The Best Ethical Banks and Building Societies
Which banks and building societies are the most ethical and sustainable? For the answer, see our Ethical Banks and Building Societies Ratings Table to compare brands’ ethical scores.
The ethical issues in the banking sector: What you need to know before you switch bank accounts
Before you switch bank accounts, you may want to learn more about the issues within the sector, so you can choose from the most ethical banks and avoid supporting harmful companies and their investments. Our Ethical Banks & Building Societies Ratings Table shows you which are the most ethical banks, based on their sustainability, animal welfare, and human rights records. To find out more about how we rate banks and building societies across Environment, Animals, and People, visit our How We Rate page.
Banks invest in a wide range of industries to generate profit. And whose money do they use to invest in these industries? That’s right, yours. Sadly, many of these industries that banks invest in are unethical, including companies involved in fossil fuels and deforestation. This has an extremely harmful effect on the environment, as well as the people and wildlife living in it. Make My Money Matter, the UK campaign on responsible banking and pensions, estimates that switching to a greener bank is one of the most impactful financial decisions a consumer can make. You can find out more about the negative impact of unethical investments in our Ethical Pensions article. [link to be verified]
In addition to harmful investments, other unethical banking practices include tax fraud, exploitation of customers, invasive surveillance of staff, and other illegal financial activities. You will want to avoid companies involved in these issues when you switch your bank account. Unethical banking practices also include investing in arms and defence in the Middle East and owning shares in fracking companies. It’s scary to think that the money you work so hard to earn might be funding weapons sales, palm oil production or other unethical banking activities.
Several of the banks that appear in the red section of our table have been criticised for tax fraud. According to Oxfam, tax avoidance by multinational corporations deprives poor countries of over $100 billion every year! The UK government has introduced measures to tackle corporate tax avoidance, though the scale of the problem globally remains significant. These banks are essentially stealing money that could be funding schools and health services, as well as contributing to the prevention of poverty and disease.
Our research: Unethical banking in the UK
Our research reveals that several of the UK’s leading banks have been involved in environmentally destructive activities. Fossil fuel financing remains one of the most significant concerns, with several major high street banks continuing to fund new oil, gas, and coal projects despite climate commitments.
For instance, Santander was criticised by the Bureau of Investigative Journalism for its shares in JBS, the biggest meat company in the world, which has links to Amazon deforestation. Similarly, Rainforest Action Network found Barclays to be the worst European bank for funding fossil fuel companies.
In addition to Santander and Barclays, many other leading banks were criticised for similar environmentally harmful practices. Our Ethical Banks & Building Societies Ratings Table shows you which banks received a bottom rating for Environmental Destruction. If you decide to switch bank accounts, we recommend avoiding these companies.
We also assessed banks’ impact on the environment by examining whether they are disclosing their carbon emissions and making commitments to reduce their carbon footprint. This is covered under the Carbon Disclosure & Reduction Targets criteria. The UK government’s mandatory climate-related financial disclosures framework requires larger companies and financial institutions to report on climate risk — a significant step towards greater transparency in the banking sector.
Despite shortfalls in other areas, we are confident that the banking sector is moving towards a more responsible banking approach to finance. It’s important to consider these factors when you decide to switch bank accounts.
How to identify the most ethical banks when you switch bank accounts
Socially conscious consumers will be pleased to learn that ethical banks are on the rise! Hooray! Ethical banks such as Charity Bank and Triodos Bank are pioneers for green banking and sustainable finance that gives customers what they need whilst also giving back to the people and planet. Brands that hold The GOOD Shopping Guide’s Ethical Accreditation have had their ethical credentials independently verified — providing additional assurance when choosing an ethical bank account in the UK.
Ethical banks focus more on socially and environmentally beneficial projects, such as investing in renewable energy generation and reforestation initiatives. If you want to switch bank accounts, choose from one of the ethical banks in the green section of our Ethical Banks & Building Societies Ratings Table.
