Sustainability in Banking – What’s a sustainable home loan?

Did you know your money can be a powerful force for environmental change? For a lot of Australians who are eco-conscious, the banking world hasn’t always had the best reputation. However, many banks are shifting to prioritise ethical and sustainable practices. So if this is something that’s important to you, listen up!‍

What makes a bank sustainable?‍

Well, after you deposit your money into the bank it doesn’t necessarily get locked away in a virtual vault somewhere. Your hard earned moola actually joins a pool of $$, which your bank can use in various ways – Some of which, you might not necessarily agree on.

This can include investing in practices, or lending money to businesses involved in fossil fuels, tobacco, or weapons; which might not be your scene!

Did you know that Australia’s Big 4 banks have contributed $84bn Aussie dollars towards fossil fuel companies since the Paris climate agreement? Even though both CBA and NAB have net zero targets by 2050.

Luckily for you, there are several ethical Australian banks that prioritise social and environmental responsibility, and they’re actively engaging in sustainable practices now. This means focusing their investments towards projects that have positive environmental, social, and economic impacts – like clean energy, organic farming, and social housing.

In addition to this, these lenders often offer benefits like lower interest rates to homebuyers who prioritise energy efficiency in their properties!

If you’re thinking of installing solar panels or upgrading your insulation? Sustainable mortgages could be your ticket to more affordable home improvements, and a lower carbon footprint!

Ethical banks also have transparency in their investments and have policies in place to ensure they aren’t contributing to unethical practices or industries which may cause harm to individuals or the environment.

If this is something you’d want to know more about, We’d happily look into ethical banking options which suit your current needs.

Having a positive impact is something we like to get behind too!