Give your finances a green makeover

If you’re committed to the green cause then you probably already live a relatively eco-friendly lifestyle. Perhaps you grow your own vegetables, car pool, source your energy from a green utility provider or avoid flying where possible – all admirable and highly popular methods of carbon cutting. But have you considered less obvious ways of reducing your carbon footprint, such as giving your finances a green makeover?

If the notion of ‘green’ finance is new to you, then start by looking at your current financial providers. Does your bank have a good environmental policy? Is your insurance company committed to offsetting your home or vehicle emissions? If the answer is ‘no’, then you may want to consider switching providers.

Choose a bank which is committed to recycling and reducing energy usage, such as Santander, who also offer a good range of current accounts. If you have money to invest, you could also consider opting for an ‘ethical’ investment product – for example, a stocks and shares ISA which will put your savings into environmental initiatives. Your goal in choosing a financial product should be both to support green providers and to ensure that your money is invested in a good cause.    

An increasing number of insurers are marketing green policies, so you should have a great range of choice when it comes to insurance products. Choose a company which can compete on the service and cost front, as well as boasting a good green record.  Bear in mind that some environmentally aware insurers will offer discounts of up to 20 per cent to customers with hybrid or electric vehicles.

In addition to green bank accounts and insurance policies, there are a growing number of financial products out there which can help you to cut your carbon footprint. Some providers offer ‘green’ credit cards, where a donation is made to an environmental cause whenever you spend using the card. Others are marketing green mortgages, which offset customer emissions or make donations to good causes.  

Once you are happily established with a green financial provider, there should still be plenty that you can do to ensure that your finances make minimal environmental impact. Ask your bank and your utility companies to stop sending paper statements, opting to receive updates online instead. Not only will this reduce paper wastage, it should also make overseeing your finances more convenient – so in the long run, everybody benefits.