Protests outside Barclays branches and the recent arguments over Baillie Gifford’s sponsorship of book festivals have put the spotlight on the investments behind big banking institutions. For most people, choosing an ethical home for their current account will be the easiest way to ensure their money is being used in an environmentally friendly or socially responsible way.
The consumer group Which? names three “eco providers” for current accounts: the Co-operative Bank, Nationwide building society and Triodos Bank. These three also do well on the green money website MotherTree, which has ranked major UK banks on how much £10,000 in a current account contributes in carbon emissions. At the bottom of its table – so therefore the winner – is Triodos, followed by the Co-op Bank and then Nationwide.
But with the Co-op Bank heading for a takeover, and Triodos no longer offering overdrafts from Monday, you could be forgiven for wondering if these remain the best choices for you.
Here we look at those three providers and whether they still offer a good deal for those looking for an ethical home for their everyday account.
The Co-op Bank is famous for its customer-led ethical policy which focuses on “our planet, our people and our communities”. It is committed to not providing banking services to businesses and organisations that conflict with its policy due to their involvement with – for example – fossil fuel extraction.
The bank recently confirmed it was being taken over by Coventry building society. The Co-op Bank name may eventually disappear from high streets, and it is not clear what will happen to its ethical policy in the longer term.
The takeover – due to take effect in early 2025 – has left some Co-op Bank customers concerned. One account-holder, who banks with it because of its ethical stance, emailed Guardian Money to ask about other banks she could transfer to if necessary. “I can’t be the only Guardian reader banking with the Co-op who is wondering where to go from here,” she said.
While the Co-op Bank calls itself “the original ethical bank”, it has for some years been majority-owned by a group of hedge funds and fund managers. The deal will see the Co-op Bank return to mutual ownership and some customers may feel that a building society is actually a more ethical owner. Coventry is also a certified B Corp, which is meant to demonstrate that a company upholds high standards in its dealings with staff, the community, customers and the environment.