Young Australians are concerned about the future. Almost three-quarters (72%) of gen Z and millennial Australians say environmental issues make them anxious about what lies ahead, while 83% say extreme weather events make those issues feel personal and immediate, YouGov research commissioned by Bank Australia has found.
The survey of more than 1,500 people aged between 18 and 45, conducted in April and May this year, found that this group cares deeply about environmental and social issues. However, not many of them know what their banks are doing with their money.
“What stood out to me most in the research was the gap between young Australians caring about what happens with their money and knowing what happens with their money,” says Jane Kern, the head of impact management at Bank Australia. “Only 22% were extremely or very confident that they knew what their bank invests their money in, which highlights an opportunity for people to find out more about what their money is funding.”
What matters most in creating positive change?
Finding out what industries and projects your bank funds doesn’t require becoming an expert in sustainable finance. Kern recommends beginning with a more personal question: which environmental or social issues matter most to you?
Information about the industries a financial institution lends to, the activities it excludes and whether it offers products linked to particular impact areas can generally be found on a bank’s website, though it’s sometimes buried in the latest climate report or sustainability disclosure document. Alternatively, you can ask the bank directly.
“If you don’t want your money to be funding the fossil fuel industry, you can ask your bank whether they lend to the fossil fuel industry,” Kern says. The same approach can apply to concerns such as animal welfare, affordable housing or land conservation.
The aim, Kern says, is first to establish whether the bank is financing activities that conflict with your values, then to look for opportunities to support something more constructive. “You can also ask your bank about whether there are any options to direct your money towards positive projects.”
How can everyday decisions support the environment?
Among young Australians, the environment is a hot-button issue; 80% of those surveyed said they could feel overwhelmed by news about environmental issues. And they’re interested in solutions, with 59% saying their concerns influenced their financial or purchasing decisions at least sometimes, and 90% saying that knowing that their money supported projects that benefited people and the planet would give them greater peace of mind.
Bank Australia’s Impact Term Deposit is designed to align with these values; its deposits are used to support lending across defined environmental and social categories. “As a customer-owned bank, we take action on the issues our customers care about,” Kern says. “We know climate action is a top concern for our customers, and it’s one we share.”
The Impact Term Deposit provides funding to support lending across specific environmental and social impact areas, from land conservation and restoration to building or upgrading green and energy-efficient homes, improving supply and access to affordable and accessible housing, and supporting charities and not-for-profits.
How can you tell if an impact product delivers?
Choosing a product labelled “sustainable” is only part of the equation. It’s also worth looking at how a bank measures its impact, and reports where the funding goes. Bank Australia’s Impact Term Deposit has been certified by the Responsible Investment Association Australasia in line with its responsible investment standards.
Following a customer-owned model allows Bank Australia to prioritise values-led lending to support sustainability and the environment, Kern says. “We don’t have to answer to external investors. Our profits stay within the bank to improve fees, products and services for customers and support our aim of bringing purpose-driven banking to more people in Australia. If people are looking to align their banking with their values, there are ways out there to do it.”
Learn more about Bank Australia’s Impact Term Deposit.
The information provided in this article is of a general nature only and does not constitute financial advice. It is important to consider personal objectives, financial situations or particular needs when making financial decisions.
