Responsible Banking & Investing: A Practical Next Step for Healthcare Sustainability

Responsible Banking & Investing: A Practical Next Step for Healthcare Sustainability

Where we bank and invest is an often-overlooked way to help the natural environment. Financial institutions play a significant role in shaping the global economy. The capital they manage is used to fund infrastructure, energy systems, and industries that directly influence environmental and public health outcomes. For the healthcare community, aligning financial decisions with sustainability goals is increasingly practical and does not sacrifice financial performance.

Why Banking Choices Matter
Traditional banks may finance a wide range of industries, including fossil fuel extraction and high-emission infrastructure. In contrast, a growing number of financial institutions and funds are prioritizing renewable energy, climate solutions, and sustainable development when making loans.

Few of us have examined how our deposits ae used by banks. According to the Rainforest Action Network’s  2024 Banking on Climate Chaos report, the world’s 60 largest banks have provided more than $6.9 trillion in fossil fuel financing since the Paris Climate Agreement was adopted in 2015.

At the same time, the market for sustainable investing continues to expand. A recent report from Morningstar found that sustainable funds continue to attract long-term investor interest despite market volatility:

For healthcare professionals, this raises an important question: do our financial institutions align with the health outcomes and environmental values we promote in our practices?

Competitive Returns Are Still Achievable
One of the most common concerns is whether “green” banking or investing leads to lower returns. Increasingly, the data suggests otherwise.
A 2024 analysis from the Morgan Stanley Institute for Sustainable Investing found that sustainable funds modestly outperformed traditional funds during the first half of 2024. The report noted that sustainable investing continues to attract substantial long-term interest from investors globally, even amid market volatility.

Sustainable funds posted a median return of 1.7% compared to traditional funds’ 1.1%.

In addition, a 2023 Morgan Stanley “Sustainable Reality” report found that sustainable funds outperformed traditional peers across major asset classes and regions, generating median returns of 12.6% almost 50% ahead of the 8.6% for traditional funds. For clinics, group practices, and individual healthcare professionals, this means financial decisions can support both long-term returns and long-term health outcomes.

Practical Steps for Healthcare Professionals
Transitioning to more responsible financial options does not need to be complex. It can begin with a few targeted actions:

• Review whether your bank’s annual report or website for its sustainability commitments or climate-related financing disclosures.
• Explore local or regional banks and credit unions that support renewable energy, community health, and sustainable development.
• Ask your financial advisors to include sustainability-focused investment options in your portfolio, and to remove businesses that drill, mine, transport, or sell fossil fuels such as coal, natural gas, gasoline, and diesel fuel.
• Consider starting gradually by reallocating a portion of savings or investments into more climate-conscious funds.
• Ask whether your bank has published targets for reducing carbon-intensive lending.
• Ask your employer, professionals societies, houses of worship, and medical centers to look at their portfolio as well.

The Collective Power of the Healthcare Community
Healthcare is one of the most trusted and influential sectors globally. When healthcare professionals and organizations make aligned financial decisions, the impact extends far beyond individual portfolios.

Environmental sustainability is increasingly recognized as a determinant of health. Air quality, climate stability, and resource availability all shape patient outcomes. Financial systems influence each of these factors. By choosing where to bank and how to invest, healthcare professionals can extend their impact beyond the clinic—supporting systems that promote both environmental and human health.

My Green Doctor supports healthcare professionals with practical guidance and tools to integrate sustainability across operations, patient education, and decision-making. Financial alignment is an emerging and powerful part of that journey.

Further Reading:
1. https://www.bankingonclimatechaos.org
2. https://www.morningstar.com/lp/global-esg-flows
3. https://www.morganstanley.com/ideas/sustainable-funds-performance-first-half-2024
4. https://www.morganstanley.com/ideas/sustainable-funds-performance-2023-full-year

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