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A Personal Divestment Toolkit
Citibank paid $285 million in fines to settle fraud charges for their role in misleading investors in the 2008 economic crash. They are also one of the largest funders of Big Coal.
Wells Fargo employees created over 2 million fraudulent accounts in their customer's names . They also fund of the Dakota Access Pipeline.
JP MorganChase paid $13 billion in a civil settlement because their questionable mortgage bundling practices led to the Great Recession. They also fund the Keystone XL Pipeline.
Why Divest?
Climate change is a crisis unlike any other in human history. The scope is global, the effects are potentially catastrophic, and the solutions can seem beyond reach. With such an enormous problem, it’s easy to see why it’s so hard to know what to do. But THERE ARE WAYS TO TAKE ACTION. One of the global climate movement’s most powerful tools is DIVESTMENT. By pulling out of oil, coal, and gas investments, by boycotting banks that underwrite damage to people and the planet, and by pressuring civic and business organizations to manage their funds responsibly, we can shut the valve on fossil fuels by cutting the flow of money to the fossil fuel industry. Everyone’s financial circumstances are different, so our abilities to personally divest vary widely. But make no mistake: every divestment action that you can take, big or small, builds our momentum and grows our power. 350 Austin’s Personal Divestment Toolkit is a guide to help you take control of your own money’s role in the climate crisis and the crimes of the fossil fuel industry. We hope that this toolkit empowers you, energizes you, and engages you in this global struggle.
Take action to accelerate the end of fossil fuels
Funds Keystone XL Pipeline
Did you know? The energy needs of the average American household produces 7.2 tons of CO2 per year!
Bank with a local nonprofit financial institution
Tips for Selecting a Credit Union 1. Check out our map2 to see which Austin credit unions are conveniently located to you. 2. Credit unions are chartered to serve specific communities. See our list of Austin credit unions2 for an overview of membership requirements. In many cases if a family member qualifies for membership, you will too. 3. Don’t forget to consider all the financial services you require or desire like mobile banking, credit cards, loan refinancing, and investment options.
Try A Credit Union
A credit union is a member-owned financial cooperative. Rather than maximizing profits to generate wealth for their shareholders, credit unions are nonprofit organizations, required by law to reinvest revenue back into credit union itself. That means that instead of gambling your money on environmentally destructive and financially risky fossil fuel projects, a credit union uses your deposits to improve banking services, interest rates, and financial opportunity for you and your fellow member-owners. Credit unions are a perfect option for anyone looking to divest their personal accounts from the big banks. Most credit unions offer all of the services that are available from their for-profit counterparts, from checking, savings, and credit card accounts to loans and mortgages to investment management.
Divest your electricity! Austin Energy customers can cut fossil fuels out of their home’s diet with GreenChoice. For an additional 3/4s of a penny per kilowatt hour, Austinites can ensure that their municipal utility purchases Texas wind power to match 100% of their electricity consumption. You can sign up at any time, no contract required! For more information, visit the Austin GreenChoice website1
Divest Your Electricity
Enroll in the City of Austin's GreenChoice program
Pull your money from the banks that fund fossil fuels
9 Steps to Divest Your Personal Bank Accounts 1. Start by joining a credit union! Look for a credit union that can provide all the financial products you want to replace from your old bank 2. When opening your new credit union account, try to deposit enough funds to cover your spending as you transition away from your old bank, but be sure to keep enough in your old bank to cover all your automated withdrawals and pending transactions. Avoid any further use of the cards and checks associated with your old bank. 3. If your employer directly deposits your pay or if you receive other automated deposits, have these deposits transferred to your new credit union. 4. Make a list of any automated payments you have (such as rent, utility bills, or subscriptions) along with any other electronic fund transfers you have set up for investments or other money management purposes. 5. As you begin receiving deposits in your new account, move your automated payments in kind. Take extra care to avoid any accidental overdrafts on either your new credit union or old bank accounts. 6. Continue transferring money and automated payments from your old bank until you’ve moved almost everything to your new credit union. Be sure to keep any minimum required balances in your old bank to avoid unwanted fees. 7. Go through a billing cycle or two to make sure everything’s good with all of your automated deposits and payments. 8. Say goodbye to your old bank, and let them know why you’re leaving. Send a letter to the branch manager and let them know that you won’t bank on fossil fuels. Feel free to use our sample breakup letter3. 9. You’ve done a good thing, but don’t stop here! Record your divestment4 to help everyone see that Austinites put their money where their mouth is when it comes to climate justice. Share your reasons for divestment and these how-to resources with your family and friends.
Personal Bank Accounts
Last but definitely not least! Be sure to write a letter to your creditor explaining why you divested. See our sample letter here 3 .
