As 2025 rolls around, sustainability is no longer an abstract concept or buzzword — it's an urgent necessity. With climate change increasingly affecting our daily lives, many of us are looking for ways to reduce our own environmental impact.
Well-known New Year’s campaigns such as Veganuary and Buy Nothing New Month are designed to get us thinking about the small lifestyle changes we can make for the good of the world.
And how we spend, save and invest our money should absolutely be part of this thinking.
More and more of us are looking for ways to align our financial habits with our values. Whether you're saving for a home, investing for retirement, or just managing day-to-day living costs, there are plenty of ways to make your money work harder for the planet.
Here are five ways to make your finances greener in 2025.
1. Work out where your money is
When it comes to salary payments or other deposits hitting your current account, most of us don’t think twice about what happens to that cash once it’s in there. In fact, a lot of people assume it just sits in the account, waiting to be spent. But here’s the thing—banks and card providers are actually using your money to make loans to businesses, industries, and people.
Your money could be backing companies and causes that align with your values—or it could be funding industries you’d rather not support, like fossil fuels, arms manufacturing, or companies with poor human rights practices.
So, if you’ve never thought about where your money really goes, maybe it’s time to find out. You might be surprised where it’s ending up.
2. Spend less, buy smarter
One of the simplest ways to reduce your environmental impact - and save money in the process - is by being more mindful of your spending. It may be tempting to snap up the latest gadget, fast-fashion trend or beauty must-have, but the true cost of such purchases is often hidden in the environmental damage they cause.
When it comes to clothes, opt for second-hand shopping or choose sustainable clothing brands that prioritise ethical sourcing and low-carbon production – B Corp companies like Patagonia, Finisterre are good places to start. Another UK B Corp, Alpkit, offers a handy repair service for any clothing items and is particularly good for outdoor wear.
For electronics or gadgets, consider whether you really need new, or whether you can repair existing items. Choose recycled or reconditioned tech where possible.
3. Measure and reduce your carbon footprint
To take control of your environmental impact, it's important to know where you stand. Carbon footprint calculators like Zero’s GreenScore® are an effective tool to help you measure how much carbon dioxide (CO2) you're personally responsible for through your spending and lifestyle choices.
Once you know your carbon footprint, the next step is to actively reduce it.
Start by targeting areas where you can make the biggest impact. For example, if you drive a petrol or diesel car, the greatest emissions come from all those little journeys under a mile – they can really add up without you realising. Consider whether you can walk those short distances or opt for public transport instead.
Ensure you choose a green energy provider offering renewables-sourced tariffs.
Other changes, like reducing energy usage at home, cutting down on air travel, and choosing plant-based foods, can mean big reductions, too.
4. Mitigate your emissions through planet-positive activity or carbon removals
Despite your best efforts, it will be difficult to eliminate your carbon footprint altogether. For example, flying on holiday or heating your home during the winter will still contribute to your overall emissions. However, one way to balance out these less avoidable emissions is to undertake actions designed to have a positive environmental impact, such as local tree planting or other conservation activities.
You can also contribute to schemes and projects that remove or sequester carbon that’s already been emitted. By purchasing carbon credits from these projects, you can essentially "offset" your own emissions.
While carbon offsetting is not a substitute for actively reducing emissions in the first place, it can help you take full responsibility for your environmental impact.
5. Switch to a green pension fund
According to Make My Money Matter, switching to a green pension fund can be up to 21 times better for your carbon footprint than going veggie, choosing a green energy supplier, and giving up flying.
By switching your pension to a greener option, you can ensure your retirement savings are invested in companies driving positive environmental change.
Make My Money Matter has a handy list of sustainable pension providers on its website.
Start now for a sustainable 2025
From choosing a sustainable finance app and card, to offsetting your carbon footprint, there are countless ways to align your money with your values. By making small yet impactful changes in how you manage your money, you can help create a greener, more sustainable world for future generations.
Every small step you take can make a difference in the bigger picture. Make 2025 the year you go green with your money.