- Environmental protection assumed: 44 per cent of Germans want to switch to a financial services provider that is actively committed to environmental protection. Six per cent have already switched
- Young generation has high expectations when it comes to ESG: 56 per cent of 25 to 34-year-olds consider environmental aspects to be important when choosing a financial services provider
- 54 per cent want "green" services such as climate-friendly insurance products. 51 per cent of Germans want providers to compensate for environmentally harmful activities.
German consumers are placing increasing value on the environmental and social responsibility of financial service providers. This is shown by the latest "Banking on Banks" study by information service provider CRIF. 54 per cent want sustainable products, 52 per cent want financial service providers that are socially committed and as many as 44 per cent would consider changing their provider if another one were actively committed to climate protection. For the representative survey, 7,000 people in Europe and the USA were questioned.
Environmental awareness and increasing demand for "green" financial services
The results of the survey make it clear that the ESG endeavours of financial service providers are increasingly becoming a competitive advantage. 44 per cent of German consumers state that they would be more likely to switch to a financial services provider that is actively committed to environmental protection. Six per cent of those surveyed have even changed their provider because it did not do enough to promote sustainability aspects. "German consumers are increasingly attaching importance to the ESG efforts of their financial service providers and are also prepared to leave them if they do not pay credible attention to environmental and social aspects," explains Dr Frank Schlein, Managing Director of CRIF Germany. "Financial service providers that adapt to these expectations can not only strengthen the loyalty of their customers, but also reduce the desire of customers to switch and can gain sustainably orientated target groups," Schlein continues.
In Italy (63 per cent) and France (46 per cent), even more consumers than in Germany say they want to switch to a financial services provider that is actively committed to environmental protection.
Gap within age groups - younger generations as the driving force for change
Younger consumers in particular are showing a stronger focus on ecological and ethical values. In the 25 to 34 age group, 56 per cent already consider environmental aspects to be important when choosing a financial service provider. For respondents over 55, the figure is 44 per cent.
The study also shows another clear generational difference in Europe: while 58 per cent of 18 to 24-year-olds are willing to share more personal data in order to promote environmental protection, this figure is only 35 per cent for the over 55s.
Social responsibility and transparency as further key factors
In addition to ecological expectations, the social responsibility of financial service providers also plays an important role for German consumers. For example, 52 per cent of respondents in Germany are more inclined to use services from companies that are socially committed. German consumers are also demanding when it comes to transparency: 62 per cent prefer financial service providers that disclose how they conduct their business. "This figure reflects consumers' desire for openness and ethical standards, even if it is below average in an international comparison (71 per cent)," says Dr Schlein.
Green financial products and advisory support in demand
The demand for environmentally friendly financial products has risen sharply in Germany and worldwide. More than half of the consumers surveyed (54 per cent) would like their financial service provider to offer "green" services such as climate-friendly insurance products. In addition, 51 per cent of German respondents want their providers to offset their own environmentally harmful activities. A further 45 per cent of respondents would like advice on how to make their own spending more environmentally friendly.
A call to action for the financial industry
The CRIF study also shows that communication of ESG initiatives on the part of banks and insurers is still inadequate: Only 13 per cent of German consumers were aware of their provider's environmental initiatives. "Consumers are increasingly looking for products and services that align with their values. However, despite this growing demand, the financial sector has not yet fully met expectations for ethical and sustainable products. There is a clear gap between what consumers are looking for and what financial service providers are currently offering. Being committed to environmental issues and not communicating them too clearly harbours risks for customer loyalty and brand perception. Younger generations in particular are willing to switch providers if their environmental standards are not in line with their own values. The financial sector has the opportunity here to gain the trust of the younger generation through consistent ESG strategies and transparent communication," says Dr Schlein.
80 per cent of consumers in Germany have taken measures to combat climate change or reduce their ecological footprint
Consumers in the USA and Europe have also recognised that they need to do something for the environment themselves. Overall, 76 per cent of consumers have taken action to combat climate change or reduce their ecological footprint in the past year. This proportion is particularly high in France and Italy, where 87 per cent and 86 per cent of consumers respectively have taken corresponding initiatives. Although the figures are lower in the USA at 70 per cent and in the UK at 63 per cent, they are still significant.
In Germany, 80 per cent of respondents have taken one or more measures to reduce their ecological footprint.
For example, 37 per cent of respondents stated that they shower less to save water. 30 per cent of respondents consume less meat and/or dairy products. And 27 per cent of Germans are more likely to use a bicycle instead of a car. 23 per cent have cut back on travelling by plane. One in ten has switched to a vegan or vegetarian diet.
