A glimpse at where the outdoor industry banks—and how those choices impact
This story originally appeared in the Winter 2021 issue of The Voice. Read the full digital issue here.
Let’s get this out of the way: Banking isn’t sexy. It’s harder to talk about than solar power. It’s harder to sell than responsibly sourced down. It’s boring. But think of it like a good mob front: The more mundane the exterior, the more it has to hide. Last year, the Conservation Alliance made waves by leaving Bank of America after a two-decade financial relationship. Four years before that, the Sierra Club Foundation jumped ship on Union Bank for Amalgamated Bank, a little-known institution with limited services. Each of these switches was a cutting-edge, revolutionary statement—and a lot harder to pull off than you might think.
What’s the big deal?
For one, it’s a huge pain to switch banks. There are papers to sign, meetings to attend, payroll and bills to move over. Companies just don’t do it. So if you’re a big firm, gathering up your things and walking out is a surefire way to send a message that you’re not happy. And the aforementioned nonprofits were not happy.
After all, Bank of America was providing more than $48 billion per year in financing to fossil fuel companies. A chunk of that money belonged to the Conservation Alliance, which had spent two decades working to prevent Arctic drilling. When the nonprofit asked Bank of America to pledge not to invest in Arctic National Wildlife Refuge pipeline projects, it refused the request. Like we said: not happy.
The secret life of money
Here’s how bank investing works: You deposit money in your account. You start making interest, which is a fraction of the interest your bank is making on your money. That’s their business model: Banks keep your savings safe, and in return, they get to invest them in whatever they want—whatever they feel will be most lucrative.
Right now, in this global economy, that’s fossil fuels. It’s fast fashion. It’s deforestation operations and palm oil plantations. It’s Big Tobacco. It’s single-use plastics. It’s all the things that the outdoor industry has rejected—at least, in theory.
“We didn’t want our money to be leveraged to finance the very things we’re fighting against,” says Dan Chu, executive director of the Sierra Club Foundation, which pulled its $30 million in assets from Union Bank in 2016. At the time, Union had just merged with Mitsubishi UFJ Financial Group, which was funding the company behind the Keystone XL Pipeline. The Sierra Club Foundation could keep trying to stop the pipeline, but banking with Union would effectively undo every effort. So, it switched to Amalgamated Bank, which has high sustainability and social-justice investing standards.
Likewise, the Conservation Alliance ultimately moved to Bank of the West, a 1% for the Planet member that has begun divesting from fossil fuels and other environmentally harmful industries.
These switches are great success stories, but in the outdoor industry, they’re rarities.
Where the outdoor industry banks
In reporting this story, The Voice asked 15 brands where they bank. Brands with Bank of the West, Amalgamated, or credit unions were happy to reply. A few others, like Snowsports Industries America and Patagonia, revealed that they were shopping around for a new institution, but declined to mention their current banking partners.
REI did point to its relationship with U.S. Bank, which hosts the REI MasterCard program. And VF Corp. acknowledged working with “many different banks,” including Bank of New York Mellon. Every other brand declined to comment.
A likely truth is that most outdoor companies bank with the biggest in the US: JP Morgan Chase, Bank of America, Citi, Wells Fargo, Goldman Sachs, Morgan Stanley, and U.S. Bank (see sidebar).
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