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Metro
a day ago
- Business
- Metro
Your pension pollutes more than planes — here's how to make your money do good
You recycle your yoghurt cartons, watch your carbon footprint and always choose the 'green' supermarket delivery slot, but you may be ignoring one of the biggest ways you can make a positive environmental difference; the money that you invest and put into your bank account. Figures from Make My Money Matter, an ethical finance group backed by filmmaker Richard Curtis, show that changing just one product – your pension – reduces your carbon footprint 21 times more than if you gave up flying, went vegetarian and switched your energy provider to a greener version. 'Consumers are waking up to the power their money has,' says David Macdonald, ethical financial planner at Path Financial. 'In much the same way that people now won't buy products from companies with exploitative supply-chains or won't tolerate their friends drink-driving, attitudes with money are changing too.' There are many ways you can use your money to make the world a better place without sacrificing convenience or financial performance. Here are 10 of them, big and small. The smallest green change needs only a single click and proves that every little helps. Almost every bank offers you the choice of paper or 'paperless' bank statements, and by going paperless you are making an environmental difference. To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video High street bank NatWest calculates that by moving from a paper bank statement to a digital one, you save the same amount of greenhouse gas emissions as are generated by charging your smartphone five times a month, so it's worth clicking that box. Where you do your day-to-day banking really matters, says Lori Campbell, from ethical finance site Good With Money. Check where they invest your savings, so that your salary is not helping to fund environmentally harmful practices. It can benefit your pocket as well as the planet: at the moment, Nationwide, which is rated highly by Good With Money, is offering £200 to switch through the current account switching service, and the mutual also pays out £100 Fairer Share bonuses to eligible members each year, with the latest batch hitting accounts from this month. If you have a workplace pension, chances are it is invested in whichever fund is the default for your company. But you may have a more ethical option available that you aren't aware of, and it can be easy to switch. The fund that your pension is in should be on your annual statement. You can check how it is invested and if you aren't happy with it, ask your workplace provider if it has a 'green', 'responsible' or 'ethical' option. If it does, check what it invests in and whether you're happy with performance, and if you are, you can ask to switch all or a proportion of your fund. Many of us want our savings and investments to be more sustainable but are bewildered by the many funds and products out there, that promise to be 'green' or 'environmental' (and don't always live up to expectations). Lori, at Good With Money, says this is 'greenwashing' – a marketing technique where a provider or product appears to be more eco-friendly than it is. If your pension or Isa is invested in funds, you can check whether it lives up to green credentials by looking at the companies it holds in its fund. Some that are badged as 'green' simply screen out certain types of companies – for example those involved in fossil fuels or tobacco – while others screen positively for companies that are trying to make an active difference. As well as buying funds with good outcomes, you can divest those you aren't happy with in terms of their ethical actions. David, at Path Financial, says that if you're swapping out shares in companies you are not happy with, you are making some difference – but you must also consider what to buy instead. He suggests replacing any shares for which you aren't happy with the ethics of with funds that attempt to be actively good. 'One example is the Columbia Threadneedle UK Social Bond fund,' David says. 'With this, the £1 you have just made by selling your 'bad actor' can go into a new housing unit for a vulnerable person.' This fund's bonds include money lent to affordable healthcare companies as well as social housing in various countries. 'Such investments have a direct impact and a serious social purpose,' David adds – and the fund also yields over 4%. Is your pension provider or fund manager making a difference? David recommends choosing companies that will advocate for the change you want to see. Those running funds or pensions get a vote on the activities of the companies they're investing in. And he notes that while most do not take it seriously, some do. 'I'd look at the stewardship aspect of whoever is running your pension or the fund it invests in,' he says. 'Do they use their vote to influence companies for the change you want to see? I'd recommend using a financial adviser or fund manager who expressly goes to company annual general meetings and presses for better behaviour from companies.' Alternatively, buy the shares yourself. After all, you only need to own one share to have a right to attend meetings. This could be via a self-select Isa or Sipp (self-invested personal pension). That's real shareholder action! Rather than putting your savings with a giant high-street bank, help your local area or those otherwise connected with you by depositing them with a credit union. These organisations help people to access affordable credit and can offer attractive savings rates, too. Figures from financial services consultancy Broadstone, out this month, show that they are more popular than ever, with more than two million members across the country. Richard Pinch, senior director at Broadstone, believes they are one of the finance world's 'best-kept secrets', adding: 'Another bonus of credit unions is that they offer attractive rates to savers, who also benefit from the knowledge that their deposits are helping to provide loans for other members.' Investing your money at an early stage into small projects can help you to make a difference and get a return. Ethical bank Triodos offers several investments, some of which can be put into an innovative finance Isa (Ifisa) to gain tax relief. Alternatively, David at Path recommends using One Planet Capital to invest in green start-ups that are investing in environmental challenges. The One Planet Capital schemes include a significant amount of tax relief as they are either an Enterprise Investment Scheme (EIS) or Seed Enterprise Investment Scheme (SEIS). More Trending However, these are risky investments and you may not get your money back, so are only suitable for expert investors. As well as greening your own affair, you can speak to others about the environmental impact of financial decisions. You can find resources on this on the Make My Money Matter website and a list of companies on the Good With Money website that hold a Good Egg award for ethical finance. View More » None of this means, of course, that you can forget about those yoghurt cartons… Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@ MORE: 10 of the best affordable waterproof jewellery brands you can wear non-stop MORE: Let them take the ferry – Reader says Schengen Agreement would stop the boats MORE: The Metro daily cartoon by Guy Venables Your free newsletter guide to the best London has on offer, from drinks deals to restaurant reviews.
