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For many Australians, it's no longer enough to find a bank with competitive interest rates and services – it's also now crucial that they tout the same social, environmental, and community values they do. Based on 2022 findings by the Responsible Investment Association Australasia[1], four out of five Australians (83%) now expect their savings to be “responsibly and ethically invested” in the right causes and business projects.
As ethical finance gains prominence, it could be worth switching to a bank with a greater awareness of people's needs and making lasting, positive impacts on the world around them.
Ethical banking refers to how certain banks operate around a specific set of core values and beliefs that help leave a positive impact on their community, the environment, and the world in general[2]. This may include contributing to social causes such as affordable housing, access to education, and fair work opportunities. Such practices also involve the implementation and promotion of sustainability, like paperless banking and offsetting the carbon footprint of their banking products.
These banks may thus screen their potential clients and exclude those who don't align with their ethical practices or policies. They would also need to keep both their internal and external ethics consistent – meaning that anything they deem ethical externally must also be implemented in their own workplace. For example, should a bank deny work with a client due to their wasteful energy consumption, the bank must therefore exemplify sustainable energy practices and efforts to reduce their carbon emissions.
Additionally, ethical banks will emphasize accountability and transparency amongst its employees and external parties, helping build and strengthen trustworthy professional relationships.
Ethical banks often “give back” to their communities. By joining an ethical bank, you could help support their efforts in improving the opportunities and welfare of the people around them. This could include community development programs such as educational funding, tree planting, providing affordable housing, medical funding, and enhancing food security.
We've partnered with a variety of charity organisations that seek to improve the lives of those in need. These include:
Ethical banks typically prioritise their impact on the environment, implementing new ways of conserving their water, energy, and natural resource usage. This could include relying on more energy-efficient lighting and appliances; promoting recycling and responsible waste disposal; and establishing paperless practices. By pursuing greener, “eco-friendly” initiatives, they ensure a much more sustainable approach to banking, helping conserve the environment rather than lend to its ongoing destruction.
We currently support multiple environmental initiatives, including:
In a similar vein, ethical banks typically support initiatives that help fight global warming and general climate change. Those who join ethical banks could help fund these causes and contribute to the preservation of our planet.
On top of supporting greener corporate initiatives, ethical banks may also refuse to work with businesses involved in the fossil fuel industry or in projects with environmentally destructive outcomes (i.e. improper waste disposal, overuse of plastic, deforestation).
We're a bank that supports organisations who actively fight against climate change, such as:
Additionally, we ensure that our customers' deposits are invested ethically, avoiding investments in projects or businesses involved in the coal or fossil fuel industry. We further take care to avoid investing in companies engaged with live export or factory farming.
A bank that aligns with your social and environmental values could help you ensure your money goes towards supporting the greater good.
Qudos Bank commits to investing in projects that help improve the lives of others, along with eco-friendly practices that lend to the preservation of our planet. By joining our bank, you can rest assure your savings have a positive impact on the world and those around you.
Sources:
1. Responsible Investment Association Australasia (RIAA). 2022. “From Values to Riches 2022: Charting consumer demand for responsible investing in Australia”. https://responsibleinvestment.org/wp-content/uploads/2022/03/From-Values-to-Riches-2022_RIAA.pdf
2. BankTrack. “What is… ethical banking?”. https://www.banktrack.org/download/what_is_ethical_banking_/what_is_ethical_banking.pdf
Disclaimers:
The information in this article is of a general nature and has been prepared without considering your objectives, financial situation or needs. Before acting on the information, consider its appropriateness to your circumstances.