you can buy a pension annuity through PensionBee’s partner Legal & General.
• One annual fee. PensionBee charges one simple annual fee from 0.50 to 0.95 per cent, depending on which plan you choose (see below). They’ll ask your permission if there are ‘exit fees’ of more than £10 to move your money from an old provider.
• Personal beekeeper. You’ll be assigned a ‘beekeeper’ who can track down your old pensions, help answer any questions you have, and update your details when necessary.
• Diversified investments. PensionBee offers diversified plans, meaning that they invest across different countries and asset types (such as stocks and bonds) to keep risk down.
• No exit penalties. You are free to move your pension at any time without charge. There is also a 30-day cancellation policy.

Any drawbacks?

• No financial advice. PensionBee can’t offer financial advice so won’t be able to recommend a plan to you.
• Simplicity can mean less choice. PensionBee is all about keeping things simple, so it’s not for anyone wanting to self-select and manage the funds within their pension plan.

Cost of use 

Joining PensionBee is free and there is no charge for consolidating your pensions. Once your new plan is in place, you’ll pay an annual fee of between 0.5 and 0.95 per cent of your total pension depending on the plan you choose. This includes underlying fees paid to the managers who invest your money. The annual fee on both the Impact and Climate plans is 0.75 per cent.

Fees are halved for any amount above £100,000 to reward saving. So for example, the Tracker Plan costs 0.50 per cent up to £100,000 and 0.25 per cent for any portion of your pension over that amount.

Aviva charges an annual management fee of 0.35 per cent for its ethical self-select pension, dropping to 0.25 per cent on pots over £200,000.

The Good Guide to Pensions 2022

Other options

Similar ethical pensions worth considering are:

Nest Ethical Fund

Aviva

Labour made big promises on the environment during its election campaign trail, and its landslide victory then gave it the mandate to act on them. Tom Hollings of EQ Investors looks at what Labour’s priorities are now it has power – and how it’s going to pay for what it calls “the most ambitious climate and energy plan in British history”.

Over the course of the campaign trail Sir Keir Starmer and the Labour party highlighted their commitments to overhauling and transforming Britain’s economy, with a clear focus on sustainability and social inclusivity. 

After coming into power in July with one of the most convincing victories in recent years (winning 412 seats out of a possible 650), Labour now has a clear mandate to enact these changes and has moved quickly to do so. 

According to Ed Miliband, the Secretary of State for Energy Security and Net Zero, the Labour Party is “offering the country the most ambitious climate and energy plan in British history”.

Under Labour’s Green Prosperity Plan, two new governmental bodies have been created, the National Wealth Fund and Great British Energy. 

The National Wealth Fund

The National Wealth Fund (NWF) works to align the UK Infrastructure Bank and the British Business Bank toward investing in new industries of the future. As part of this alignment, £7.3 billion will be allocated through the UK Infrastructure Bank so that investments can start being made immediately. The NWF will look to invest £1.8 billion into ports, £1.5 billion into gigafactories, £2.5 billion into clean steel, £1 billion into carbon capture and £500 million into green hydrogen. 

Likewise, Labour is targeting to attract £3 of private investment for every £1 of public funding via the NWF, which if successful would boost total investment to £29 billion. Lisa Quest, one of the UK’s Managing Partners at Oliver Wyman, stated that “the NWF will help the UK keep pace internationally with a growing list of countries using innovative public funding tools to attract significant private capital required to accelerate decarbonisation technologies and grow their economies”.

Great British Energy

Similarly, Great British Energy is the planned public-owned company which will seek to push the UK toward energy independence, strengthen its clean energy capabilities and allegedly create 650,000 jobs across the country by 2030. According to the Labour Party, Great British Energy will reportedly generate eight gigawatts of energy by 2030 and will aim to power 20 million homes. It has been announced that GBE will be backed by £8.3 billion of capitalisation issued by Parliament and will also cover running costs through a 78 per cent windfall tax on oil and gas giants. 

In the run up to the election, Labour stated that it would spend £28 billion a year to fund their net-zero policies once in power and that they would generate £10.8 billion over five years from their oil and gas windfall taxes. However, both figures were reduced before the election took place as voters questioned the feasibility of achieving these figures. 

Questions over financing green projects

Questions around how the government plans to finance these projects remain largely unanswered; however, the government has announced that they are planning to issue £10 billion of green gilts in 2024-2025 (amounting to 0.37 per cent of 2023 GDP) and they have already issued £3.5 billion in the first two months of the financial year. 

To meet its lofty and ambitious climate objectives of becoming energy independent and powered by 100 per cent clean energy by 2030, the government may look to increase its green gilt issuance. Historically, green gilts have been consistently oversubscribed (as an example, the most recent green gilt issuance was covered 3.5 times over), reflecting strong investor appetite and indicating promising potential to meet future debt financing needs. 

By way of comparison, green gilt issuance in 2022 to 2023 raised £10 billion; of which almost half was allocated to clean transportation. This is contrasted by Labour, who have outlined their preference to allocate toward renewable energy instead. 

Nevertheless, sentiment around Labour’s push for a more sustainable economy has been met with cautious optimism from investors. The previous Conservative administration often flip-flopped on climate proposals, leaving potential investors nervous to put money into sustainable investment solutions. Labour, however, has delivered more steadfast rhetoric which should leave potential financiers more at-ease with committing capital for the longer term. 

PensionBee has launched a new planet-positive pension plan for retirement savers wanting to do good with their money.

The Climate Plan will replace the popular Fossil Fuel-Free Plan, which was one of the UK’s first mainstream private pension plans to completely exclude companies with proven or probable reserves in oil, gas or coal when it launched in 2020.

The new “upgraded” plan continues to exclude fossil fuels but goes a step further by also pro-actively investing in companies at the forefront of the transition to a low carbon economy.

A spokesperson for PensionBee, a Good With Money ‘Good Egg’ company, said: “At PensionBee, we’re committed to listening to our customers, therefore, we’ve been closely working with one of the world’s largest money managers, State Street Global Advisors, to create a new upgraded plan that reflects our customers’ views.

“By investing in this plan, your pension would increasingly be investing in companies that are at the forefront of the transition to a low carbon economy, and those positioned to mitigate risk and capture the financial opportunities that it brings.”

Adding to fossil fuels commitment

The Climate Plan adds to the previous plan’s commitment not to invest in fossil fuels by tightening its exclusions. It will not invest in companies that have “ties to fossil fuels based on revenues, power generation and reserves”.

This is because companies without fossil fuel reserves can still have significant exposure to fossil fuels; for example many utility companies use fossil fuel-based power generation but don’t own the reserves themselves.

The move comes in response to feedback from PensionBee customers that they wanted to send a stronger message to big polluters by excluding fossil fuel producers and other sectors while also investing in companies better prepared for the shift to a low carbon economy.

A survey in February 2024 revealed that 98 per cent of customers on the Fossil Fuel-Free Plan wanted to add more fossil fuel screens to their pension and 62 per cent wanted to cut down exposure to carbon intensive industries over time by investing more in green revenues.

The Climate Plan follows the ‘EU Paris-aligned’ benchmark, which is aligned to the Paris Agreement goal to limit the rise in global temperatures since pre-industrial levels to well below 2°C.

Like the Fossil Fuel Plan, the Climate Plan is 100 per cent invested in equities (company shares) and therefore considered a higher-risk option than PensionBee’s other plans. The annual management fee remains at 0.75 per cent of your pension balance. This fee is halved on any amount in your pot over £100,000.

Find out more about the Climate Plan here.

Risk warning: As always with investments, your capital is at risk. The value of your investment can go down as well as up, and you may get back less than you invest. 

Given this is ‘UK Savings Week‘, now could be the perfect time to kick off a new savings habit. The fact we’re now in September, after the blow out of summer, also somehow makes starting afresh with our finances more appealing (and necessary!).

It’s not as hard as you might think – you just need to learn a few tricks to become your very own carrot (or donut, if that’s more appealing to you), and your very own stick.

Here’s how:

1. Decide what you are saving for

.. then imagine having it. Most people are saving for either short or long term goals, or ideally both. Short term are things like holidays and Christmas. Long term are things like a house, children’s university fees and retirement. The imagining part is very motivating. This is your carrot. So if it is a first home, visualise the type of home you want, go on Rightmove if it helps and search for homes in the area you want to live in within a realistic price range. How much will you need to save to own that home? Carrot.

Or, if you are finally starting to save for retirement, imagine how you want to live in retirement. According to research by University College London, we experience the same lack of connection with our future selves as we do with complete strangers. It can help to explore how we see our lives in the future to help encourage long-term saving. Time to visualise how you will be in your eighties. Purple rinse? No. Drum kit? Yes. House in Tuscany? Definitely! Lots of carrots if you think about it.

Top 9 ethical savings accounts

2. Be your own stick

This is a far less positive way of self-motivating, but it can work, depending on what type of person you are. To be your own stick, you have to imagine what will happen if you DON’T save. No own home, no drum kit when you are 80, credit cards at Christmas and no holidays. Confront the harsh realities. Not pushing yourself to save hard enough? Work out how long it will take to save up, say, £10,000 at different monthly contribution amounts and different rates of interest (this is a great savings calculator). If you can eke out an extra £100 a month, you will be pleased you did after five years.

3. Budget

Work out what you can afford to save. Even if it is £50 left over at the end of the month after all your outgoings, that’s something and will add up over time. If you want to save more than you currently have spare, work out what you can cut out of your life, like little subscriptions to apps or magazines you don’t use or read (many of us are guilty of making lots of tiny, harmless-looking spends throughout the month, but they really add up. DO sweat the small stuff – you’ll notice the difference!) Even shaving £10 a week off your shopping bill by cutting out meat and/or booze will help. An app can help with spending monitoring. You could try Cleo or Moneyhub and digital banks, such as Starling, promise to put people in closer touch with their money.

Where to fix your sustainable savings

4. Got debts?

You can still save or invest on top of paying off debts if your interest rates on your debt are significantly lower than what you expect to earn on the savings. But saving while paying off debt does depend how much debt you have, how you are coping with the repayments and the interest rates you are being charged – it is not a strategy for the faint-hearted and you will need to constantly monitor your returns/ rates to make sure you are still quids in not quids out.

