Top 10: Sustainable Banks

Banks have the potential to play a pivotal role in promoting sustainability through their lending, investment, and governance practices. By prioritising environmentally and socially responsible projects, banks can drive significant positive change in various sectors.

Sustainable lending practices can fund renewable energy projects, green infrastructure, and eco-friendly businesses, while sustainable investment strategies can support companies committed to environmental stewardship and social equity.

Through robust governance practices, banks can ensure transparency, accountability, and long-term sustainability goals, setting a precedent for ethical behaviour and corporate responsibility across the financial industry.

Some banks offer investment products that focus on sustainable businesses and practices, such as green bonds, sustainable mutual funds, or socially responsible investment (SRI) portfolios.

Recognising that they are not immune to environmental and social risks, banks are increasingly integrating elements of ESG (Environmental, Social, and Governance) and climate risk into their decision-making processes, both internally and in their lending activities.

Whether driven by consumer demand, moral imperatives, or a company ethos embedded since day one, banks are playing a crucial role in driving sustainability in the finance sector. In this article, we’ve compiled a list of the top banks leading the way in sustainable banking practices, showcasing their contributions to a greener and more equitable future.

10. Nykredit

Founded in 1851 and headquartered in Copenhagen, Nykredit is a customer-owned bank and Denmark’s largest lender, commanding a 35% market share. Placing ESG principles at the core of its operations, Nykredit is dedicated to serving all areas of Denmark, both urban and rural.

On the environmental front, Nykredit made history as the first Danish systemically important financial institution (SIFI) to join the Science Based Targets initiative (SBTi). In 2023, the bank further demonstrated its commitment to sustainability by imposing stricter financing restrictions on gas and oil companies.

“As a society we share a common task: to make Denmark greener,” says Michael Rasmussen, CEO of Nykredit.

“And as the largest lender in Denmark, we acknowledge our responsibility for driving this change.”

9. UOB

Under the leadership of CEO Wee Ee Cheong, United Overseas Bank (UOB) is headquartered in Singapore and operates with a clear vision based on three key pillars.

First, Personalisation: UOB leverages data to craft individually tailored solutions for its customers, ensuring a personalized banking experience.

Second, Connectivity: Through its one-bank approach, UOB connects businesses to new opportunities across ASEAN, fostering regional growth and collaboration.

Third, Sustainability: UOB is committed to supporting the growth of the region's social, economic, and environmental sectors, demonstrating its dedication to sustainable development.

“It is our responsibility to build a sustainable future for generations to come,” says Wee Ee Cheong.

“At UOB, we want to create meaningful value and positive impact for the people around us, by working with our colleagues, customers and other stakeholders. I believe that we can, and we will, catalyse and enable change.”

8. SpareBank 1

Under the leadership of CEO Benedicte Schilbred Fasmer, SpareBank 1, headquartered in Oslo, Norway, is an alliance of Norwegian banks that prides itself on strong local ties and a steadfast commitment to social responsibility. This dedication is evident in three main areas: promoting inclusivity and equal opportunities within the community through Equality and Diversity, ensuring ethical and sustainable practices among its suppliers through Supplier Requirements, and actively engaging in projects and programs that benefit local communities through Community Initiatives

“Climate change is increasingly affecting our world and making our future uncertain,” says Benedicte. 

“This is one of the greatest challenges of our time for humanity and not least for nature as we know it. It cannot be solved by individual actors, countries or institutions, we must find solutions globally and collectively.”

7. Banco Pichincha

Under the leadership of CEO Juan Sarumeño, Banco Pichincha, headquartered in Quito, Ecuador, stands as a pillar of financial service and cultural preservation in Latin America. This distinguished South American company not only extends its banking services across six countries in the region but also dedicates itself to preserving Ecuador's rich heritage while actively promoting art and culture.

Banco Pichincha's commitment to sustainability is deeply embedded in its operational ethos. The bank integrates Environmental, Social, and Governance (ESG) criteria into the development of its financial products and services, ensuring that its offerings align with sustainable practices. Transparency in sustainable performance is a top priority for the company, as it consistently works to maintain clear and open communication about its environmental and social impact. Additionally, Banco Pichincha supports businesses and services that adhere to sustainable principles, furthering its mission to foster a more sustainable future for the communities it serves.

6. The City Bank Limited

City Bank, headquartered in Dhaka, Bangladesh, is led by CEO Mashrur Arefin. Founded in 1983, the bank now serves over 1.7 million customers, with governance and compliance at the core of its sustainability strategy to mitigate risks for both the institution and its stakeholders.

Last year, City Bank joined the United Nations’ Net-Zero Banking Alliance (NZBA), marking a significant step in its commitment to sustainability. This commitment has been recognized by several prestigious organizations, including Bangladesh Bank, the German Agency for International Cooperation (GIZ), and Global Finance.

That same year, City Bank achieved notable milestones in sustainable finance. Its sustainable finance disbursement accounted for 19.30% of total loan disbursements, with green finance representing 5.90% of the total term loan disbursements.

