More than half of senior professionals in the UK’s financial services sector now expect their leadership to reduce emphasis on environmental, social and governance (ESG) and diversity, equity and inclusion (DEI) commitments.
This is according to new research from CRIF, a leading European provider of consumer and credit information.
The findings come despite broad agreement across the industry that ESG and DEI practices remain vital to customer acquisition and retention. CRIF’s report reveals that 69% of professionals still consider ESG important for building customer loyalty, while 68% say the same for DEI principles.
CRIF’s “Banking on Banks” report, launched this week, explores how priorities in the financial services industry have shifted over the past decade. The research draws insights from both senior professionals and consumers across the UK and Europe. It found that 56% of UK-based financial leaders now anticipate their companies will place less focus on ESG principles over the next five years, and 54% foresee a similar drop in DEI commitments.
Concerns are not limited to internal leadership trends. Nearly half of European consumers fear financial institutions may backtrack on their social and ethical principles, driven in part by the evolving political environment in the US. Younger consumers are particularly alert to these changes, with 55% of those aged 18–34 expressing concern.
This generational trend is also reflected in purchasing behaviour. While 47% of Europeans overall say they are more likely to choose a bank or insurer committed to DEI, this rises sharply to 59% among younger consumers.
CRIF regional director for the UK & Ireland Sara Costantini said, “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 next instalment in the Banking on Banks series is expected later this year and will focus on forward-looking trends and issues shaping the European financial landscape over the next decade.
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