5. Choose your place to save (or invest) wisely.

If you don’t think about money much, you are likely to (mistakenly) reach for the bog standard easy saver account that is offered by your current account provider just because it is there, you don’t have to shop around and it is easy to set up.

Opt for this, and you will probably be stuck with lower returns on your savings than you could get for not much extra hassle elsewhere. This is especially true if you bank with one of the Big Five high street banks, which were recently called out by the Financial Conduct Authority for failing to pass on interest rate rises to customers.

Time to get that stick back out again. If you invested £100 a month for two years, the difference between earning one per cent and five per cent on your money would be the difference between a total sun of £2,423.14 at the end, versus £2,518.59 – nearly £100 extra in interest. It’s therefore surely worth a couple of hours of shopping around. See our top-paying ethical savings accounts here.

For stocks and shares ISAs (try ‘Good Egg’ firm EQ Investors, which does Positive Impact Portfolios, The Big Exchange, Interactive Investor, Hargreaves Lansdown, which lets you choose your own funds, or Moneyfarm for ultra simple – but less positive impact-making – “robo” investing).

For Innovative Finance ISAs we like Ethex and Triodos (another Good Egg). These are more likely to deliver higher returns on your money than a bog standard cash ISA or instant access account from a high street bank, but the downside is these involve higher risk and sometimes require higher minimum investments.

If you are saving to buy your first home, don’t forget the Lifetime ISA. For every £1 you put in, the government adds a 25 per cent bonus – this could add up to £1,000 of ‘free money’ a year if you max out your contributions. However, there are penalties if you take your money out for anything except a first home or pension.

Whatever you do, read about platform charges for trades and exits and what the admin fees are – it’s alarming and off-putting when you finally start investing to find that significant chunks are disappearing every time you move money around – and to make life really complicated, all platforms have different charges – and all say theirs are the fairest.

Top 8 platforms for a green stocks and shares ISA

6. Prioritise your pension

There are lots of ways to create a bit of extra spare cash – instant coffee instead of flat whites, etc. One of them is absolutely NOT to scrimp on your pension contributions. Yes, people like to save for different reasons, but it is not a good idea to reduce how much you save for your long term financial future just so you can afford a 5* break to the Maldives next year. It just isn’t. This is your stick again. Providers such as Good Egg firm PensionBee make it easy to find, consolidate and manage your pension. If you want your retirement savings to protect the planet as well as your future you could consider its Impact Plan or newly launched Climate Plan.

6 ways to get your pension on track sustainably

7. Make your savings like jam – different pots for different types

You save for different purposes, so it can be worth separating each purpose into a different “pot” or different account, so you can say: “I have my holiday savings here, and my kids’ savings there and never the two shall be confused or misused.”

8. Get into micro-investing

No longer is it the case that only people with huge amounts of spare money can invest. It’s now easier than ever to invest small amounts. Apps like Moneybox, Plum and Chip round up your spending to the nearest £1, and stick the difference in an investment account, weekly (or savings if you prefer) so you really don’t even have to think about it. You’d be amazed at what you can build up in this way.

Best auto-savings apps

Now, what are you waiting for? Get saving!

Unity Trust Bank, a business bank that prioritises social impact alongside profit, has made a 40th birthday pledge to donate £40,000 to charitable causes this year.

Central to the goal is a new scheme that will provide grants of £5,000 each to three socially-minded organisations to support their own projects. This follows donations of £20,500 to 24 good causes across the UK so far this year, putting the bank well on course for hitting its target.

Founded by the Co-op Bank and trade unions in 1984, and now fully independent, Unity helps organisations in the UK to prosper while creating measurable economic, social and environmental change.

The latest grant scheme, which launched on September 2, is part of the bank’s employee-led ‘Unity & Me’ programme. This was established in 2022 to support staff to deliver projects that bring positive outcomes for employees, communities and the planet.

Unity Trust Bank: 40 years of banking for impact

‘Our values are at the heart of everything we do’

Catherine Tierney, Credit Risk Manager at Unity, and lead of Unity & Me’s Donations arm, said: “Being part of a bank with a social conscience means that our values are at the heart of everything we do. Our voluntary salary sacrifice scheme and fundraising activities form part of the fabric here at Unity as we work to give back to society.

“This year marks Unity’s milestone 40th birthday, so we wanted to do something extra special to reflect the bank’s commitment to deliver positive social impact in local communities.

“Unity has increased its charitable donation contribution to sit alongside funds raised by staff. This year, Unity aims to reach our £40,000 goal and the new Unity Impact Grants offer is a major part of our goal.

“Unity has already supported multiple good causes throughout the year, and we are well on the way to reaching our 2024 target having so far allocated £20,500 to 24 good causes across the UK, including organisations that have been chosen directly by Unity employees.”

Previous 2024 projects

Organisations include the London homelessness charity, Providence Row, through sponsorship of its rooftop vegetable garden; the Mazi Project’s community kitchen in Bristol, which helps disadvantaged people learn new skills; and the John Thorton Young Achievers Foundation in Dorset, which provides scholarships and bursaries for young people.

Other fundraising activities include the recent Welsh 3 Peaks Challenge, where 11 Unity colleagues raised £3,700 by climbing Pen Y Fan, Cadair Idris and Snowdon inside 24 hours. This will be matched £2:£1 by Unity making a total donation of £11,100.

This year, Unity received the prestigious King’s Award for Enterprise for Sustainable Development in recognition of its work supporting socially-minded customers and its own commitment to responsible business practices. It was also named as one The Sunday Times’ Best Place to Work.

For further information about the Unity Impact Grants programme and details on eligibility and how to apply, see here.

The Fair Tax Foundation, which runs the gold standard in responsible tax accreditation for businesses, has launched a £450,000 community share offer.

The social enterprise plans to use the funds, raised through positive impact platform Ethex, to grow the number of businesses accredited to its pioneering Fair Tax Mark five-fold.

Across the globe, 35 per cent of multinational profits (£1 trillion) are artificially shifted to tax havens each year, robbing the public purse of funding for vital public services such as transport and healthcare. The UK suffers from a corporate tax shortfall of £12.5 billion each year because of this multinational profit-shifting.

Ten years ago, the Fair Tax Foundation saw there was another way to do business. The Fair Tax Mark is central to a movement of progressive businesses that are proud to pay their taxes and celebrate the enormous contribution this makes to public services.

Growing the business five-fold

Around 250 distinct trading businesses are Fair Tax Mark accredited, including FTSE-listed companies such as SSE and Marshalls, and household names such as Lush, the Coop and Timpson. Collectively, Fair Tax businesses employ over 275,000 people and contribute more than £1.7 billion in corporation tax annually.

The Fair Tax Foundation says it will use the new investment to add hundreds more accredited companies to the scheme, ensuring a combined
corporation tax contribution of more than £8.5 billion per year.

Fair Tax Foundation Chief Executive Paul Monaghan said: “This share offer is a rare opportunity to buy community shares in, and become a member of, the Fair Tax Foundation – with subscribers becoming shareholders in the Society alongside existing members.

“We believe the more businesses that stand up for responsible tax conduct, the more likely legislators are to create better laws, and the more likely regulators are to implement those laws robustly. Since our inception a decade ago, much has been achieved in reversing the global race to the bottom on corporation tax. But there is still so much more that needs to be achieved, both in the UK and across the globe.

“By supporting us to scale up our business, investors will help expand our influence, bolster public coffers and help steer the economy in a more enlightened direction at this critical moment in history.”

Projected returns of six per cent

The minimum investment is £200 and there is an initial six per cent projected return for investors – however, any capital invested is at risk and returns are not guaranteed.

Ethex CEO Lisa Ashford said: “We are very excited to offer our community of investors the opportunity to support this share offer. We see it as a great chance to use your money to help create a more just and equitable world where corporations pay their fair share of tax and everyone in society can reap the benefits.”

The Fair Tax Foundation was established as a not-for-profit social enterprise in 2014, and is registered with the UK’s Financial Conduct Authority as a Community Benefit Society.

Risk warning: This is considered a high-risk investment. Returns are not guaranteed and your capital is at risk. 

The cost of a moderate retirement for couples now sits at £36,480 a year, according to new data.

In the UK, 12.2 million households don’t have the pension savings required to retire at this “moderate” financial threshold.

Planning for retirement might seem like a distant concern, especially for younger adults, but the sooner you start thinking about your pension the better. Not only will you have more time for your nest egg to grow, but you’ll also have peace of mind knowing your future self is taken care of.

In today’s world, many of us are also increasingly concerned about the environment and social responsibility. The good news is, you can get your pension on track for a comfortable retirement while aligning your investments with sustainable practices.

Top 8 ethical pension funds

Here are some top tips:

1. Understand your workplace pension

The first step is to grasp what you’re currently working with. Familiarise yourself with your employer’s pension scheme. Find out what type of pension it is, defined contribution (commonly known as a personal pension) or defined benefit (also known as final salary), how much you and your employer are contributing, and where the money is being invested. Many pension providers offer online portals where you can access this information easily.

*Workplace pensions are regulated by The Pensions Regulator.

2. Increase your contributions (if possible)

Even small increases in your contributions can significantly impact your pension pot over time. Look at your budget and see if you can afford to bump up your contributions by one to two per cent. Remember, these contributions are typically made before tax, lessening the sting. If your workplace pension scheme doesn’t allow you to do this, then you can investigate the option of setting up your own private pension.

3. Make use of employer matching

Many employers offer matching contributions, essentially giving you free money! Don’t miss out on this valuable benefit. Contribute enough to maximise your employer’s match. It’s like getting an instant return on your investment.

4. Escape the ‘default’ option

More than nine in 10 people remain in their workplace pension providers’ ‘default’ investment option. This is unlikely to be the most sustainable choice. Engage with your plan to learn more about where you could invest your potential to better align with your values.

5. Regularly review your pension

Don’t ‘set it and forget it’. Your financial situation and risk tolerance may change over time. It’s wise to review your pension plan at least annually. This allows you to adjust your contributions, investment strategy, and overall retirement goals as needed.

6. Seek professional advice (if needed)

Pensions can be complex, and navigating the different options can be overwhelming. If you feel unsure about any aspect of your pension, consider seeking professional financial advice. A qualified adviser can help you understand your specific situation and develop a personalised plan to achieve your retirement goals.

Top 9 ethical financial advisers

Sustainable investing terminology

It can be challenging to interpret all the terminology around sustainable pensions. Some funds labelled ‘green’ may not be quite as they seem.

