4 Ways To Vote With Your Wallet & Help Curb The Climate Crisis

Since primary school, we’ve been told to recycle what we can, not use plastic straws, and walk instead of drive wherever possible. While all of these actions are helping the environment in their own way, it can feel disheartening when you reach adulthood only to find that climate change is still happening — and evidently only getting worse. 

Yes, despite our valiant efforts of remembering to bring our Keep Cups, the planet is still on track to warm by 2.4 degrees celsius this century, resulting in catastrophic consequences for the environment. Arielle Gamble, the director and co-founder of philanthropic fundraising community Groundswell Giving, says that after Earth breaches the two degrees celsius threshold, it will trigger tipping points and feedback loops in our climate system , causing the erosion of the foundations of human health and food security. 

But not all hope is lost just yet. "Scientists tell us that if we can limit warming to well below two degrees by deeply cutting emissions this decade, we can save lives, species and ecosystems worldwide, and restore balance to our planet's climate system,” Gamble tells Refinery29 Australia.

If you find these statistics discouraging, distressing and downright depressing, you’re not alone. A study by Monash University found that Australians are three times more worried about climate change than COVID-19. And while just 100 companies are responsible for 71% of global emissions, and eco-fatigue is rife, there are still ways you can make a difference — namely, with your wallet. 

While you may envision your bank as Harry Potter’s Gringotts Bank, full of gold coins collecting dust, banking institutions are actually using your hard-earned cash to fund their business interests. And since the 2015 Paris Agreement, the world’s 60 largest private-sector banks have poured over $3.8 trillion into fossil fuel financing. 

“Historically, fossil fuels have yielded relatively stable returns on investment. However, this is changing rapidly as coal, gas and oil reserves shut down worldwide,” says Gamble. 

So if you don’t want your money being used to fund fossil fuels, switch banks. Nicole Haddow, journalist and author of The Ethical Investor, agrees.

“As more people start moving their money into [banks] that are aligned with improving the environment, it shines a spotlight on the need to move away from declining industries,” she says.

If that sounds hard, tools such as Market Force’s bank comparison table can help you see where your bank stands on climate issues. By switching to a financial institution that doesn't invest in fossil fuels such as Bank Australia, you can ensure that your money isn't being used to bolster industries that cause climate harm.

Many Australian superannuation funds have made big commitments to reduce their carbon emissions in recent years. One example is Australian Ethical super where the companies it invests in produce 77% less CO₂ compared to the benchmark, nor does it go near corporations whose main business is fossil fuels.

Goals such as these prove that superannuation funds are feeling the pressure from their customers to invest their money responsibly. Haddow notes that switching your superannuation to a fund that doesn’t invest in areas that are detrimental to the environment can be a great first step in ensuring your money is as ethical as possible. 

“I started with my superannuation and then looked at my banking, micro-investments and impact investments,” she says of her own commitment.  

According to Haddow, who began her ethical investing journey after witnessing the catastrophic bushfires of 2019/ 2020, there are plenty of ethical investment opportunities that have the potential to generate a return while also doing good.

Described as a strategy where investors make intentional investment decisions that are aligned with their values, ethical investing can build wealth while supporting companies that are trying to create a better world. 

Many investment platforms take your values into account and even have examples of ethical portfolios so you can start off on the right foot. 

“If more people start investing in renewable ventures, we can potentially fast-track [climate] improvements,” says Haddow.

Gamble agrees, noting that the days of choosing between financial return and a positive environmental outcome are gone.

“The opposite is now true. There will be no financial stability in the medium to long-term without achieving urgent emissions reductions,” she says.  

While you may simply want the cheapest option (especially at the moment), you have the power to choose an energy provider that benefits the environment. Resources such as Greenpeace’s Green Electricity Guide can assist you in finding out which electricity providers are helping the environment — and which ones are holding Australia back from achieving a 100% renewable electricity grid.

With solar power now being the cheapest form of new electricity according to the International Energy Agency, by switching energy providers you can show corporations that you (and your money) take renewable energy seriously.

“I think the biggest misconception is that individuals with small amounts of money can’t make a difference,” says Haddow. 

“That’s not the case. Everyone with money has the ability to move it to a place that’s aligned with their values and goals.”

Gamble explains that one of the most powerful things available to everyday individuals who want to make an impact is to move your hard-earned cash out of the banks, superannuation, investment portfolios, and energy providers that are investing in outdated fossil fuels. 

“Instead we can use our capital as leverage to drive the transition to a sustainable, zero-carbon economy.” 

By reevaluating your finances and getting to the bottom of the institutions you keep your money in, you can vote with your wallet, let it match your values and help ease your eco-anxiety.