Consumer Attitudes towards Green and Ethical Finance - UK - November 2011

INTRODUCTION
Abbreviations
EXECUTIVE SUMMARY
Interest in green and ethical issues
The issues that matter are local, not global
Figure 1: Social, ethical and environmental concerns, September 2011
The disconnect between ethics and finance
Figure 2: Green and ethical activities, September 2011
Willingness to consider ethical issues in financial services
Three quarters haven’t investigated a financial services firm’s ethical credentials
Figure 3: Whether respondents have investigated financial firms' ethical credentials, September 2011
A third would at least consider a firm’s ethical credentials when arranging financial services products
Figure 4: Willingness to consider financial firms' ethical credentials, September 2011
Trusted brands
‘Greenwash’ is a real fear for consumers
Figure 5: Agreement with the statement ‘When financial services firms talk about being green or ethical, it’s usually just a PR stunt’, September 2011
Co-operative and Nationwide lead the way
People who take a keen interest in ethical finance have a different viewpoint
Attitudes towards ethical finance
A quarter say they’d be prepared to pay more for products from ethical firms
Figure 6: Agreement with the statement ‘I'm willing to pay a little extra for a product from a company that I know behaves ethically’, September 2011
Three in ten express an active interest in ethical financial services
Figure 7: Ethical target groups in financial services, September 2011
What we think
ISSUES IN THE MARKET
Does apathy override good intentions?
Who do the committed consumers trust?
How do financial services firms override the mistrust?
Do financial services brands have any credibility in their ethical claims?
What makes financial services so different?
Can banks position themselves as ‘ethical concierges’?
FUTURE OPPORTUNITIES
The luxury of being able to care
The moral bank: start small
DO PEOPLE TRUST FINANCIAL SERVICES FIRMS TO BEHAVE ETHICALLY?
Key points
The cynical consumer
Banks must contend with the suspicion of ‘greenwash’...
Figure 8: Agreement with the statement ‘When financial services firms talk about being green or ethical, it’s usually just a PR stunt’, September 2011
...and with the legacy of past behaviour
There are some bright spots
CONSUMERS’ LEVEL OF ETHICAL ENGAGEMENT
Key points
How big is the Big Society?
Figure 9: Green and ethical activities, September 2011
How green is green?
Figure 10: Repertoire of green and ethical activities, September 2011
Even the hardcore haven’t switched their bank accounts
Figure 11: Green and ethical activities, by repertoire of green and ethical activities, September 2011
Is it easier to be green when you’ve got cash in the bank?
Donating cash can be cheaper than donating time
THE ISSUES THAT CONSUMERS CARE ABOUT
Key points
Shifting from the global to the local…
Figure 12: Social, ethical and environmental concerns, September 2011
…and the impact of the financial crisis
Setting an example for the rest of the industry to follow
A broad base of ethical concerns
Figure 13: Repertoire of social, ethical and environmental concerns, September 2011
Concerned – and taking action to address those concerns
Figure 14: Green and ethical activities, by repertoire of social, ethical and environmental concerns, September 2011
The contrasting fortunes of climate-related issues
Figure 15: Social, ethical and environmental concerns, by repertoire of social, ethical and environmental concerns, September 2011
It’s free to care – but it costs money to act on concerns
INVESTIGATING FIRMS’ ETHICAL CREDENTIALS
Key points
Financial services – an ethics-free zone?
Figure 16: Whether respondents have investigated financial firms' ethical credentials, September 2011
Worried, but not worried enough to read a company’s website
Figure 17: Whether respondents have investigated financial firms' ethical credentials, by repertoire of social, ethical and environmental concerns, September 2011
The financial blind spot among ethical consumers
Figure 18: Whether respondents have investigated financial firms' ethical credentials, by repertoire of green and ethical activities, September 2011
What makes financial services so different?
The affluent are more prepared to dig deeper
Youthful idealism combines with burgeoning financial requirements
TRUSTED BRANDS IN THE FINANCIAL SERVICES INDUSTRY
Key points
Are they all the same?
Figure 19: Trusted brands in the financial services industry, September 2011
A tale of three mutuals
The Co-op leads the way on unpromoted awareness...
…but it’s not just the Co-op
Banks more trusted than insurers to behave ethically
‘Banks’, or ‘my bank’?
Does the Co-op need to freshen up its image among the young?
Opinions dramatically different among the most concerned
People are pleasantly surprised when they take the effort to find out more...
...making communication absolutely vital
WILLINGNESS TO CONSIDER ETHICAL ISSUES WHEN ARRANGING FINANCIAL SERVICES
Key points
A third would at least consider ethical issues
Figure 20: Willingness to consider financial firms' ethical credentials, September 2011
Will good intentions translate into action?
A financial services firm’s ethical credentials are a non-issue for many
More evidence of a polarisation among consumers
Figure 21: Willingness to consider financial firms' ethical credentials, by repertoire of social, ethical and environmental concerns, September 2011
An important differentiator – but only for a minority of the population
Figure 22: Willingness to consider financial firms' ethical credentials, by repertoire of green and ethical activities, September 2011
Using ethics to attract the 25-34-year-olds
Who stands to benefit from the ethical advocates?
