For Sydney-based first-year university student Lilas-Mae Njoo, 17, choosing a bank was always going to be about much more than just selecting somewhere to put her money. Njoo is among a growing contingent of Australians who prefer to do business with firms that have a good ethical track record, especially when it comes to climate change.
“Choosing a bank and super fund that have an ethical business model and approach to investing is a way for me to have an impact on how society works that isn’t through voting, because I’m not old enough to do that yet,” she says.
Njoo, who is studying journalism and a bachelor of creative intelligence and innovation, has been a climate activist since school. She chose Bank Australia because its responsible banking policy aligns with her values.
“Being climate aware in everyday choices is a big part of my ethical values,” she says. “My school had a focus on social justice, and that informed my values. We were taught everything we do matters.”
Your choices can make a difference
There are two main options open to consumers who wish to exercise their power when it comes to climate change. The first is through their own actions and the second is through the pressure they exert on the companies with which they do business.
Climate Council councillor and economist Nicki Hutley says the choices that consumers such as Njoo make send important messages to businesses.
“If consumers make clear choices in terms of their bank and superannuation fund, they can make sure governments and other businesses get those messages loud and clear,” Hutley says.
The Market Forces website is a useful resource for people looking for information about banks whose values match their own. The site houses a database of banks’ and their subsidiaries’ records when it comes to funding fossil fuels, as well as a list of banks that have not funded this sector since 2016.
When it comes to taking personal responsibility to help combat climate change, Hutley says the first step should be to think about where you get your energy and switching to renewable sources.
Photo supplied. Photographer: Liam Neal.
“Getting off gas is a big one,” she says. “Disconnect your house from fossil fuel energy sources and, to the extent you can, get onto renewable energy. Have a look at which renewable energy companies offer the best deals and make choices that send signals to providers to say, ‘we want more renewables’.”
Behavioural change expert Claire O’Rourke agrees there are plenty of ways for consumers to demand businesses take action on climate change. She recommends checking companies’ climate goals and strategies for achieving them. This includes looking at whether their goals align with climate change science.
Although it’s easy to assume consumers can’t exercise much power on their own over the businesses from which they buy products and services, this is not the case, O’Rourke says. Businesses care what their customers think about how they do things.
If you do switch suppliers for climate change reasons, O’Rourke recommends calling the company you’re leaving to tell them why.
“I did that when I left my bank, and they said they were getting lots of phone calls for the same reasons,” she says. “That kind of feedback makes a difference to a company’s strategy over time. Don’t believe you can’t prompt change because you’re only one person. You absolutely can.”
Photo courtesy of Bank Australia.
It’s also an idea to tell your friends, family members and work colleagues what you’re doing and why, when switching your bank, energy company or super fund, O’Rourke says. It’s likely you’ll inspire other people to make similar choices.
Businesses taking responsibility
Personal action aside, experts agree the onus is on businesses to take a bigger part in collective action around climate change.
“Companies that bring their boards and shareholders on a journey now are going to be well placed to take advantage of the clean revolution that’s already underway globally and in Australia,” O’Rourke says.
On a practical level, businesses urgently need to reduce their consumption of high-emission inputs such as coal-fired energy and find low or zero-emission alternatives.
“Companies also need to publicly advocate for climate change solutions,” she says. “They need to call for policies and regulation that will assist them in the transition to a low-carbon economy.”
Between them, consumers and companies might be able to make a difference.
Support a better future by joining the clean money movement with Bank Australia.
