Jen Nastu
Climate First Bank, the first bank in the US to focus primarily on the climate, will open in Florida’s Tampa/St. Petersburg region in the spring of 2021. In addition to offering standard banking services, the company will place a special emphasis on non-governmental organizations (NGO) and businesses that are committed to sustainability.
Eco-conscious customers will find dedicated loan options for solar photovoltaic (PV), energy retrofits and infrastructure to help combat the climate crisis. The bank will be built to the highest practical sustainability standards in LEED, Green Globes and Energy Star, the company says.
The bank's mission is to elevate the typical banking model by “supporting local communities, encouraging green infrastructure and promoting sustainable business practices.” By fulfilling a growing demand for more socially responsible institutions, Climate First Bank hopes to become the largest and most profitable eco-conscious and values-based institution in the Southeastern US.
The bank is opening at a time when ESG investing is set to reach an all-time high. Nigel Green, chief executive and founder of deVere Group — one of the world’s largest independent financial advisory organizations — says ESG investing will become the “ultimate megatrend” in coming years.
President Joe Biden’s expected regulatory changes to combat climate change will be one driving factor; another is the expected appointment of Gary Gensler to head the Securities and Exchange Commission (SEC), according to Green.
Green calls the era of the Biden Administration one of “serious momentum for responsible and sustainable investing.”
Climate First Bank says that every decision and action taken will be analyzed through the lens of achieving measurable results in the fight against climate change.
Founder and CEO Ken LaRoe is building Climate First Bank using similar frameworks to his previous bank organizations, Florida Choice Bank and First GREEN Bank. These, before being acquired, proved the success of a values-based business model while “yielding exceptional financial performance,” LaRoe says.
Though ESG investing is on the rise, not every investor thinks it’s a good idea. The climate focus of the new bank has driven away some potential investors, LaRoe told S&P Global Market Intelligence. "I've gotten people who didn't invest because they view it as a liberal, Democrat, socialist thing: 'You're going to take my investment money and fool around with this climate thing that's unproven?'" he said.
