Environmentally friendly banking

The global concern for the current and future state of our planet continues to grow, with millions of people wondering how they can make a positive impact. We’re challenged daily by non-profits, communities and businesses to make eco-friendly choices, but lifestyle changes aren’t the only way to help. Environmental awareness is a huge opportunity for innovation, which is why green banks are becoming increasingly popular.

Banks with an environmentally friendly cause

	Sustainability efforts	Get started
	BMO’s sustainable banking solutions focus on supporting clients and operations in a low-carbon transition, including: - Financing projects that reduce greenhouse gas emissions and support clean energy, sustainable cities and climate resilience - Offering guidance and research through the BMO Climate Institute to help clients manage climate-related risks - Integrating environmental considerations into lending, investment and operational decisions - Supporting energy-efficient housing, sustainable real estate and green business practices - Working toward net-zero emissions in financing activities by 2050, including by opening a net-zero energy branch	BMO Performance Chequing Account: Go to site
	Scotiabank's Global Banking and Markets division has financed over $132 billion in sustainable projects, including renewable energy, toward its $350 billion by 2030 goal. Their Climate Commitments are: - ensure robust climate-related governance and transparency in reporting - enhance integration of climate risk assessments in lending, financing and investing activities - decarbonize operations and find innovative solutions to reduce the Bank’s impact on the changing climate - establish a Climate Change Centre of Excellence to mobilize internal and external collaboration, dialogue and information sharing and contribute to the global conversation on climate change	Scotiabank Preferred Package: Go to site
	TD Bank's green leaf symbol represents products, services and business-related initiatives that contribute to the environmental goals and commitments of TD Bank Group, which include: - Contributing to a low carbon economy through reduction of greenhouse gas (GHG) emissions or reduction of energy usage - Growing areas of protected critical forest habitat and enhancing urban green space - Reducing paper usage - Using paper and wood products derived from sustainably managed forests - Over 490,000 tress planted through TD tree days since 2010 - Provided $10.8 billion in financing to companies with low carbon operations - Offers electronic banking, paperless statements, and energy-wise ATMs	TD Unlimited Chequing Account: Read review
	RBC is aiming to be net-zero by 2050 with its Climate Blueprint focusing on financing sustainable projects and working towards climate solutions. RBC's Climate Blueprint plans includes: - supporting clients in the low-carbon transition - advancement in capabilities in climate risk management - achieving net-zero carbon emissions in global operations annually - speaking up for smart climate solutions - investing in technology to address complex environmental challenges	RBC Signature No Limit Banking Account: Read review
	CIBC has financed over $160 billion in sustainable projects as part of its $300 billion goal by 2030. Their Corporate Environmental Policy includes commitments to: - protecting and conserving the environment - safeguard the interests of CIBC's stakeholders from unacceptable levels of environmental risk - support the principles of sustainable development Since 2015, CIBC's internal paper use per full-time equivalent employee has decreased by more than 22%. They continue to do this by offering paperless banking methods such as pre-authorized bill payment, online transfers, direct deposit programs, eDeposits and telephone and online and mobile banking.	CIBC Smart Account: Read review
	Tangerine serves over 1.9 million clients using a fraction of the resources of traditional banks. Their promise is to: - lead the sustainability challenge by example - continuously work on eliminating their environmental footprint - share their achievements with their clients - work with their clients, vendors and employees to look for sustainable lifestyle options and business solutions	Tangerine No-Fee Daily Chequing Account: Go to site

What are green banks?

Green banks use innovative business models and financing techniques to encourage private investment in clean and sustainable technology. While these socially-responsible institutions vary in size, approach and impact, they generally share the following characteristics:

• Aim to facilitate investment in LCR LCR or Low-Carbon Resilience refers to strategies and technology that reduce greenhouse gas emissions and vulnerability to climate change impacts infrastructure and technology
• Employ innovative transaction structures
• Demonstrate strong market expertise
• Operate with independent authority to design and implement investment strategies
• Maintain a focus on cost-effectiveness and performance

Beyond these operational characteristics, a few common goals of green and socially-responsible banks include:

• Meeting ambitious emissions targets
• Mobilizing private capital
• Lowering the cost of financing for clean energy initiatives
• Reducing energy costs
• Developing and scaling green technology markets
• Supporting local community development
• Creating green jobs

What is the most environmentally friendly bank?

