Chicago banking goes green

Some promoting their own green practices and for lenders too

As seen in A Fresh Squeeze, July 7, 2009

By Jessica Tobacman

A handful of Chicago banks are making environmental friendliness part of their daily business. ShoreBank, a local lending institution with branches on the South and near West sides of the city, and in the northwest suburbs, is leading the way with a $35 million tax credit from the federal government’s economic stimulus package, says Joel Freehling, manager of ShoreBank’s Triple Bottom Line Innovations program. The New Markets Tax Credit will help ShoreBank focus on environmental and community development, to promote energy efficiency, renewable energy and green building. Its borrowers include nonprofit and faith-based organizations, individuals, and small business and real estate owners.

ShoreBank will achieve these goals by helping small businesses decrease carbon emissions by offering new services and products, and commercial building owners to make their properties more energy-efficient by including green design in remodeling efforts.

If individuals are interested in retrofitting their homes with environmentally friendly features or systems, they can benefit from ShoreBank’s green lending practices by applying for mortgage loans that cover these improvements. These types of loans are available to current or future homeowners, according to the bank.

Another newcomer expected to join the Chicago green banking scene soon is GreenChoice Bank, which received approval by federal regulators to open, with a target date slated for November. “We’re not even open yet, but people are demonstrating their desire to bank with us on a daily basis via e-mail and phone calls,” says Jon Levey, the bank’s chief lending officer and a Leadership in Energy & Environmental Design Accredited Professional (LEED AP)

“Our community is responding to the values-based option for banking we represent,” says Levey. Half of GreenChoice Bank’s management team has earned the LEED AP accreditation, which indicates expertise in green building. The bank aims to add a boost to the local economy by lending to individuals that, despite strong financial records, are currently unable to renew their bank loans because of the recession, says Levey.

GreenChoice Bank’s offices will be located in the Green Exchange, a building under construction on the North Side of Chicago that aims to house America’s largest green business community. The Green Exchange and GreenChoice Bank will apply for LEED Platinum status after construction is completed, Levey says. Platinum is the highest level in the internationally recognized LEED certification system. GreenChoice Bank plans to attain Platinum level by incorporating specific green materials in its construction and work environment, including energy-efficient lighting and reclaimed wood, Levey says.

Both ShoreBank and GreenChoice Bank abide by the philosophy, “People, planet, profit,” known as the Triple Bottom Line (TBL). Coined in 1994 by John Elkington, the phrase means taking into account not only company profits, but also the impact on community and environment.

ShoreBank is investing in this idea through its financial services and educational initiatives, partly by encouraging customers to make green home improvements with competitive loans it’s offering, Freehling says. The bank’s educational programs for customers, including 1,200 non-profits, offer solutions to green problems, including where to find, and how to use, healthy cleaning products, Freehling notes.

“Sometimes you need a ladder to reach the low-hanging fruit,” Freehling says. “We try to show people how easy it is to reduce energy costs and consumption.”

Like ShoreBank, GreenChoice will offer consumers competitive options, like higher rates of interest on deposits. It will also work to limit paper usage by offering banking services electronically, an option that is also available through most other mainstream banks.

“Sustainable business practices have informed each aspect of the bank’s operations and we will be rewarding our clients for the sustainable greener choices that they make,” says GreenChoice’s Levey.