Times of Oman
27-05-2025
- Business
- Times of Oman
What role does your money play in the climate crisis?
Paris: Personal finance is a climate blind spot for many — lagging behind decisions on things like diet, travel or shopping when it comes to individual action. Yet when it comes to lowering a personal carbon footprint, moving to a sustainable pension provider can be 20 times more effective than the combined impact of giving up flying, going vegetarian or switching energy provider, according to analysis from UK campaign group Make My Money Matter. What role do banks have in funding fossil fuels? The world's 60 biggest banks are estimated to have committed $705 billion (€619 billion) to the fossil fuel industry in 2023, and $6.9 trillion since the Paris Agreement was reached in 2015. Much of this is funding expansion plans that fly in the face of science's unequivocal climate warnings. "We all have pots of money that are contributing to this in various ways without our knowledge a lot of the time," said Adam McGibbon, campaign strategist at US-based research and advocacy organisation Oil Change International, adding that it could be in the form of current accounts, pensions or insurance policies that are reinvested into the fossil fuel industry. Yet experts note the difficulty in precisely quantifying personal finance's contribution to fossil fuel funding due to complex financial systems and individual circumstances. This is largely because it is through the corporate rather than retail side of a bank's operations — where individual customers' money is held — that they usually lend money or underwrite bonds for companies developing fossil fuel projects, explained Quentin Aubineau, policy analyst at BankTrack, an international NGO documenting the financial activities of commercial banks. However, McGibbon added that banks are still using our money to grow their business, create more revenue and attract investors. He said our savings might at the very least be "used to inflate the balance sheet of a bank, which will then allow them to service corporate clients" with links to fossil fuels. Is there a link between our cash and rising global temperatures? When it comes to investments, some personal finances go directly into the fossil fuel industry via stocks or bonds, said Carmen Nuzzo, executive director of the Transition Pathway Initiative Centre in the UK, which researches progress made by the financial and corporate world to low-carbon economy. "This includes investment in oil and gas companies, which have been very attractive and profitable in recent years ... as well as investment in other companies that rely heavily on fossil fuel for their production or service provision, such as steel or aviation," said Nuzzo. Many people will also be funding fossil fuels through savings going into pension funds that invest in "brown" companies — those within the highest greenhouse gas and carbon-emitting industries. Pensions are usually held and controlled by either the state, employers or private companies. "You pay into a pension pot, that money is invested on your behalf and some of that may end up being invested in companies that make sure that your retirement will be one where you live in an unstable, difficult world," said McGibbon. Recent studies have estimated that in a world of 4 degrees Celsius (7.2 degrees Fahrenheit) warming, an average person will be 40% poorer and that pension fund returns in the US and Canada could fall up to 50% by 2040, due to the exposure of assets to extreme climate events. Pension funds are among the world's largest investors in fossil fuels, with an estimated $46 trillion plowed into the industry and holding 30% of its shares, according to Climate Safe Pensions, a divestment campaign based in the US and Canada. They were also found to be among the leading funders of fossil fuel expansion across Africa. In 2023, the German investigative platform Correctiv revealed that 10 out of 16 German federal states invested pension funds in fossil fuel activities. What are green finance alternatives? While green banks don't always have the most favorable conditions, among climate-conscious people there is a growing appetite for sustainable financial alternatives, said Katrin Ganswindt, a finance researcher at the German NGO Urgewald. Among the growing pool of green banks are those that pledge to stop lending to fossil fuel companies and invest in climate-friendly activities. Online tools such as have also emerged to help consumers compare the environmental credentials of different banks. But overcoming a lack of financial knowledge is still one of the key challenges, explained Nuzzo. "In the countries where most people have a pension, individuals do not keep track of where their pension assets are being invested .... or they might not review their options regularly." Things such as pensions that invest in the long-term are effective places to make a change, said Ganswindt. "Pension funds have a big effect because they invest large sums." Make My Money Matter estimated that the UK's pension industry could invest €1.2 trillion into renewable energy and climate solutions by 2035. The green pension landscape is, however, evolving. In the Netherlands, pension funds for civil servants and teachers as well as health care workers have divested from fossil fuel companies, and in the UK, large pension schemes are also now required to report their climate risks. What is 'green' and 'sustainable,' and what is 'greenlaundering'? Yet despite growing awareness and green finance options, there is still a lack of standards and regulation in this space, said Franziska Mager, senior researcher at Tax Justice Network, a UK advocacy group working against tax avoidance. "Even if you're banking with a 'green' bank, you might be surprised to find out where your money is invested — if you're able