This article is brought to you with generous support from Aspiration*. As always, EcoCult only works with vetted brands that do good work. Please support our editorial by supporting them!
It is often said that ethical consumption does not exist under capitalism. But if you’re consciously saving money by spending less, you need to invest that money somewhere. (Not under the mattress!)
The problem is that most banks don’t tell retail bank customers where their deposits are going, and fossil fuel companies are too often the beneficiaries of their customers’ money.
From 2016 to 2023, the world’s 60 largest private banks invested US$6.9 trillion in fossil fuel infrastructure such as pipelines and drilling. US banks JPMorgan Chase, Citi, Bank of America, Wells Fargo, Goldman Sachs and Morgan Stanley alone contributed $1.8 trillion.
This is despite some of the world’s largest and oldest banking facilities, representing 38% of global banking assets, signing up to the United Nations-convened industry-led Net Zero Banking Alliance. The alliance requires member countries to publish their annual emissions and commit to targets that move investment portfolios from high-carbon business models to low-carbon or no-carbon strategies.
Still, since joining the alliance, 24 banks have financed new gas and oil production. HSBC, one of the world’s largest banks, has suspended its head of responsible investment for its asset management division over comments he made that questioned the urgency of the climate crisis. And a study by the Massachusetts Institute of Technology (MIT) found that banks that do this are not significantly reducing the amount of money they lend to dirty companies.
It’s time for a change. Consumers are now demanding to know more about supply chains and sourcing in the fashion and food industries so that we can make better decisions about how we spend our money.
The same applies to where you keep your money.
Ethical and sustainable banking options
For almost a decade, there’s been a better option for climate-friendly checking, savings, and investment accounts: Aspiration. This U.S. banking alternative enables ordinary people to support their financial well-being while having a positive impact on the climate.
The first and easiest step you can take to exit the oil economy is to put your money in a financial institution like Aspiration that does not support fossil fuel exploration or production.
But there are other ways you can use Aspiration checking and savings accounts to fight climate change. Fund a tree plant by rounding up to the nearest dollar, earn up to 6% cash back when you shop at climate-friendly brands through Aspiration’s Green Marketplace, and every time you buy gas with Aspiration Debit. It can automatically offset the carbon dioxide impact of driving. card.
But this is not a purely philanthropic choice. The economic benefits of banking with Aspire exclude mandatory fees such as monthly maintenance fees, minimum balance fees, and overdraft fees. Additionally, there are 55,000 fee-free ATMs across the United States.
You can also get a high-yield savings account with Aspiration. Standard accounts earn 1.00% APY and Premium accounts earn 3.00% APY. You can also access your paycheck up to two days earlier when you sign up for direct deposit.
So we see that we don’t need to spend a lot of money to support a more thoughtful economy. Instead, you can save money and make sure that money does good in the world…using Aspiration.
Standard disclosure:
*Aspiration Debit Cards are issued by Coastal Community Bank, Member FDIC, under license from Mastercard International Incorporated. Through Coastal Community Bank’s Insured Bank Deposits Program, cash balances in Aspiration Spending and Savings Accounts may be deposited with one or more FDIC-insured depository institutions (each a “Bank”) up to a maximum of $250,000 per Bank . Five banks are available and deposits are insured by the FDIC up to $1.25 million per depositor. Visit fdic.gov. It is your responsibility to monitor your deposits with each bank to determine the FDIC insurance coverage available.
Aspiration Spend and Save Accounts are checking and savings accounts offered through Coastal Community Bank, member FDIC. Approved deposit accounts are FDIC insured up to $250,000 per depositor. If your balance exceeds $250,000, Coastal will sweep the excess funds to one or more FDIC-insured depository institutions (each, a “Bank”) within the Sweep Network, up to a maximum of $250,000 per Bank. Available to five banks through Coastal Community Bank’s Insured Bank Deposits Program, deposits are insured by the FDIC up to $1.25 million per depositor. This amount is subject to change at any time. Visit fdic.gov. Aspiration’s program banks have formally committed that customer deposits will not be used to finance oil and gas exploration, production or transportation, or coal mining.
*See superscript hyperlinks for additional disclosures
div:nth-child(1) {flex: 1 !important;} ))))>))>