When assessing whether a bank is truly ethical, it is worth looking beyond headline claims. Key questions to ask include: does the bank have a published policy on fossil fuel financing? Does it disclose its carbon emissions? Does it have a clear human rights policy covering its lending decisions? And does it hold any independent ethical verification, such as The GOOD Shopping Guide’s Ethical Accreditation? The answers to these questions — visible in our Ethical Banks & Building Societies Ratings Table — give a far clearer picture than a bank’s own marketing materials.
Another option when you switch bank accounts is to select an ethical building society rather than a traditional bank. Much like ethical banks, building societies are less likely to have investments in controversial industries, so you can have reassurance that your money isn’t being used unethically. The Building Societies Association represents the UK’s building societies and provides useful information on how they differ from traditional banks in their ownership structure and investment approach.
The same principles that apply to choosing an ethical bank are worth applying to other financial products. Our Ethical Insurance comparison table applies the same independent ratings methodology to the UK’s leading insurance providers.
See our Ethical Banks and Building Societies Ratings Table to compare brands.
The Good Shopping Guide has examined thousands of brands, reviewed them, and ranked them according to how they care for, treat, and affect People, Animals, and the Environment. Each and every brand listed on our Ethical Ratings Tables has a corresponding article written by The Good Shopping Guide’s research team. Our researchers have evaluated and analysed the claims made by thousands of brands on their business ethics, sustainability certifications, as well as other sustainability factors. To read more, simply click any brand name.
Charity Bank, Ecology Building Society, Triodos Bank, Monzo, The Co-operative Bank, Coventry Building Society, Leeds Building Society, Skipton Building Society, Yorkshire Building Society, Nationwide Building Society, Virgin Money, AIB, Atom Bank, Newcastle Building Society, TSB, Bank of Ireland, Metro Bank, Starling Bank, thinkmoney, Cater Allen, Santander, Bank of Scotland, Halifax, Lloyds Bank, Revolut, NatWest, RBS, Barclays, Citi, First Direct Zero and HSBC.
What makes a bank or building society “ethical,” and why does it matter?
An ethical bank or building society is one that uses customers’ money responsibly — for example, not investing heavily in fossil fuels, weapons or projects linked to environmental harm or human rights abuses. It also publishes clear sustainability and social responsibility policies. Choosing ethical lenders means your savings and loans support more positive social and environmental outcomes, not harmful industries.
How do ethical ratings assess where banks invest their money?
Ethical ratings examine whether banks and building societies invest in controversial sectors like fossil fuels, arms, tobacco or deforestation, and whether they publish transparent information about investment policies. Higher ratings are given to lenders that avoid harmful investments, support renewable energy or community projects, and are transparent about how they use customer funds.
What role does corporate behaviour (e.g., political donations) play in bank ethics?
Banks and building societies are also evaluated on corporate practices such as political donations, executive bonuses, tax transparency and governance. Lenders that avoid controversial political spending, pay fairly, and are accountable to members or customers tend to score more highly in ethical assessments because their corporate behaviour aligns better with social responsibility goals.
Which banks and building societies tend to perform highest on ethical and sustainability criteria?
Building societies like Nationwide, Coventry, and Skipton often score better because they are member‑owned and have fewer controversial investments. Ethical banks such as Triodos and Charity Bank also perform well due to clear commitments to sustainability, community lending and avoiding harmful sectors. These lenders typically publish strong environmental and social responsibility reporting.
Why do some major high‑street banks receive lower ethical ratings?
Large high‑street banks often score poorly because they invest significant amounts in fossil fuels, controversial infrastructure projects and other harmful industries, and some have histories of problematic corporate behaviour or weak transparency. Their ethical reporting may be limited or vague, making it harder to assess their actual impact.
How can a customer use ethical ratings to choose where to save or borrow?
Customers can compare ethical rating tables that show how banks and building societies perform on environmental, social and governance criteria. Choosing a lender with clear sustainability policies, responsible investment practices and transparent reporting helps ensure your money supports positive causes rather than industries linked to environmental harm or social injustice.
