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A positive portfolio for our planet
A recent BankTrack report exposes bank's continued funding of fossil fuel expansion, our blog looks at how Ethex offers a positive investing alternative for the planet.
Set against the backdrop of a string of climate-related disasters in 2022, including the devastating floods in Pakistan, global heatwaves and droughts, the latest Banking on Climate Chaos report from BankTrack relays a mind-boggling truth - fossil fuel companies are still making record profits and leading banks are still funding further expansion within this damaging sector.
Funding destruction
Despite scientists and experts being in agreement that the expansion of the fossil fuel industry must stop in order to avoid more of the catastrophic effects of climate change on our planet, this report shows that financial institutions are still putting their profit before our planet, with the world’s largest 60 banks providing $150 billion in financing to the world’s top 100 companies leading the expansion of oil, gas, and coal in 2022 alone.
The report profiles the world’s 60 largest banks - each with billions under management that could be making a positive difference to the world - and ranks them by assets, exposing their funding to major organisations advancing fossil fuel expansion, effectively signing a death warrant for our hopes of reaching net zero.
The greenwashing issue
The report also highlights the gap between the commitments these banks are making to help reach net zero and the reality of their actions. While all banks are making the right noises about decarbonisation targets, the facts exposed in this report tell a very different story. This makes things difficult for everyday people to know exactly what their money is being used to fund and creates a lack of trust in our financial services providers in general.
A clear message from the report to banks is that increased investments are needed in renewable energy generation and energy demand efficiency and funding of fossil fuel expansion activities should be stopped. The greater awareness and coverage that the report generates of this, the more pressure can be put on global banking institutions to clean up their act.
Action in the face of apathy
Yet, despite the continued support of fossil fuel generation from banking giants, we are seeing shoots of hope for a cleaner and more sustainable energy system in other places. According to Ember’s global electricity review 2023, wind and solar power reached a record 12% of global electricity generation last year, driving up the overall share of low-carbon electricity to almost 40% of total generation.
This statistic has led the World Economic Forum to claim the power sector is about to enter a “new era of falling fossil generation” as coal, oil and gas are pushed out of the grid by a record expansion of wind and solar power.
This is positive news in the face of apathy from Governments and banks to end fossil fuel expansion for good. But there are more positive actions being taken across the UK to tackle climate change, albeit at a more grassroots level. But through the Ethex platforms, investors are using their money to create a direct positive impact by supporting extraordinary organisations creating a positive environmental change.
A positive portfolio
Currently, on our online positive investing platform, we have a selection of investment opportunities that allow our investor community to take climate action with their money.
Solar For Schools is a pioneering solar energy organisation that works with schools and communities to provide decarbonisation and energy education powered by the sun. Their latest IFISA eligible bond offer will fund the installation of new solar energy systems on about 20-25 UK schools, generating clean energy, cutting bills and educating the next generation on sustainable energy.
Bristol Energy Cooperative delivers groundbreaking community-owned renewable energy installations that benefit the entire community. This not-for-profit, community-owned enterprise is back on Ethex with a new community share offer that will fund the development of new rooftop solar schemes and battery storage projects that will be key to Bristol achieving its net zero goals while channelling revenue into community environmental initiatives.
Pedal & Post is on a mission to cut transport carbon emissions, air pollution and inner-city congestion by delivering parcels in UK cities using ultra-low emission cargo bikes. Their equity investment raise will enable them to grow and expand beyond Oxford, giving businesses and customers an eco-friendly alternative for deliveries, while creating around 100 new jobs.
Kindling Farm is committed to driving change through local, healthy food production to replace our current broken industrialised food system that is contributing to climate change. Their latest community share offer is raising finance for the purchase of Barn Hey, a 77-acre farm between Manchester & Liverpool for a community-owned farm using sustainable, wildlife-friendly methods to produce healthy, organic food.
These four opportunities are strong examples of the kind of investment choices open to everyday people through the Ethex investment platform. It’s our mission to connect investors with grassroots organisations that are making a positive social and environmental impact.
We believe that collectively, through building a strong community of people who want their investments to reflect their wish for a better future, we can begin to create real change. And while we continue to increase people’s awareness of where their money is being used, offering them an alternative where they can see the direct positive impact of their money feels like real progress.
If you want to learn more about the positive investment opportunities offered by Ethex, click here.
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