to find out, that is. Let alone what the big players define as sustainable," she said. A recent paper she co-authored on "greenlaundering" in the banking industry said the existence of opaque financial practices — including the use of secrecy jurisdictions, a type of tax haven — obscure the true scale of fossil fuel financing. When it comes to ETFs — a type of investment fund traded on the stock market — you have been able to say it is "green" and it can mean nothing," said Ganswindt. There has, however, been recent progress when it comes to transparency, she added, pointing to new EU guidelines that will regulate which companies are allowed into funds that are labeled green or sustainable. Ultimately, personal finances likely make up a small fraction of the enormous sums of funding fossil fuels — but that is not the point of actions like switching your bank to a greener provider, explained Ganswindt. It's about sending a message. "Certainly, there's some power as customers, but we have way more power as citizens," said McGibbon. "So great to move to a greener bank, great to move to a greener pension scheme. But ultimately, we could have much more power as citizens, changing the way we vote, demanding the politicians regulate the financial sector."
DW
26-05-2025
- Business
- DW
What role does your money play in the climate crisis? – DW – 05/26/2025
What roles do our pensions, investments and banking decisions play in supporting fossil fuel projects? And how green are the sustainable alternatives? Personal finance is a climate blind spot for many — lagging behind decisions on things like diet, travel or shopping when it comes to individual action. Yet when it comes to lowering a person carbon footprint, moving to a sustainable pension provider can be 20 times more effective than the combined impact of giving up flying, going vegetarian or switching energy provider, according to analysis from UK campaign group Make My Money Matter. The role of banking in funding fossil fuels The world's 60 biggest banks are estimated to have committed $705 billion (€619 billion) to the fossil fuel industry in 2023 and $6.9 trillion since the Paris Agreement was reached in 2015. Much of this is funding expansion plans that fly in the face of science's unequivocal climate warnings. "We all have pots of money that are contributing to this in various ways without our knowledge a lot of the time," said Adam McGibbon, campaign strategist at US-based research and advocacy organization Oil Change International, adding that it could be in the form of current accounts, pensions, or insurance policies that are reinvested into the fossil fuel industry. Yet experts note the difficulty in precisely quantifying personal finance's contribution to fossil fuel funding due to complex financial systems and individual circumstances. This is largely because it is through the corporate rather than retail side of a bank's operations — where individual customers' money is held — that they usually lend money or underwrite bonds for companies developing fossil fuel projects, explained Quentin Aubineau, policy analyst at BankTrack, an international NGO documenting the financial activities of commercial banks. However, McGibbon adds that banks are still using our money to grow their business, create more revenue and attract investors. He said our savings might at the very least be "used to inflate the balance sheet of a bank, which will then allow them to service corporate clients" with links to fossil fuels. Is there a link between our cash and rising global temperatures? When it comes to investments some personal finances go directly into the fossil fuel industry via stocks or bonds, said Carmen Nuzzo, executive director of the Transition Pathway Initiative Centre in the UK, which researches progress made by the financial and corporate world to low-carbon economy. "This includes investment in oil and gas companies, which have been very attractive and profitable in recent well as investment in other companies that rely heavily on fossil fuel for their production or service provision, such as steel or aviation," said Nuzzo. Many people will also be funding fossil fuels through savings going into pension funds that invest in 'brown' companies — those within the highest greenhouse gas and carbon-emitting industries. Pensions are usually held and controlled by either the state, employers or private companies. Why does the world keep investing in fossil fuels? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video "You pay into a pension pot, that money is invested on your behalf and some of that may end up being invested in companies that make sure that your retirement will be one where you live in an unstable, difficult world," said McGibbon. Recent studies have estimated that under 4 degrees Celsius (7.2 degrees Fahrenheit) of warming an average person will be 40% poorer and that pension fund returns in the US and Canada could fall up to 50% by 2040. Due to the exposure of assets to extreme climate events. Pension funds are among the largest investors in fossil fuels in the world, with an estimated $46 trillion ploughed into the industry and holding 30% of its shares, according to Climate Safe Pensions, a US and Canda based divestment campaign. They were also found to be among the leading funders of fossil fuel expansion across Africa. In 2023, the German investigative platform Correctiv revealed that 10 out of 16 German federal states invested pension funds in fossil fuel activities. Green Finance alternatives While green banks don't always have the most favorable conditions, among climate conscious people there is a growing appetite for sustainable financial alternatives, said Katrin Ganswindt, a finance researcher of German NGO Urgewald. Among the growing pool of green banks are those that pledge to stop lending to fossil fuel