Is Charity Bank an Ethical Bank?
Charity Bank sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table and is widely regarded as an ethical choice in its sector due to strong performance across environmental, social and governance criteria, including responsible investment and political donation policies. It holds Ethical Accreditation and appears on the Top 200 Ethical Businesses list, demonstrating a verified commitment to ethical and sustainable business practices.
Is Ecology Building Society an Ethical Building Society?
Ecology Building Society sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, performing strongly in areas such as responsible investment and environmental/social criteria, although it has not yet secured Ethical Accreditation. Earning formal accreditation would further validate its ethical and sustainable business practices.
Is Triodos Bank an Ethical Bank?
Triodos Bank sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, performing strongly in environmental, social and responsible investment areas, though it currently lacks Ethical Accreditation. Pursuing accreditation could further evidence its commitment to ethical and sustainable business practices.
Is The Co-operative Bank an Ethical Bank?
The Co‑operative Bank sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, showing solid performance in areas like environmental impact and lending practices, though it has not achieved Ethical Accreditation. Securing accreditation could further evidence its ongoing commitment to ethical and sustainable business practices.
Is Coventry Building Society an Ethical Building Society?
Coventry Building Society sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, doing well in areas such as environmental reporting and political donation transparency, although it falls short in responsible investment and currently lacks Ethical Accreditation. Pursuing accreditation could further demonstrate its dedication to ethical and sustainable business practices.
Is Nationwide Building Society an Ethical Building Society?
Nationwide Building Society sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table and performs well in areas like mutual status, political donations and responsible investment, though it has not yet achieved Ethical Accreditation. Gaining accreditation could further demonstrate its commitment to ethical and sustainable business practices.
Is Skipton Building Society an Ethical Building Society?
Skipton Building Society sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with good marks in environmental reporting and avoidance of unethical practices, though it lacks Ethical Accreditation and could strengthen its ethical commitment by securing formal recognition through accreditation.
Is Virgin Money an Ethical Bank?
Virgin Money sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, doing well in areas like political donations, responsible investment and mutual status but less strongly in environmental reporting, and it currently lacks Ethical Accreditation. Securing accreditation would further demonstrate its commitment to ethical and sustainable business practices.
Is Zero Bank an Ethical Bank?
Zero Bank sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, performing well in environmental reporting and political donations while lagging in responsible investment and lacking Ethical Accreditation. Securing formal accreditation could further demonstrate its commitment to ethical and sustainable business practices.
Is Yorkshire Building Society an Ethical Building Society?
Yorkshire Building Society sits above the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, performing well in areas like environmental reporting, environmental destruction, irresponsible lending and political donations, though it has not achieved Ethical Accreditation. Formal accreditation could further demonstrate its commitment to ethical and sustainable business practices.
Is Leeds Building Society an Ethical Building Society?
Leeds Building Society sits at the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, showing solid marks in areas like environmental reporting and political donations but lacking Ethical Accreditation. Gaining accreditation could further demonstrate its commitment to ethical and sustainable business practices.
Is thinkmoney an Ethical Bank?
thinkmoney sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weaknesses in areas such as environmental reporting and responsible investment despite adequate marks on lending and political donations, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the ethical standard.
Is Atom Bank an Ethical Bank?
Atom Bank sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weaker performance in areas such as responsible investment and sustainability disclosure despite acceptable marks for lending and political donations, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the ethical standard.
Is AIB an Ethical Bank?
AIB sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, performing relatively poorly in areas such as responsible investment and failing to meet the benchmark’s ethical standard. It does not hold Ethical Accreditation, and consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Metro Bank an Ethical Bank?
Metro Bank sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weaker performance in areas such as responsible investment and environmental/social criteria and no Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Newcastle Building Society an Ethical Building Society?
