A new poll by Triodos Bank UK shows that 73 per cent of UK public believe banks should be doing more to invest in a greener future
The energy and cost of living crises have sparked a growing interest in sustainable investment, with nearly three quarters of the public stating that the UK should be investing in long term solutions such as renewable energy to bring down energy costs and reduce our reliance on fossil fuels.
That is the headline finding from a new survey by Triodos Bank UK which found 73 per cent of people think we should be investing in long-term solutions to the challenges the UK faces.
The survey of 2,000 people found that 75 per cent are frustrated that big banks continue to make huge profits despite cost-of-living increases. For those aged over 55, the proportion concerned about bank profits rises to 81 per cent.
More than half of respondents - or 54 per cent of those polled - said they want banks to do more to invest in long-term sustainable change with a further 53 per cent saying that being more careful with their own money makes them think more critically about how it is being used by their bank.
"There is a striking disconnect for UK consumers between the rising cost of living and decisions being made by banks on what they choose to finance," said Roger Hattam, director of retail banking at Triodos Bank UK.
"Our biggest high street banks continue to funnel billions into the fossil fuel sector, when it is precisely our dependence on fossil fuels that is driving up our bills, and not to mention causing immeasurable harm to the planet."
The survey found concern about banks' investment strategies was "particularly stark" in the minds of young people, with 64 per cent of those aged between 18 and 34 saying that the wider economic challenges of the past 12 months has made them think more critically about using their own savings and investments to drive positive impacts.
With household bills continuing to rise - the latest figures yesterday revealed inflation remains above 10 per cent - Triodos also found that many people admitted to feeling that the agency which they have over their money has waned. Nearly two-thirds said they worry that the cost of living increases have had an impact on their ability to use their money for positive change, while 54 per cent admitted that making sustainable choices with their money has taken a back seat to prioritising immediate rising costs.
However, ahead of the tax-year ISA deadlines, the survey found 64 per cent of people said they can not afford to invest in sustainable investments.
At the same time, 65 per cent said that individual investors have a responsibility to ensure that their money is being used for good, instead of funding harmful practices such as new fossil fuel projects.
Environmental activist, filmmaker, and founder of Make My Money Matter Richard Curtis said that through our pensions, investments, and banking choices "we all have extraordinary power to build a better world".
"As this new research shows, UK citizens increasingly want to use this power to make sure their money is tackling the climate crisis, not making it worse," he added.
"Banks and pension funds must respond to this growing movement to make our money matter by transitioning away from investments which are damaging for both people and planet, as well as being unpopular with their customers. Instead, it's time to focus on new investments which build a better future for us all."
In addition, the research found that misconceptions about not being able to save enough to make a positive impact may be holding many people back from making ethical and sustainable choices with their money.
The survey showed that six in 10 people believed that they did not have enough savings for them to make a difference, while 56 per cent said they thought you have to be rich to be able to have a positive impact with your money.
"The prevalent myth that you have to be very wealthy to make a difference with your money couldn't be further from the truth," argued Hattam. "Even a small amount in an ISA with a sustainable provider reroutes money from harmful sectors into positive ones, and sends a powerful message to the wider finance industry that enough is enough. It's through collective action that putting your money into an ISA with a sustainable bank supports a wider ecosystem of green finance that brings about real change."
