Why Big Banks Are Terrible for the Environment

Most people don’t know that where you bank is likely the biggest contributor to your personal carbon footprint…because Big Banks are awful for the environment.

Why are Big Banks so bad for the environment? It’s because the world’s biggest banks are bankrolling the climate crisis, to the tune of billions of dollars being loaned to the fossil fuel industry every year. And they’re using your money to do it.

Key Takeaways:

• Big Banks = Big Oil: Traditional banks invest billions of dollars annually into the fossil fuel industry, directly contributing to greenhouse gas emissions and environmental harm.

• Beyond Fossil Fuels: Unsustainable agricultural lending and massive operational carbon footprints are other ways your bank could be damaging the planet.

• The Power of Your Choice: Switching to a climate-responsible financial institution (like GreenFi) is one of the best steps you can take to align your finances with your values and shrink your personal carbon footprint.

The Surprising Link: Your Money and Fossil Fuels

When you picture the causes of climate change, you likely think of smokestacks and oil rigs.

It's time to add bank logos to that list.

The Banking on Climate Chaos report (2025) reveals that the world’s largest banks have funneled over 7.9 trillion dollars into fossil fuel projects since the Paris Agreement was signed in 2016.

This staggering amount of capital means:

• New oil pipelines

• Arctic drilling

• Fracking

And much more.

What does that have to do with you?

The money in your checking and savings accounts isn't just sitting there; it is loaned out by your bank to other companies. And because up to 30% of your bank’s lending portfolio could be in carbon-intensive industries, the power of your money is being used against the planet.

In fact, every $1,000 you have deposited in a major bank is equal to financing the equivalent carbon emissions of a flight from New York to Seattle - every year.

That’s why moving your money is a game-changer. People who move their money from a traditional large bank to a greener alternative (like GreenFi) can reduce their personal greenhouse gas emissions by an average of 76%.

Not to mention the fact that moving your money sends a clear message to the Big Banks about how you do and don’t want your money being used.

How to Spot "Greenwashing" by Big Banks

‘Sustainability’ has become a favorite buzzword for Big Banks. But when they boast about their green initiatives, it’s often “greenwashing”—a marketing tactic to make them look more eco-friendly than they really are.

The fact that the Big Banks offer paperless billing is great. But these kinds of actions ring hollow when they are cutting checks in the billions so that companies can build new oil rigs in the Arctic at the same time.

Your Most Powerful Climate Action: How to Switch to a Greener Bank

While it may seem daunting, switching banks is one of the single most effective climate actions you can take. Here’s a simple checklist for finding a bank that’s truly on your team:

• A Clear "No Fossil Fuels" Policy: Does the bank publicly and explicitly state that it does not finance fossil fuel projects?

• Verifiable Credentials: Look for credible, third-party certifications like B Corp, which legally requires companies to consider the impact of their decisions on workers, customers, community, and the environment.

• Products with a Purpose: Do they offer accounts and features designed to help you live more sustainably? If you haven’t already, check out GreenFi. We offer climate-friendly checking and savings accounts that guarantee your money never funds fossil fuels.  You can also round up your change to help plant trees (we’ve funded the planting of over 33 million already), you can get cash back at climate-friendly brands and EV chargers, and there are no mandatory monthly fees for standard accounts.

Get started today at greenfi.com!

Frequently Asked Questions About Banks and Climate Change

Q: How do I know if my specific bank funds fossil fuels?

A: You can research your bank's investment portfolio through reports from organizations like the Rainforest Action Network or look for a public statement on their website committing to fossil fuel divestment. If you can't find a clear policy, it's often a red flag.

Q: What is the single biggest climate impact I can have with my money?

A: Divesting from banks that fund fossil fuels is one of the most significant actions you can take. By moving your money to a green bank, you directly reduce your personal carbon footprint and help defund the industries driving the climate crisis.

Q: Is switching banks difficult?

A: It's easier than ever. Most modern banks, including banking apps like GreenFi, allow you to open an account online in minutes. They provide simple tools to transfer funds and switch over direct deposits and automatic payments.