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So what are‘ethical finances’ ?

The problem of defining ‘ethical’ is that it has different meanings to different people. Some might think investing in companies who are involved in the tobacco trade is fine and there are those who would rather their money is not invested in such companies.

The next problem is then setting out a criteria for what is deemed acceptable and what is not. The Co-operative bank has been the leader of ethical finances in the last few years and they use the following as a criteria for all potential: Human Rights, The Arms Trade, Corporate Responsibility, Genetic Modification, Social Enterprise, Ecological Impact & Animal Welfare. Each one of those criterion breaks down further, you can read more on their website (see links).

Therefore, what you find is that ethical banks invest in companies which reduce their negative impact and have a positive impact on social and environmental issues e.g. Fairtrade certified companies, renewable energy projects, etc, etc.

 

So what does it mean to me?

The good news is that by switching to a bank which has an ethical policy you might actually get a better deal than your current bank offers.

The Co-operative Bank offers very attractive rates of interest on their current and savings accounts, as well as very competitive credit cards, mortgages, ISA’s, investment funds, etc etc.

Why not compare their rates to your current bank, you might find you losing out.

 

Where can I bank ethically?

There are two main banks you can move to:

• The Triodos Bank has been around for almost 30 years and has a very strict ethical policy. They offer a range of Personal Savings Accounts and Ethical Investment Opportunities.

• The Cooperative Bank provide a whole range of current accounts, saving accounts, mortgages, credit cards, insurances, loans, etc. Their ethical policy is a good balance between making a real difference and extreme.

The change is surprisingly from your current bank is surprisingly easy and takes no time at all to make the change. Then it’s piece of mind that your money is not contributing to negative social and environmental impacts.

 

Other Sustainable Considerations

Look out for combined 'green' and 'ethical' finances e.g. the Cooperative Bank offers a ‘green’ mortgage where 20% of an average households carbon footprint is offset using carbon absorbing projects.