Divest your debt from predatory lenders
Tips for the Transition When researching your new card, see if they offer 0% interest balance transfers. A 0% interest transfer will cost you nothing and may even save you money over time if your new card’s interest rate is lower. Be sure to close your big bank credit card account after the transfer to avoid fees. Credit cards issued by big banks usually have annual or even monthly fees that are charged to your account regardless of whether you use the card. Even if your balance is zero, you may still be hit with fees, so be sure to fully close your old account to avoid any unexpected charges. If you can’t do a balance transfer, stop spending on your big bank credit card. You can still make a statement by not spending another dollar on your big bank credit card. Interest is where big banks make their profits, and if you don’t have interest to pay, they won’t have those dollars to pour into fossil fuels.
Credit Cards
Have a credit card with a big bank? Here are your options: 1. Apply for credit card with your new local credit union - Most credit unions offer credit cards, and at much lower interest rates than the big banks! 2. Apply for a socially responsible credit card - For every dollar you spend, a small contribution is made towards an environmental or socially-responsible cause. There are even cards that provide direct funding to specific organizations. Unfortunately, some social-benefit cards are issued by the very same big banks that invest in fossil fuels, so proceed with caution. Several socially beneficial credit cards are issued by community development banks, such as the credit cards Green America lists here5
Things to Consider Divesting your loans can vary depending on your bank, your financial situation, and how long you’ve had the loan. For the best interest rates, refinancing when the loan is only 2-3 years old is ideal. Ask the loan officer about any possible fees resulting from a loan transfer. A reduced rate may sound great, but also consider a shorter loan term for the maximum benefit.
Mortgages & Loans
Refinance your loans to save money and the planet
If you have taken out home, auto, school, or other personal loans with one of the big banks, you may be able to refinance with your new credit union. Refinancing or balance transferring your loans through a credit union will prevent your interest payments from being used to support the fossil fuel industry. 1. Gather your documents - Retrieve any documents provided by the bank related to your current loan, like your loan agreement. The new lender will likely require you to provide your current financial records as well, such as your bank statements and proof of income. 2. Talk to your new lender's loan officer - Let your new credit union know that you are planning on refinancing a loan with them and they will have a loan officer contact you with the necessary information to complete the process. They will likely gather your information to verify your credit and income. Feel free to ask the loan officer all the questions you have regarding the refinancing process so you can be prepared. 3. If Approved: The credit union will contact your existing lender and send over the check to purchase the loan. Communicate with the loan officer to ensure that you have done everything needed to finalize the transfer.
If transferring your loan isn’t feasible at this time for whatever reason, that’s okay! You will likely need a loan in the near future and that one can be from a credit union.
Retirement & Investment
Investments—such as individual stocks, mutual funds and 401(k)s—present the most straightforward avenues for divestment from fossil fuels. If enough people pull their investments out of fossil fuels—or never invest in the first place—we can devalue fossil fuel corporations and shut down one of the industry’s main sources of both revenue and social license. 1. Evaluate your current investments - Fossil Free Funds6 has a wonderful search tool that allows you to enter fund names and see their fossil fuel investments. 2. Talk to your investment advisor or retirement fund manager - If you have an investment advisor, let them know your interest in moving your investments to fossil fuel free funds. If you have a retirement fund through your employer, ask the fund manager if there are any options to move your money. As interest grows in socially responsible investing, increased demand will push employers and fund managers to offer more environmentally sustainable funds. 3. Investigate fossil fuel free and socially responsible investment funds - There are several fossil free funds available that are provided by well established investment firms like Green Century Funds and Trillium Asset Management. Additionally, Fossil Free Funds has a list of fossil fuel free and socially responsible funds 6. For more information on how to divest your retirement and investment accounts, check out 350.org’s comprehensive guide on extracting fossil fuels from your portfolio7, and visit Fossil Free USA’s Roadmap to Divestment8 page.
Invest in a sustainable energy future
Clean energy investments needed , shown in billions of dollars per year, to avoid catastrophic climate change. The red bars represent what was actually invested. Source: Bloomberg New Energy Finance
1. Austin Green Choice Program - http://austinenergy.com/wps/portal/ae/green-power/greenchoice/ 2. Austin Credit Union Map & List - 350-austin.org/austin/divest/break-up-with-the-big-banks/ austin-tx-credit-unions/ 3. Sample Bank Break Up Letter - 350-austin.org/austin/divest/break-up-with-the-big-banks/ bank-breakup-sample-letter/ 4. Record Your Divestment - https://goo.gl/forms/eeQTc4viYzekAqno2 5. Socially Responsible Credit Cards - https://www.greenamerica.org/take-charge-of-your-card/ get-a-credit-card-that-benefits-people-and-the-planet.cfm 6. Fossil Free Funds - https://fossilfreefunds.org/funds#cleanus 7. Comprehensive Guide to Divesting Your Portfolio - http://greencentury.com/wp-content/uploads/pdf/Guide2014.pdf 8. Fossil Free USA Road Map to Divestment - https://gofossilfree.org/your-roadmap-to-divestment/
Links found in this guide
Find more great divestment resources at: 350-austin.org/divest