Climate protection convinced: Almost one in two Germans would switch financial service providers - young generation with high expectations when it comes to ESG

• Environmental protection assumed: 44% of Germans want to switch to a financial services provider that is actively committed to environmental protection. Six% have already switched
• Young generation has high expectations when it comes to ESG: 56% of 25 to 34-year-olds consider environmental aspects to be important when choosing a financial services provider
• 54% want "green" services such as climate-friendly insurance products. 51% of Germans want providers to compensate for environmentally harmful activities.

German consumers are placing increasing value on the environmental and social responsibility of financial service providers. This is shown by the latest "Banking on Banks" study by information service provider CRIF. 54% want sustainable products, 52% want financial service providers that are socially committed and as many as 44% would consider changing their provider if another one were actively committed to climate protection. For the representative survey, 7,000 people in Europe and the USA were questioned.

Environmental awareness and increasing demand for "green" financial services

The results of the survey make it clear that the ESG endeavours of financial service providers are increasingly becoming a competitive advantage. 44% of German consumers state that they would be more likely to switch to a financial services provider that is actively committed to environmental protection. Six% of those surveyed have even changed their provider because it did not do enough to promote sustainability aspects. "German consumers are increasingly attaching importance to the ESG efforts of their financial service providers and are also prepared to leave them if they do not pay credible attention to environmental and social aspects", explains Dr Frank Schlein, Managing Director of CRIF Germany. "Financial service providers that adapt to these expectations can not only strengthen the loyalty of their customers, but also reduce the desire of customers to switch and can gain sustainably orientated target groups", Schlein continues.

In Italy (63%) and France (46%), even more consumers than in Germany say they want to switch to a financial services provider that is actively committed to environmental protection.

Gap within age groups - younger generations as the driving force for change

Younger consumers in particular are showing a stronger focus on ecological and ethical values. In the 25 to 34 age group, 56% already consider environmental aspects to be important when choosing a financial service provider. For respondents over 55, the figure is 44%.

The study also shows another clear generational difference in Europe: while 58% of 18 to 24-year-olds are willing to share more personal data in order to promote environmental protection, this figure is only 35% for the over 55s.

Social responsibility and transparency as further key factors

In addition to ecological expectations, the social responsibility of financial service providers also plays an important role for German consumers. For example, 52% of respondents in Germany are more inclined to use services from companies that are socially committed. German consumers are also demanding when it comes to transparency: 62% prefer financial service providers that disclose how they conduct their business. "This figure reflects consumers' desire for openness and ethical standards, even if it is below average in an international comparison (71%)," says Dr Schlein.

Green financial products and advisory support in demand

The demand for environmentally friendly financial products has risen sharply in Germany and worldwide. More than half of the consumers surveyed (54%) would like their financial service provider to offer "green" services such as climate-friendly insurance products. In addition, 51% of German respondents want their providers to offset their own environmentally harmful activities. A further 45% of respondents would like advice on how to make their own spending more environmentally friendly.

A call to action for the financial industry

The CRIF study also shows that communication of ESG initiatives on the part of banks and insurers is still inadequate: Only 13% of German consumers were aware of their provider's environmental initiatives. "Consumers are increasingly looking for products and services that align with their values. However, despite this growing demand, the financial sector has not yet fully met expectations for ethical and sustainable products. There is a clear gap between what consumers are looking for and what financial service providers are currently offering. Being committed to environmental issues and not communicating them too clearly harbours risks for customer loyalty and brand perception. Younger generations in particular are willing to switch providers if their environmental standards are not in line with their own values. The financial sector has the opportunity here to gain the trust of the younger generation through consistent ESG strategies and transparent communication," says Dr Schlein.

80% of consumers in Germany have taken measures to combat climate change or reduce their ecological footprint

Consumers in the USA and Europe have also recognised that they need to do something for the environment themselves. Overall, 76% of consumers have taken action to combat climate change or reduce their ecological footprint in the past year. This proportion is particularly high in France and Italy, where 87% and 86% of consumers respectively have taken corresponding initiatives. Although the figures are lower in the USA at 70% and in the UK at 63%, they are still significant.

In Germany, 80% of respondents have taken one or more measures to reduce their ecological footprint.

For example, 37% of respondents stated that they shower less to save water. 30% of respondents consume less meat and/or dairy products. And 27% of Germans are more likely to use a bicycle instead of a car. 23% have cut back on travelling by plane. One in ten has switched to a vegan or vegetarian diet.