Banking for Good: How to Use Your Money to Help Fight Climate Change

When you deposit money in the bank, it doesn’t simply sit there—it goes to work, but that work might not align with your values. Most major banks, like JP Morgan Chase, direct significant funds into fossil fuels—$434 billion over the past six years, to be exact. Imagine the environmental cost of that: a new report from Project Drawdown and Topo Finance reveals that every $1,000 you keep in a big bank account in the U.S. has a carbon footprint of about 0.24 metric tons of CO2 annually, roughly equal to a cross-country flight from New York to Seattle.

Switching to a “climate-responsible” bank—one that doesn’t fund fossil fuel projects—can actually create more positive impact on the planet than going vegan. Your financial choices matter, and so does your influence. As Jamie Alexander, Director of Drawdown Labs at Project Drawdown, says, “Money is a big part of how we transition from the industries of the past to those of the future.” Here’s how you can start shifting that leverage.

1. Calculate Your ‘Financed’ Emissions

It’s not always transparent where your bank invests, but for large U.S. banks, an estimate of 0.24 metric tons of CO2 per $1,000 in your account is a good starting point. A notable portion of your deposits—20-30%—could be tied to fossil fuels or carbon-heavy industries like mining.

2. Research Your Bank’s Climate Policies

If you’re curious, take it a step further. Look into your bank’s public stance on fossil fuels. Do they have a net-zero pledge, or have they committed funds to climate solutions? Are their goals short- or long-term? This research can clarify whether their values align with yours.

3. Call Your Bank and Tell Them Why You’re Considering Leaving

Yes, you could simply make the switch, but expressing your reasons directly can be powerful. As Alexander points out, “We need the infrastructure and capacity of big banks in some way,” and consumer pressure can inspire them to rethink their policies. Calling your bank’s customer service line can create a valuable touchpoint; sharing your concerns and stating that you’re looking at climate-friendly alternatives could be one more signal banks need to take action.

4. Encourage Your Company to Rethink Its Banking

If your company banks with a fossil-funding institution, consider rallying colleagues to propose a change. The carbon footprint of corporate cash deposits can be immense; at PayPal, for example, the emissions from banking are vastly larger than all other operations combined. Some companies, like Apple, have already started moving portions of their funds to climate-responsible credit unions. It’s a powerful lever for change.

5. Choose a Climate-Friendly Bank

Check out alternatives like Aspiration who not only commit that your deposits will not fund fossil fuel exploration or production - but also provide products like debit cards that plant trees every time you swipe. When you make the switch, let your new bank know that its climate commitments played a role in your decision.

The financial system can feel far removed from everyday choices. But in reality, it’s profoundly influenced by each of us. A wave of customers asking “Where’s my money going?” can inspire banks to pivot toward funding a healthier planet. As Alexander says, “We don’t have to be passive observers to what’s done with our hard-earned money.” With enough of us, small steps can create ripples that reshape the financial system for good."