By Mathias Wikström, CEO at Doconomy
Like many around the world, UK citizens are becoming increasingly anxious about the escalating climate crisis. A collective unease driven by daily reports of wildfires, flooding, and devastating loss of homes and communities – these harrowing events demonstrate the growing urgency of the situation. It’s no surprise then that frustration is mounting over the slow pace of governments to enact meaningful climate change policies.
However, there is a positive side to this rising concern. More people are seeking ways to take action themselves, rather than waiting for top-down solutions. We recently commissioned research to explore how people feel about the climate crisis and what would empower them to take positive action. It revealed that 41% of people are motivated to address the climate crisis precisely because of the lack of action from national governments.
While this signals an important shift – with individuals increasingly recognising the need to take responsibility at a personal level – many are now finding themselves at a new crossroads, wondering how to balance climate action while facing intense financial pressures.
The financial wellbeing challenge
Financial anxiety is one of the biggest obstacles to climate action. Nearly half (47%) of people report feeling anxious about money, and a significant portion (25%) prioritise managing the rising cost of living over addressing environmental concerns.
Even those who are financially stable and willing to act often find themselves constrained by a lack of knowledge or resources. Our research revealed that over a third (37%) of individuals don’t know how to effectively tackle the climate crisis, while 39% feel they lack the necessary tools and support to make meaningful changes.
This underscores a critical gap in both financial wellbeing and public understanding – where the desire for action exists but is stymied by a lack of support and practical guidance.
The strategic opportunity for banks
This growing desire for action presents a unique opportunity for banks to step in and empower their customers.
Trusted by consumers across the world, banks not only have the ability to facilitate transactions and help people achieve their financial goals, but by providing the right tools and guidance, banks can support their customers with making informed, sustainable choices – that are both financially sound and environmentally conscious.
Not only is this the right thing to do, but UK citizens are already asking for this support. Our research found that 35% of consumers want their bank to help them save more, and 18% want them to provide information about the sustainability credentials of companies they engage with.
Bridging financial and environmental goals
The call for financial institutions to take on a more active role in driving sustainable behaviour is growing louder, presenting banks with both a challenge and a clear opportunity.
How banks meet these calls for support can take many different forms—from offering green savings accounts and eco-friendly mortgages to creating innovative tools that help consumers track and reduce their carbon footprint. By bridging the gap between financial and environmental goals, banks can position themselves as critical partners in their customers’ journeys toward sustainable living.
Not only is this necessary for the planet, but also aligns with a shifting consumer mindset. Nearly half (47%) of people believe that it’s important for their bank’s values to align with their own. Banks that fail to respond to the shift towards environmental consciousness risk losing relevance, while those that embrace it will have the opportunity to build deeper, more loyal customer relationships.
A win-win for banks and the planet
The benefits of championing sustainability are truly twofold. Banks that lead the charge in sustainable finance will significantly help in mitigating the effects of climate change while fostering a culture of responsibility among their customers. And by aligning with their customers’ values, banks will secure a competitive advantage in an increasingly crowded market.
As the climate crisis accelerates, consumers will increasingly look to their banks for support, guidance, and leadership. Stepping up to meet these expectations should be seen as a strategic imperative. Those that take bold, meaningful action today will not only contribute to a healthier planet but also position themselves as leaders in the future financial landscape.
