7 of the Best Australian Banks - For You and the Environment
This post was last updated in 2023
Taking your money out of the banks that continually lend to the fossil fuel industry is one of the best things you can do as an individual. Collectively, these actions can shift how our current market operates – from one that is dependent on old technologies that harm our environment towards a market that reduces the impacts of climate change.
So it’s important to identify the best Australian banks – for you and the environment.
As I covered in prior blog posts, quite a few banks do not invest in the fossil fuel industry. But not all of them have a strong environmental focus, where environmental sustainability is embedded in business practices and operations.
In this blog post, you’ll find a list of the best banks in Australia that have a strong environmental focus, along with a summary of key information such as their environmental credentials, the products and services on offer, interest rates for basic products and how they rate on common review sites, so you have all the information you need to make the right choice.
And the banks listed are in no way inferior to one of the big 4 banks in Australia or others like them – I know this from first-hand experience! The banks listed are worth trying out.
The best banks in Australia covered by this blog post are:
These are institutions that not only stay clear of fossil fuel companies but have also changed their operations or set ambitious goals to reduce their impact on the environment. No organisation is perfect, but the ones listed are taking steps in the right direction.
Please note: The information presented in this blog post can not be taken as financial advice or a recommendation. You will find a summary of key facts that will help you decide which bank is right for you. Remember that individual experiences may vary, so it’s advisable to conduct thorough research and consider your personal financial goals and preferences before making a decision.
Where I have provided a summary of customer reviews, these have come from Product Reviews and MOZO, as of June 2023. I focused on reviews written in the last year and highlighted the top 3 pros and cons for each bank, according to these reviews.
Where interest rates are quoted, these are based on rates offered on basic savings accounts and home loan products. The home loan rates quoted are comparison rates for owner-occupied loans. All are variable rates and quote as of June 2023.
1. Bank Australia
Bank Australia is an Australian customer-owned bank that offers a range of banking services to individuals, businesses, and community organisations. They have positioned themselves as an ethical bank that focuses on responsible lending and investing.
Environmental Credentials
- Certified B Corporation
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Member of Global Alliance for Banking on Values
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They do not provide funding to the fossil fuel industry
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They are certified carbon neutral
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They have a target to reach net zero by 2023 across not just their operations but their lending and investment portfolios as well
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Since 2020 all electricity is sourced from renewable sources.
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4% of after-tax profits go into their Impact Fund which supports charitable causes nominated by members, including conservations projects
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In 2022 they invested $791.6 million in green homes, the development of new green properties, electric vehicles, onsite renewables and green bonds.
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Since 2004 they have been measuring and offsetting the emissions associated with every car loan, for the life of the loan.
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They offer reduced interest rates for car loans on hybrid or electric vehicles
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They offer discounted home loans rates for those buying energy-efficient homes or making “green” renovations
Products
| Product | Available |
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Services
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Interest Rates
| Product | Interest Rate |
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Reviews
Product Review: 4.6 out of 5 from 1,920 reviews
MOZO Review: 7.7 out of 10 from 576 reviews
Pros
- Range of products and services
- Ethical and community-owned
- Easy to set up and work with
Cons
- Lack of branches outside of Victoria
- Difficulty moving money around
- You can be shuffled around if you have an issue with your account
2. Teachers Mutual
Teachers Mutual Bank is an Australian financial institution that primarily serves the education community, including teachers, education support staff, and their families. It operates as a mutual bank, which means it is owned by its members rather than shareholders.
Teachers Mutual has expanded recently and through its subsidiaries, it is now open to those outside the education sector. Subsidiaries include Health Professionals Bank, Firefighters Mutual Bank, UniBank and Hiver. These are open to healthcare professionals, emergency services personnel and employees, graduates or students of Australian Universities.
Environmental Credentials
- Finders Green Bank of the Year 2022
- Certified B Corporation
- Member of Global Alliance for Banking on Values
- One of five banks in the world to be named Ethisphere Worlds Most Ethical Companies 2014 – 2022
- 98% of products are Certified as Responsible Investments by RIAA (credit cards, cannot be certified by RIAA which is why it’s not 100%).
- The bank does not take money from, or lend to, the fossil fuel industry.
- They are certified carbon neutral
- Since 2012 they are net zero and carbon neutral for Scope 1 (vehicle fuel and natural gas) and Scope 2 (electricity) greenhouse gas (GHG) emissions.
- 100% of the Banks’ electricity consumption is from renewable energy – 99% from green power, with 1% from offsets. This includes 19% of electricity sourced from solar PV on their office roofs.
