Sustainable Living: Banking On The Planet

“Money is the oxygen on which the fire of global warming burns.” — Bill McKibben

Breaking up is hard to do. I’ve been uncomfortable in my relationship with Chase Bank for a while now. But as my relationship banker pointed out, the two of us have a great credit history. She reminded me that I’ve had my Chase Sapphire card for 33 years. And then said that if I canceled it, my credit score would drop.

So why would I just up and leave them over the fact that JPMorgan Chase consistently tops the list of the biggest fossil fuel lenders? It’s true that between 2016 to 2020, Chase provided nearly $317 billion to fossil fuels, but we all have our bad habits, right?

Then there’s the matter of points. When I imagine cutting up my card, I hear the voices of a thousand tiny frequent flyer miles crying out in pain.

Plus, I like my local branch in Sag Harbor. The tellers are really friendly. They remember my name. And there’s usually a bowl of lollipops in the lobby.

The thing is, 2021 was unequivocally the year of climate chaos: Droughts, water shortages, and massive fires as far north as the Arctic circle. Seattle, normally accustomed to cool, damp weather, saw 116 degree heatwaves for days on end, cooking snails in their shells and killing almost 800 people. The science tells us that we must halve greenhouse gas emissions within a decade if we are to have any chance of averting an all-out climate breakdown.

Fossil fuels are the beast that stokes the fire of global warming. And big banks need to stop bankrolling them. Now.

When I brought up my concern about financing the destruction of the planet with the relationship banker, she suggested I file a complaint to the branch manager, who would then escalate it to their manager, then to the manager’s boss, then to his boss. “Maybe three or four bosses up,” she guessed.

I don’t mean to pick on Chase. Not exclusively anyway. When it comes to bad behavior, there are several other contenders. While Chase is by far the largest fossil fuel lender in the world, Citi-Bank, Wells Fargo and Bank of America also invest much more than the rest of the dirty dozen.

And despite promises made in the 2015 Paris Climate Agreement, these bad actors are getting even worse. The Rainforest Alliance Report “Banking On Chaos” finds that these four investment banks have actually increased their fossil fuel underwriting over the past five years, lending more than a trillion dollars to big oil.

So how do us pipsqueak customers convince these mega-banks to pull the plug on fossil fuel?

Firstly, dump your big bank. But before you do, shop around for a more eco-friendly option. Several banks have committed to not finance fossil fuels, including tar sands oil, Arctic oil, ultra-deep water oil and gas, fracked oil and gas, liquefied natural gas and coal. Mighty, an independent bank comparison site, shows what your bank does with your money, and then provides a guide to socially responsible alternatives.

Beware of greenwashing. If a bank’s sustainability commitments have nothing to do with where they invest, that should be a red flag. Going green doesn’t mean LED lighting or paperless statements. It’s about their role in underwriting drilling in the Arctic and financing the deforestation of the Amazon.

The Hamptons isn’t exactly brimming with eco-friendly options, but if you’re comfortable with online banking, there are a lot of banks to choose from. Most environmentalists I spoke with endorsed Amalgamated Bank. Traditionally, as one of the oldest union-owned banks, it wasn’t known for its focus on the climate. Now it not only refuses to finance projects that contribute to environmental degradation, but is financing renewable energy.

An even greener choice, based in the climate ravaged state of Florida, is Climate First Bank. It’s especially helpful with loans for installing solar panels, buying an electric car, etc.

There are also some new alternatives that offer everything a bank does, but feel nothing like the stodgy institutions of yesteryear.

Despite the slightly corny name, Aspiration is a seriously smart option. Every time you swipe your card, they plant a tree, helping offset your carbon footprint. You choose your own fee, based on what you think you deserve to pay. Then they donate 10 percent of every dollar you do to pay to charities helping struggling Americans. When you buy something from their list of environmentally friendly companies, you earn up to 10 percent cash back. They also offer more free ATMs than Bank of America, Wells Fargo and Chase combined.

For an even less traditional kind of banking, check out the California based ATMOS financial. It’s the first “bank” to invest exclusively in clean energy, solar and wind. Instead of the bank leveraging your money to invest in fast fashion, fossil fuels and factory farms, customers vote for what their money funds. You can also choose to round up to the nearest dollar of every purchase, then pick the nonprofit you want your money to go to.

They also offer over 100 sustainable companies that give you 10 percent cash back including Patagonia, Burt’s Bees and even Tesla charging stations. When I called customer service to ask if the list included any sustainable restaurants out East, co-founder Ravi Mikkelsen picked up the line and told me, “Not yet, but suggest one and we’ll try to include them!”

If you’re dead set on banking close to home, Peoples United, Dime and First National don’t necessarily qualify as sustainable, but do invest a lot in our community. According to Mikkelsen, “Local banks and credit unions don’t invest in fossil fuel extraction, simply because they aren’t big enough to play in that arena. They’re more eco-friendly by default.” The Rainforest Action Network notes that any move into a community bank or a credit union is an improvement over one of the big oil financiers.

There is an argument to be made for sticking with a big bad bank. It’s hard to motivate a bank to change if you’re no longer with them, right? As in any healthy relationship, you want to try to work it out first: Write a letter voicing your concern. Go online and tell them how you feel. Call or email the branch manager. I did all of the above.

When you end the relationship with your big bank, don’t just ghost them. Practice proper break up etiquette and tell them why you’re leaving. They’ll never change if they don’t know what they’re doing wrong.

In October, JPMorgan Chase finally joined in the UN Race To Zero campaign, specifically pledging to reach net-zero emissions by 2050. Critics say these targets are completely inadequate. Keeping climate change under 1.5 degrees Celsius requires ending fossil fuel expansion today, not 30 years from now.

“Unless Chase immediately ends its financing of fossil fuels, it’s net-zero commitment isn’t worth the paper it’s written on,” said Alison Kirsch of Rainforest Action Network.

As for me, I ended up splitting the difference. I got a snazzy matte black “Zero” card from Aspiration, but kept my Chase account open so that bit by bit, I can transfer over to the new account. That way, I still have a voice, but my money will stop financing climate change. And I’m still waiting for the bosses’ boss four bosses up to get back to me. In the meantime, I’ll have a lollipop.

How To Get Active:

350.0rg: Inspired by renowned climate writer Bill McKibben, this collaboration of community groups and regular people fight for a fossil free future. Join 350NYC and focus on New York based issues.

Third Act: Using their experience, talent and skill set, this 60-plus group gets a lot done. Join the “Bug The Banks” campaign and pledge to close your account by the end of 2022 if fossil fuel lenders don’t divest.

Fossil Free Future Campaign: Young people call out climate greenwashing and go after big banks and insurance companies that enable the industry. Their motto: “If we can stop the flow of money, we can stop the flow of oil.”

Not My Dirty Money Pledge: Show JPMorgan Chase that they can’t keep fueling the climate crisis. Sign the pledge not to open a bank account with JPMorgan Chase. Join them in emailing CEO Jamie Dimon to defund tar sands oil — one of the dirtiest fossil fuels.