Here are some terms you might encounter when exploring sustainable investment options for your pension:

Responsible investments: This is where holdings deemed to harm People or Planet are filtered out, usually through excluding certain sectors of the
economy.

Sustainable investments: Here, sustainability factors form a core part of the investment decision process.

Impact investments: These investments are chosen based on their opportunity to deliver a measurable positive impact on environmental and
social factors.

Getting your pension on track for a sustainable future is a marathon, not a sprint. Start early, make informed decisions, and don’t be afraid to seek help. By following these tips, you can ensure a comfortable retirement while making a positive impact on the world.
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At Switchfoot Wealth, we provide support for individuals and businesses looking for a long-term plan in a changing climate. Contact us today to learn more.

*Your capital is at risk. A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available.

There’s something about coming back from holiday, full of chips, ice cream and time for contemplation, that makes you want to finally get to grips with your finances.

Going from slow summer days to more predictable work and school routines gives September a far more new-year-y feel than New Year itself. It’s a chance to start afresh.

With climate change and other big world problems getting harder to ignore, now is also a great time to ensure your money is in line with your morals – this means choosing providers that prioritise the planet and people as well as your pocket.

Here are six money tasks for September that can be sorted easily, and sustainably.

1. Your spending

Spent too much on holiday? Join the club. September is a fantastic time to rein in the spending and set some new good habits. Cut out anything you don’t need for a bit – unnecessary subscriptions to music or TV services, for example.

Reduce expensive food waste (which will help the planet, too) by trying a recipe box service such as Green Chef (get 45 per cent off your first box here) or Hello Fresh (get 60 per cent off your first box, 20 per cent off for two months and free desserts for life here).

Try more veggie or vegan meals. A study by Oxford University found that people who follow a vegan diet could cut their food costs by up to one third. It’s also better for the environment as meat production drives deforestation and carbon emissions. 

Cutting down on the booze after a summer of Whispering Angel at sunset is also a major cost cutter – and easier in September than in other months.

2. Your mobile phone contract

It’s always worth shopping around for a new phone deal, once your current one comes to an end – just beware of price hikes for new customers from some operators.

If your smartphone is still fit for purpose, getting a SIM only deal could save you a lot of money. Instead of paying off a new handset, you’ll only need to pay for data, calls, and texts.

When it comes to sustainable options, we love The People’s Operator (TPO) because of its commitment to good value AND values. The company offers pay as you go and pay monthly deals through Three, and funnels 10 per cent of its profits into charities chosen by its customers. It also contributes to a circular economy by extending the life of old devices.

Or, if you’re in need of boosting your credit score, we recently discovered Boshhh. It describes itself as “a revolutionary mobile phone network designed to help users build their credit scores effortlessly”.

3. Your energy supplier

OK, this won’t be high up your list until you turn the heating on. But when those higher heating bills start rolling in, we promise sorting out your supplier now will pay off. It’s been a while since switching provider has offered any kind of gain, but better deals are now trickling in – especially when choosing renewables.

Ecotricity, Good Energy, Octopus Energy, 100Green and SO Energy are all good green choices. Look out for a growing number of financial rewards for actively participating in making energy smarter, greener and cheaper. 

Top 5 green energy providers

4. Your savings

If you’ve got some savings in a low interest savings account with a high street bank, consider getting them out. The big five banks – HSBC, Barclays, Santander, NatWest and Lloyds – have been named and shamed by the Financial Conduct Authority for failing to pass on interest rate rises to savers. That’s before you even get into how bad they are for the environment.

Ethical providers are not only fair to the people and the planet (they won’t invest in harmful industries, and some actively invest in positive ones), they also treat their customers fairly.

Check out our top-paying ethical savings accounts and the most ethical banks and building societies in the UK.

5. Your investments

Start some if you have none, and consider increasing your contribution if you have some. Stocks and Shares ISAs, into which you can invest £20,000 a year without having to worry about paying tax on the gains or returns, are the first stop.

A growing number of people are choosing Stocks and Shares over Cash ISAs, thanks to them providing higher returns on average, according to the latest government figures. If you fancy joining the investment converts, and want to make a positive impact with your money too, read our Good Guide to Impact Investing. But remember investing involves risk and should be considered for the long-term – not for something you need to pay for in six months’ time.

Platforms like The Big Exchange and Interactive Investor, as well as wealth managers like EQ Investors – a Good Egg firm – all offer sustainable portfolios you can invest in easily online. The first two have a minimum monthly investment of just £25 (for Simply EQ it’s £100). Another useful resource is our free Good Investment Review, which looks at a growing universe of impact funds.

6. Your current account

If you feel like your bank is fleecing you every time you go a bit into the red for a second, consider one of these more ethical offerings. We like Good Egg firm Triodos Bank,  The Co-operative Bank, Nationwide and Cumberland building societies and digital bank Starling.

Top 7 ethical current accounts

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.

The Earth is experiencing its largest loss of life since the dinosaurs were wiped out, according to scientists, and it’s being driven by human behaviour.

How we farm, pollute, drive, heat our homes, and consume is far beyond what the natural resources of our planet can sustainably provide.

In October, global leaders will gather at COP16 in Columbia to take stock of their progress on critical targets to protect the Earth’s biodiversity and live within planetary boundaries.

It will be the first biodiversity COP since the adoption of the historic Kunming-Montreal Global Biodiversity Framework at COP15 in December 2022 in Canada. The framework aims to kickstart “urgent and transformative action by governments, and subnational and local authorities, with the involvement of all of society, to halt and reverse biodiversity loss.”

It follows the epic failure of the Aichi biodiversity targets, which were agreed at COP10 in Japan in 2010. Governments pledged then to halve the loss of natural habitats and expand nature reserves to 17 per cent of the world’s land area by 2020, among other targets – and failed on every count.

So what’s the role of finance?

The financial industry has a pivotal role to play in helping to turn the tide on biodiversity loss by shifting investment away from businesses and projects that destroy the natural environment, and towards those that are regenerating it.

Just as climate change has caught the attention of investors in recent years, the intertwined issue of biodiversity loss is also now becoming a top priority. This has led to a flurry of ‘biodiversity funds’ popping up. But, as always, some will be more effective at making a genuine impact than others.

Here are four that we like:

1. UBAM Biodiversity Restoration fund

This specialist global equity impact portfolio, launched in December 2021 by Union Bancaire Privée, aims to deliver positive returns by investing in businesses that are enhancing the protection and restoration of the natural world. The fund – available through platforms such as Hargreaves Lansdown and The Big Exchange (where it hold a gold medal for impact) – invests in so-called biodiversity ‘fixers.’ These are:

1. Companies that are reducing biodiversity loss through their core activities
2. Companies that have huge supply chains and are taking their impact on biodiversity and their responsibility seriously.

With the latter, UBAM looks to make a positive impact through engagement; with the help of its NGO partners it helps to set goals for the companies and works with them as investors to achieve them.

What’s more, UBAM invests 25 per cent of its management fee with two world-leading conservation organisations: the Cambridge Conservation Initiative (CCI) and the Peace Parks Foundation for their work in conservation and policy-making.

Victoria Leggett, fund manager of the UBAM Biodiversity Restoration fund, said: “It’s time to broaden the focus from ‘carbon-neutral’ to include ‘nature-positive’. The level of awareness of the biodiversity crisis is where climate change was five to 10 years ago, and there is now a huge amount of momentum behind it, including the UN’s ‘Decade on Ecosystem Restoration’ and COP15 on biodiversity”.

 Top 7 platforms for a green stocks and shares ISA

2. Federated Hermes Biodiversity Equity Fund

The Biodiversity Equity Fund, launched by Federated Hermes in March 2022, invests in a concentrated portfolio of best in class companies, which help to preserve or replenish biodiversity. Its investment themes include land pollution, marine exploitation, sustainable living, climate change, farming and deforestation. For each company, Federated Hermes analyses financials, ESG (environmental, social and governance) factors, and completes a biodiversity assessment.

It measures and reports the positive net impacts of its portfolio such as clean energy megawatt hours generated, megatons of waste recycled, and hectares of forest protected.

Ingrid Kukuljan, Head of Impact and Sustainable Investing at Federated Hermes said: “The negative impacts of biodiversity loss pose a systemic risk to the global economy and we must stop taking nature’s permanence for granted.

“We believe now is a crucial moment to invest in the companies that help mitigate biodiversity decline. We are convinced that there is a cohort of quality, investible, stocks which provide investors profitable access to this megatrend.

To help inform their investment decisions, the fund team uses the innovative Biodiversity Trends Explorer, a tool developed by the Natural History Museum. Its Biodiversity Intactness Index (BII) estimates the loss of biodiversity across an area using a combination of land use, ecosystem, species and population data.

Top 9 ethical financial advisers

3. Fidelity Biodiversity Equity Fund

Launched in September 2022, the Sustainable Biodiversity Fund from Fidelity invests in a global equity portfolio of companies helping to preserve biodiversity.

It aims to bring capital growth by investing in companies that “enable the stabilisation or mitigation of biodiversity loss through technologies and solutions that (among other things) reduce the impact of climate change, pollution and over exploitation of natural resources.”

It sees opportunities for investors in areas such as agricultural efficiency, circular water usage, waste-water treatment and research and development of new biodiversity-friendly solutions:

The Fund’s portfolio manager Velislava Dimitrova said: “In the past, market participants have taken nature for granted, viewing this capital stock as a perpetual resource. But evidence shows that nature continues to degrade as a result of human activity.

“The world is now waking up to the urgent threat to biodiversity and natural capital. Biodiversity investment solutions are emerging as the largest investment megatrend in our generation and provides opportunities for investors . The theme is at an inflection point, and belatedly transforming from a neglected risk into a top priority.”

4. AXA WF ACT Biodiversity Fund

The AXA Biodiversity Fund aims to mitigate biodiversity loss by investing in companies offering innovative solutions to address issues such as pollution on land and water, land degradation, fauna and flora protection, desertification, and overconsumption.

Launched in April 2022, the fund focuses on four  themes that address biodiversity loss:

1. Sustainable agricultre
2. Responsible production and consumption
3. Resilient infrastructure
4. Technology enablers

Anna Vaananen, Head of Listed Impact Equities and manager of the fund said: “The development and prosperity of future generations rely on the joint efforts of governments, corporations and consumers working together to safeguard our natural capital. Naturally, this is also a key consideration for long-term investors like AXA IM. Crucial to this effort is recognising industry leaders that offer scalable and viable solutions to protect and preserve biodiversity through their products and services or their operational practices.

