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Ando: Shifting to Green Loans
Most people don’t realize that the money we have on deposit is utilized by the bank to make loans and purchase securities. (This is how traditional banks make money.) Unfortunately, banks do not tell you what they do with your money, and most banks do not take into consideration the impact the loan will have on emissions.
This is where Ando is different. We're committed to reversing the devastating effects of climate change, so we invest exclusively in green initiatives like renewable energy and regenerative agriculture, and we’re 100% transparent about where we make those investments. In stark contrast, traditional banks end up making loans and buying securities which negatively contribute to additional emissions.
For example, banks in the U.S. have over:
$5 trillion in loans to industry and businesses. This includes loans made to industries and businesses which contribute to an increasing growth in emissions. Below is a partial list of industries which contribute to emissions.
Cement industry - If the cement industry where a country, it would be the 3rd largest emitter of emissions, producing 8% of global emissions--a greater share than any country other than China and the U.S. Fortunately, improvements can be made to the process of creating cement, the type of power utilized by cement producers, and alternatives for certain uses. https://www.carbonbrief.org/qa-why-cement-emissions-matter-for-climate-change
Automobile industry - Collectively, cars and trucks account for nearly 20% of all U.S. emissions. The global car industry exceeds the carbon footprint of the entire European Union. In 2018, there were 80 million new internal combustion engine cars and trucks sold worldwide, and 17 million in the U.S.. Banks provide loans to support the continued production of internal combustion engine transportation. In the U.S., traditional banks finance 85% of new cars and trucks sold.
Manufacturing, food processing, mining, and construction - About 20% of all US emissions come from these sectors. There are many ways to reduce emissions, including energy efficiency, fuel switching, combined heat and power, and more efficient use of materials and recycling. https://www.c2es.org/content/regulating-industrial-sector-carbon-emissions/
The fossil fuel industry - Since the Paris Agreement in 2016, banks have financed fossil fuel industries to the tune of more than $3.8 trillion. U.S. banks Chase, Wells Fargo, Citi, and Bank of America are the world’s four largest financiers of the fossil fuel industry. https://www.ran.org/bankingonclimatechaos2021/
The airline and shipping industry - The airline and shipping industries account for more than 5% of the world’s emissions.
Commercial real estate - Building (commercial and residential) accounts for roughly 29% of total U.S. emissions. By making the buildings more energy efficient, major opportunities to reduce emissions from buildings are available.
$3.9 trillion in loans to consumers. This includes loans made to consumers which contribute to an increasing growth in emissions. Below is a partial list of consumer loans which contribute to emissions.
Automobile loans. See above.
Real estate loans. See Commercial real estate above.
Unsecured loans. Almost all unsecured credit does not take into account emissions.
JP McNeill | Chief Executive Officer
JP McNeill is the founder and CEO of Ando, the leader in Sustainable Banking, where 100% of customer deposits are invested in green initiatives. Environmental advocacy isn’t fashion or a lifestyle for JP--it’s at the soul of his life’s work.
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