companies and invest in climate friendly activities. Online tools such as have also emerged to help consumers compare the environmental credentials of different banks. One study predicts that the hotter the world becomes, the harder it will impact personal affluence Image: Noah Berger/AP/dpa/picture alliance But overcoming a lack of financial knowledge is still one of the key challenges, explains Nuzzo. "In the countries where most people have a pension, individuals do not keep track of where their pension assets are being invested.... or they might not review their options regularly." Things such as pensions that invest in the long-term are impactful places to make a change, said Ganswindt. "Pension funds have a big effect because they invest large sums." Make My Money Matter estimated that the country's pension industry could invest 1.2 trillion into renewable energy and climate solutions by 2035. The green pension landscape is, however, evolving. In the Netherlands, pension funds for civil servants and teachers as well as healthcare workers have divested from fossil fuel companies, and in the UK, large pension schemes are also now required to report their climate risks. What is 'green' and 'sustainable', and what is 'greenlaundering'? Yet despite growing awareness and green finance options, there is still a lack of standards and regulation in this space, said Franziska Mager, senior researcher at Tax Justice Network, a UK advocacy group working against tax avoidance. "Even if you're banking with a 'green' bank, you might be surprised to find out where your money is invested — if you're able to find out, that is. Let alone what the big players define as sustainable," she said. A recent paper she co-authored on "greenlaundering" in the banking industry said the existence of opaque financial practices — including the use of secrecy jurisdictions, a type of tax haven — obscure the true scale of fossil fuel financing. There has been a lack of regulation for green finance products, according to some experts Image: Jan Haas/picture alliance When it comes to ETFs — a type of investment fund traded on the stock market — you have been able to say it is "green" and it can mean nothing," said Ganswindt. There has, however, been recent progress when it comes to transparency, she adds, pointing to new EU guidelines that will regulate which companies are allowed into funds that are labeled green or sustainable. Ultimately, personal finances likely make up a small fraction of the enormous sums of funding fossil fuels — but that is not the point of actions like switching your bank to a greener provider, explains Ganswindt. It's about sending a message. "Certainly, there's some power as customers, but we have way more power as citizens," said McGibbon. "So great to move to a greener bank, great to move to a greener pension scheme. But ultimately, we could have much more power as citizens, changing the way we vote, demanding the politicians regulate the financial sector." Edited by: Sarah Steffen
Telegraph
27-02-2025
- Business
- Telegraph
Richard Curtis's green investing campaign shuts down after collapse in donations
A green investing campaign group co-founded by film director Richard Curtis is to close after a slump in donations. Make My Money Matter, which aimed to pressure banks and pension funds to stop funding fossil fuels, said it will be closing next month after five years in operation. It was launched by the Love Actually director in 2020 and had received public support from celebrities and campaigners including Stephen Fry, Chris Packham, and Caroline Lucas. 'As a non-profit, we've relied on philanthropic donations that have declined in recent years and it is not possible for us to continue our work,' the group said. In an email to its supporters, Make My Money Matter added that it will stop campaigning on March 7 and fully close by the end of next month. The email said: 'We have relied on philanthropic donations that have declined in recent years, and it has not been possible to continue.' It comes amid a major backlash against environmental, social and governance (ESG) focused investing which has intensified since Donald Trump entered office in January. A downturn in profits from the renewables industry and sharp increases in returns from the world's largest oil and gas companies has made the situation for ESG funds worse. Make My Money Matter had called on investors to pull all money out of any companies that financed new fossil fuel projects. Mr Curtis is known for launching high-profile campaigns including Comic Relief and Make Poverty History, as well as for directing influential British films including Notting Hill and Four Weddings and a Funeral. He said: 'It's been a roller-coaster ride – getting funding for campaigning is always hard – but the basic argument has always been the same: money makes the world go round – but it also has the potential to destroy it.' The British film maker launched Make My Money Matter alongside Jo Corlett, a former advisor to David Cameron in Downing Street. Tony Burdon, a former civil servant and Oxfam aid worker, acted as the pressure group's chief executive. When it first launched in June 2020, the campaign group said it was 'calling for the trillions invested through our pensions to help build a better world.' It subsequently led campaigns against leading British banks including Barclays, NatWest and HSBC while encouraging investors to put their money into accounts with lenders including Nationwide, Metro Bank and the Co-operative Bank. Make My Money Matter also published reports in partnerships with pensions giants including Phoenix Group and Scottish Widows. A spokesman for the pressure group said: 'The global economic situation is having an impact on funding for many non-profits.' The spokesman said the campaign group does not comment on its donors.