Risk warning: Investing involves risk. The value of your investments and the income from them can go down as well as up. You may not get back the full amount you invested. Information on past performance is not a reliable indicator for future performance.

The climate crisis presents an ever-urgent threat to the health of our planet, and we can all take meaningful action to help avoid its worst effects.

By taking our money OUT of current account, savings, cash ISAs and investment funds that are still funding fossil fuels – the biggest driver of climate change – we can collectively make a big impact. This kind of action also sends a strong message to financial providers that it’s not ok to focus solely on profit at the expense of the planet and society.

Here’s our guide to getting your money away from fossil fuels, and towards providers that are helping to build a more sustainable future.

Consider your current account 

The bad news is that most high street banks and big-name providers are involved in financing fossil fuels – see our top 5 least ethical banks (Barclays, HSBC, Santander, NatWest and Lloyds).

The good news is that it’s never been easier to ditch them for good and switch to more planet-friendly alternatives.

For the gold standard in sustainable banking, you could opt for Triodos Bank. A Good With Money ‘Good Egg’ firm, it will ONLY lend your money to companies and organisations that are making a tangible positive impact.

Building societies such as Nationwide and Cumberland are owned by their customers and will not invest in destructive industries. We also like The Co-operative and digital bank Starling.

Top 6 fossil fuel-free current accounts

Switch your savings and cash ISAs

Good Egg firm Triodos Bank actively invests in low-carbon initiatives. It also publicly discloses the companies and organisations it invests in, which sets a great standard in an industry that is resistant to transparency and accountability. Triodos also offers financial services to a range of positive impact projects such as organic food and farming businesses, renewable energy enterprises, recycling companies and nature conservation projects.

Charity Bank uses its savers’ money to lend to social enterprises (including renewable energy projects) and charities and like Triodos, it publicly discloses its investments. It carries out a social impact assessment for each loan.

Ecology Building Society, another Good Egg firm, focuses its lending on projects that offer the greatest gains in terms of carbon reductions and environmental impact. Its ethical lending policy prioritises sustainable housing practices, sustainable lifestyles, sustainable economic activity, and other ecologically positive projects and ventures.

Fixed rate bonds can be a great option for a higher return on your savings if you’re prepared to lock your money away for a set period.

The good news is that your money can also make a positive impact on the planet and society while it’s earning interest for you.

What are fixed rate bonds?

Also known as fixed rate savings, these accounts pay interest at fixed rates for a set term, usually ranging from six months to five years. Typically the longer the term of the bond, the higher the interest rate will be. You can get some of the best rates on the market in return for not being able to access your money until your term ends.

Who are fixed rate bonds best for? 

Unlike ordinary savings accounts, most bonds don’t let you add money little by little; you need to deposit all the money you want to save when you open the account (usually within 14 days).

Therefore they’re a good option if you already have a lump sum of money that you want to grow for a few years, perhaps to buy a car or holiday. If you are looking to lock your money away for longer, you would get potentially higher returns by investing it.

Here are our picks for the highest-paying ethical fixed rate bond accounts:

1. Tandem Bank 

• One year Fixed Saver Account – 5.12 per cent interest gross/AER
• 18 months Fixed Saver Account – 4.80 per cent interest gross/AER
• Two year Fixed Saver Account – 4.40 per cent interest gross/AER
• Three year Fixed Saver Account – 4.10 per cent interest gross/AER

Why is it ethical? 

Digital challenger bank Tandem aims to be a “greener, more accessible bank for people across the UK”. It guarantees that your savings are never used to fund fossil fuel extraction and production or similar destructive industries. Instead, money held in its savings accounts is used solely to fund its lending products.

Tandem’s home improvement loans finance energy-efficient improvements such as solar panels and air source heat pumps, saving people money on energy bills while also helping to save the planet. ​​Tandem’s EPC mortgages reward customers who own energy-efficient homes.

Your savings are covered up to a total of £85,000 by the FSCS.

Key terms: Save anything from £1 to £2.5 million. No early access to your savings is allowed.

Find out more about Tandem Bank in our full review

3. Coventry Building Society

• Fixed Bond (344) until 31st August, 2026 – 4.35 per cent interest gross/AER

Why is it ethical? 

As “mutual” organisations, building societies are owned by their customers and not shareholders.

This is important because it means they behave differently – better. Shareholder-owned companies tend to aim for maximum profits as quickly as possible, which can result in some less-than-ethical decision-making, whereas building societies’ interests are the same as their customers’ interests. Therefore, good products and service are as important as profits (and these go back to members anyway).

Your savings are covered up to a total of £85,000 by the FSCS.

Key terms: Deposit £1 to £250,000. No early access to savings allowed. The term ends on 31st August, 2025.

Top 7 ethical current accounts

6. Gatehouse Bank

• One Year Woodland Saver at 4.90 per cent expected profit 
• Three Year Woodland Saver at 4.52 per cent expected profit

Why is it ethical?

As an Islamic Bank, Gatehouse does not invest in industries considered unethical under Shariah principles, which in practice are the same as those frowned upon under Christianity. On its website, it says “Gatehouse Bank only invest funds in ethical goods and services and, for example, does not invest in gambling, alcohol, tobacco or arms”. It invests in real estate and construction as well as sukuk, which are sometimes known as Islamic Bonds. With the Woodland Saver accounts, Gatehouse plants trees (including oak, hazel and birch) on behalf of its customers.

Key terms: Minimum deposit is £500. No early access to your savings is allowed.

What does “expected profit” mean?

The accounts pay profit not interest because the payment and receipt of interest is forbidden in Islam as money cannot in itself generate money. Instead the company provides an ‘expected profit rate’. If the company feels that the expected profit rate will not be achieved, it will give reasonable advanced notice of the new expected profit rate and customers can close the account immediately with no penalty and will be given the profit they have earned.

4. Charity Bank

• Ethical One Year Fixed Rate Account – 4.51 per cent interest gross/AER
• Ethical Three Year Fixed Rate Account – 4.06 per cent interest gross/AER

Why is it ethical?

With Charity Bank, your savings help to create lasting social change in UK communities. Charity 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 and in ways that would make them happy. It invests its customers’ money into charities and social enterprises around the country.

Your savings are covered up to a total of £85,000 by the FSCS.

Key terms: There is a minimum deposit of £5,000 and maximum of £500,000. No early withdrawals are allowed

5. Triodos Bank

• Triodos One Year Ethical Savings Bond – 4.25 per cent interest gross/AER
• Triodos Two Year Ethical Savings Bond – 4 per cent interest gross/AER

Why is it ethical?

Triodos, a Good With Money ‘Good Egg’ firm, will only lend its savers’ money to organisations making a positive impact on social, cultural or environmental issues. You can see the impact you’re making as Triodos publishes details on its website of every project it finances and every organisation it lends to.

Your savings are covered up to a total of £85,000 by the FSCS.

Key terms: The minimum opening deposit is £500. No early closure or withdrawals are allowed.

Find out why Triodos Bank is a Good Egg

You might think you are living sustainably by recycling, eating less meat and cutting down on flying – but what about your money?

Our financial decisions all have an impact on the planet and society, for good or for bad.

Making conscious choices to use our money for good has the exciting potential to help solve the world’s biggest problems like climate change, biodiversity loss and poverty. But this means we have to DO something.

As we step into the summer break, why not use it as a chance to turn over a green leaf with your finances. Here are nine easy tips for making greener choices with your savings, investments and pensions.

1. Get a greener pension

We’ll start at the top with your most powerful financial asset – your pensions. Aside from possibly your house, it is likely to be the biggest pot of money you will ever have to your name. Therefore, it also has the most potential for bringing about positive change!

If you haven’t given the money in your pension much thought until now, it is highly likely that your hard-earned savings are driving deforestation and funding fossil fuels. But don’t despair – you can help to ensure the £3 trillion in UK pensions flows to businesses that are trying to tackle climate change, so your money helps build a world you actually want to retire into.

According to campaign group Make My Money Matter, encouraging your pension provider to clean up their investments can cut your carbon footprint by 21x more than giving up flying, going veggie and switching energy provider combined.

4 ways to make your pension ethical

2. Switch your savings

The money you deposit into a savings account doesn’t just sit there until you withdraw it. It can be loaned or invested by your provider, often to finance new projects that negatively impact society and the environment. In contrast, an ethical provider will use 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 organisations delivering positive environmental or social impacts. Roger Hattam from Triodos Bank, a Good With Money ‘Good Egg’ firm, said: “Even a small amount in savings or investments with a sustainable provider reroutes money from harmful sectors into positive ones. It also sends a powerful message to the wider finance industry that enough is enough.”

Ethical banks are also more likely to pass on interest rate rises to their customers – so your pocket will benefit, as well as the planet. See our top-paying sustainable savings accounts here.

3. Move to a better bank

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 Triodos Bank, it can even make a positive impact.

The overwhelming 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 ‘Good Egg’ Triodos Bank (which only invests in companies and projects making a positive impact), we like The Co-operative, Nationwide, Cumberland Building Society and digital bank Starling.

Top 7 ethical current accounts

4. Invest sustainably – even if it’s just a little

You might feel like investing is something only men in suits in the City do – it’s NOT! You don’t need to be an expert in the stock markets to invest, and you don’t need to be mega wealthy.

Platforms like The Big Exchange and Interactive Investor, as well as wealth managers like EQ Investors – a Good Egg firm – all offer sustainable portfolios you can invest in easily online.. with no previous experience required.

The first two have a minimum monthly investment of just £25 (for Simply EQ it’s £100). Another useful resource is our free Good Investment Review, which looks at a growing universe of impact funds.

Top 3 sustainable investment platforms

5. Invest directly in positive change

If you’re keen to invest directly in businesses making a positive impact in the UK, you could consider an Innovative Finance ISA (IFISA). Investment platforms such as Good Egg company Thrive Renewables, as well as crowdfunding platforms Ethex and Triodos Crowdfunding offer options to invest in environmentally and/or socially impactful companies in the UK.

If you want your money to create change further afield, Energise Africa invests in life-changing solar energy projects across Africa.

