Due to the increasing pressure on big banks to meet net zero goals and fulfill environmental, social, and governance (ESG) requirements, a wave of sustainability-focused banking services have been released, seeking to help integrate green initiatives into
consumers’ everyday lives.
As Scott Hamilton detailed in an
earlier Finextra long read on ESG-linked accounts, there are several incumbents that offer such services, which align with the United Nations (UN)’s Sustainable Development Goals (SDGs) – including Standard Chartered, CIBC, and United Overseas Bank. However,
the new administration in the United States has initiated a row-back in diversity, equity, and inclusion (DEI) and ESG initiatives and requirements for domestic companies – with global repercussions. Despite this push against sustainable initiatives in banking,
there has been a pickup in the availability of sustainable bank accounts for users.
McKinsey research found that sustainable banking products are attractive to consumers regardless of income
levels and types of communities. The research found that 40% of US consumers are interested in using climate-linked financial products, and of those interested, two in three would place 40% of their savings or credit card spending into a green retail product.
Sustainable bank accounts – an increasingly popular service – are not exclusive to companies. Such products integrate sustainability directly from the transactions being made through that account – such as tracking carbon footprints, making sustainable banking
choices, and allocating funds for green initiatives.
So, what bank accounts of this kind are out there for climate-conscious, digitally savvy users looking to change the way they bank? Are they truly sustainable?
There are various parameters that are used to measure sustainability and ethical banking, and different methods to accurately quantify ESG are still in development. The following banks are transparent about their emissions and which industries they lend
to, and contribute to initiatives that promote climate-consciousness and ethical banking.
Triodos Bank
Triodos Bank is a
B Corp-certified European bank headquartered in the Netherlands. The bank has an ethical ethos,
publishing information on every organisation that it lends to – excluding those in the oil, gas, arms, tobacco, and deforestation industries. Triodos focuses its lending on renewable energy
and joined the Fossil Fuel Non-Proliferation Treaty in 2023, to fully phase out fossil fuels.
The bank has set
2035 emissions reductions targets that were validated by the Science-Based Targets Initiative (SBTi).
Triodos offers ethical current and savings accounts for users, as well as Ethical Savings Bonds.
Banco Pichincha
This Ecuadorian bank headquartered in Quito prioritises ESG in its offerings.
Banco Pichincha supports businesses with sustainable principles. The bank was ranked in the top 100 of 500 on
Time’s list of
World’s Best Companies in Sustainable Growth 2025.
In February this year, the bank received a
USD $137 million loan to fund green financing and gender equality in access to credit from CAF.
Banco Pichincha offers personal bank accounts for users in Ecuador, and online bank accounts for Ecuadorians living abroad to send money back, which can be opened in the US.
The City Bank Limited
Bangladesh-based bank has over 1.7 million customers and has joined the UN’s Net-Zero Banking Alliance. Named one of the
top sustainable banks in Bangladesh for the last three years, City Bank is actively engaged in green refinance and core banking sustainability.
City Bank offers a Green Savings Account to Bangladeshis, for which trees will be planted for every account and available funds will be invested into sustainable projects.
Amalgamated Bank
New York City-based Amalgamated Bank is a certified B Corp that operates fully on renewable energy and net zero emissions. The bank is Fossil Free certified and 23% of their loans
fund climate solutions.
The goal of the bank is to make green living easier, which is why they offer homeowners special credit to install solar panels. The Amalgamated Bank Give-Back Checking account matches half of the interest earned and donates it to one of their partnered charities,
which include an array of social activism organisations.
Climate First Bank
Florida-based Climate First Bank is certified B Corp and Fossil Free. The bank was built on belief that banking can be climate-conscious and sustainable.
The bank’s Climate First Bank Pride Banking checking account allows people to use their chosen name and pronouns to open an account – and will donate $100 to an LGBTQ charity if the user sets up a direct deposit, worth at least $750.
Along with Amalgamated Bank and Areti Bank, Climate First is
one of three remaining US members of the UN’s Net Zero Banking Alliance.
Ecology Building Society
Ecology Building Society is a UK-based bank focused on creating a climate-focused, green banking experience that is committed to environmental sustainability.
The bank has pledged not to fund fossil fuels, mining companies, the arms trade, and deforestation.
Ecology offers current and savings accounts that fund energy efficient homes, clean energy, and community projects. The bank also offers residential and commercial mortgages for those looking to make eco-friendly self-builds and refurbishments, and community
housing projects.
Nationwide Building Society
Nationwide does not lend to the fossil fuel industry and is committed to be gas-free by 2030 and net zero by 2050. The bank sources 100% of its electricity from renewable energy.
The UK-based bank discloses all carbon emissions associated with mortgage, commercial real estate, and registered social lending – and has set science-based targets to reduce them.
To promote sustainable housing, Nationwide has the Green Additional Borrowing mortgage product with 0% interest, and offers homeowners £500 cashback if they purchase a home with a high Energy Performance Certificate score.
The Co-operative Bank
This high-street UK bank is committed to renewable energy and biodiversity protection. It offers green bonds and loans to make the UK more energy efficient. Focusing on funding SMEs, the bank does not support any form of fossil fuel production and ethically
reviews not only the firms it funds, but their parent companies as well.
In 2024, the bank was
acquired by Coventry Building Society, though in the press release the bank clarified that products and services will remain the same for their customers.
The bank offers a variety of accounts, including a student account, current account, an account for Ukranian refugees, and the Cashminder account for people with no credit history or a low credit score.
Vancity Community Investment Bank
Vancity is a Canadian bank based in Vancouver. The organisation achieved carbon neutrality in 2008 and has set
net zero goals for 2040. The bank does not invest in fossil fuels and supports clean energy initiatives.
Vancity’s profit-sharing program returns 30% of its profits to members to invest in initiatives such as climate change mitigation and financial literacy. The bank also focuses on backing climate action projects to improve the local community, such as funding
a hydrogen fuel network and
promoting renewable energy solutions.
In 2023, Vancity added an
emission tracking feature to their credit cards so that users could track their carbon footprint through their purchases.
Moving forward
The sustainable finance revolution is here, and big banks need to be putting in the work to ensure SDGs are being met. Since its inception in 2021, membership to the
Net Zero Banking Alliance has increased to 127 banks in 44 countries to set science-based net zero targets for 2030 – more and more banks are stepping up to the task.
While there are several banks now that offer bank accounts that integrate sustainability into payments, there is definitely room for more growth. All banks should not only offer sustainability-linked accounts, but embed green and clean energy practices into
their retail infrastructure.