Where they spend vs. where they bank is creating a consumer intention gap
Consumers increasingly consider sustainability when it comes to individual purchasing decisions, but when it comes to their finances, the lines begin to blur. While banks lend the deposits they gather from their customers, over three-quarters of consumers (78%) are unaware of what potentially harmful activities they might be financing through their bank.
And there’s more…
Consumers purchase goods and services from brands that support environmental and/or societal issues they are passionate about. However, this correlates more strongly with products they put on or in their bodies
Four in 5 (82%) Americans buy goods and services from brands that support the environmental and/or societal issues they are passionate about at least some of the time. When these conscious consumers make these choices, more of them typically purchase food or beverage products (73%), clothing (59%) and personal care or beauty products (59%) aligned with their beliefs than any other type of purchase. Fewer do the same when shopping for vehicles (26%), outdoor equipment (25%), banking/financial services (21%), hotel and leisure (19%), or air travel (12%).
Percent of conscious consumers who buy from brands that support issues they care about, by industry
A majority of Americans believe in changing their behavior to address climate change, but not when it comes to changing their bank.
- 87% of Americans believe that individuals can have an impact on climate change by making changes in their own lives and behaviors, 57% feel that banking and financial brands are making too little effort to fight global climate change, and yet 66% would remain with their bank even after learning it had no restrictions on financing certain commercial businesses, areas, or sectors.
- Millions of Americans are in the dark about what their bank does with their money. Close to 3 in 10 (27%) Americans are unaware that their bank uses customer deposits to finance issues, areas, or sectors.
- What’s more is that a majority of Americans don’t know whether their bank holds back financing those initiatives to which they are opposed. More than 3 in 4 Americans do not know whether their bank restricts financing in the following areas – all of which they report they are against: tar sands extraction (79%), arctic drilling (78%), coal-fired power plants (78%), fracking (78%), big tobacco production (76%), and deforestation (76%).
Where you put your money matters—more than most people think
As consumers continue to put an emphasis on making choices that support the environment, sustainable finance has gained momentum in recent years. It is a cornerstone of our work at Bank of the West, so we commissioned research to better understand how consumers and business leaders are making financial decisions that support their environmental values.
That was the vision behind Bank of the West’s Money Matters Report–Revealing the Sustainability Intention Gap. And while we’ve made progress raising the level of awareness about sustainable finance, the findings show that we still have a way to go. Nearly 4 in 5 (79%) people in the US report they are “passionate” about climate change. However, only 22% say they know whether their bank is financing fossil fuels.