Just bear in mind that, unlike mainstream ISAs, IFISAs are not covered by the Financial Services Compensation Scheme (FSCS).

6. Speak to an ethical financial adviser

If you can afford a financial adviser, choose one that specialise in ethical investment. A growing number of independent financial adviser (IFA) firms and wealth managers offer advice in this area and can help you put your money to work for the planet. Path Financial, Bluesphere, 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 10 ethical financial advisers

7. Green your home (and save money) for winter

The C-Change mortgage from Good Egg company 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.

8. Compare green energy suppliers

When it comes to energy, it might still be nigh on impossible to find a good deal for your pocket – but you can still find a good deal for the planet.

If you’re keen to lower your carbon footprint and help create a cleaner and more sustainable energy system in the UK, there are some trusted suppliers worth considering. Check out our top five green energy suppliers. Some will even reward you financially for making greener choices – see here.

9. Ask your employer to offer ‘climate perks’

Climate Perks works with climate-conscious employers to offer paid ‘journey days’ to staff who opt to travel on holiday by train, coach or boat instead of flying. Staff are empowered to act on their values and employers receive Climate Perks accreditation in recognition of their climate leadership.

And then.. tell people!

There’s a good money revolution happening and the more people that join it, the quicker change will happen. Take actions to green your money, but don’t stop there. Tell your friends and family so they can green their money too.

Millions of people paying into a pension could be missing out on extra cash because they are not claiming tax relief from the Government, experts have warned.

Impact-only investment firm Path Financial – a Good With Money Good Egg firm – says this one mistake means people are missing out on thousands of pounds in their pension.

Currently, those paying 20 percent tax on their income get the relief on their pension automatically applied as they pay it into their plan. But for those on a higher rate, either 40 percent or 45 percent, only the rate at which 20 percent is applied is what they receive.

In order to get a higher rate of tax relief for the higher rates, you have to claim it from HMRC, either by completing a Self Assessment return, or by writing or phoning HMRC officials.

7 ways to boost your pension pot

Many, however, don’t do this because they either don’t know they’re eligible for extra relief or cannot be bothered to go through the process. It means millions of people are missing out on cash they need in their retirement.

75% of eligible people don’t claim tax relief

Figures released by PensionBee last year revealed an incredible 75 per cent of the UK’s top earners that are eligible to claim relief through Self Assessment failed to do so, leaving £1.3 billion of unclaimed pension tax relief to the tax man between 2016/17 and 2020/21.

Rowan Harding, a financial planner for Path Financial, says the stats from 2021 to 2024 won’t be that much different. She said: “Millions of people who are in the 40 percent or 45 percent tax bands may be missing out on vital tax relief to help them in their retirement.

“They just need to do a few simple things to make sure they are receiving all the tax relief they are entitled to. It’s relatively pain-free and shouldn’t take too long, but could be crucial when your pension pot comes around to being claimed.

“If you do choose to claim the extra tax from HMRC, you will need to add this to your pension pot yourself; it’s not added automatically. By doing so, you could be amassing much-needed extra cash before you come to take your retirement.

“Be aware, though, that any additions to your pension will be subject to the annual allowance rules.”

2 in 5 Brits off track for minimum retirement

Meanwhile, this week the Scottish Widows annual retirement survey revealed that 1.2 million extra people are off track to afford even a minimum standard of living in retirement.

The minimum standards under its definition is £14,400 a year, which is enough to cover basic needs with some left over for fun. For example, this includes being able to afford a one-week UK holiday and having £50 to spend a week on groceries or £95 as a couple. The minimum standard assumes that someone would not have a car.

The research, which used a YouGov survey of more than 5,000 people across the UK in March and April, found that more than half (54 per cent) of UK retirees expect to work longer than they would like, on average by seven years. The typical age that people said they would like retire at is 62.

Almost a third (27 per cent) said they don’t feel they will ever be able to retire, while just 34 per cent think they are currently preparing adequately for retirement.

The answer will hinge on several factors, including your lifestyle preferences, personal goals, and economic considerations such as the cost of living. 

The rising cost of living

Over the past few years, UK households have faced a perfect storm of price increases and tax adjustments, such as:

1. Energy Prices: Despite the energy price cap falling to £1,690 per year for the average household in April 2024, this figure remains double what it was just a couple of years ago.
2. Food Price Inflation: Grocery bills have surged, costing an extra £10 per week for the average family.
3. Council Tax Rises: Households are paying approximately £100 more annually due to council tax increases.
4. Interest Rate Rises: Mortgage costs have risen significantly due to interest rate hikes.

Although some Government Financial Support measures assist people retiring, they often cover only a fraction of the overall cost and are limited to low-income households.

Retirement living standards

To work out if you can afford your desired standard of living in retirement, it can help to use the Retirement Living Standards provided by the Pensions and Lifetime Savings Association (PLSA). The PLSA outlines three levels of living and what they cost:

1. Minimum Level – Covers essential needs with some left over for fun:

• Single Person: £14,400 per year
• Couple: £22,400 per year

2. Moderate Level – Offers more financial security and flexibility:

• Single Person: £31,300 per year
• Couple: £43,100 per year

3. Comfortable Level – Provides financial freedom and some luxuries:

• Single Person: £43,100 per year
• Couple: £59,000 per year

4 ways to make your pension ethical

7 ways to boost your pension pot

Saving for retirement in the UK can be challenging, especially with the rising cost of living. Here are some tips for increasing your pension pot:

1. Start early: Time is your greatest ally. Begin saving early to harness the magic of compound interest (where you earn interest on interest!). The “half your age” rule of thumb says that when you first start to save for retirement, you should save a percentage of your pre-tax salary equal to half your age. So, if you get your first full time job and start contributing to a pension at 22, you should put 11 per cent of your salary into your pension.
2. Regularly review your budget: Track expenses and identify areas to cut back. Allocate the saved funds to retirement savings – even small amounts add up, especially over time.
3. Build an emergency fund: Aim for at least three to six months’ worth of living costs in an easy access account.
4. Diversify investments: Don’t rely solely on one investment type. Diversify across stocks, bonds, and other assets.
5. Maximise pension contributions: Contribute the maximum amount you can afford to your pension pot. 
6. Consider ISAs: Utilise Individual Savings Accounts (ISAs) alongside your pension for tax-free growth.
7. Delay retirement if possible: Consider working a few extra years which can significantly enhance your retirement savings.

There’s a lot you can do to make the most of your own retirement savings, and the more proactive you are the better. If you have a decent amount in your pension pot (as you will need to consider fees), it might be worth seeking the advice of a financial planner. They can help you with saving and investment strategies to bolster your pot even further.

Top 9 ethical financial advisers in 2024

Biodiversity isn’t just nice to have, it underpins our economy – and yet, nature loss is happening at an alarming rate. Here, Louisiana Salge of ethical financial planners EQ Investors looks at the role businesses and investors have to play in helping to restore biodiversity. 

Biodiversity, and the ecosystem services it supports like pollination, food production or water filtration, underpin our financial and economic systems.

Many businesses are using natural capital to deliver their products and are therefore dependent on nature’s sustainable maintenance. Despite this obvious reality, biodiversity loss is at unprecedented levels.

The Kunming Montreal Global Biodiversity Framework adopted by 188 countries in 2022 set the scene for the global commitment to action on halting this trend and restoring nature. At EQ Investors (EQ), we aim to align to internationally agreed frameworks, like the Montreal protocol, as these are what shape risks and opportunities for businesses and investments going forward.

In our sustainability outlook for 2024, we listed a few government regulations that will come into effect this year, which will create tailwinds for sustainable businesses. One of these is the European Union’s Regulation on deforestation-free products (EUDR), which requires companies using the likes of timber, coffee or paper pulp to conduct greater due diligence and prove deforestation-free supply chains. If not, companies risk fines and bans on sales into Europe.

How to invest in biodiversity: 4 funds we like

This regulation is one of the first of many, which will create a potential cost and thus a financial risk from biodiversity destruction. Investing in more forward thinking, responsibly managed businesses across our EQ portfolios comes at a clear advantage here.

We also recognise the role that we as investors can play to halt and reverse forest loss and land degradation as a key driver of biodiversity loss, including through investor stewardship. To really protect against risks from biodiversity loss in investments, we need better data, more experts, and greater investor attention.

Last year, we started mapping all underlying investments to different nature impacts, driving our engagement with fund managers that held companies in priority sectors like agriculture, mining or utilities.

This year we take this one step further by joining Spring, a UN PRI-convened investor collaboration that will see EQ engaging with target companies. By helping many investors coming together to put pressure on companies, the initiative sets consistent expectations on business biodiversity policy and targets, supply chain management, and their political engagement (including lobbying).

In addition, EQ is attending selected company AGMs in 2024 to further the biodiversity agenda. We look forward to reporting on progress and learnings as the engagements continue.

A shocking 1.2 million more Brits than a year ago are not on track to afford even a minimum lifestyle standard in retirement, a new report reveals.

Nearly two-fifths (38 per cent) of working age people in the UK are estimated not to be falling short on their pension savings, according to the research from Scottish Widows. This is up from 35 per cent from last year.

Scottish Widows uses the retirement living standards produced by the Pensions and Lifetime Savings Association (PLSA) to make its calculation.

The minimum standards under its definition is £14,400 a year, which is enough to cover basic needs with some left over for fun. For example, this includes being able to afford a one-week UK holiday and having £50 to spend a week on groceries or £95 as a couple. The minimum standard assumes that someone would not have a car.

3 shocking facts about the gender pension gap

More than half expect to work longer

The increase in those projected to fall short of the minimum standards has been driven by living-costs rises such as surging rents, the report said. Rents for example have increased by 15 per cent between 2022 and 2023, whilst the state pension increased by 8.5 per cent and wages by 6.2 per cent.

The research, which used a YouGov survey of more than 5,000 people across the UK in March and April, found that more than half (54 per cent) of UK retirees expect to work longer than they would like, on average by seven years. The typical age that people said they would like retire at is 62.

Almost a third (27 per cent) said they don’t feel they will ever be able to retire, while just 34 per cent think they are currently preparing adequately for retirement.

Scottish Widows’ 20th annual retirement report also found that younger generations would like to retire even earlier. People aged 18 to 29 want to retire at 61 typically, and would be prepared to work until 64 on average if necessary – although this would still leave a gap before they reach state pension age.

