WEBVTT 00:00:02.480 --> 00:00:04.370 align:middle line:84% If you think about the greenest thing you 00:00:04.370 --> 00:00:07.610 align:middle line:84% as an individual can do from the comfort of your home, 00:00:07.610 --> 00:00:10.520 align:middle line:84% you'll probably picture recycling, going vegan, 00:00:10.520 --> 00:00:14.000 align:middle line:84% or using less water, gas, and electricity. 00:00:14.000 --> 00:00:15.920 align:middle line:84% Actually, choosing where to put your money 00:00:15.920 --> 00:00:17.690 align:middle line:90% could have a much bigger impact. 00:00:17.690 --> 00:00:20.180 align:middle line:84% Because in many cases the institutions 00:00:20.180 --> 00:00:23.330 align:middle line:84% we trust with our savings, investments, pensions, even 00:00:23.330 --> 00:00:26.210 align:middle line:84% our current accounts, are investing in fossil fuels. 00:00:26.210 --> 00:00:28.070 align:middle line:84% And the total volume of that investment 00:00:28.070 --> 00:00:31.550 align:middle line:84% has grown each year since 2016, when world leaders signed 00:00:31.550 --> 00:00:33.500 align:middle line:84% the Paris Agreement on climate change 00:00:33.500 --> 00:00:37.250 align:middle line:84% to limit global warming compared to pre-industrial levels. 00:00:37.250 --> 00:00:39.380 align:middle line:84% So, could moving your finances be 00:00:39.380 --> 00:00:41.180 align:middle line:90% the greenest thing you ever do? 00:00:41.180 --> 00:00:43.535 align:middle line:84% Let's look at some of the arguments for and against. 00:00:47.660 --> 00:00:51.800 align:middle line:84% Recent analysis estimates 35 of the world's biggest banks have 00:00:51.800 --> 00:00:54.650 align:middle line:84% financed fossil fuel companies to the tune of a collective 00:00:54.650 --> 00:00:58.670 align:middle line:84% $2.7tn since the Paris Agreement was signed. 00:00:58.670 --> 00:01:01.070 align:middle line:84% JPMorgan Chase tops the rankings, 00:01:01.070 --> 00:01:05.390 align:middle line:84% lending $269bn over the last four years. 00:01:05.390 --> 00:01:08.570 align:middle line:84% Seventh place Barclays leads its competitors in Europe, 00:01:08.570 --> 00:01:12.745 align:middle line:84% contributing $118bn over the same period. 00:01:12.745 --> 00:01:14.120 align:middle line:84% The money in your current account 00:01:14.120 --> 00:01:17.420 align:middle line:84% is probably ring-fenced from the investment arms of these banks. 00:01:17.420 --> 00:01:19.730 align:middle line:84% But that hasn't stopped green organisations running 00:01:19.730 --> 00:01:22.940 align:middle line:84% high-profile campaigns, urging customers to take their money 00:01:22.940 --> 00:01:23.960 align:middle line:90% elsewhere. 00:01:23.960 --> 00:01:27.650 align:middle line:84% Some have even brought in some celebrity firepower. 00:01:27.650 --> 00:01:29.750 align:middle line:90% Hi, I'm Jane Fonda. 00:01:29.750 --> 00:01:33.320 align:middle line:84% This video is not for you, it's for someone else. 00:01:33.320 --> 00:01:37.940 align:middle line:84% That person is Jamie Dimon, CEO of Chase. 00:01:37.940 --> 00:01:42.890 align:middle line:84% Jamie, move Chase's money out of coal, oil, and gas now. 00:01:42.890 --> 00:01:45.530 align:middle line:84% If you don't, we'll leave your bank. 00:01:45.530 --> 00:01:48.395 align:middle line:84% We'll cut up our Chase cards and find a better bank. 00:01:51.335 --> 00:01:53.180 align:middle line:84% For anyone tempted to make the switch, 00:01:53.180 --> 00:01:55.880 align:middle line:84% there have never been more green banks to choose from. 00:01:55.880 --> 00:01:58.970 align:middle line:84% By the end of 2019 there were almost 30 institutions 00:01:58.970 --> 00:02:02.090 align:middle line:84% recognised by the Green Finance Institute for their sustainable 00:02:02.090 --> 00:02:04.250 align:middle line:90% investment practices. 00:02:04.250 --> 00:02:06.440 align:middle line:84% But dropping your bank for environmental reasons 00:02:06.440 --> 00:02:08.750 align:middle line:84% isn't as cut and dried as you might think. 00:02:08.750 --> 00:02:10.970 align:middle line:84% Many argue the biggest fossil fuel backers 00:02:10.970 --> 00:02:13.430 align:middle line:84% have a significant influence on the energy sector. 00:02:13.430 --> 00:02:15.200 align:middle line:84% And as a customer of that backer you 00:02:15.200 --> 00:02:18.080 align:middle line:84% have more power to steer their decisions from within. 00:02:18.080 --> 00:02:20.060 align:middle line:84% It's the same story with your investments. 00:02:23.820 --> 00:02:27.570 align:middle line:84% Bill Gates famously said that so far, fossil fuel divestment 00:02:27.570 --> 00:02:29.680 align:middle line:90% has had zero climate impact. 