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 Friday, 16 May 2008

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How green is your money?

Woman with credit card

More financial companies such as credit card providers, banks and building societies are trying to find ways to invest more ethically for the sake of the environment. Here's how to do your bit without breaking the bank...

Credit cards

  • There are only a few dedicated 'green' credit cards, where spending money on a card means a direct contribution is made to environmental causes. The latest is the Barclaycard Breathe Card. It's made out of environmentally friendly materials and will issue you a recycled card when you need a reissue. The Breathe card also promises to donate 50% of all profits from the card to environmental projects that help reduce carbon emissions, guarantee a £1m donation in its first year and offer discounts on buying green products and services

  • Other cards include the Smart Credit Card, where customers can offset their carbon emissions for a year, and the Co-op Green Peace card, which donates £15 to Green Peace when you open account, plus 25p for every pound you spend on the card.

Mortgages

  • Green mortgages were first launched by the Co-operative Bank in 2000. It remains the most ethically committed bank of all. The Co-Op makes a donation to a climate change organisation for every mortgage on its books - it's reported the total amount it has donated since 2002 is close to £1.5 million.

  • And others are following suit - HBOS, Abbey, and the Yorkshire Building Society have announced plans to introduce green financial products. London and Country will plant 50 trees for every mortgage taken out this year and Giraffe will offset 5.5 tonnes worth of carbon emissions for each year of a mortgage deal taken out by a customer.

Insurance