Two thirds of ISA holders would switch providers to have a positive impact on the world, new research shows.
A survey by sustainable bank Triodos found 63 per cent of savers are willing to shift to a green cash or stocks and shares ISA.
The study reveals the majority of UK adults (81 per cent) are fearful of the future and anxious to support a better world. Almost two-thirds (65 per cent) are concerned about what President Trump’s second term will mean for action on climate change and progress on social inclusion and equality (63 per cent).
Older generations are especially concerned about global politics, with 83 per cent of those aged over 55 feeling troubled by the direction it’s taking.
More than two thirds (68 per cent) think we need positive social and environmental change “now more than ever.” This rises to 64 per cent among the younger Gen Z and Millennial generations. However, many are overlooking the potential of their personal finances to help bring about positive change.
Confusion and feeling overwhelmed about how to do this are preventing many from taking action: half of UK adults (49 per cent) – rising to two-thirds (67 per cent) of 18-34 year olds – say they want to help have a positive impact, but don’t know where to start.
Young people respond to corporations slashing climate and DEI targets
Younger people are especially motivated to act on their concerns, with the majority of 18-34 year olds (55 per cent) wanting to use their money to help fund positive change (51 per cent).
This age group is especially dismayed by the global backlash against commitments on sustainability and diversity, equality and inclusion (DEI), with more than half (53 per cent) wanting to help fill this gap in funding initiatives that build a greener, fairer world.
When it comes to the actions of big corporations and banks, over half (55 per cent) of 18-34 year olds are likely to support businesses that demonstrate progress on sustainability, and the fair and equal treatment of people, over businesses that don’t.
Meanwhile, four in 10 say they are prepared to move their money out of their current bank if it scraps its current sustainability commitments (42 per cent) or DEI initiatives (40 per cent) – as many US-based big banks have done since Trump’s second term began.
ISA changes could unlock shift to sustainable savings and investments
Encouragingly, 63 per cent of ISA holders are willing to move at least some of their holdings from their current ISA provider to an ethical or sustainable bank in order to have a positive social or environmental impact.
On average, these ISA holders said they would switch 30 per cent of their holdings to a sustainable provider; a move that could unlock up to £21 billion of sustainable savings and investments.*
Roger Hattam, Director of Retail Banking at Triodos Bank UK said: “In the face of distressing news headlines, it’s no wonder that so many of us feel overwhelmed about how to have a positive influence on the world. But every individual person matters. Each one of us can take a surprisingly impactful step to contribute to a fairer, sustainable world, simply by switching bank or savings accounts. Every penny and pound in sustainable savings or investments is helping to collectively finance advances in renewable energy, community-led initiatives and businesses that promote fair and equitable treatment of everyone.
“Since the Paris Agreement was signed, the world’s 60 largest banks have poured over $6.9 trillion (£5.3 trillion) of money into the fossil fuel industry in the form of loans and underwriting. It’s time to arrest this trend, and customers have the power in their wallets. As a sustainable bank, Triodos offers an alternative – with a proven track record of funding sustainable projects and endorsing bold global initiatives, such as the Fossil Fuel Non-Proliferation Treaty.”