Some of the best examples of financial institutions taking meaningful steps toward sustainability include TD Bank and BMO.

TD Bank has set a clear target to achieve net-zero greenhouse-gas emissions in its operations and financing by 2050, and plans to reach $500 billion in sustainable and decarbonization business activities by 2030. The bank also supports community-level green initiatives, such as funding renewable energy projects and helping customers make energy-efficient home upgrades.

BMO has pledged to achieve net-zero financed emissions by 2050 and launched the BMO Climate Institute, which helps clients transition to a low-carbon economy. The bank has also issued multiple green bonds to fund projects that support clean energy, sustainable cities and resource efficiency.

How to be more eco-friendly with your banking

With banks offering more sustainable options, it’s up to each of us to adapt and support efforts that lessen environmental impact. Here are some practical ways to make your banking habits more eco-friendly.

Use internet banking as much as you can

For most of your current and future life, visiting the bank consistently is something of the past. Unless you’re opening a new account, which some banks now also offer through an online application, just about every single thing you would need to use your bank account can be done online. This includes basic transactions, investing, trading and business services.

Use a mobile banking app

As with internet banking, a banking app is a powerful platform for almost everything you would have usually done at a physical branch. Mobile banking apps are an extension of what internet banking offers. Compare the top 5 mobile banking apps here.

Switch to electronic statements

If you’re in the habit of meticulously working through your bank statements every one to three months, consider receiving them electronically. Paper might feel more natural now, but over time, you’ll start appreciating the accessibility and time-saving power behind eStatements!

Ask whether your local branch is environmentally friendly

Many banks now promote using recycled materials within their branches. This includes marketing materials like brochures and posters.

Choose a bank with green policies

If your current bank doesn’t have strong environmental policies, consider switching to one that does. Look for banks that support renewable energy, sustainable projects and net-zero commitments.

Use cards made from recycled or biodegradable materials

Some Canadian banks have introduced eco-friendly debit and credit cards made from recycled or bio-sourced plastics. TD, for instance, now issues cards made from 90% recycled materials, helping reduce single-use plastic waste.

Support green investment options

If your bank offers sustainable investment funds or ESG portfolios, consider investing there. These funds prioritize companies with strong environmental and social practices.

Why do banks need to offer environmentally friendly banking options?

Banks have a major influence on both the economy and the environment. They manage vast amounts of data, physical resources and financial capital that shape how societies grow and use energy. Every aspect of banking — from printing paper statements and producing cash to financing large-scale industrial projects — has an environmental footprint.

By reducing paper use, digitizing operations and investing in sustainable technologies, banks can significantly cut emissions and waste. More importantly, through their lending and investment decisions, banks have the power to direct capital toward renewable energy, green infrastructure and low-carbon businesses, helping entire industries transition to a cleaner economy.

Bottom line

Beyond lifestyle changes like recycling more, driving less and being more conscious toward the environment, the products and services you use can also make a positive impact. On a larger scale, green banks aim to facilitate investment in clean technology, so choosing to bank with them could encourage others to adopt socially responsible behaviour. And if you’re interested in what else banks are doing to be good stewards, compare accounts with other ethical causes.

Frequently asked questions

• Do green banks cost more?

  It depends. Generally, green banks will charge similar fees to traditional banks, but it doesn't hurt to compare your options and find out.

• How do green banks measure their impact?

  Green banks use metrics like emissions saved, jobs created, rate of return, effectiveness of investments and more to measure their environmental impact.

• What industries do green banks support?

  Green banks support a wide range of industries, including infrastructure, clean energy, community organizations and more.

• Are there green credit unions?

  Definitely. However, they aren't as popular as green banks, so you'll have to look in your area to find out if there's one near you.

Written by

Shirley Liu

Publisher

Shirley Liu is Finder's global program manager. She was previously the publisher for banking and investments and has also written comparisons for energy, money transfers, Uber Eats and many other topics. Shirley has a Master of Commerce and a Bachelor of Media, Journalism and Communications from the University of New South Wales. She is passionate about helping people find the best deal for their needs. See full bio

Co-written by

Rebecca Low

Writer

Rebecca Low is a writer for Finder. She has contributed to a range of digital publications, including income.ca, Indeed, and Expatden, writing on topics like personal finance, career development, and travel. See full bio