Consumers are increasingly valuing sustainability, with 78% seeking a sustainable lifestyle according to Nielsen IQ data. ESG banking prioritizes values over profit, appealing to those who want to align their finances with their beliefs. ESG stands for environmental, social, and governance issues, encompassing factors like climate change and ethical business practices.

ESG banking considers how financial companies address environmental, social, and governance issues. Some banks focus on sustainability, offering carbon-neutral operations and investments in clean energy. ESG scores, like those from S&P Global, measure a company’s management of ESG risks and opportunities. Researching a bank’s ESG score can help align financial choices with values.

ESG banking benefits include aligning finances with values, positively impacting local communities, and supporting environmentally friendly causes. As ESG banking becomes more popular, banks may shift focus to stay competitive. Studies show ESG investing can deliver similar or better results than traditional investing, making it a potentially sound financial move.

Finding the right ESG bank involves research into impact reports, ESG scores, and available financial products. Understanding a bank’s ESG score and methodology is crucial. Confirm that a bank offers the services and features you need before making the switch.

Read more at Yahoo Finance: How to choose a bank that aligns with your values