Charity Bank provides financing for companies with a social cause. In this article, we explore its approach to ethics.
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Learn more about our company profiles →Our research highlights Charity Bank’s strong ethical approach, from its ban on fossil fuels to its role as a social enterprise.
Below we outline some of these issues. To see the full detailed stories, and Charity Bank's overall ethical rating, please sign in or subscribe.
Financial institutions can have huge impacts through their lending and investments, helping determine which sectors will have the money to invest and grow into the future.
Unlike most mainstream banks, Charity Bank specifically lends to charities, social enterprises, and organisations with a social purpose.
The company has an ethical lending policy covering all of its loans. It stated: "As a social purpose bank, Charity Bank is committed to avoiding any investments that could result in a negative social or environmental impact.”
These policies also explicitly prohibit the financing of fossil fuels and arms and the military sector.
The bank therefore received high marks in Ethical Consumer’s category for rating lending policies overall.
Charity Bank has taken multiple steps to address emissions across its business.
It stated: “Through the projects and activities we finance, we aim to support climate change mitigation efforts and environmental sustainability". Responding to a 2025 questionnaire from Ethical Consumer, it said that its borrowers included renewable energy projects and hydro energy projects.
In 2022, it launched its green loan offers to incentivize energy-efficient building purchases and upgrades. It has also joined the Fossil-Free Alliance, advocating for fossil fuel divestment, encouraging investment in renewable energy alternatives and challenging the influence of the fossil fuel industry.
The company scored highly in Ethical Consumer’s climate rating overall.
Charity Bank’s commitment to ethical practices are reflected in its corporate structure.
The company says that it is “the only bank to be certified as a social enterprise.”
Charity Bank has also been certified as a B Corp, meaning that it is legally committed to people and the planet, rather than just to shareholder value.
The text above was written July 2026, and most research was conducted in February 2025.
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