5. TSKB

Under the leadership of CEO Murat Bilgiç, Turkiye Sinai Kalkinma Bankasi (TSKB), also known as the Turkey Industrial Development Bank, is headquartered in Istanbul, Turkey. As a specialist in investment banking, TSKB employs a sustainable banking model to make significant contributions to climate and environmentally-friendly investments, promote equal employment opportunities, and support inclusive economic growth.

TSKB is deeply committed to corporate social responsibility, actively striving to increase the representation of women in finance, enhance educational initiatives, and raise environmental awareness.

“As a bank committed to the principles of Sustainable Development Goals, gender equality holds a prominent position on our agenda,” says Meral Murathan, Executive Vice President and Sustainability Leader at TSKB. 

“We believe that gender equality is crucial for accelerating sustainable development and fostering inclusive economic growth.”

4. Amalgamated Bank

Under the visionary leadership of CEO Priscilla Sims Brown, Amalgamated Bank, headquartered in New York, US, proudly identifies itself as 'the bank for change-makers.' This forward-thinking financial institution is deeply committed to environmental and social responsibility, channeling its funds to support sustainable organizations, progressive causes, and initiatives that promote social responsibility.

Amalgamated Bank's sustainability credentials are exemplary. As a certified B Corp, the bank operates on net-zero emissions and is powered entirely by renewable energy. Demonstrating its dedication to combating climate change, the bank has made a firm pledge not to lend to fossil fuel companies, and an impressive 32% of its loan portfolio is dedicated to climate solutions.

In addition to its broader environmental commitments, Amalgamated Bank offers tangible incentives to its customers. Homeowners, for instance, can access special lines of credit to install solar panels, making sustainable living more accessible and affordable. This approach not only underscores the bank's role as a leader in sustainability but also reinforces its mission to empower individuals and communities to make positive changes.

“Our climate work is technical and strategic, but it also honours the heritage of those who work for the future,” explains Ivan Frishberg, Chief Sustainability Officer. 

“We are excited to embark on this work, engage with clients to realise our goals, and communicate our progress to our valued stakeholders.”

3. Triodos Bank

Jeroen Rijpkema serves as the CEO of Triodos, a European bank headquartered in Zeist, The Netherlands. Triodos places a strong emphasis on transparency in its investment practices.

The bank is committed to openly sharing details about every organisation it finances on its website, allowing customers to track how their money contributes to positive changes for both people and the planet.

In 2023, Triodos managed assets worth €23.2 billion (US$25.2 billion). These funds were strategically invested to generate social, environmental, and cultural value, all while maintaining a transparent and sustainable approach.

“Most businesses aren’t thinking of children as customers or stakeholders,” says Sjoerd Rozing, fund manager of the Triodos Future Generations Fund. 

“They focus on making their quarterly results, not thinking about them as future customers, as future employees so that's a problem.

"We need companies that really need to embrace long-termism, and to work with them to understand why it’s important. Children have no voting rights, so we need to help them."

2. ProCredit Holding

Hubert Spechtenhauser serves as the Chairman of the Management Board at ProCredit Holding, which is headquartered in Frankfurt, Germany.

ProCredit Holding is a key entity within ProCredit, an international group of development-oriented commercial banks. The group's ethical corporate mission is to foster the creation of transparent and inclusive financial sectors, particularly in developing countries and transition economies. ProCredit is especially committed to supporting small and medium-sized enterprises (SMEs) and places a strong emphasis on human ethics.

A testament to its dedication to sustainability, ProCredit achieved a significant milestone in 2022, with 30% of the bank's loan portfolio consisting of green loans. This move underscores the bank's commitment to promoting environmentally responsible practices alongside its development goals.

"Responsible banking that contributes to the well-being of our customers, the communities and the environment is at the heart of our approach,” Kameliya Mineva, member of the Management Board and Executive Director of ProCredit Bank Bulgaria.

“We recognise that sustainability is not just a choice, but an obligation for the world we share."

1. Vancity

Wellington Holbrook serves as the CEO of Vancity, a Canadian financial co-operative headquartered in Vancouver, Canada. Established in 1946, Vancity has long been a pioneer in using financial tools to drive social and environmental progress. In 2008, Vancity achieved carbon neutrality, becoming the first North American-based financial institution to do so. The organization is now ambitiously working towards net zero emissions by 2040, setting a target ahead of many of its peers.

Vancity has a history of breaking barriers; in 1961, it became the first financial institution to offer mortgages to women without requiring a male co-signer. This spirit of inclusivity and innovation continues to define Vancity's operations today.

One of the cornerstones of Vancity’s commitment to its members and the community is its profit-sharing program, Shared Success. Under this program, 30% of the bank’s profits are returned to members and invested in initiatives that foster long-term benefits such as climate change mitigation, reconciliation, and financial literacy. Since 1994, more than CA$440 million (US$321 million) has been distributed to members and communities through Shared Success, including a record CA$54 million (US$39.4 million) allocated over the past two years. This robust support underscores Vancity’s dedication to creating a sustainable and equitable future for all.

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Editors' note: The entries on this list are not placed in order of products, services, or size of customer bases, but are (at the time of publication) the current leaders globally in sustainable banking practices. They are also subject to change. Different organisations may have different criteria and methodologies for determining sustainability. Additionally, sustainability is a constantly evolving area, and financial institutions are continually improving their practices.