Is there such a thing as responsible banking?

Learn more about responsible banking, and what questions to ask your bank

  • 8 May 2019

    As humanity comes to accept the impact we're having on the planet we call home, more and more of us are striving to be responsible custodians. Whether it’s by recycling, riding to work, or rejecting single-use plastic, there are many little things we can be doing to live a more sustainable life.

    But what about the parts of our life that are outside our immediate control? Do we hold the many businesses and organisations we support to the same high standards?

    Good news - there are many global bodies who are doing just that!

    Man in hi-vis vest looking at iPad in wind farm 

    The Responsible Investment Association Australasia

    In the world of finance and banking, the Responsible Investment Association Australasia (RIAA) is the peak body that represents responsible and ethical investors across Australia and New Zealand.

    With an active network of over 240 members who manage more than $9 trillion in assets globally, their mission is to promote and support approaches to responsible investment, helping achieve a sustainable society, environment and economy.

    Learn more about the RIAA

    Questions you should ask your bank

    With strong evidence that the use of fossil fuels contributes to climate change, more people are welcoming the shift to renewable energy. But do the banks fall in line with this public sentiment?

    Here are some of the questions you can ask to make sure your bank is acting in a responsible manner:

    1. Is your bank involved in any activity that contributes to large-scale greenhouse pollution from the production of fossil fuels?

    2. Does your bank lend funds to any business that participates in the manufacture or distribution of alcohol, armaments, pornography, uranium or tobacco?

    3. Are they involved in the financing of military activities, deforestation, correctional facilities, cryptocurrency, slavery or gross environmental damage?

    4. Does your bank sponsor contentious activities such as gambling? Do they donate money, gifts or employee time to support political candidates or organisations?

    If "yes" is the answer to any of these questions, you can send a strong message by shifting your accounts to a more responsible financial institution.

    But it’s not only about how your bank invests money. Do they give back to the community? What percentage of profits are used to invest in social, and environmental programmes?

    Learn more about ethical banking

    Certified for Responsible Investment

    On the 1st of December 2018, Teachers Mutual Bank Limited received accreditation from the RIAA. This means the Bank is one of the first Australian financial institutions to certify its retail deposits, mortgages and wholesale funding.

    “This announcement demonstrates Teachers Mutual Bank Limited’s determination to champion responsible investment. We’re not a bank that has to be forced to do the right thing by regulation, our members know we work for them alone. That’s the standard our community should expect of all banks.”
    Steve James, CEO of Teachers Mutual Bank Limited

    RIAA accreditation means that when members take out a mortgage from Teachers Mutual Bank, they are accessing funds that are 80% sourced from member deposits, as well as wholesale funds certified ethical by the RIAA and funds from other mutuals, credit unions, other banks, community groups and the Government.

    Read the full public briefing on our RIAA accreditation

    A more responsible future

    At a time when consumers are demanding more from their financial institutions, RIAA accreditation gives members certainty that Teachers Mutual Bank Limited has reached a high standard of disclosure and performance, confirming our commitment to responsible banking now and into the future.

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