ESG is a key concept for companies today as consumers are becoming more conscious of the environmental impact of their consumption. Tackling climate change needs an all-hands-on-deck approach.
In support of this Earth Day, let's take a moment to think about our financial practices and how they affect the environment. Here are some of the different ways we can be sustainable when working on our finances -
Switching to online banking and paperless statements
One of the simplest ways to be more sustainable is to opt for online banking and paperless statements. This reduces paper consumption, waste, and carbon footprint, making it more convenient to manage finances.
Alternatively, we can also choose a green bank for our banking needs. Green banks prioritise sustainability and use their resources and funds for environment-friendly investments and initiatives. They also opt for sustainable alternatives such as energy-efficient technologies and waste reduction.
Investing in sustainable funds and companies
Many investment firms offer mutual funds and ETFs that focus on companies that meet the ESG (Environmental, Social and Governance) criteria. Sustainable investing not only focuses on financial returns but also promotes responsible business practices.
A study by Finder stated that over half (57%) of UK investors hold an ethical investment and that 88% of consumers will be more loyal to companies that support social and environmental initiatives.
To learn more about sustainable investing, check out our article.
Support sustainable businesses
Supporting responsible businesses means choosing to buy from farmers or businesses that prioritise sustainability. Locally owned businesses make more local purchases and require lesser transportation. This also helps us reduce the carbon footprint of our products by choosing locally sourced and produced products.
Use energy-efficient alternatives
We can switch to energy-efficient appliances with energy star labels and features such as automatic shut-off, timers and temperature control. These appliances use less energy and reduce energy bills.
Many governments offer incentives or subsidies for installing energy-efficient tools, making them a popular choice. These alternatives can help save money, reduce carbon footprint and contribute to a sustainable future.
Use sustainable transportation
Sustainable transportation is another way of adopting environmentally friendly options and saving money simultaneously. For example, we can choose to walk, take a bike or public transport instead of driving and save on fuel money and car maintenance.
Apart from saving money, walking and cycling are great ways to exercise, and using public transport can also help reduce traffic congestion.
In short, promoting sustainability through our daily habits is a choice we can make to become more responsible consumers and have a significant impact on the environment.
Disclaimer - WealthKernel is not authorised to provide financial advice. This information does not constitute financial advice nor a recommendation. If you are unsure about any element of your financial situation you should seek professional independent advice for your individual circumstances or needs.