“Money makes the world go round.” This sentence contains a great deal of truth and leaves a bland aftertaste. Because whoever has money has power – and whoever has power has influence over the world. And in view of the huge, dubious corporations and banks that apparently hold the reins of this world in their hands, you often want to throw in the towel and bury your head in the sand. But! More and more people and initiatives are asking themselves the following question: “What money do we use to rule the world?”
This question gave rise to the term “green money” or “green money” or synonymous terms such as sustainable finance, socio-ecological investments, etc. These terms refer to sustainable investments that take ecological, social and ethical aspects into account. Green investments succeed in mobilizing capital for climate protection and promoting a sustainable economy by investing in companies that pursue ecological and social projects and thus generate a social benefit.
Where our money goes has an impact on where the world is heading. And the more people decide to invest their money in sustainable investments, the greater the potential for a sustainable and socially just future.
The difference between sustainable and conventional banks
Banks use the money deposited by their customers and invest it in the market. Conventional banks primarily pursue the goal of maximizing profits for their shareholders, which is why their decisions are mainly based on economic considerations. These banks invest in a wide range of industries, including those that support potentially harmful environmental and social practices, such as fossil fuels or the defense industry. Their risk and return assessments are made primarily on a financial basis.
In contrast, sustainable banks aim to promote social, environmental and economic sustainability. They seek a balance between financial returns and positive social and environmental impacts. Decisions are made not only on the basis of financial, but also environmental and social criteria and targeted investments are made in projects and companies that have a positive social and environmental impact, for example in renewable energies or social housing projects. They avoid investments in sectors that are considered harmful to the environment or society and also evaluate their investments according to sustainability criteria.
How can I tell if a bank is sustainable?
There are now various sustainability seals and audits in the area of sustainable investments. The FNG seal, for example, is a seal of quality for sustainable investment funds in German-speaking countries that is awarded by the Forum Nachhaltige Geldanlagen (FNG). It serves as a quality standard and guidance for investors who wish to invest in sustainable financial products and analyzes funds based on ESG criteria.
The ESG criteria are a framework for assessing the sustainability performance of companies and investments. ESG stands for Environmental (environment: climate protection, resource efficiency and the protection of biodiversity), Social (social: labor standards, human rights and the promotion of social projects) and Governance (corporate management: ethical business practices, transparency and corporate governance). These criteria help to assess the sustainability and social responsibility of companies and investments.
In addition, the following points will also help you to recognize whether a bank is sustainable:
– Sustainability reports: A sustainable bank regularly publishes comprehensive sustainability reports. These reports should contain detailed information on the bank’s ESG performance, including specific targets, measures and progress made.
– Transparency: The bank should disclose how it integrates ESG criteria into its business processes and investment decisions. This includes clear information on its sustainability strategy and the methods used to assess and monitor ESG factors.
Where does your money go?
Perhaps this article will inspire you to consider switching to a sustainable bank. After all, we have power and influence over the development of our future simply by choosing the bank where our money is deposited. All you have to do is switch banks – and it’s less time-consuming than you might think, because the new bank takes care of all the steps and transfer work and ensures a smooth switch.
Money changes the world. Even if it’s just your few pennies. Because when many people put their few pennies together, it suddenly becomes a fortune – and that can make a big difference.