Posted by Abbi Scrutchfield on April 15, 2025
This Earth Month, Green Century and Green America shared a few ways to make climate-conscious choices with your financial institutions.
The way you bank, borrow, and insure can have an environmental impact, often in ways that aren’t immediately visible. Banks, credit card companies, and insurers invest and lend with your money. That means your dollars could be used in ways that may not align with your values.
Your money has power.
Consider these four ways to green your finances:
Major U.S. banks are some of the world's largest funders of fossil fuels. Since the Paris Agreement, the 60 biggest banks globally have loaned over $6.9 trillion to fossil fuel companies—with over $2 trillion coming from just the top U.S. banks.
Switching to a community bank or credit union is one of the most impactful changes you can make. These institutions are typically mission-driven, support local economies, and are far less likely to fund environmentally harmful projects.
Check out Green America’s Get a Better Bank map to find sustainable banking options near you.
Credit cards generate revenue through fees—so your card issuer profits from your purchases. Even cards that look eco-friendly or support nonprofits may be issued by banks that invest in fossil fuels.
To make a greener choice:
Insurance companies are often silent contributors to climate change. Fossil fuel companies need insurance to operate, and many insurers invest heavily in fossil fuel stocks and bonds. Some companies are also pulling coverage from areas vulnerable to climate risks and raising rates across the board.
Use Green America’s Climate-Smart Insurance Directory to find companies that avoid insuring or investing in fossil fuels. Also consider shopping through independent brokers, who may offer local or regional options that may be greener and more affordable.
Choosing to go fossil fuel-free can align your money with your values, and it may reduce financial risk. The energy sector has underperformed the S&P 500 in 7 of the last 10 years and exhibits high volatility.
When considering fossil fuel-free or any sustainable investments, it’s important to look for details beyond the investment’s name. An actual fossil fuel-free investment will show 0% invested in the energy sector (remember that renewable energy is represented in a different category).
Financial decisions can have environmental implications, even in ways that aren’t immediately obvious. Exploring options like community banks, value-aligned credit cards, climate-conscious insurance, and fossil fuel-free investments may help align your money with your personal priorities.
Disclaimer: This post is for informational purposes only and is not to be considered investment, tax, or financial advice. Cornerstone does not and cannot guarantee the accuracy or applicability of any information presented in this post regarding your individual circumstances. Please review your personal situation with your tax and/or financial advisor.
