In our material world, it can be discouraging to know that almost everything we consume leaves a mark on the planet. But green finance offers a powerful way to turn that impact into positive action.
We spoke with Ashley Ishibashi, partnerships manager at Aspiration, to explore how green banking can empower you to support climate-positive initiatives with every transaction. Traditional banks often fund fossil fuel projects, but institutions like Aspiration redirect those funds to reforestation and other environmental efforts, giving you the power to make a difference simply by choosing where you bank. Read on to discover how your money can help drive climate action.
Aspiration emphasizes that “your money is power” when it comes to climate change. Could you explain why sustainable or green banking is important, and how choosing where to bank can make a difference in the fight against climate change?
Sustainable banking is so important because when it comes to climate change, your money is power. According to a recent report by Banking on Climate Chaos, the world’s 60 largest private banks funneled a shocking $6.9 trillion into coal, oil, and natural gas projects between 2016 and 2023. The expansion of the fossil fuel industry risks jeopardizing the achievement of the Paris Climate Agreement goals.
Eco-friendly financial institutions such as Aspiration refrain from making the same fossil fuel investments as large banks because of the damage it does to the planet. Instead, they proactively fund climate positive projects such as reforestation initiatives to protect the climate. (See examples here.) You can feel good knowing that your deposits will not fund fossil fuel exploration or production like the big banks do.
What is the Green Marketplace?
Our Green Marketplace empowers climate-conscious consumers to make a positive impact while also rewarding you cash back for your climate-friendly choices. With Green Marketplace, you can earn 3% cash back or 6% cash back for Aspiration Plus members on every purchase (see footnote 1 below for details).
You can discover and shop from a diverse selection of rigorously vetted, climate-friendly brands that are committed to fighting climate change! We carefully evaluate each brand based on their climate practices, commitments, and reporting to determine if it qualifies for our program. Independent, third-party data is used to support this evaluation process. This evaluation is based on Aspiration’s view on how consumer purchases can accelerate the transition away from fossil fuels and toward a more climate-friendly world. Green Marketplace also ensures that every purchase supports both the planet and your finances, making shopping a win-win for a greener future. You can also learn more about our evaluation process here.
Above: American Forests, one of Aspiration's partners, is the oldest national nonprofit conservation organization in the United States. They are working with the Forest Service and other partners to scale up climate-informed reforestation across the U.S.
Aspiration offers a unique “Reforest While You Shop” initiative. Can you tell us about one of the projects and how it's going?
Deforestation poses a significant danger to both our environment and atmosphere. In an effort to provide our customers with the means to help combat this serious issue, Aspiration has created the Plant Your Change feature, where you have the opportunity to round up your transaction to the nearest dollar, and Aspiration is committing to planting one tree for each round-up that occurs.
Currently we are supporting a mangrove reforestation in Kenya and a pollinator agroforestry project in Haiti. We’ve partnered with Veritree to help verify the trees are planted and have the impact our customers desire. By rounding up purchases to the nearest dollar and using their spare change to fund tree plantings, the Aspiration community has supported more than 30 million trees and is making climate action an integral part of their daily lives (see footnote 2 below for the exact claims Aspiration makes about their planted trees). You can see where these trees are being planted in Aspiration’s Impact Hub.
What are some ways that consumers can create change through mindful shopping? Are there better ways to optimize our spending choices on everyday products or services to improve their environmental or social impact?
Green Marketplace is definitely a great resource to find climate-friendly alternatives on everyday products, so you can make sure you are contributing to a company that is committed to a greener future! Other than that, making sure companies hold themselves to the highest standards and are verified with either 1% For the Planet, Climate Neutral, and B Corp is a great place to start!
If Aspiration sounds like a good match for your values, you can begin here.
Footnotes and fine print from Aspiration
1. Aspiration’s Cash Back program is subject to change at any time and without notice, including reversal of rewards for abuse, fraud, and other illicit activity. Cash Back rewards are generally credited on the first day of each calendar month. For additional Cash Back details, see more info about cash back on purchases.
2. Funded trees can take up to 18 months to plant, allowing for time to set up nurseries, select/expand planting sites, take advantage of optimal planting seasons and accommodate for local/regional/country social, political and health considerations. Trees planted by our reforestation partners are not intended to be used as carbon offsets and are not verified as such by a third party. There is no guarantee all trees planted will be permanent.
