2021
9
UK Green and Socially Responsible Finance Market Report 2021
2021-12-04T03:09:10+00:00
OX1049473
2195
146025
[{"name":"Finance","url":"https:\/\/store.mintel.com\/industries\/finance"},{"name":"Sustainability","url":"https:\/\/store.mintel.com\/industries\/consumers-trends\/sustainability"}]
Report
en_GB
“There is a clear lack of knowledge and understanding among the majority of adults about what green, ethical and socially responsible financial services actually look like. Education on how these…

UK Green and Socially Responsible Finance Market Report 2021

£ 2,195 (Excl.Tax)

Report Summary

The UK Green and Socially Responsible Finance report identifies consumer attitudes towards social responsibility, financial services, and sustainable benefits in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Green and Socially Responsible Finance market in the UK.

Current Market Landscape

The COVID-19 pandemic has heightened environmental and social concerns among consumers, with an improvement in consumer perceptions of how ethical financial services are since 2019.

  • 58% of all adults now say that building societies are socially responsible, while 48% consider banks and 31% consider insurance firms to be somewhat or very socially responsible.
  • 28% of consumers state the environment is of higher priority to them now than it was before.

As consumer concerns in the financial sector grow, alongside increased media attention on critical climate and social issues, consumers will likely be more interested in ethical finance options and choose providers that align with their values.

Future Market Trends in Socially Responsible Finance 

The pandemic has heightened environmental and social concerns among consumers. As consumer concerns grow, alongside increased media attention on critical climate and social issues, consumers will likely be more interested in ethical finance options and choosing providers that align with their values.

Improving consumers’ awareness of the different ways financial services can have a positive impact on the world is a key opportunity. Consumers find it hard to navigate ethical finance, with a large proportion not understanding how the decisions they make can have an impact on the environment or broader social issues. Many also do not understand what an ethical provider would look like, so there is a large gap here to educate consumers, starting with the basics, on what providers are doing in this space and how their financial decisions can make an impact.

Read on to discover more details or take a look at all of our UK Financial Services market research.

Quickly understand

  • Market factors influencing green, ethical and socially responsible financial services.
  • Consumers top concerns in relation to the environment.
  • Consumers top social responsibility concerns.
  • Consumer perception on how socially responsible different sectors are.
  • What influences a consumer when choosing a new provider for a financial product?
  • Sustainable benefits that consumers are interested in
  • Attitudes towards green, ethical and socially responsible financial services

Covered in this report

Brands: Barclays, HSBC, Nationwide, NatWest, Lloyds, Goldman Sachs, Make My Money, Bank.Green, SwitchIt, Tred, Monzo, Starling, Legal & General, Fidelity, ShareAction.

Expert analysis from a specialist in the field

This report, written by Francesca Smith, a leading analyst in the Finance sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

There is a clear lack of knowledge and understanding among the majority of adults about what green, ethical and socially responsible financial services actually look like. Education on how these services act ethically, particularly on issues most concerning consumers, and how consumers can utilise their interactions with them to make a positive impact is crucial for the sector to increase engagement.

Francesca Smith
Market Research Analyst

Table of Contents

  1. Overview

      • This report covers the following issues:
        • COVID-19: market context
          • Economic and other assumptions
          • Executive Summary

              • The market
                • COP26 sets priorities for private finance on the journey to net zero
                  • Regulation will provide some transparency in ethical investing
                    • Companies and brands
                      • Providers aim to raise awareness of ethical investing through marketing campaigns
                        • Major banks look to promote diversity and inclusion through advertising
                          • Sustainable banking options are starting to make their way into the mainstream
                            • The consumer
                              • Climate change is the leading consumer concern
                                • Figure 1: Most important environmental issues to consumer, 2021
                              • Tax avoidance leads consumer concern
                                • Figure 2: Top corporate social responsibility concerns, 2021
                              • Consumers tend to view financial services as somewhat socially responsible
                                • Figure 3: Ranking of how socially responsible different sectors are, 2021
                              • Cost proves dominant decision driver
                                • Figure 4: Factors influencing consumers when choosing providers for a new financial product, 2021
                              • Consumers want to be rewarded financially for their sustainable decisions
                                • Figure 5: Consumer interest in selected sustainability benefits, 2021
                              • Ethical finance is difficult for consumers to navigate
                                • Figure 6: Attitudes towards green, ethical and socially responsible finance, 2021
                            • Issues and Insights

                              • The COVID-19 pandemic has accelerated environmental concerns
                                • There is still a need for education around what ethical and socially responsible finance actually means
                                • Market Drivers

                                  • Increasing pressure on financial services to be more sustainable
                                    • Consumer environmental concerns grow from COVID-19 pandemic
                                      • Figure 7: Consumer response to how their priorities have changed since the covid-19 outbreak, 2021
                                    • COP26 sets priorities for private finance on the journey to net zero
                                      • UK government encourages green finance
                                        • Figure 8: UK’s first Green Gilt raises £10bn for green projects, September 2021
                                      • Regulation will provide some transparency in ethical investing
                                      • Advertising and Marketing Activity

