There are concerns many UK financial companies will ‘deprioritise’ ESG and DEI initiates in the next five years.
These concerns follow a survey of those working in senior positions for leading UK financial companies, where more than half of respondents said they expected less of a boardroom focus on sustainability and DEI, despite acknowledging the business case for both.
These findings mirror similar research in Europe by CRIF, Europe’s leading providers of consumer and credit information — and come amid wider policy changes in the US towards ESG and DEI initiatives.
The UK survey found that 56 per cent of senior financial professionals expect there will be less of a boardroom focus on environmental, social and governance (ESG) issues in the next five years, while 54 per cent expected commitments to diversity equity and inclusion (DEI) will be similarly ‘deprioritised’.
However these majority of these professionals acknowledged the important business case for ESG and DEI practices, with seven out of 10 saying both have an increasingly important role when it comes to attracting and retaining customers.
The data informs the first of CRIF’s Banking on Banks report series for 2025 which explores the biggest changes to the financial services sector across the last decade, drawing on views of both consumers and senior financial services professionals working in the UK, and the majority also serving European markets.
While financial services professionals believe their leadership will become less focused on ESG and DEI principles, 45 per cent of European consumers are also worried that financial institutions will backtrack on diversity and ethical principles due to changing attitudes in the US, rising to more than half (55 per cent) for those aged 18-34.
As with other aspects of their lives, consumers are increasingly using products that align with their values and ethical financial services are no exception. Around half of Europeans (47 per cent) now say they are more likely to use a bank or insurer that promotes DEI, again rising to six in 10 (59 cent) for those aged 18-34.
CRIF regional director for the UK & Ireland Sara Costantini says: “In the UK and EU, ESG has become a core component of business practices, bolstered by a strong regulatory framework. Recent rollbacks around DEI in the US have raised concerns among consumers, and perhaps more worryingly, those working within the sector, who fear a damaging ripple effect on current commitments.
“As has been firmly established over the past decade, ESG is not a mere trend, but a significant differentiator in the financial sector that can influence consumer trust and loyalty. Banks, insurers and other providers must navigate current political changes carefully amid a market that clearly continues to value social responsibility.”
CRIF’s second Banking on Banks report, which is due to be published later in the year, will look at the trends and issues that are expected to shape European financial services in the decade ahead.
