It seems there’s some hope for the future after all, as almost two thirds (60 per cent) of millennials and generation Z (those aged between 18-34) would like an ethical label when choosing financial services companies or products.
Good With Money enlisted researchers Opinium to survey just over 2,000 UK adults and the figures show a stark contrast across age groups when it comes to financial brand and product selection.
While 60 per cent of millennials like the idea of a logo or label to help identify which financial providers and products operate in a sustainable and ethical way, only 36 per cent of over 55s do so.
Young people are naturally more conscious of the need for sustainability than their parents and grandparents.
Rebecca O’Connor, Good With Money
Similarly, just over half (51 per cent) of millennials said that seeing a logo or label denoting a financial brand or product’s ethical or sustainable credentials would make them more likely to choose it, but this falls to just 28 per cent among the over 55s.
Rebecca O’Connor, co-founder of Good With Money, said: “Young people are naturally more conscious of the need for sustainability than their parents and grandparents – they’ll be on the planet for longer, after all. Millennials buy sustainable clothes and organic food as standard. That inherent desire to do the right thing is translating into financial decisions too, as awareness about positive impact banking, saving and investing grows. It’s not that the older generations don’t care, but they are not necessarily in the habit of applying ethical considerations to financial choices.”
Our figures also show that women are slightly more interested than men in choosing ethical or sustainable financial products and brands, 43 per cent of women more likely to choose a financial brand or product with an ethical label against just 36 per cent of men.
The research marks Good Money Week, which aims to promote a broader take up of ethical and sustainable financial products. Last year Good With Money launched the Good Egg mark, the only accreditation in the UK designed to make it easier for people to find financial providers that use finance to benefit people and planet, as well as offering a good deal for their pockets.
Bevis Watts, Managing Director at Triodos Bank UK, which gained the Good Egg accreditation in March this year, added: “The Good Egg for us represents an important step in providing guidance for people aiming to align their money with their values. It helps to identify the genuinely ethical options in the market. Thankfully many savers are now putting transparency and positive impact at their top of their criteria. At Triodos we publish every loan we make and are 100% transparent. In that way, we can show that we direct money to help finance change, building stronger communities and protecting the environment.”
The Good Egg mark is based on a rigorous matrix of criteria and determines how well a provider measures up against a range of different environmental, social and industry impact factors, taking into account the size and history of the firm and its performance.
A further level of analysis is provided by the Good Egg advisory panel, which currently includes:
- Anna Laycock, executive director of the Finance Innovation Lab,
- Fionn Travers Smith, former project manager for Move Your Money,
- John Fleetwood, managing director of 3D Investing, and
- Michael Fotis, founder of Smart Money People.
Renewable energy crowdfund platform Abundance Investments and wealth manager EQ Investors were the first companies to gain the accreditation. Followed over the last year by Triodos Bank, Downing Crowd, Thrive Renewables and Pennine Wealth.
Rebecca O’Connor added: “We now have a select but growing group of financial services companies that are able to prove they make a positive impact. This is not just by improving the lives of customers, but by benefiting society and the environment, too.”