Your money has a carbon footprint

Does it surprise you to learn that banking and investing activities are not climate-neutral? When we connect these topics, we are talking about applying a climate lens to financial management.

The money existing in any bank serves a purpose – banks will lend and invest across the economy. Banking institutions have a power to direct money and influence outcomes, and the activities they choose to finance, matter.  

In the Paris Agreement, nations of the world collectively agreed on limiting global warming levels to 1.5º above pre-industrial levels, intending to reduce greenhouse gases emissions and act against climate change and its harsh consequences on people and the environment². However, reports have found that since 2016, when the Agreement was adopted, the world’s biggest banks not only have continued financing industries with high levels of emissions, but they have increased funding fossil fuel expansion – meaning new extraction projects. These reports vary from $5.5 trillion³ to $7.6 trillion⁴ committed to fossil fuel financing in that period.  

By consequence, your money and your savings in the bank, however big or small, are most likely being used to fund fossil fuel activities and even expand them. The issue feels bigger when individuals and companies are unaware of alternatives to align their finances to their values and to contribute to positive impact. The good news is that most people want to act based on their values using their money: a comprehensive study found that 69% of the global population would be willing to contribute 1% of their personal income towards climate action⁵.

Goparity intends to fill the alternative gap with a community-based solution, giving people and organisations back the choice on what is financed with their money. By redirecting capital from high-emitting industries, Goparity acts as a connector among investors and impactful organisations that work towards real-world solutions in sustainable energy, the blue and green economy, agrifood systems and a social economy.