- There are eight B Corp certified banks in Australia, however that doesn't mean they necessarily offer discounts on green finance products.
- Many other banks and lenders offer discounted loan rates for if you're buying an electric vehicle, an energy-efficient home, or if you're buying energy efficient products such as solar panels.
Saying you’re ‘green’ is a vague term and means different things to different people. For example, nuclear might be considered green by some while to others the potential risks of it are too great. The regulators are cracking down on it too, penalising companies for ‘greenwashing’ i.e. false claims about their eco-friendliness.
So, where do you start? One way to look at it is looking at banks that are ‘Certified B Corp’. B Corp certified companies are notarised by non-profit organisation B Lab and hold businesses accountable for their impacts on the environment, how they treat employees, and how they give back to the community.
-
Companies are rated on a ‘B Impact’ score, with 80 or higher needed for B Corp certification; the median score for ordinary applicants is currently 50.9.
B Corp certification is quite nuanced and detailed, and the full details can be found on bcorporation.net. Only a few brands in Australia have achieved the certification out of more than 100 banking institutions. They are:
-
Australian Mutual Bank
-
AWA Alliance Bank
-
Bank Australia
-
BankVic
-
Beyond Bank
-
People’s Choice Credit Union
-
Summerland Bank
-
Teachers Mutual Bank
You might notice a common theme among these banks; they are all customer-owned.
Compare Green Home Loans
Plenty more banks and lenders offer green home loans. Usually to qualify for a lower-rate green home loan, your home must have a ‘NatHERS’ rating of 7 or higher and have green features.
Many institutions, if you have a home loan with them, also offer low- or zero-interest personal loans attached to the mortgage for financing green features such as solar panels.
See More: Green Home Loans
| Lender | Home Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Repayment type | Rate Type | Offset | Redraw | Ongoing Fees | Upfront Fees | Max LVR | Lump Sum Repayment | Additional Repayments | Split Loan Option | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.99% p.a. | 6.51% p.a. | $2,995 | Principal & Interest | Variable | $0 | $530 | 90% |
| Disclosure | |||||||||||
5.34% p.a. | 6.27% p.a. | $2,789 | Principal & Interest | Fixed | $350 | $0 | 90% | |||||||||||||
5.82% p.a. | 5.82% p.a. | $2,940 | Principal & Interest | Variable | $0 | $0 | 80% | |||||||||||||
5.84% p.a. | 5.89% p.a. | $2,947 | Principal & Interest | Variable | $0 | $500 | 60% | |||||||||||||
5.95% p.a. | 6.23% p.a. | $2,982 | Principal & Interest | Variable | $299 | $0 | 80% | |||||||||||||
5.98% p.a. | 6.42% p.a. | $2,991 | Principal & Interest | Variable | $350 | $0 | 90% |
1. Australian Mutual Bank
Australian Mutual Bank has been B Corp certified since March 2022, and has been providing banking services since 1953. It has a B Impact score of 90.9. The institution offers a couple of green product lines:
-
Green Car Loan: A product for hybrid and electric vehicles with terms up to seven years, and a vehicle age up to five. Borrow up to $100,000.
-
Green Personal Loan: A product for installing green additions around the home such as solar panels and energy-efficient hot water systems. The loan is paid directly to the provider of the green product.
2. AWA Alliance Bank
AWA was founded in Geelong in 1969, and achieved B Corp certification in September 2018. AWA has a current B Impact score of 104.6.
In late September 2023 it explored a merger with Beyond Bank, also part of this list. The board unanimously agreed to the move, and is subject to member approval.
3. Bank Australia
Bank Australia is perhaps one of the better known ‘green’ banks, and is the fourth-largest customer-owned bank in Australia with more than $12 billion in assets.
Bank Australia started out in 1957 as the CSIRO Co-operative Credit Society and is the result of mergers with 71 other credit unions and co-operatives. It became B Corp certified in June 2020 and has a B Impact score of 104.2, and is 100% carbon neutral. It offers a couple green product lines:
-
Clean Energy Home Loan: Discounted home loan for green-rated homes (7 stars NatHERS rating or better). Also has a repayment pause feature for if adding green features.
-
Green Car Loan: Discounted rates for hybrid or electric vehicles. Terms of up to seven years.
4. BankVic
Founded in 1974, BankVic achieved B Corp certification in December 2020 and has a B Impact score of 80.2. Membership is restricted to: members of a police force; persons involved in emergency services, health work, or the government departments; or immediate family of qualifying BankVic members
5. Beyond Bank
Beyond Bank is Australia’s fifth-largest customer owned bank with more thaan $12 billion in assets. It achieved B Corp certification in December 2015, and has an impact score of 146.7; it is the oldest member and highest-scoring on this list.
6. People’s Choice Credit Union
Adelaide-based People’s Choice is, alongside its merger partner Heritage Bank, the largest customer-owned bank in Australia. It achieved B Corp certification in August 2022, and has an impact score of 83.3. It offers a discounted-rate green car loan for those who purchase an electric or hybrid vehicle.
7. Summerland Bank
Lismore NSW-based Summerland was certified B Corp in March 2023 and has an impact score of 95.9. It has a couple of green product lines:
-
Eco Home Loan: A discounted rate for environmentally-sustainable homes. You will need to discuss with Summerland to see if your home qualifies.
-
Eco Personal Loan: A discounted rate for making environmentally-friendly additions to the home such as solar panels.
-
Eco Car Loan: A discounted rate for the purchase of hybrid or electric vehicles.
8. Teachers Mutual Bank
Teachers Mutual and its subsidiaries Firefighters Mutual, Health Professionals Bank, UniBank, and Hiver are part of the group that makes up Australia’s sixth-largest customer-owned bank. It became B Corp certified in January 2022 and has a B Impact score of 102.4.
Compare Green Car Loans
Many lenders offer green car loans these days. To qualify you usually must have a plug-in hybrid or electric vehicle. The discounts on green car loans can often be generous, sometimes 1 percentage point cheaper than regular car loans.
See More: Green Car Loans
| Lender | Car Loan | Interest Rate | Comparison Rate* | Monthly Repayment | Interest Type | Vehicle Type | Maximum Vehicle Age | Ongoing Fee | Upfront Fee | Total Repayment | Early Repayment | Instant Approval | Online Application | Tags | Features | Link | Compare | Promoted Product | Disclosure |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
5.99% p.a. | 6.51% p.a. | $913 | Variable | $0 | $530 | $32,851 |
| Disclosure | |||||||||||
5.34% p.a. | 6.27% p.a. | $904 | Variable | $350 | $0 | $32,534 | |||||||||||||
5.82% p.a. | 5.82% p.a. | $910 | Variable | $0 | $0 | $32,768 | |||||||||||||
5.84% p.a. | 5.89% p.a. | $910 | Variable | $0 | $500 | $32,777 | |||||||||||||
5.95% p.a. | 6.23% p.a. | $912 | Variable | $299 | $0 | $32,831 | |||||||||||||
5.98% p.a. | 6.42% p.a. | $912 | Variable | $350 | $0 | $32,846 |
Image by Towfiqu Barbhuiya on Unsplash
Need help with a home loan?