Partner profile | Amalgamated Bank

Written by: Julia Mazzola, Finance Manager

In the heart of New York City stands Amalgamated Bank, a financial institution at the forefront of social responsibility and sustainable banking for over a century. Born out of necessity, it emerged when traditional financial institutions overlooked the needs of blue-collar workers and union members. Founded by a labor union in 1923 to serve women textile workers in the garment industry, Amalgamated Bank has evolved into a robust, nationwide, publicly traded institution with a strong focus on climate and social impact. Their unwavering dedication to their mission distinguishes them and was a major reason Blue Forest chose to bank with them. They aren’t just another bank; they’re a certified B Corp and a public benefit corporation, leading the charge in responsible banking practices. It was Amalgamated’s reputation, leadership, and dedication to socially and environmentally responsible banking that led us to their door.

Blue Forest connected with Amalgamated Bank in our early days, around the time the Yuba I FRB launched. As a small, newer non-profit organization, we found support from Amalgamated Bank in managing our cash on hand, which is crucial for both Blue Forest itself and for the Forest Resilience Bond (FRB) model, since the FRB at times involves holding cash while waiting to deploy it into forest restoration projects. The relationship went beyond a standard banking arrangement, requiring an understanding of Blue Forest’s mission and future goals as well as the intricacies of the FRB. While most companies engage with their banks mainly through transactions, we found that Amalgamated offers all the core products and traditional banking services of a bank alongside a deeper relationship founded on shared values and missions.

At Blue Forest, we value that Amalgamated directs its resources where they matter most. Unlike traditional banks, it ensures that deposited funds contribute to climate solutions rather than fueling industries that exacerbate the climate crisis. Ivan Frishberg, Chief Sustainability Officer at Amalgamated Bank, emphasized this point stating, “Where you leave your money at night matters. It does not sit there idly. It is part of a bank’s balance sheet that gets deployed to do other things. We’ve allocated 37% of our balance sheet and select investments to climate solutions.” This commitment translates into a significantly lower carbon impact compared to other banks, setting a new standard in the sector. For organizations like Blue Forest that have an environmental or social mission, it can be advantageous to further that mission by banking with someone like Amalgamated, where bank deposits are not invested in activities that are contrary to the depositor’s mission.

As described in Amalgamated Bank’s 2022 ESG Summary, 100% of the bank’s lending book is mission-aligned, with 64% going to high-impact sectors. High-impact lending and investments include 36.5% for climate solutions and 18.6% for workforce and affordable housing. This commitment resonates with Blue Forest, as our expanding capital means more funds entrusted to the bank. Every dollar counts, and Amalgamated’s ethos revolves around using its financial resources for tangible good, reflecting the values of Blue Forest’s stakeholders and the wider community. “The day-to-day experience mirrors that of a traditional bank, handling all the usual banking tasks. However, there’s a surprising revelation—it’s not just a bank; it’s a platform to advance our mission and contribute to making the world better,” explained Blue Forest Co-Founder and CCO Nick Wobbrock, who led the relationship in its early days. “Banking here feels like an act of activism in itself. This realization, this ‘Aha’ moment, is incredibly powerful.”

Celebrating over 100 years of service, Amalgamated Bank honors its legacy by supporting those changing the world for the better. Looking ahead the vision is clear: continued growth and impact. Chief Sustainability Officer Ivan Frishberg emphasized, “We’ve been growing our impact in terms of our impact segments, but we’ve also doubled the size of our balance sheet. This means we are having double the impact. And this, in many instances, comes down to the fact that the organizations we are working with are growing,” underscoring the ripple effect of impactful partnerships. By continuing and deepening our relationship with Amalgamated Bank, we support their belief that sustainable banking is no longer a niche; it’s a model for the future, proving that banking can indeed be a force for good.