6 steps to greener finances

We all have the power to make a difference with our money, explains personal finance expert Katie Binns

- By Katie Binns

More of us are already flying less, embracing more meat-free meals and changing our household habits to do our bit towards slowing climate change. However, the real power lies with your cash. Did you know that you may be inadvertently supporting fossil fuels and other harmful industries such as fast fashion and the arms trade with the money in your bank account, pension and investments?

The good news is that you don't have to overhaul your finances or make any financial sacrifices to change that. There are straightforward actions that, once done, you won't have to think about again. Every little action really does help, and the more of us that choose one green financial product this year, the more the market will offer them in the future. Try these six manageable money moves.

1 SWITCH YOUR BANK ACCOUNT

Banks finance climate change through the businesses they invest in and lend their customers' money to - often investing in coal, oil, fracking, deforestation and emerging markets where they use child labour. For example, £150 billion was invested in fossil fuels by UK banks between December 2015, when the Paris Agreement was signed, and September 2019.

Banks such as the Co-operative, Starling, Triodos and Nationwide Building Society offer more climate-friendly current accounts. The Current Account Switch Service (currentaccountswitch.co.uk) guarantees a transfer to a new bank is done within seven working days.