Figure 23: Trusted brands in the financial services industry, by willingness to consider financial firms' ethical credentials, September 2011
SHOULD FINANCIAL FIRMS CONSIDER ETHICAL ISSUES?
Key points
Think local, not global
Figure 24: Attitudes towards business and ethics, September 2011
A degree of sympathy for the amoral corporation…
…with some looking for government to force the issue…
…while others don’t trust companies to act on their own accord
Broad agreement on localism – but opinions are split on broader social responsibilities
Figure 25: Attitudes towards business and ethics, by repertoire of green and ethical activities, September 2011
Further reason to publicise community work
Figure 26: Attitudes towards business and ethics, by whether respondents have investigated financial firms' ethical credentials, September 2011
An expectation that companies should be doing more
Figure 27: Attitudes towards business and ethics, by willingness to consider financial firms' ethical credentials, September 2011
IS AN ETHICAL BRAND WORTH PAYING MORE FOR?
Key points
Cynicism runs deep among consumers...
Figure 28: Attitudes towards business and ethics, September 2011
...but some are prepared to pay a little extra
Do tough economic times make ethics a luxury?
Even the eco-warriors are wary of compromising performance
Figure 29: Attitudes towards business and ethics, by repertoire of green and ethical activities, September 2011
The paradox of the ethical researcher
Figure 30: Attitudes towards business and ethics, by whether respondents have investigated financial firms' ethical credentials, September 2011
But some are still prepared to pay a premium for a clear conscience
Figure 31: Attitudes towards business and ethics, by willingness to consider financial firms' ethical credentials, September 2011
TARGETING THE ETHICAL CONSUMER
Key points
Three in ten express an active interest in ethical financial services…
Figure 32: Ethical target groups in financial services, September 2011
…but even the Idealists don’t necessarily trust financial services firms
Figure 33: Attitudes towards business and ethics, by target groups, September 2011
Local engagement could still sway the Cynics
Figure 34: Social, ethical and environmental concerns, by target groups, September 2011
The disconnect between day-to-day life…
Figure 35: Green and ethical activities, by target groups, September 2011
…and the world of financial services
Figure 36: Whether respondents have investigated financial firms' ethical credentials, by target groups, September 2011
The Idealists would consider ethical credentials…
Figure 37: Willingness to consider financial firms' ethical credentials, by target groups, September 2011
…if only they could trust the providers’ brand
Figure 38: Trusted brands in the financial services industry, by target groups, September 2011
APPENDIX – CONSUMERS’ LEVEL OF ETHICAL ENGAGEMENT
Figure 39: Repertoire of green and ethical activities, by demographics, September 2011
APPENDIX – THE ISSUES THAT CONSUMERS CARE ABOUT
Figure 40: Repertoire of social, ethical and environmental concerns, by demographics, September 2011
Figure 41: Repertoire of social, ethical and environmental concerns, by demographics, September 2011
APPENDIX – INVESTIGATING FIRMS’ ETHICAL CREDENTIALS
Figure 42: Whether respondents have investigated financial firms' ethical credentials, by demographics, September 2011
APPENDIX – TRUSTED BRANDS IN THE FINANCIAL SERVICES INDUSTRY
Figure 43: Average of most popular trusted brands in the financial services industry, by demographics, September 2011
Figure 44: Average of next most popular trusted brands in the financial services industry, by demographics, September 2011
Figure 45: Average of other trusted brands in the financial services industry, by demographics, September 2011
Figure 46: Trusted brands in the financial services industry, by repertoire of social, ethical and environmental concerns, September 2011
Figure 47: Trusted brands in the financial services industry, by repertoire of green and ethical activities, September 2011
Figure 48: Trusted brands in the financial services industry, by whether respondents have investigated financial firms' ethical credentials, September 2011
APPENDIX – WILLINGNESS TO CONSIDER ETHICAL ISSUES WHEN ARRANGING FINANCIAL PRODUCTS
Figure 49: Willingness to consider financial firms' ethical credentials, by demographics, September 2011
APPENDIX – SHOULD FINANCIAL FIRMS CONSIDER ETHICAL ISSUES
Figure 50: Agreement with the statement ‘Companies should concentrate on local issues before they start worrying about things like global warming or third world debt’, by demographics, September 2011
Figure 51: Agreement with the statement ‘A company’s job is to make money, not to save the world’, by demographics, September 2011
APPENDIX – IS AN ETHICAL BRAND WORTH PAYING MORE FOR?
Figure 52: Agreement with the statement ‘When financial services firms talk about being green or ethical, it’s usually just a PR stunt’, by demographics, September 2011
Figure 53: Agreement with the statement ‘When I’m arranging a financial services product, all I really care about is how well it performs’, by demographics, September 2011
Figure 54: Agreement with the statement ‘I'm willing to pay a little extra for a product from a company that I know behaves ethically’, by demographics, September 2011
APPENDIX – TARGETING THE ETHICAL CONSUMER
Figure 55: Target groups, by demographics, September 2011