Across all age groups, more than a quarter (27 per cent) of those who have made retirement plans do not feel that they would ever be able to afford to do it.

Self-employed? Here’s how to get a sustainable pension

Change needed

Scottish Widows proposes reforms to automatic enrolment including lowering the contribution age, which is currently 22, and introducing an equivalent for self-employed workers. It also suggests a roadmap to increase minimum contributions into pensions from eight to 12 per cent, “with a strong steer that those who can afford 15 per cent should do so”.

Pete Glancy, head of pensions policy at Scottish Widows, said: “The growing gap in retirement outcomes and people’s quality of later life, between those who are currently retired and those who will retire in the future, is of great concern.

“It is likely to be a long time before Britain has been saving enough to give future pensioners the outcomes they hope for. In the meantime, helping people to make the very most of what they have is going to be critical.”

He added: “At present only the wealthiest tend to rely on professional support from a qualified financial adviser. As an industry, we need to find a way to give people better support in making good financial decisions at a price more savers are willing and able to pay.”

Opening a savings account for your child is a great way to teach them about interest rates. The lesson is simple – while money in a piggy bank (real or online) just sits there, money held in a bank or building society account can grow. The longer it’s left there, the more it will grow.

While budgeting apps aimed at children are fantastic for showing them how to manage money in a fun way, they usually don’t add interest to savings (although some offer the option for you to!).

By choosing an account with a provider that doesn’t invest in environmentally or socially-destructive practices (such as those listed below), you can also teach your child that their money has an impact on the world around us – for good or bad.

Here are our top four ethical providers offering easy-access savings accounts for children and teenagers:

Coventry Building Society 

Account: Young Saver
Interest rate: 5.25 per cent /AER**/variable
Age: 11 to 17-year-olds

How is it ethical? Coventry is the first building society to have achieved B Corp status. This means it is committed to meeting high standards of social and environmental performance, transparency, and accountability. As “mutual” organisations, building societies are owned by – and accountable to – their customers and not shareholders. Shareholder-owned companies tend to aim for maximum profits as quickly as possible, which can result in some less-than-ethical decision-making, whereas building societies’ interests are the same as their customers’ interests. Therefore, good products and service are as important as profits (and crucially, these go back to members).

Key terms: Minimum balance is £1, maximum is £5,000. Deposit from £1 to £200 per month. Up to £100 cash can be withdrawn every day. Interest is paid monthly. You can only open this account in a branch.

Saffron Building Society

Account: Under 18 Easy Access Account
Interest rate: 3.50 per cent gross*/AER**/variable
Age: Under 18

How is it ethical? As a mutual, Saffron is owned by its customers, or “members”, and exists solely for their benefit. It is one of only three building societies (alongside Leek and The West Brom) to be accredited with the Good Business Charter. This means it is committed to the organisation’s 10 key components, which include environmental responsibility, paying the real living wage, fairer hours and ethical sourcing.

Key terms: Minimum balance is £1, maximum is £250,000. Interest is calculated each day on the available money in your account and is paid on 31st December every year, your child’s 16th birthday and 18th birthday. You can open the account in branch (branches are only in Hertfordshire, Essex and Suffolk) or by post. Note that you can’t manage this account online. If your child is aged under 13, a parent/guardian signatory is required.

Best ethical Junior ISAs

Leeds Building Society

Account: Ronnie the Rhino Youngsaver
Interest rate: 4.25 per cent gross*/AER**/ variable
Age: No minimum or maximum

How is it ethical? As a building society, Leeds will not invest in fossil fuels and all its buildings run on 100 per cent renewable electricity. It says it puts “fairness, transparency and good ethical practice remain at the heart” of everything it does. It is also committed to being “open and honest” about its tax reporting.

Leeds Building Society has a Gold Ribbon accreditation from Fairer Finance, a consumer group committed to creating a fairer financial services market. The ribbon means it’s rated by it’s customers as one of the best savings providers in the UK for customer experience.

Key terms: You can’t open this account online, so will need to pop into a branch. The account holder must be aged under 18, and they will need at least one parent/guardian signatory. If the balance falls below £10, the rate of interest drops to 0.05 per cent gross/AER variable. Interest is paid annually on June 30. Children under age 12 have unlimited withdrawals of £10. For 13 to 17-year-olds, it’s one withdrawal per week of £10-£250.

Nationwide

Account: FlexOne current account
Interest rate: 2 per cent AER**
Age: 11 to 17-year-olds

How is it ethical? As a building society, Nationwide holds at least 75 per cent of its assets in residential property, making it far less likely than its big bank competitors to be lending to unsustainable firms. Its profits are also invested back into the business for the benefit of borrowers and savers (it’s “members”) rather than shareholders.

Key terms: Interest is paid on balances up to £1000. If you’re aged 11 to 17 and a half, you can choose between a cash card and Visa debit card with our children’s bank account. Cash cards can only be used to get money from cash machines and print mini statements. No monthly fee and the account can be used up to the age of 23.

A few things you should know:

^*Gross means the rate of interest payable before the deduction of income tax at the rate specified by law.

^**AER stands for Annual Equivalent Rate and illustrates what the interest rate would be if interest was paid and added each year.

Variable interest rates: Where the interest rate says “variable”, it means the provider can change the rate at any time. They have to let you know first, so keep an eye out and be prepared to switch your account to a better-paying one if the interest rate drops.

For kids growing up in a cashless society, the piggy bank has gone digital. Loose coins (that it’s easy to forget to hand out every week) and notes stuck in cards for Christmas or birthdays from grandparents are almost a thing of the past.

It’s now possible to teach children as young as four about the value of money using an online budgeting app.

You might think that using technology to teach this skill takes away from the charm of handing out ‘real’ pocket money. But as physical cash is used less and less, apps can be a better and more relevant way of showing children how to look after their money.

Unlike a conventional bank account, apps can enable parents to teach children vital money management skills and – like any good learning experience – let them have a go at doing it themselves. Not without the parents maintaining some control, of course.

Through an app you can monitor what your child is spending money on and restrict what they can spend on in-app purchases or digital downloads. It’s also possible to set tasks – such as completing household jobs – for your child to complete to earn their pocket money. It can be easier to teach them to save too.

If there’s something your child really wants, you can agree on an amount to automatically save each week until they have enough to buy it themselves. And unlike giving pocket money the traditional way, app alerts and automatic transfers mean you won’t forget your child’s pay day!

1. Starling Kite

If you have a current account with Starling Bank, this is a good choice. Kite is a kid-friendly area within your own Starling bank account for children aged six to 15 (Starling has a teen account for 16 and 17-year-olds). And it’s free. Starling won Best Children’s Financial Provider at the British Bank Awards in 2024.

Your child can have a debit card of their own (made from recycled plastic) and separate app to monitor their balance and transactions. You simply download the regular Starling app on their device, and then set it up so they can only access the ‘Kite Space’.

You can be in control of your child’s spending (including where, when and how they use their prepaid kids’ debit card), while still giving them the freedom to learn how to use their money on and offline. You can also lock the card instantly if it’s lost or stolen. Friends and family can pay onto the card if you send them a “KiteLink” (a unique link connected to your child’s Kite Space).

The best part is children can earn interest of 3.25 per cent on balances of up to £5,000 – a great incentive for them to save.

How much does it cost?

The Kite card and app are free to use. There is no fee for loading the card with money or ATM withdrawals.

What you need to know about: Starling Bank

2. GoHenry

If you want your child to start learning about saving and spending (but with parental control), GoHenry could be the app for you. You get a parent account, which allows you to top up your child’s allowance and apply rules on how they can spend that money.

Plus, they will be able to use their card in shops, online and to withdraw cash. But don’t worry, you will get an instant notification whenever they use the card and can set weekly spending limits. A “Money Missions” feature enables you to set your child/ren age-appropriate challenges that you pay them for – how much is up to you. You can also get them started with investing as GoHenry offers a Junior ISA.

GoHenry’s main draw for many children is its personalised (biodegradable) debit debit card, which displays their own name and a choice of 45+ designs. There are currently limited edition Despicable Me 4 designs on offer. However, each card comes with a £4.99 charge.

How much does it cost?

GoHenry has a basic monthly membership fee of £3.99 per child (first month is free). With this there is only one free top-up of money to your parent account each month (after that it’s 50p each time). Transferring pocket money to your child is free.

For £5.99 per month, you get extra features such as 4.50 per cent AER (variable) interest on savings, unlimited free top-ups, and cash back on in-store purchases.

Depending on how much you give your child in pocket money, either option could work out to be a sizeable chunk. A standard GoHenry debit card is free, as are payments and ATM withdrawals.

Children who receive a meaningful financial education at home are more likely to be active savers and are more confident talking about and managing their money, research shows. They are also more likely to have positive attitudes towards money.

However, new data from the Money and Pensions Service (MaPS) reveals that less than a quarter (24 per cent) of children are being actively taught about money at home. It also shows that only 35 per cent of parents or carers say they set rules around how their children’s money is spent.

MaPS warns that the rapid digitisation of money – with many children now using their own debit card and linked app – brings serious implications and risk for children and young people learning about how to manage their finances. The organisation says many parents lack knowledge about how digital banking apps aimed at children work, and often don’t oversee their spending.

To help make financial education fun and practical in the real world, MaPS has rounded up six tips from its free digital tool Talk Learn Do to use during the six-week summer break:

One of the easiest ways to invest in funds making a positive difference to the world is through a stocks and shares ISA. Think of this as a basket that holds your chosen investments.

Through your ISA, you can invest up to £20,000 per year, tax-free. You can either choose your own funds to invest in or, if you’re not confident or lack experience, go for a ready- made portfolio (this is a collection of funds chosen by experts).

With so many providers and platforms claiming to offer sustainable investments, it can help to look for one that specialises in this area.

Ones we like include:

EQ Investors, with its Positive Impact, Climate Action and Future Leaders Portfolios. EQ Investors has a ‘Good Egg’ mark from Good With Money, which means it can prove it makes a positive difference to people and the planet as well as to its customers.

Triodos Bank – another Good Egg firm – with its Pioneer Impact Fund, Global Equities Impact Fund, Sterling Bond Impact Fund and Future Generations Fund. You can invest in these funds directly through the Triodos website or use a third party platform such as The Big Exchange, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser. The Future Generations Fund is currently exclusive to the Triodos website.