Products
| Product | Available |
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Services
| Service | Available |
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Interest Rates
| Product | Interest Rate |
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Reviews
Product Review: 1.6 out of 5 from 47 reviews
MOZO Review: 8.5 out of 10 from 800 reviews
Pros
- Good customer service
- Competitive rates
- Easy-to-use online services
Cons
- Can not get through to staff over the phone
- Their online app does not work well
- Recent rates are not competitive
3. Australian Mutual Bank
Australian Mutual Bank is a community-based banking organisation that has been in existence since 1953. The current form of Australian Mutual Bank was created in 2019 as a result of a merger between Sydney Credit Union and Endeavour Mutual Bank.
Environmental Credentials
- B Corp certified
- Member of Global Alliance for Banking on Values
- They do not lend to or invest in the fossil fuel industry
- Certified carbon neutral
- They are committed to transitioning to 100% renewable electricity across the business by 2023.
- They issue eco-friendly debit and credit cards made of recycled plastic*
- They are conscious of water, energy and paper consumption in the office
- They use recycling services for e-waste and toners
- They offer green loans for selected green products like solar panels, water tanks etc.
Products
| Product | Available |
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Services
| Service | Available |
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Interest Rates
| Product | Interest Rate |
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Reviews
Product Review: 1.5 out of 5 from 2 reviews
MOZO Review: 8.1 out of 10 from 172 reviews
Pros
Not enough recent reviews…
Cons
Not enough recent reviews…
4. Bendigo and Adelaide Bank
Bendigo and Adelaide Bank prides itself on its community-oriented approach. They have a unique Community Bank® model where branches partner with local communities to share in the bank’s profits and invest in local projects and initiatives. This focus on community engagement sets Bendigo Bank apart from many other financial institutions.
Here is a list of some of the brands owned by or partnered with Bendigo and Adelaide Bank.
Environmental Credentials
- They do not provide any direct funding to the fossil fuel industry
- They are focused on supporting customers and communities to build climate change and disaster resilience. Some initiatives in this space include: tree planting initiative, bushfire preparedness program, solar installation, investing in reforestation or other biodiversity projects and climate-related opportunity identification
- Over half a million dollars has been donated during its eight-year partnership with Greening Australia. This money has gone towards helping the country’s natural habitats survive and thrive.
- They are certified carbon neutral
- 51 branches and office locations have rooftop solar installed bringing the portion of renewables to 40%
- They offer discounted personal loans for green purchases
Products
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They also offer share trading services and managed funds and margin lending, superannuation and pension accounts. And the subsidiaries/partners noted above also offer a range of products and services not mentioned here.
Services
| Service | Available |
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Interest Rates
| Product | Interest Rate |
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Reviews
Product Review: 1.9 out of 5 from 477 reviews
MOZO Review: 8.2 out of 10 from 7,837 reviews
Pros
- Long-term customers with no bad experiences
- Appreciate counter services
- Good communication
Cons
- Terrible customer service
- Not advised of fraudulent activity
- Recent bank closures have had an impact
5. Great Southern Bank
Great Southern Bank has been in operation since 1946. Through a series of mergers with like-minded credit unions and community groups, they have grown substantially.
Subsidiaries include CUA Health Limited, Credicorp Insurance Pty Ltd, CUA Management Pty Ltd and Credicorp Finance Pty Ltd.
Environmental Credentials
- They lend to retail customers only so do not lend to fossil fuel companies.
- They are one of the first banks in Australia to report using the Partnership for Carbon Accounting Financials (PCAF) framework. PCAF is an industry-led global partnership of financial institutions working together to implement a consistent approach to GHG emissions disclosures associated with investments and lending activities.
- The first customer-owned bank to publish a Taskforce on Climate-Related Financial Disclosures (TCFD) report
- They are certified carbon neutral
- They have pledged to reach net zero by 2040
Products
| Product | Available |
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Services
| Service | Available |
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Interest Rates
| Product | Interest Rate |
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Reviews
Product Review: 2.9 out of 5 from 822 reviews
MOZO Review: 8.1 out of 10 from 2,216 reviews
Pros
- Good product features
- Fast onboarding
- Great customer service during the onboarding process
Cons
- Inexperienced staff
- Their online interface is terrible
- Can not withdraw or deposit large sums easily
6. Auswide Bank
Auswide Bank has been around for over 50 years, originating from the local communities of Queensland’s Wide Bay Burnett region.
