Around 4.6 million UK banking users would shop greener if shown the carbon impact data of their choices.
The finding comes from new behavioural research by carbon footprint management firm Cogo. According to the report, 64% of UK banking users would act when shown carbon impact data of their choices, compared to 55% when shown the financial savings on the same actions.
Commenting on the findings, Cogo CEO for EMEA Emma Kisby said, “We’re surprised by the findings. It shows us that even in a cost-of-living crisis, people are still inspired to act when they see how changing a habit can help the planet, as well as their wallet.
“We expected that financial savings would be a strong motivation, and carbon data might strengthen it further by adding an emotional element. But, what we have actually found is that when it comes to making sustainable lifestyle changes, people are more willing to do it for altruistic reasons, over simple financial gain – even when many are tightening their belts.”
It added that the effect was especially noticeable when asking about actions that either do not save much money or have an upfront cost.
One issue the research highlighted was that even among the climate conscious there was a lack of awareness about the sustainable finance products offered by high street banks. Only 16% of people are aware of financial options that can help their household become more environmentally sustainable.
The report also found that 25% of people would like to hear more about financing options from their banks. The most in-demand options were green loans, mortgages, bongs and grants.
Cogo added that while financial savings can incentivise climate action, a good way to motivate people to reduce their environmental impact is by presenting carbon saving data. It stated that through transactional data, banks can provide customers with carbon emissions associated with their spending.
Keep up with all the latest FinTech news here.
Copyright © 2023 FinTech Global