WHEB Asset Management – The FP WHEB Sustainability Fund, for UK residents only, targets long-term growth by investing exclusively in companies providing solutions to sustainability challenges. It is multi-thematic and invests in global listed equities. You can invest in this fund directly through the WHEB website, use a third party platform such as The Big Exchange, AJ Bell or Hargreaves Lansdown, or ask your Independent Financial Adviser.

The Big Exchange, a platform which only offers funds that make a positive impact on the environment and/or society.

Alternatively, you can choose a platform that allows you to filter your search by sustainable funds. Good options include AJ Bell, Hargreaves Lansdown and Interactive Investor.

If you are keen to invest directly in projects that interest you – as part of a diversified investment plan (i.e. don’t put all your eggs in one basket!) – you could look at the Innovative Finance ISA (IFSA) – see our Good Guide to the Innovative Finance ISA here. Good choices for this include:

Ethex, a not-for-profit platform, offers investment crowdfunding to directly fund extraordinary projects in the UK that are tackling social and environmental issues. Many of the investments on Ethex can be held within an IFISA.

Its sister firm Energise Africa enables ordinary people to invest in bonds issued by impactful companies in emerging economies that are taking action to achieve the United Nations’ Sustainable Development Goals (SDGs). Examples include solar energy access, green logistics and sustainable transport initiatives. Find out more in Ethex and Energise Africa’s article on why direct investing equals transparent impact.

For other ways to green your money with trusted providers, see our top ethical current accounts, savings accounts, financial advisers and pension funds.

This article is from the Good Guide to Avoiding Greenwashing – free to download here. 

Risk warning: when you invest, your capital is at risk.

Four new sustainability labels for investments that make a genuine positive difference to the planet and/or people will take effect from the end of this month.

The labels, created by the Financial Conduct Authority (FCA), aim to give consumers confidence that a sustainable investment product is doing what it says it is.

The four options – with none considered better than the others – reflect the different objectives and approaches of sustainable products, helping investors to decide which ones suit them best.

Here’s what you need to know.

The labels are:

Invests mainly in solutions to sustainability problems, with an aim to achieve a positive, measurable impact for people or the planet.

For example: A clean energy impact fund that finances the construction of wind farms.

• Its objective is to increase the use of renewable energy and access to it in less developed areas.
• Environmental impact metrics are tracked, such as the level of carbon emissions avoided.

Top 8 platforms for a green stocks and shares ISA

Invests mainly in assets that focus on sustainability for people or the planet.

For example: An educational achievement fund which focuses on investing in companies that improve young people’s educational achievement through the use of technology and innovation.

• It uses screening to avoid companies with unsustainable business plans.
• It links its investments to activities that support Goal 5 of the United Nations’ Sustainable Development Goals – Gender Equality.

Top 7 green ISAs for your climate-friendly cash

Invests mainly in assets that may not be sustainable now, but aim to make measurable improvements to their sustainability for people or the planet over time.

For example: A fund that invests mostly in financial institutions in emerging economies (developing countries) that are committed to improving their sustainability standards.

• It engages with companies through stewardship to help bring about positive change.
• It has a policy in place to hold companies to account if this stewardship is not achieving the intended improvements.

Top 3 sustainable investment platforms

Invests mainly in a mix of the other three labels – assets that either focus on sustainability problems, aim to improve their sustainability over time, or aim to achieve a positive impact for people or the planet.

For example: A green energy fund that invests in some companies already producing clean energy and others looking to scale up.

• It has the same sustainability objectives as each of the other three labels and sets out the proportions of its investments to be held in each category.

Find out more in our Good Guide to Avoiding Greenwash, free to download here. 

For trusted sustainable providers of financial products such as current and savings accounts, investments, insurance, pension funds and financial advice, see our Good Egg mark companies and the ‘Good Lists’.

Risk warning: when you invest, your capital is at risk. 

Sir Keir Starmer used his first speech as prime minister to herald “the opportunity of clean British power, cutting your energy bills for good.”

But what is Labour’s big clean energy plan, and what does it mean for the planet and your pocket?

Top 5 green energy providers 2024

Great British Energy

At the heart of Labour’s mission to make the UK a “clean energy superpower” is the creation of a new publicly-owned company, Great British Energy (GB Energy).

GB Energy won’t supply electricity directly to households. Instead, it will work with the private sector to co-invest in emerging energy technologies such as floating offshore wind, carbon capture and storage, and hydrogen. It will also help to advance more mature technologies such as wind, hydro and solar.

Headquartered in Scotland, the company will be paid for by a windfall tax on big oil and gas firms, with initial funding of £8.3 billion over the course of parliament. This funding is part of Labour’s “Green Prosperity Plan,” which was scaled back by almost half earlier this year from £28 billion to less than £15 billion.

Labour says the plans will help it meet its ambitious goal for the UK to hit net zero by 2030 – five years earlier than the Conservatives’ target. Last year, fossil fuels still made up a third of the UK’s total electricity supplies but Labour has promised to work with the private sector to double onshore wind (which it has already lifted a ban on), triple solar power, and quadruple offshore wind by 2030.

Other clean energy plans

The lifetime of existing nuclear power plants will be extended and Hinkley Point C will be completed, and the party is committed to new nuclear power stations such as Sizewell C and Small Modular Reactors.

It says a “strategic reserve” of gas power stations will be maintained to guarantee security of supply, while oil and gas production in the North Sea “will be with us for decades to come”. However, no new licences to explore new fields or for coal will be granted, and fracking will be banned.

What will happen to energy bills?

The party has made a bold promise to cut annual energy bills by £300 per household from 2030 through its investment in more clean renewable energy.

It says: “Great British Energy is part of Labour’s Green Prosperity Plan to create 650,000 good jobs, cut bills by £300 on average and deliver real energy security.” Its plan will lower bills, it claims, because “renewables are far cheaper than gas.”

Former government chief scientific adviser Sir Patrick Vallance said: “Getting to a clean power system fast and with appropriate technologies is an investment, not simply a cost. And being self-sufficient in energy will mean that our country is never again left so exposed by our dependency on an unstable international fossil fuel market.”

And Max Wakefield, co-director of climate charity Possible, said lifting the ban on onshore wind is a quick and cheap action and will bring down bills.

However, the speed at which this can happen is under debate. Ofgem, the energy regulator, said in May that energy bills are not expected to fall substantially this decade partly because of the costs of expanding the electricity network to support more renewable sources.

Matthew Clayton, Managing Director of clean energy investment firm Thrive Renewables, said communities must be central to investment plans. He said: We need to see the public and private sector working together, as well as with communities – who we believe need to remain at the heart of a people-powered transition to net zero. What we’ll be rewarded with is cheaper bills in the long term and a cleaner, more secure energy system that allows the benefits of renewables to be felt locally.”

How to switch to clean energy

You can choose to support a cleaner and more sustainable energy system in the UK by buying your energy from a green supplier. Ecotricity, 100Green, Good Energy, Octopus Energy, and SO Energy all go the extra mile to ensure their energy comes from green sources – find out more here.

You could also make the most of financial rewards for choosing clean energy.

“Change begins now,” declared Labour leader Sir Keir Starmer after securing an historic landslide victory at the polls.

The incoming prime minister takes the helm at a critical time, with the world at the brink of “catastrophic climate tipping points” and Britain off track on its own climate targets.

His party’s majority win must mark the start of the UK’s transformation to a green and low-carbon economy and society, green campaigners and experts have said.

Edward Davey, the UK head of the World Resources Institute, said Labour has to take the lead, not just in reforming the UK’s energy system and industrial base, but also on the world stage.

“There is a wonderful opportunity – as well as a pressing responsibility – for the new government to show its citizens, as well as the world at large, what it means to be a leader on climate, development and nature once again,” he said.

So what important actions on pressing environmental issues can we expect to see? We’ve rounded up the party’s key sustainability pledges:

Make the UK a ‘clean energy superpower’

One of Labour’s five “missions” is to make Britain “a clean energy superpower to cut bills, create jobs and deliver security with cheaper, zero-carbon electricity by 2030”.

Its flagship sustainability pledge is to establish a publicly-owned clean power company, Great British Energy.

This, the party says, would help it achieve its ambitious goal of fully decarbonising the electricity grid by 2030. The party says the plans would be paid for by increasing the windfall tax on oil and gas companies from 75 to 78 percent, with the levy extended by a year to 2029.

Labour also wants to remove the investment incentive scheme, which currently allows oil and gas firms to avoid paying the windfall tax if they make certain investments in renewable energy.

As part of its net zero commitments, Labour said it won’t approve any new oil projects in the North Sea, will avoid granting new coal licenses and ban fracking for good.

9 ways to make your money fight climate change

Speed up the net zero transition

Labour drew sharp criticism earlier this year from economists, industrial leaders and environmental campaigners when it slashed its ‘Green Prosperity Plan’ by almost half from £28 billion a year to under £15 billion – only a third of which would be new money.

But the party has said it will “put climate front and centre” of its plans in government, promising to reverse the ban on onshore wind in the immediate days after parliament returns.

It will look to double the money set aside to insulate homes across the UK and reinstate a requirement for private rented properties to meet high efficiency standards. Labour says it will also reinstate the 2030 ban on new petrol and diesel vehicle sales, which the Conservatives put back to 2035 last year.

Other pledges include support for a ‘carbon border adjustment mechanism.’ This is a tool to put a fair price on the carbon emitted during the production of carbon intensive goods and help protect British industries during the transition to net zero.

The party also wants to mandate UK-regulated financial institutions – including banks, asset managers, pension funds, and insurers – and FTSE 100 companies to develop and implement credible transition plans that align with the most ambitious 1.5°C goal of the Paris Agreement.

Is your bank funding climate change?

Clean up dangerously dirty waters

Labour has said it will ‘end the sewage scandal’ – the large-scale dumping of raw sewage into UK rivers, causing sickness and harming wildlife. Steve Reed, shadow environment secretary before the election, threatened tough action including putting water bosses in prison, banning their bonuses and imposing severe fines for sewage spills.

However, experts say sewage and our crumbling water infrastructure isn’t an easy issue to address, and will take focus, investment – and potentially an entirely new regulatory and ownership system.

6 good funds for climate action

Keir Starmer has said that Labour’s landslide win means he can “hit the ground running” on green issues.

Here, industry experts give their thoughts what on the party’s sweeping victory at the polls really means for sustainable finance.

