The Green Inch: Few Banks Get Eco-Certified

The Independent Community Bankers of America is encouraging smaller financial institutions to enroll in the Energy Star program offered by the U.S. Environmental Protection Agency.

Small banks are one thing, but what about the larger financial institutions? Are they going green?

The short answer is: sort of. About 69 banks have earned the Energy Star designation from the EPA — a relatively modest number of compared to 9,459 banks that have $100 million or more in assets. Of the 69, nine are considered large banks, meaning that they have more than $10 billion of assets.

By comparison, 1,380 supermarkets and groceries in the nation are Energy Star-designated.

The Energy Star program is a government-backed program that promotes businesses and consumers to become more energy efficient. Institutions can become involved in the program through enrollment or through partnership in the program.

According to the EPA, to merit an Energy Star label, an institution must meet certain energy-efficiency criteria. Energy Star buildings consume about 40% less energy than average buildings and emit 35% less carbon dioxide, while providing the same or better services, for example.

Tim Cook, director of publications for the Independent Community Bankers of America, says the ICBA encourages small banks’ participation in the program. “On average an institution can cut costs up to $3,500 per branch per year when using the Energy Star program. Also, banks will use the Energy Star system to promote the idea of energy efficiency to other businesses. Lastly, the program allows community banks to explore small business lending from a green niche,” he said.

Cook says the ICBA has received many inquiries from small banks about workshops and webinars that discuss Energy Star and other energy saving methods.

“We are very impressed with the amount of interest shown by community banks.”