Green bank: definition, classification, comparison

Imagine a bank that not only looks after your money but also invests in sustainable projects... literally. Welcome to the world of green banking: a concept where finance, ecology, and ethics are not marketing slogans but concrete commitments. Yes, even your bank account can become a key player in the ecological transition and sustainable development!

What is a green bank? A definition

A green bank is a financial institution whose activities and investments are focused on projects that positively impact the environment, sustainability, and the ecological transition. Unlike traditional banks, which often finance polluting industries (fossil fuels, extractive industries, etc.), an ethical green bank supports sustainable initiatives such as renewable energy, biodiversity protection, reforestation, and the circular economy.

Green banks offer financial products (bank accounts, loans, especially for young professionals, etc.) similar to conventional banks, but with the assurance that these funds will be used exclusively for actions that benefit the environment and promote sustainability.

Green banking: when money is invested in the planet

In a world where climate issues are becoming increasingly urgent, choosing an ethical bank is a way to make a difference, not only with your everyday actions but also with your money. Financing low-carbon projects and supporting sustainable businesses is the mission of ethical banks.

For example, institutions such as La Nef or Helios do not just want to offer traditional banking services. They look further afield, investing in ecological projects and striving to contribute to a more sustainable economy in France. This ensures that every loan granted and every euro invested supports climate-friendly financial projects and enhances environmental impact.

When you choose an ethical bank, you're not just choosing a bank card or a mortgage. You're choosing responsible finance that aligns with ESG (Environmental, Social, and Governance) principles.

What does a green bank do!

How does this work in practice? Well, it's pretty simple. Take La Nef, the French green bank. Its customers know that their money is not invested in controversial projects but in high-impact environmental initiatives.

An example?

La Nef has invested in financing the Enercoop cooperative.
Enercoop is a 100% renewable electricity supplier in France that operates as a cooperative. It specializes in producing and distributing energy from renewable sources such as wind, solar, and hydro. On several occasions, La Nef has helped to finance renewable energy production projects through Enercoop. This type of project ideally aligns with La Nef's sustainability, ethics, and carbon reduction values.

By investing their money with La Nef, clients directly contribute to France's energy transition by supporting concrete, environmentally friendly projects with a positive social and climate impact.

Green banking: the Helios example

Helios is a French neo-bank founded in 2020. Its mission is to reconcile money and ecology. Like other green banks, Helios stands out for its commitment to supporting only projects that positively impact the environment while ensuring that its customers' money does not finance polluting industries such as fossil fuels, deforestation, or companies responsible for biodiversity loss.

Helios offers standard banking services, including a current account and a bank card. Its total commitment to the ecological transition and green finance makes it unique. The Helios team is also completely transparent with its clients. It regularly publishes impact reports detailing where money is invested and what projects are supported, ensuring full traceability of funds.

The Helios bank card is biodegradable and made from PLA, a material derived from corn, to reduce the carbon footprint and the use of polluting plastics. Banking services are accessible through an intuitive mobile application that allows you to manage your finances while tracking the environmental impact of the investments made with your deposits.

Helios plays an active role in financing concrete projects. For example, it has financed solar infrastructure in Europe, supported energy renovation programs for older buildings, and contributed to innovative projects in the circular economy. The aim? To reduce carbon emissions and accelerate the transition to a greener economy while supporting sustainable investment.

Green bank: comparison

As new green banks emerge, it's time to compare them!

La Nef is a long-established cooperative bank that funds ethical and environmental projects for individuals, businesses, and associations. Its strength lies in the sustainable loans it grants to social and ecological projects. However, it does not offer a bank card for individuals, and its interface is more traditional.

Helios and Green-Got: Both neo-banks offer a bank card but no loans. They are newer (2020 and 2021) and only target retail customers.

Helios: A digital neo-bank focused on the ecological transition. It finances only green projects and offers a biodegradable bank card. Helios is transparent about how customers use money and offers carbon footprint tracking via its app.

Green-Got: Even more focused on fighting climate change. All customer funds are invested in projects such as reforestation and solar energy. Like Helios, Green-Got is 100% digital but differs in that it focuses almost exclusively on climate projects.

Green bank: the ranking

In 2024, green banks are becoming increasingly popular, especially in France, where the commitment to more sustainable finance is booming.

Green banks at the top of the 2024 ranking:

1.     La Nef remains a model ethical bank. Although it does not offer a current account for individuals, it is firmly committed to financing ecological and social projects. Its transparency and low carbon footprint make it a benchmark for green savers.

2.     Crédit Coopératif is another respected institution in the field of ethical finance. Unlike Nef, it offers all traditional banking services, including current accounts and mortgages. It is also recognized for its commitment to the ecological transition.

3.     Helios and its transparent banking services stand in third place. This neo-bank offers investments focused on sustainable projects.

4.     Green-Got focuses on a low-carbon current account: combating global warming and protecting the environment are the watchwords that guide its investments.

Legislation and regulation supporting green banks

In Europe, regulatory progress is supporting the growth of green banks. One of the key reforms is the European Green Taxonomy, which will be phased in from 2020. This regulatory classification clearly defines which economic activities are sustainable, facilitating responsible investment and excluding financing linked to polluting industries.

In France, national initiatives such as the 2019 PACTE law also encourage financial institutions to integrate ESG (Environmental, Social, and Governance) criteria into their strategy. These reforms are strengthening the green momentum in the financial sector in France and Europe.

Obstacles and challenges for green banks

Despite their commitment to sustainable finance, green banks face several significant challenges. The first is a lack of public awareness. Many consumers are still unaware of the existence of these ethical alternatives, accustomed as they are to the big names of traditional banking (Bnp, Crédit Agricole, Société Générale...). What's more, the lack of diversification of services can be an obstacle for some customers. For example, neo-banks such as Helios and Green-Got do not yet offer loans, which limits their attractiveness compared to the big banks.

Another challenge is long-term profitability. Green banks must balance their environmental objectives with the need to remain financially viable, which can prove complex. Finally, they must contend with strict banking regulations while operating in a highly competitive market where traditional banks are beginning to integrate green initiatives to meet growing demand.

Choosing an ethical bank means giving your money a purpose. Whether funding low-carbon projects, investing in green initiatives, or participating in a sustainable economy, every financial decision can become a gesture for the planet. So why not turn your bank accounts into allies for a greener future?

What if we told you that it's possible to "grow" your values while taking care of your portfolio? An ethical green bank is possible and a way of actively participating in the fight against climate change while promoting a greener economy.

So maybe it's time to stop procrastinating and discover how to be greener every day!