What Is a Climate-Friendly Checking Account?

A climate-friendly checking account is an account at a bank or credit union that won’t use your money to finance fossil fuel-related projects. These accounts are ideal for individuals interested in ethical finance and sustainable spending. By choosing a climate-friendly checking account, you can ensure that your short-term savings contribute to the fight against climate change.

What Makes a Checking Account Climate-Friendly?

Climate-friendly banking generally refers to how banks use the money you deposit. A bank might be considered climate-friendly if it:

• Has a triple bottom line: Measures success based on social and environmental impact, along with profits.
• Doesn’t participate in fossil fuel projects: Avoids lending money to, investing in, or underwriting fossil fuel-related companies or projects.
• Invests in climate-neutral and -positive organizations and projects: Seeks out carbon-neutral or -positive borrowers.

Be cautious of greenwashing, where banks highlight eco-friendly actions without addressing their overall environmental impact.

How to Find a Climate-Friendly Checking Account

1. Avoid the Big Banks

Big banks may offer convenience, but they often finance fossil fuels. The Rainforest Action Network’s 2023 Banking on Climate Chaos report can help you identify banks that heavily invest in fossil fuels.

2. Look for These Certifications

Two certifications to look for are:

• Global Alliance for Banking on Values (GABV): Committed to a triple bottom line.
• Fossil Free Certification: Awarded to institutions that avoid fossil fuel projects.

B-Corporations (B-Corps) and Community Development Financial Institutions (CDFIs) may also be good options, though they aren’t directly related to climate.

3. Use These Search Tools

Tools like Bank.green and Mighty Deposits can help you find climate-friendly banks. Review the bank accounts’ fees, requirements, interest rates, and features before making a decision.

Other Ways to Make Your Finances Climate Friendly

In addition to choosing a climate-friendly bank, consider these strategies:

ESG and Impact Investing

Invest in companies based on their environmental impact or the impact of their products and services.

Offset Your Carbon Footprint

Buy carbon offsets to make your household carbon-neutral or -positive. Organizations like Wren and CarbonRemoved can help you estimate your footprint and fund offsets.

Invest in Eco-Friendly Upgrades

Take advantage of tax credits for purchases like electric vehicles or solar panels. Smaller lifestyle changes can also reduce your carbon footprint and energy bill.

Support Advocacy Organizations

Support groups that push for climate-friendly regulations through volunteering or financial contributions.

Open Your Climate-Friendly Bank Account Today

There are many climate-friendly checking accounts available, including options with no minimum opening deposit or monthly fees. Some banks also offer business checking accounts and other products like loans and credit cards. Once you find a bank that fits your needs, opening an account online is often simple.

For any mortgage service needs, call O1ne Mortgage at 213-732-3074. We’re here to help you make financially and environmentally responsible choices.