Is Your Bank Sustainable? 10 Questions to Ask

Most people don’t realize that where they bank can have as much impact on the planet as what they buy. Many big banks are still some of the largest funders of fossil fuel projects, deforestation, and industries driving climate change. But not all banks are the same. By asking the right questions, you can see whether your money is helping build a sustainable future—or quietly fueling environmental harm.

Here are 10 questions to ask your bank (and yourself) to see if it aligns with your values.

1. Does the bank finance fossil fuel projects?

Banks often loan money to oil, gas, and coal companies. Ask directly: does your bank have ties to fossil fuel expansion, pipelines, or drilling projects?

2. Does it have a clear climate policy?

Look for published commitments to net-zero goals, carbon reduction, or divestment from high-pollution industries. Transparency matters.

3. How much does it invest in renewable energy?

Does your bank support solar, wind, and other renewable projects—or is it only talking about sustainability while still financing fossil fuels behind the scenes?

4. Does it publish impact reports?

Reputable sustainable banks release annual impact or sustainability reports showing where funds are allocated. Silence may signal business-as-usual practices.

5. Is it a member of sustainable finance initiatives?

Check if your bank is part of frameworks like the UN Principles for Responsible Banking or other coalitions that commit to climate-aligned investing.

6. What are its lending practices?

Does the bank support local businesses, community housing, and regenerative agriculture? Or does most lending go to industries that harm people and ecosystems?

7. Are there green financial products available?

Look for options like green bonds, eco-friendly credit cards, or savings accounts tied to sustainability projects.

8. How does it treat social responsibility?

Sustainability isn’t just about the planet—it’s also about people. Does your bank support diversity, community reinvestment, and ethical labor practices?

9. Does it avoid greenwashing?

Some banks talk a good game but continue to be top funders of fossil fuels. Research independent reports (like Banking on Climate Chaos) to see how their claims stack up.

10. What alternatives exist?

If your bank isn’t sustainable, what are your options? Credit unions, local banks, and dedicated ethical banks often reinvest money into community projects, renewable energy, and social equity.

Why This Matters

Banking is often invisible, but it’s one of the most powerful forces shaping the future. Every loan, investment, or project your bank supports influences the type of world we live in tomorrow.

• Climate impact: Global banks have poured trillions of dollars into fossil fuels since the Paris Agreement, directly fueling emissions and delaying the energy transition. Choosing a sustainable bank helps shift capital toward renewable projects instead.
• Community health: Where banks invest determines which communities thrive. Green banks often channel funds into affordable housing, small businesses, and regenerative agriculture—creating healthier, more resilient local economies.
• Long-term stability: Financing extractive industries isn’t just environmentally risky—it’s financially risky. As governments phase out fossil fuels, banks stuck in those industries face stranded assets and instability. Supporting forward-looking banks is a vote for resilience.
• Consumer power: Banks follow money. When more people demand sustainability and move their accounts, it pressures the industry to change. Individual actions, multiplied, create ripple effects across entire financial systems.

In short: where your money “sleeps at night” may be financing either climate destruction or climate solutions. Aligning your finances with sustainability is one of the most impactful steps individuals can take toward shaping a livable future.

Final Thoughts

Your money doesn’t sit idle—it moves through the economy, funding projects that either build or harm a sustainable future. By asking these 10 questions, you’ll see whether your bank aligns with your values. If not, it may be time to make a switch.

Every dollar is a statement. Where you bank is as important as how you spend.