Green Calgary

Investing in the Future

Reader Question

Good day Ashley,

I try to live a simple and conscious life. I’m a vegetarian, I recycle and compost, and I support fair trade products. I live close to work, which allows me to walk and because I have chosen not to own a car, I use public transportation to get around the city. One area that has concerned me for some time is my money. I often wonder what my bank is doing with it (I have a feeling that it isn’t being used to do good). Some days I feel like putting all of it under my mattress but this doesn’t seem like the solution. What do you suggest?

Stumped,
Erica

Ashley's Answer

Hello Erica,

This is a dynamite question and one that I’ve struggled with myself, so I’d be more than happy to weigh in on the issue. In the past I’ve used various banks for various reasons. My first account was opened because that is where my parents kept their money. The second was necessary to appease the folks at the National Student Loan Centre. And, later on, shortly after finishing my degree, I opened an account at a major bank for a free ipod. I didn’t give much thought to what they did with my money once I deposited it but I figured it was safer in their hands than mine. That was until a few years ago when I began thinking about investments, only to discover that my financial advisor was suggesting that I put my money into mutual funds that were directly supporting companies that I would systematically avoid as a consumer.

According to Dr. Ellis Jones, author of The Better World Handbook, banking is one of the top ten actions that individuals can take to create a better world. He writes: “Money is not inherently good or evil. It is just another way in which we shape the world around us. Money does not care if we use it to destroy the world or rebuild it. It merely flows wherever we direct it.” He goes on to explain that many of the activities that banks finance may not align with our set of values but, rather, destroy the things that we “hold dear in this world”.

Just late last year, the Rainforest Action Network (RAN) released a report that calculated that the carbon footprint of Canada’s largest banks exceeded that of the entire energy use emissions in Canada during 2006. That is, the “financed emissions” exceeded the emissions from all activities across Canada including power plants, industry, manufacturing, transportation and the energy used to keep our homes and offices up and running. This is due to the fact that banks are heavy financiers of the fossil fuel industry. And this is just looking at emissions. Many banks also back ventures such as concentrated animal feedlot operations or they finance companies that produce armaments for the ongoing wars around our world.

The point is, unless a bank has made it clear that it does not support these projects or companies (and few have), we have no way of knowing if our money is being used for good or if it is contributing to social unrest and environmental degradation. It is really up to the investor, or anyone that opens a bank account for that matter, to choose a bank that holds similar values to our own. And despite what you’ve heard about banks in the past, this is not an impossible task – even here in Calgary.

This humble little city is home to several member-owned credit unions that have a strong commitment to supporting the local community, financing community projects or supporting the establishment of small businesses. Similarly, Citizen’s Bank of Canada, a subsidiary of VanCity (Canada’s largest credit union) has recently opened a boutique branch in the downtown. Citizen’s Bank is an exemplary bank that has a clear Ethical Policy, supporting organizations like Amnesty International and Oxfam, while also freeing up affordable credit to people in some of the world’s poorest communities through its Shared World Term Deposit. As with some of Calgary’s other credit unions, they offer mutual funds through The Ethical Funds Company, which has been at the forefront of the socially responsible investing industry for over 20 years.

Placing our money in the hands of organizations that share similar values to our own is a surefire way to support initiatives that we can be proud of. Changing banks is an empowering journey and an easy one at that. And you don’t have to be a high roller for this to matter, as even meager savings can make a big difference when combined with thousands of other thoughtful members.

Finally, if you’d like to take your community commitment one step further, you may want to check out Calgary Dollars. This local, grassroots currency brings together local talents and resources to strengthen the local economy, while building community. It’s just one more tool that we can use to create the world that we dream to live in.

Suggestively,
Ashley

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