Making Our Money Greener

Making Our Money Greener
By Don Lester

As consumers we have the power to encourage banks and other financial institutions to be more socially conscious and green. The recent financial collapse has shown that the way banks have been working must be flawed. Now that the banks are "looking in the mirror" so to speak and trying to sort out what went wrong we have the chance to help guide their restructuring. Now is a good time to let them know that we want businesses that care more about the earth and those of us who share it.

This is not as foreign a concept as you may imagine. A recent study discovered that when asked 43% of American bank customers would rather deal with a bank that appears green. Unfortunately for many banks that appearance of green is something they have exploited as a way to forgo an actual social and environmental contribution.

The banks are claiming green by doing something as simple as online statements. Now, it is true that eliminating monthly bank statements could reduce paper demand by about sixteen and a half million trees or forty six thousand acres of trees, but that is a far cry from a true green commitment. It is after all to their benefit to stop the paperwork and save money on paper and labour. But there are other problems here.

We can all agree that preventing deforestation is great for the environment but to absolve the banks of any other environmental responsibility and let them call themselves green strains credibility. Does saving a few trees in North America outweigh funding coal mining or deforestation in the Congo? But there are some real green banks out there setting the standard and developing the working models that provide their customers with amazing interest rates with healthy profits for them during the current economic downturn.

Some of these green banks have actually been in business for over 30 years. Working with a "triple bottom line" model that works on the premise that in addition to bringing profit to the bank and its customers, it must also ensure that the community, and environment profit as well. One way they accomplish this is by supporting such concepts as micro-lending. A concept that has lifted literally millions of people out of poverty to contribute to their local communities and environment.

By also avoiding quarterly earnings reports and over-leveraged debts they have escaped the same problems so many other banks are experiencing. They operate online savings accounts that yield 3.5% while giving their customers a nice feeling, knowing that the money is going to help build a green economy.

We need our banks and financial institutions to set a good example for other large and small businesses that a green business model works. Micro-lending should be the norm, not the exception. Insuring that the business, the environment, and the community all show a profit is a way for all businesses to show their green commitment. With the need to re-evaluate the way our financial systems work on our doorstep, the time has never been better to make this change for a greener and socially responsible business community.

Don has been a consultant for over 20 years and tries to provide valuable information for people in difficult times. As someone who has been there. He supports a website called http://helpinhardtimes.com as a way for people to get their lives back on track and possibly even make the money they need to make it through rough times.

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