00:02:29.680 --> 00:02:31.680 align:middle line:84% Because new investors have been ready to pick up 00:02:31.680 --> 00:02:34.690 align:middle line:84% any stocks, shares, or funds being sold off. 00:02:34.690 --> 00:02:36.510 align:middle line:84% Meanwhile, fossil fuel lenders have already 00:02:36.510 --> 00:02:39.150 align:middle line:84% started to shift their investment policies, thanks 00:02:39.150 --> 00:02:43.320 align:middle line:84% in no small part to shareholder action around climate issues. 00:02:43.320 --> 00:02:45.570 align:middle line:84% In February 2020, NatWest pledged 00:02:45.570 --> 00:02:48.390 align:middle line:90% to become Paris aligned. 00:02:48.390 --> 00:02:51.510 align:middle line:84% This was followed by climate pledges from Barclays in March, 00:02:51.510 --> 00:02:54.330 align:middle line:84% Morgan Stanley in September, JPMorgan Chase 00:02:54.330 --> 00:02:59.190 align:middle line:84% and HSBC in October, and TD Bank in November. 00:02:59.190 --> 00:03:02.310 align:middle line:84% Last year was also a record for sustainable funds. 00:03:02.310 --> 00:03:05.310 align:middle line:84% Total assets in these funds reached $1.7tn, 00:03:05.310 --> 00:03:08.790 align:middle line:90% up 50 per cent over the year. 00:03:08.790 --> 00:03:10.610 align:middle line:84% So when it comes to personal investments, 00:03:10.610 --> 00:03:12.650 align:middle line:84% just as with banks, green options 00:03:12.650 --> 00:03:15.560 align:middle line:84% are available, both within traditional institutions 00:03:15.560 --> 00:03:16.730 align:middle line:90% and beyond. 00:03:16.730 --> 00:03:18.458 align:middle line:84% Where our options may be more limited 00:03:18.458 --> 00:03:19.625 align:middle line:90% is in our choice of pension. 00:03:24.500 --> 00:03:27.380 align:middle line:84% According to a recent study of global pension assets, 00:03:27.380 --> 00:03:29.870 align:middle line:84% 22 major pensions markets now manage 00:03:29.870 --> 00:03:33.020 align:middle line:90% nearly $47tn between them. 00:03:33.020 --> 00:03:35.060 align:middle line:84% That's about half of all the money invested 00:03:35.060 --> 00:03:37.260 align:middle line:90% in the global financial system. 00:03:37.260 --> 00:03:39.380 align:middle line:84% And so far little of it has been directed 00:03:39.380 --> 00:03:42.080 align:middle line:90% towards sustainable projects. 00:03:42.080 --> 00:03:44.385 align:middle line:84% In 2018, for example, less than 1 00:03:44.385 --> 00:03:47.420 align:middle line:84% per cent of assets in the world's largest 100 pension 00:03:47.420 --> 00:03:50.360 align:middle line:84% funds were invested in low carbon solutions. 00:03:50.360 --> 00:03:52.550 align:middle line:84% This has led campaigners like Richard Curtis 00:03:52.550 --> 00:03:56.845 align:middle line:84% to make action on pensions their top priority. 00:03:56.845 --> 00:04:00.040 align:middle line:84% People are going to realise what a piece of Finnish research 00:04:00.040 --> 00:04:04.420 align:middle line:84% says that changing where your money is invested is in fact 27 00:04:04.420 --> 00:04:07.390 align:middle line:84% times more effective in reducing your carbon footprint, 00:04:07.390 --> 00:04:11.110 align:middle line:84% for instance, than going vegan, taking fewer flights, 00:04:11.110 --> 00:04:15.610 align:middle line:84% and using less water, all put together. 00:04:15.610 --> 00:04:18.722 align:middle line:84% The process isn't simple and it can introduce more risk. 00:04:18.722 --> 00:04:20.680 align:middle line:84% But if you want to make your pension more green 00:04:20.680 --> 00:04:24.040 align:middle line:84% there are online resources with advice on how to do it, 00:04:24.040 --> 00:04:26.770 align:middle line:84% either by switching your money to a more sustainable pension 00:04:26.770 --> 00:04:29.560 align:middle line:84% fund offered by your provider or by switching provider 00:04:29.560 --> 00:04:30.579 align:middle line:90% altogether. 00:04:35.170 --> 00:04:37.100 align:middle line:84% When it comes to personal finances, 00:04:37.100 --> 00:04:39.640 align:middle line:84% we each have the choice to stick or twist. 00:04:39.640 --> 00:04:41.860 align:middle line:84% It's a personal choice, and climate change 00:04:41.860 --> 00:04:44.950 align:middle line:84% may be just one factor among many in that thought process. 00:04:44.950 --> 00:04:47.950 align:middle line:84% But if you do want to make your voice heard on climate change, 00:04:47.950 --> 00:04:50.530 align:middle line:84% then moving your money, or threatening to move it, 00:04:50.530 --> 00:04:53.330 align:middle line:84% could be a powerful tool of persuasion. 00:04:53.330 --> 00:04:55.160 align:middle line:84% Whatever you decide, it's never been easier 00:04:55.160 --> 00:04:57.550 align:middle line:90% to act than right now.