Your Money’s Carbon Footprint: 5 Questions to Ask About Green Banking

At its simplest, green banking means choosing banks and financial practices that are conscious of their environmental impact. It involves going paperless, backing green initiatives, offering digital tools, and implementing operational changes that reduce waste and carbon emissions. But it’s also about what your bank does behind the scenes with your deposits.

A green bank uses its money, influence, and technology to support the environment rather than harm it. While a traditional bank focuses primarily on financial returns, a green bank adds a "planet" filter to its decisions. It treats the environment as a key stakeholder.

🏛️ The Three Pillars of a Green Bank

To be truly “green,” a bank usually focuses on three main areas:

Green Lending (The “Where”)

When you deposit money, the bank doesn't just let it sit there; they lend it out. A green bank prioritizes lending to projects such as solar farms, energy-efficient buildings, and sustainable agriculture, rather than to "brown" industries like coal or heavy-polluting industries.

Green Operations (The “How”)

This is how the bank runs its daily business. This includes going paperless (digital statements), using energy-efficient office buildings, and reducing waste from millions of plastic credit cards.

Green Products (The “What”)

These are the tools they give you. It could be a "Green Saver" account where the funds are earmarked for eco-projects, or lower interest rates on loans for electric vehicles (EVs) and solar panels for your home.

🌏 Why You Should Care About Green Banking

Think of your bank account not as a static "vault," but as a powerful engine for change. Green banking is essentially “passive activism,” wherein your hard-earned pesos are used to make decisions that benefit both your finances and the planet.

In a country like the Philippines, where the impact of climate change is felt in every summer heatwave and rainy season typhoon, choosing a bank that prioritizes renewable energy and climate resilience is one of the most effective ways to protect your own backyard.

✅ The Eco-Friendly Banking Checklist

So, how can you participate in this movement? A greener banking system starts with ordinary people asking good questions—and acting on the answers. Here are six smart, straightforward questions that help you understand how eco-friendly your bank really is, and what you can do starting today.

1. How can I go 100% paperless?

Every month, banks send out thousands of paper statements, transaction slips, and brochures. Multiply that by millions of customers, and the environmental impact becomes massive.

The good news? You can choose to go fully digital. Ask your bank how to activate electronic statements (eSOA) and use their app for bills payment, transfers, and even loan applications.

2. Where does my savings money go?

When you deposit money into your savings or time deposit account, it doesn’t stay locked in a vault. Banks use those funds to lend to businesses or invest in projects. The question is: What kind of businesses? Are they funding renewable energy like solar and wind, or polluting industries like coal and gas? As a customer, you have the right to know.

BPI, for example, supports sustainability initiatives that prioritize clean energy, energy-efficient buildings, and sustainable agriculture.

Asking where your money goes empowers you to choose a green bank that supports a better, more livable future.

3. Are my debit and credit cards made from recycled plastic?

It may seem like a small detail, but the plastic used in millions of credit and debit cards contributes to our global waste problem. Traditional cards are made from PVC, which is hard to recycle and adds to environmental pollution.

That’s why many eco-conscious banks are shifting to recycled PVC (rPVC) to reduce their carbon footprint. Choosing a card made from recycled materials sends a message that sustainability matters—even in everyday banking.

4. Does my bank still fund fossil fuel expansion?

This is the most direct way to measure a bank’s true environmental impact. While many institutions use "green" imagery in their ads, some continue to provide massive loans for new coal, oil, or gas projects. Asking this question forces transparency about where the bank’s capital—including your deposits—actually goes.

A truly green bank should have a public, time-bound commitment to phase out fossil-fuel financing and transition to supporting renewable energy projects.

5. Does the bank have a verified “Net Zero” commitment?

A "Net Zero" commitment means the bank aims to balance its carbon footprint with the carbon it removes. Asking for a specific timeline, such as 2050 or sooner, indicates you are seeking a concrete strategy rather than a vague promise.

For BPI customers, this aligns with the bank’s existing goals to reduce coal financing, ensuring that your money is part of a long-term, global solution for the planet.

You don’t need millions in investments to make a difference. Simply going digital, asking where your money goes, and choosing products with sustainability in mind all contribute to a financial system that’s better for people and the planet. Soon enough, you’ll be banking in a way that reflects your values.

Frequently Asked Questions

1. Is green banking more expensive?

Not at all. In fact, paperless transactions and using digital tools can save you time and money. Many sustainable options offer rewards and long-term value.

2. Does eco-friendly banking mean I can’t use cash anymore?

No. It simply means making thoughtful choices, such as using digital channels when possible or choosing cards made from recycled materials.

3. Is my money safe in green banks?

Yes. Green banking ensures your bank aligns with environmental values while maintaining strict financial and regulatory standards.

4. How can I talk to my bank about green banking?

Start with your branch manager or the bank’s customer service hotline. Ask about eSOA, investment options, card materials, and sustainability efforts.

5. Can green banking help fight climate change?

Indirectly, yes. You’re helping shift the financial system toward climate-positive solutions by supporting banks that fund clean energy and adopt eco-conscious practices.