James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:
“While rate continues to be a compelling motivation for those making financial decisions, it’s important to remember that there may be other factors at play for consumers considering their options. For example, some will want to invest in companies that possess a clear green focus.
“There are currently 39 savings account options available in the UK which are listed as possessing a ‘green incentive’. This is up from 30 a year ago, although it’s important to remember that some ‘green’ components will be more significant than others.
“Some providers commit to planting a tree every time a qualifying savings account is opened, while others will demonstrate more of a holistic focus around sustainable banking. For example, Triodos Bank uses all deposits to finance green and community initiatives, co-financing 640 renewable energy projects and 42,900 hectares of nature and conservation in 2023 alone.
“Meanwhile, Ecology Building Society funds sustainable community projects, including Passivhaus development and eco renovation schemes.
“In addition, app-only providers will naturally have lower carbon emissions, due to the lack of paper, printing, and physical premises required. In these cases, they are often able to be more competitive on rate as they have reduced costs as a result of their business model. However, a defining factor of company’s eco-credibility is how they invest the money entrusted to them, so it’s important to consider this when making decisions.
“Some consumers may have to compromise on maximising their financial returns if they want to bank as sustainably as possible, however – some green providers choose not to compete at the top end of the market due to the increased costs of investing in certain areas or practices.
“The Financial Conduct Authority’s regulations around ‘greenwashing’ practices come into effect on 31 May, and it remains to be seen how this will impact this space going forward.”
Roger Hattam, Director of Retail Banking at Triodos Bank UK, said:
"Until better regulation is introduced and there are clearer definitions of what ‘green’ means, it is still down to savers to do their own research into the options. Banks use the money they hold to lend or invest in companies. They therefore have a critical role to play in the sectors that money is directed towards and shaping the future we want to see.
“The promotion of accounts with taglines such as ‘plant a tree’ can be misleading as it is more relevant to look at the provider’s broader lending and investment policy, target setting and transparency on carbon emissions. We’re proud to have been a frontrunner in this area for almost 30 years in the UK. We have never supported environmentally destructive areas such as fossil fuel expansion, intensive agriculture or deforestation – instead choosing to finance areas such as renewable energy, nature conservation and organic food & farming.”
James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:
“While rate continues to be a compelling motivation for those making financial decisions, it’s important to remember that there may be other factors at play for consumers considering their options. For example, some will want to invest in companies that possess a clear green focus.
“There are currently 39 savings account options available in the UK which are listed as possessing a ‘green incentive’. This is up from 30 a year ago, although it’s important to remember that some ‘green’ components will be more significant than others.
“Some providers commit to planting a tree every time a qualifying savings account is opened, while others will demonstrate more of a holistic focus around sustainable banking. For example, Triodos Bank uses all deposits to finance green and community initiatives, co-financing 640 renewable energy projects and 42,900 hectares of nature and conservation in 2023 alone.
“Meanwhile, Ecology Building Society funds sustainable community projects, including Passivhaus development and eco renovation schemes.
“In addition, app-only providers will naturally have lower carbon emissions, due to the lack of paper, printing, and physical premises required. In these cases, they are often able to be more competitive on rate as they have reduced costs as a result of their business model. However, a defining factor of company’s eco-credibility is how they invest the money entrusted to them, so it’s important to consider this when making decisions.
“Some consumers may have to compromise on maximising their financial returns if they want to bank as sustainably as possible, however – some green providers choose not to compete at the top end of the market due to the increased costs of investing in certain areas or practices.
“The Financial Conduct Authority’s regulations around ‘greenwashing’ practices come into effect on 31 May, and it remains to be seen how this will impact this space going forward.”
Roger Hattam, Director of Retail Banking at Triodos Bank UK, said:
"Until better regulation is introduced and there are clearer definitions of what ‘green’ means, it is still down to savers to do their own research into the options. Banks use the money they hold to lend or invest in companies. They therefore have a critical role to play in the sectors that money is directed towards and shaping the future we want to see.
“The promotion of accounts with taglines such as ‘plant a tree’ can be misleading as it is more relevant to look at the provider’s broader lending and investment policy, target setting and transparency on carbon emissions. We’re proud to have been a frontrunner in this area for almost 30 years in the UK. We have never supported environmentally destructive areas such as fossil fuel expansion, intensive agriculture or deforestation – instead choosing to finance areas such as renewable energy, nature conservation and organic food & farming.”