Path Financial: ‘We need real and meaningful green policies’ 

David Macdonald, Founder of ethical financial planners Path Financial, says Labour must stop trying to please everyone and commit to real investment in green strategies. 

He said: “With a bit of luck and a decent majority Keir Starmer will be brave enough to drop his ‘Ming vase’ and turn up with some real and meaningful sustainability policies.

“Path Financial has said since we were set up that invested capital has a huge power to push the green agenda forward at pace and scale. Regrettably, governments and their addiction to oil revenue-based taxes have not helped. Indeed, the lurch to populism and pandering to the minority “defiantly disengaged” lobby has hindered confidence and dented financial returns.

“Massive investment into infrastructure, clean energy and new climate tech is what the country needs to improve productivity and regain initiative. We believe investors, the new government and the planet can all benefit from decisive and clear leadership towards a green future. It’s the ultimate and essential win-win.”

Thrive Renewables: ‘Communities must be at the heart of a net zero transition’

Matthew Clayton, Managing Director of clean energy investment firm Thrive Renewables, says change is welcome, but Labour must get public and private sectors AND communities working together. 

He said: “We welcome change and look forward to prioritising action in light of the climate emergency. Labour’s manifesto outlined its ambition to double onshore wind, triple solar power, and quadruple offshore wind in the UK by 2030.

“To meet this, we need to see the public and private sector working together, as well as with communities – who we believe need to remain at the heart of a people-powered transition to net zero. What we’ll be rewarded with is cheaper bills in the long term and a cleaner, more secure energy system that allows the benefits of renewables to be felt locally.”

PensionBee: ‘Pensions could become key drivers of UK growth’

Rebecca O’Connor, Director of Public Affairs at PensionBee, says Labour’s win should bring more opportunities for people wanting to invest sustainably.

EQ Investors: ‘Substantial changes can help stimulate the economy’

Ben Faulker, Director of Marketing and Communications at ethical financial planners EQ Investors, said the “substantial changes” on green issues promised by Labour could play a crucial role in steering the UK towards a sustainable future.

He said: “Climate change and sustainability will continue to be a huge focus for whoever wins the election. The new government will serve for most of the rest of this decade and play a crucial role in steering us towards a sustainable future.

“Labour wants to significantly improve the UK’s position in renewable energy and has committed to much-needed investment in renewables and energy efficiency. These include doubling onshore wind by 2030, doubling insulation spending, tripling solar energy, and quadrupling offshore wind.

“Taken together, these are substantial changes which can help stimulate the economy, enhance energy security, and improve living standards, as well as deliver a step change in the pace of decarbonisation.

“The role of pensions in climate change efforts was also highlighted in the Labour manifesto. Labour will look to mandate UK-regulated financial institutions, to develop and implement credible transition plans that align with the 1.5°C goal of the Paris Agreement.

“Labour has also suggested it would apply severe fines for water companies that harm the environment and pollute our rivers. This would include new powers for the regulator to block bonuses until any shortcomings are addressed.”

Triodos Bank: ‘This must be the catalyst for the pace and scale of change we need’

Bevis Watts, CEO of Triodos Bank UK, says Labour is entering government at a crucial time for the environment, and urges Keir Starmer to take clear action on sustainable issues. 

He said: “This election offers an opportunity to embed a comprehensive net zero and nature positive strategy at an absolutely critical point. It must be the catalyst for an increase in the pace and scale of change on the transitions we need to see as we approach 2030, in the understanding that they will be to the benefit of everyone in the long run. We urge the Government to take an unequivocal approach to addressing these challenges.”

Switchfoot Wealth: ‘Bold action on the decarbonisation of energy is needed’

Steven Day, Independent Financial Adviser at ethical financial planners Switchfoot Wealth, says Labour’s ambitious plans on clean energy are promising, but bold action is needed.

He said: “The new Labour Government has an ambitious plan for the decarbonisation of UK energy, which requires bold action on policy to remove constraints.  If they are successful in doing so, this will support the sustainable transition efforts of those businesses who have the intent and resources to invest.  We hope that policy and market forces will now align in the UK, but as Globally diversified investors, much also depends on what happens in the rest of the World.”

Here we look at Triodos Bank – a leading sustainable bank that makes money work for positive change.

The mobile banking app is simple and easy to navigate. It allows you to see all of your accounts in one overview, make payments, check your balance and recent transactions, and set up text alerts to help you monitor your budgets and spending. There is a customer service team available from 8am to 6pm to help with any questions you may have.

Triodos also makes it easy to invest your money in a positive future. It lays out its range of impact investment opportunities – the Triodos Pioneer Impact Fund, Triodos Sterling Bond Impact Fund, Triodos Global Equities Impact Fund and Future Generations Fund – clearly and is fully transparent about what your money will be used for. It also delves deeper into some of the projects it supports through video interviews and a blog.

Is it safe?

Yes. Triodos Bank is covered by the UK Financial Services Compensation Scheme, meaning any money up to £85,000 is protected by the government.

Sustainable option

Unique selling points

• Positive impact. When you bank or invest with Triodos you can be 100 per cent confident that your money is helping to protect the planet, instead of harming it. This is no small thing, given that the UK’s top 5 banks all still invest heavily in destructive industries.
• Fully transparent. Triodos publishes details of the organisations it finances on its website, so you can see exactly how your money is being used.

Plus points

• Mobile app. See all of your accounts in one place, make payments, check your balance and transactions, set up text alerts to monitor your budgets and spending.
• Eco-friendly card. Triodos’ contactless current account debit card is made from recycled plastic.
• Perks for referred customers. When you refer a friend who opens a current account, Triodos will donate £25 to a charity on your behalf. The new customer will be sent a £60 voucher to spend with one of its business partners.

Any drawbacks?

• Monthly fee. Triodos charges a flat fee of £3 per month for its current account. You might feel, though, that this is a fair price to pay for making a guaranteed positive impact with your money and avoiding the ‘hidden fees’ of many high street banks.
• Fee for foreign transactions. There is a 2.5 per cent charge for using your debit card abroad (see below)
• No overdraft facility. Triodos withdrew its overdraft facility in June 2024, which could be an inconvenience for those wanting a buffer on their finances.

Cost of use

The personal current account comes with a flat fee of £3 per month.

You will be charged 2.5 per cent to use your debit card overseas, so it could be worth looking at an additional debit or credit card for holidays.

For investing, there is a 0.4 per cent annual service charge, which is charged on a monthly basis.

Nationwide Building Society offers a free basic current account, or you can opt for a FlexPlus account with the added benefits of mobile phone and travel insurance for £13 a month. You’ll pay no overdraft interest for the first 12 months, followed by a steep 39.9 per cent.

Starling Bank has no monthly fees and arranged overdraft interest is charged at 15, 25 or 35 per cent based mostly on your credit score. It also offers 3.25 per cent AER on positive balances up to £5,000.

The Cumberland Plus Current Account from Cumberland Building Society has no monthly fee and the interest on an arranged overdraft is 14.99 per cent.

The Cooperative Bank current account has no monthly fees and the interest on an arranged overdraft is a hefty 35.9 per cent.

Top 7 ethical current accounts

Other options

Triodos is the only truly sustainable bank – that can prove it makes a positive impact with your money – in the UK. However, some other ethical options are:

Nationwide

Cumberland Building Society

Starling

Top sustainable investment platforms

Are there any providers you desperately want us to go deeper on? Let us know here. 

According to a recent survey we conducted, less than half of respondents (44 per cent) felt that they knew where the money they save or invest is being used. This is despite most of them (67 per cent) saying they want to save or invest it in a way that will have a positive impact.

This is a clear indication that the UK’s financial services industry faces a genuine problem with clarity of impact, and even the most well-meaning investors might struggle to see the impact they are making because they are confused about what banks and investment companies use their money for.

The problem with measuring your money’s impact

As yet, there are no clear guidelines for measuring impact in investment, and we understand it can be a tricky area to evaluate, as the outputs of impactful organisations or projects cannot be compared like for like. We welcome the new anti-greenwashing rules as a step in the right direction, as we know greenwashing only exacerbates the problem for investors, where we see funds labelled as ‘green’ or ‘ethical’ investing in activities that are clearly neither of these. A 2023 report from Common Wealth found that some top ‘ESG’ labelled funds were investing heavily in coal, oil and gas.

So what are investors to do? Growing a green portfolio

At Ethex and Energise Africa, we always advocate building a diverse portfolio of impact investments, as part of your overall investment strategy. The benefits of this are two-fold, as you will not only be spreading the potential risk of your investments, but you will also be extending and diversifying the impact of your money.

We think that direct impact investments should form an essential part of that impact portfolio – one where there is no question of the effect your investment is helping to create.

The direct approach

The mission of both our impact investing platforms is clear – to make it easier for everyday people to invest directly into organisations and projects that are creating a demonstrable social and environmental impact. In this way, investors know exactly where their money is going, how it is being used, and what impact it is creating.

Ethex only lists investment opportunities from organisations that have been specially hand- picked because they have a positive and ethical mission at their heart. In the ten years since we launched, we have helped more than 200 projects raise more than £120 million in funding from our community of 20,000+ investors.

Ethex investors have funded numerous community energy projects around the UK, collectively saving more than 900,000 tonnes of CO2 from entering the atmosphere over the lives of the projects they support, that’s the equivalent of powering over 177,000 average homes. They have also backed affordable housing projects that have created around 570 new beds for people in the UK at risk of homelessness, according to Ethex’s 10 years of impact report.

Energise Africa lists opportunities to invest in organisations that are accelerating the achievement of the UN Sustainable Development Goals in emerging economies and making this accessible for everyone, with investments starting at just £50. Investors on the platform have helped more than 850,000 gain access to solar energy, saving over 190,000 tonnes of CO2 each year.

Get the Good Guide to Avoiding Greenwash

Connecting communities with solutions

What’s so exciting about what we do is connecting real people with the opportunity to take action to make a real difference within their communities or even on the other side of the world. The money invested in these projects has a ripple effect that can create an even bigger impact over time, helping communities to grow and create environmental, social and economic benefits for everyone.

Find out more about investing for tangible impact. Impact that creates renewable energy and cuts carbon emissions, impact that creates safe homes for vulnerable people, impact that makes our communities stronger and fairer. Visit the Ethex and Energise Africa websites.

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