How fintechs are working with banks to make them more green

In February, the Clean Energy and Sustainability Accelerator Act was reintroduced to Congress. The legislation would allow for the creation of a national green bank, which would use $100 billion in private and public funds to invest in clean energy projects. This move, together with the fact that 39% of voters said they would take environmental factors into consideration when choosing a bank, seems to point to the financial industry getting greener.

“We’re living in a time of great societal change, and consumers have made it clear that they want brands to take a stance on things like sustainability and racial justice,” said David Reiling, CEO of Minnesota-based Sunrise Banks, a bank that brands itself as socially responsible. “Frankly, companies need to make a commitment one way or the other – they can’t remain silent.”

Startups are working on green solutions for banking and commerce.

Aspiration is a challenger bank founded on environmental principles that lets users plant a tree for every purchase they make. 

Stripe’s climate removal purchase tool lets online businesses redirect some proceeds to certain technologies focused on reducing carbon footprint and publicize their carbon footprint to potential shoppers. Stripe made this solution available outside the US back in February. More than 100 companies in Europe have already signed up. 

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