Newcastle Building Society sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, performing relatively poorly in areas like environmental reporting and carbon reporting despite strong mutual status and political donation marks, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Monzo an Ethical Bank?
Monzo sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with its score weakened by factors such as insufficient sustainability reporting and responsible investment policies despite adequate marks in political donations and lending criteria, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Revolut an Ethical Bank?
Revolut sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with relatively poor performance in areas such as environmental reporting and carbon disclosure despite acceptable marks for environmental destruction and political donations, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is TSB an Ethical Bank?
TSB sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, performing weakly in key areas such as responsible investment and lending practices and not holding Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Bank of Ireland an Ethical Bank?
Bank of Ireland sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weaker performance in areas such as responsible investment and other ethics criteria and no Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Bank of Scotland an Ethical Bank?
Bank of Scotland sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with notable weaknesses in responsible investment and irresponsible lending criteria and no Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Halifax an Ethical Bank?
Halifax sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weaknesses in areas such as responsible investment and irresponsible lending despite acceptable environmental reporting, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Lloyds Bank an Ethical Bank?
Lloyds Bank sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, performing poorly in key ethics areas such as responsible investment and lending practices while doing acceptably on political donations, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is NatWest an Ethical Bank?
NatWest sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weaker performance in areas such as responsible investment and irresponsible lending and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Barclays an Ethical Bank?
Barclays sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, scoring poorly across key ethical categories including responsible investment, irresponsible lending and political donations, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Cater Allen an Ethical Bank?
Cater Allen sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weaker performance in areas such as responsible investment, political donations and lending practices and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Chase an Ethical Bank?
Chase sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with relatively poor performance across key ethical criteria such as environmental destruction, irresponsible lending and political donations and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is RBS an Ethical Bank?
RBS sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weak performance across key ethical areas such as responsible investment, irresponsible lending and environmental criteria and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Santander an Ethical Bank?
Santander sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weak performance in several ethics areas such as irresponsible lending and environmental destruction, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Citi an Ethical Bank?
Citi sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with relatively poor performance in key ethical areas such as irresponsible lending and political donations and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is First Direct an Ethical Bank?
First Direct sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weaker performance across several key ethical areas such as responsible investment, political donations and environmental destruction, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is HSBC an Ethical Bank?
HSBC sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weak performance across key ethical areas, including responsible investment and irresponsible lending, and it does not hold Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
Is Starling Bank an Ethical Bank?
Starling Bank sits below the benchmark on The GOOD Shopping Guide’s Banks & Building Societies Ethical Ratings Table, with weaker performance in areas such as responsible investment and sustainability commitments and no Ethical Accreditation. Consumers may wish to consult the table to find banks or building societies that meet or exceed the benchmark.
How does The GOOD Shopping Guide's Ethical Accreditation complement other accreditations?
The GOOD Shopping Guide doesn’t replace existing certifications, it ensures your ethical credentials are clearly recognised so they are trusted by consumers. By appearing in our comparison tables, your brand reaches an audience that is actively seeking genuinely ethical options, while also being referenced by Google and AI search tools to enhance credibility and discoverability.
How is The GOOD Shopping Guide's Ethical Accreditation different from other accreditations?
Unlike many accreditations that focus mainly on compliance or internal audits, The GOOD Shopping Guide provides scored, research-led assessments across environment, people and animals. Our tables are consumer-facing and freely accessible, making it easy for shoppers and AI tools to compare brands based on verified performance, not just promises.
How does The GOOD Shopping Guide choose who is eligible for accreditation?
The GOOD Shopping Guide audits brands for their ethical impact across a variety of criteria in the human, animal and environment categories. We research the records of brands and their parent companies, and rate them across those criteria. If they are found to be above our benchmark, they are eligible to apply for Ethical Accreditation.
How can I apply for Ethical Accreditation?
You can apply for Ethical Accreditation if your brand is assessed as above our benchmark. Click on this link to fill out our online form, and our researchers will assess your brand’s viability for Ethical Accreditation.