Green Investing | November 20, 2008 |
How Green Is Your Bank?
Climate Counts, an organization that tallies the carbon footprints of companies, has recently released results for another industry that does a lot of counting -- banks. So now before you pick a place to put your deposits, you can get an idea of what deposits they are leaving around the planet. Or does your interest rate yield trump your interest in yielding climate change?
The banking industry is not typically associated as culprits of carbon emissions- they don’t burn most of their fossil fuels indirectly. But, they do use utilize energy in the form of electricity and oil throughout thousands of automatic teller machines, bank buildings, a security truck fleets. And like most businesses, they utilize products shipped from distant lands and require most employees to commute to work.
As part of efforts to rank and inform companies of their carbon footprint, Climate Counts produced a carbon footprint report card of sorts, the Climate Counts Company Scorecard. Companies are scored on a point system from 0 to 100.
Much like those haunting grade school math tests, a score of 100 wins the gold star. Scores are based on how the magnitude of its environmental impact,, the measures they take to reduce that impact, how they support climate change policies and procedures, and whether or not they disclose this information to the public.
Requiring investment in environmental policy and disclosure of environmental performance is an aggressive call to action that companies are trying to achieve. HSBC ranked highest at 65. Bank of America and Citigroup both tied with 60, and JP Morgan Chase was not far behind with a score of 59. The worst climate offenders according to Climate Counts include Capital One, National City, Regions and SunTrust.
With a bit more "investment" banks can lead the way to a new form of business as usual.


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