UBank’s green term deposit is matched with a portfolio of renewable energy projects such as solar, wind and low-carbon transport and buildings. It comes on the same day that thousands of Australian schoolchildren are striking against government inaction on climate change.
It will allow customers to use their term deposit savings to support a positive environmental impact, while enjoying a high return.
The filing was certified by the Climate Bonds Initiative, a nonprofit organization that has developed a standard for investments that combat climate change.
When a customer invests funds in the deposit, National Australia Bank – licensee of UBank – commits to holding an equal amount in a pool of loans for projects and assets eligible for certification under the standards of climate obligations.
UBank chief executive Lee Hatton said social and environmental awareness was at an unprecedented level and customers wanted their money to be managed in a way that reflected their values.
“Australians are increasingly aware of their environmental footprint and are demanding more choice over how their investments impact it.
“Designed for those who want to make a positive impact on the environment whilst benefiting from a competitive rate, we are delighted to offer green term deposits to our customers. This is the first CBI certified product of its kind in the consumer sector globally and another example of how our innovative team is reinventing banking for our customers,” said Mr Hatton.
Research has found that 55% of Millennials are actively looking to incorporate sustainable products into their lives, while three in five Australians are aware of sustainable financial products on the market.
Mr Hatton said the deposit was designed to generate returns to “dispel the myth that sustainable products offer an undesirable financial outcome.”
“Our green term deposit has been designed for our customers to generate strong returns, with no ongoing charges, and will help contribute to a low-carbon economy. »