                                        • Advertising can play an important role in changing perceptions of financial services ethics
                                          • ESG investing is a popular choice for advertising in ethical finance
                                            • Standard Chartered has been pushing an ethical message since 2010
                                              • “Make My Money Matter” is highlighting the benefits of ethical investing
                                                • Figure 9: Make My Money Matter’s ‘21x’ campaign, 2021
                                              • Diversity and inclusivity features in bank’s advertising
                                                • Figure 10: Barclays’ “A fan is a fan, no matter what” campaign for Rainbow Laces
                                              • Lloyds Bank opens up mainstream discussion on mental health and finances
                                              • Consumers’ Main Environmental Concerns

                                                • Climate change proves leading consumer concern
                                                    • Figure 11: Most important environmental issues to consumers, 2021
                                                  • Older consumers are most concerned about plastic pollution…
                                                    • …while younger people take a more rounded view of environmental concerns
                                                        • Figure 12: Most important environmental issues to consumers, by age, 2021
                                                      • Fossil-fuel use is a higher concern for the young
                                                      • Consumers’ Main Corporate Social Responsibility Concerns

                                                        • Tax avoidance leads consumer’s social responsibility concerns
                                                            • Figure 13: Top corporate social responsibility concerns, 2021
                                                          • Poor working conditions tops young consumers’ concerns
                                                            • Consumers value fairness
                                                              • Figure 14: Proportion of adults including selected issues among their top social responsibility concerns, by age, 2021
                                                            • Social inequalities a greater concern for young adults…
                                                                • Figure 15: Proportion of adults including ‘social inequality’ and ‘gender inequality’ as among their top social responsibility concerns, by age within gender, 2021
                                                              • …with young females most concerned with gender inequality
                                                                • Financial services’ initiatives aim to address a lack of financial confidence among women
                                                                • Social Responsibility in Context

                                                                  • Consumers tend to view financial services as somewhat socially responsible
                                                                    • Figure 16: Ranking of how socially responsible different sectors are, 2021
                                                                  • Building societies are viewed most favourably…
                                                                    • …but investment firms still have a long way to go
                                                                      • The young are optimistic with their views
                                                                        • Figure 17: Net % score of how socially responsible each financial service provider is perceived, by age, 2021
                                                                      • Social media could be a useful tool to engage the young
                                                                        • Older consumers hang onto negative perceptions
                                                                          • Figure 18: Proportion of all adults who consider selected financial service providers to be not very socially responsible or not at all socially responsible (NET), by age, 2021
                                                                        • Perceptions of social responsibility vary depending on consumer’s financial situations
                                                                          • Figure 19: Net % score of how socially responsible each financial service provider is perceived, by consumer financial situation, 2021
                                                                      • Factors Influencing Choice of Financial Provider

                                                                        • Cost proves dominant decision driver once again…
                                                                          • Figure 20: Factors influencing consumers when choosing providers for a new financial product, 2021
                                                                        • …while environmental efforts are more of a ‘nice to have’
                                                                          • Older consumers are even more cost-conscious
                                                                            • Figure 21: Factors influencing consumers when choosing providers for a new financial product, by age, 2021
                                                                          • Younger adults are more open to ethical provider options…
                                                                            • …and are interested in partnerships with small charities
                                                                            • Level of Interest in Sustainable Benefits

                                                                              • Consumers want to be rewarded financially for their sustainable decisions
                                                                                • Figure 22: Consumer interest in selected sustainability benefits, 2021
                                                                              • The clear benefit of using recyclable materials is valued
                                                                                • Younger consumers are keen to utilise apps to guide sustainable decision making
                                                                                  • Figure 23: Consumer interest in an app that tracks the carbon footprint of your purchases, by gender and age, 2021
                                                                              • Attitudes towards Green, Ethical and Socially Responsible Finance

                                                                                • Ethical finance is difficult for consumers to navigate
                                                                                  • Figure 24: Attitudes towards green, ethical and socially responsible finance, 2021
                                                                                • The link between financial services and the environment is not always clear
                                                                                  • Financial services have a role to play in increasing diversity
                                                                                    • Tighter regulations on financial services deemed essential by consumers
                                                                                    • Appendix – Data Sources, Abbreviations and Supporting Information

                                                                                        • Abbreviations
                                                                                          • Consumer research methodology

                                                                                          About the report

                                                                                          This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

                                                                                          Market

                                                                                          Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

                                                                                          Consumer

                                                                                          Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

                                                                                          Brand/Company

                                                                                          Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

                                                                                          Data

                                                                                          Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

                                                                                          *databooks not available with UK B2B Industry reports.

                                                                                          Below is a sample report, understand what you are buying.

                                                                                          Click to show report
                                                                                          2024 Sample Consumer Cover

                                                                                          Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

                                                                                          Trusted by companies. Big and small.

                                                                                          Want to speak to us directly?

                                                                                          Contact us with your enquiry and our expert global team can help.

                                                                                          Get in touch