Unpacking the Jargon: Ethical Lending

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What is ethical lending?

Simply put, we can class an ethical lender as one that is not investing in projects or lending to companies that are harmful to the environment, animals or people.

For example, ethical lenders steer clear of funding projects involved in fossil fuel extraction or destructive mining practices. Instead, they prioritise investments in renewable energy initiatives, conservation efforts, and other sustainable ventures that contribute positively to society and the planet.

Many ethical lenders will have a robust statement on sustainability and green practices and have made adjustments not just to where they invest their money, but also to their own business operations.

How do I find out if my bank is ethical?

Determining whether a Lender aligns with your ethical values requires research – here are some steps to help you assess:

  • Website Evaluation: Begin by exploring the lender’s website. Look for their sustainability statements, environmental policies, and initiatives aimed at social impact – you’ll be able to see if they have a genuine commitment to ethical practices.
  • External Resources: Market Forces provide insights into a lender’s investment portfolio, including any ties to industries like fossil fuels.
  • Expert Advice: Seek guidance from professionals who specialise in ethical finance. We can offer personalised insights and recommendations tailored to your values and financial goals. At Indigo Finance, we partner with a diverse panel of ethical lenders committed to sustainability and social responsibility, including:
    • Adelaide Bank
    • Bank Aust
    • Suncorp
    • Heritage Bank
    • Bankfirst
    • P&N
    • Australian Military Bank
    • Teachers Mutual Bank
    • ME Bank
    • BOQ
    • Great Southern Bank
    • AUS WIDE
    • My State
    • Beyond Bank
    • Firstmac

It’s important to know where you stand, and where you will draw the line when looking into something as important as your home loan, and where you’ll invest your money. Take the time to research, ask questions, and align your financial journey with your values.

Want to find out more? Check out our Green Loans Expert, Suze Pirreca’s advice in our insight piece on Green Loans & Ethical Finance. Or, if you’d like to have a chat about home loan options with a lender who is environmentally and ethically minded, then get in touch!