Environmental Credentials
- They do not lend money to the fossil fuel industry
- They are reducing emissions internally by installing energy-efficient LED lighting and having automatic timers or turning off electricals when not in use
- They are encouraging customers to go digital
- They are taking steps to reduce paper consumption internally
- They encourage paper recycling and recycling of office equipment
- They actively sponsor community organisations such as Landcare in their initiatives such as National Tree Day
- They plan to launch products that will give customers discounted rates when purchasing energy-efficient equipment and clean energy assets
Products
| Product | Available |
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Services
| Service | Available |
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Interest Rates
| Product | Interest Rate |
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Reviews
Product Review: 4.3 out of 5 from 223 reviews
MOZO Review: 8.0 out of 10 from 263 reviews
Pros
- Great customer service
- Knowledgeable staff
- Good over-the-phone and in-person branch services
Cons
- Slow money transfers
- Limited online options
7. Heritage Bank
Heritage Bank has been in operation since 1873, originating from Toowoomba. They have grown to become one of Australia’s largest customer-owned banks, with branches in Queensland and New South Wales.
Environmental Credentials
- They do not lend to the fossil fuel industry
- They plan to source renewable energy for all Heritage sites
- They plan to implement a range of initiatives to reduce energy consumption from energy-efficient lighting across and increasing the fuel efficiency of company-owned vehicles
- They plan to reduce natural resource consumption by shifting to digital-first documentation and installing quick-boil hot water systems to minimise water wastage
- They will ensure recycling bins are in place in all offices and dispose of all obsolete IT equipment through an e-Waste recycling program
- They will update their policies and procedures for lending, deposits and procurement to identify industries that contribute to negative environmental, social and ecological outcomes
- They have partnered with the Woolworths Organic Growth Fund to support greater use of organic farming practices in Australia through interest-free business loans.
- They will develop and implement green loan products by 2024 to encourage members to invest in environmentally friendly assets
They support mining and extracting industries, noting in their ESG position statement that Heritage accepts that mining and extractive industries are an important contributor to our way of life and ESG position statement: Heritage accepts that mining and extractive industries are an important contributor to our way of life and our economy. Mining activities provide resources that are essential to our daily life, such as through their use in building and construction. They are particularly important to the economies of regional areas and the prosperity of our members living there.
Products
| Product | Available |
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| Product | Available |
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Services
| Service | Available |
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Interest Rates
| Product | Interest Rate |
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Reviews
Product Review: 1.9 out of 5 from 266 reviews
MOZO Review: 8.4 out of 10 from 1,620 reviews
Pros
- Good customer service
- Their website is easy to navigate
- Reasonable rates
Cons
- Long processing times
- Terrible customer service over the phone
- Unable to deal with those experiencing hardship
When looking to make the switch, remember you need to do your research – and I hope the information I have laid out in this blog post will help you with this! These are the elements I focused on to ensure I made the right choice.
In case you are wondering, when I made the switch in 2020 I went with Teachers Mutual (joining via Uni Bank since I don’t work in the education sector). They seem to have very mixed reviews and the reviews on Product Reviews have not been good in recent years. However, at the time the product reviews were good and they offered the lowest home loan rates. And their environmental record is the strongest out there.
Since then their rates have increased but not much more than other banks out there. I find their online services very easy to use and I haven’t had to deal with their customer service yet because I haven’t had any issues requiring attention. I would recommend the bank for some looking for no-frills products and services.
But of course, do your research and make your own decision.
And make the switch – it’s so important to align our values with our actions. And our banking activities should be no exception.
xxx Tahsin
After more information? You may be interested in....
How to Go Green in Banking and Choose the Best Bank For You – for a step-by-step process to help you choose the best green bank for you
What is Green Banking and What to Look Out For – for a definition of green, sustainable, ethical and eco-friendly banking, giving you clues into what to look out for
Green Banking – Essential Characteristics To Look Out For – outlining the characteristics of and features of green banking to look out for plus what it means to be a net zero bank
Why Green Banking Matters: Creating a Sustainable Future – if you are wondering if it is worth looking into green banking, you will find some honest answers here
Green Banking Products – Align Your Money with Your Values – for a summary of all the different green branking products out there, with links to banks that offer these
Which Banks Do – and Don’t – Invest in Fossil Fuels – for a summary of which Australian banks do and don’t invest in fossil fuels and those that do invest in renewable energy
Greenwashing? The Big Four Banks and Climate Change – for information on CBA, NAB, Westpac and ANZ outlining their current position and past actions relating to climate change
Green Banks in Australia – Options Worth Considering – for information on the big four banks in Australia, four green banks in Australia and further details on Teachers Mutual
Going Green – Environmentally Friendly Banks in Australia – for further information on Bank Australia as well as CBA and Westpac, looking at their environmental policies
