Financial challenges prevent UK consumers from making sustainable choices
New research released today by Doconomy, a leading impact fintech company, has revealed that UK consumers are increasingly concerned about the climate crisis and want to take individual action, but feel limited by their financial situation.
According to the research, commissioned among 2,000 UK consumers, over half (55%) are more worried by the impact of climate change than ever before, with 7 in 10 (70%) worried about how climate change will impact the wellbeing and quality of life for them and those close to them. However, not feeling in control of finances is making it hard for people to focus on living more sustainably (48%).
Growing desire to take action
With only a third (33%) agreeing that they trust governments to take steps to address the climate crisis, 66% agree that politicians have turned the issue of climate into political football.
Pointing to a lack of climate leadership (63%) and climate commitments from governments not going far enough (63%), 41% agree that a lack of action from national governments makes them want to take their own steps to address the climate crisis.
When it comes to individual action, 44% agreed they would be able to use less gas / electricity, make their home more energy efficient (32%), and consume less meat / change their diet (29%) in the next year.
However, when asked what has been preventing them from taking such steps, a quarter (25%) agreed that the rise in the cost-of-living and managing their finances is more of an immediate priority to them than the climate crisis, with 47% feeling anxious about financial and money affairs.
The cost-climate connection
Doconomy aims to empower users, who may feel that their financial situation is a barrier to making sustainable lifestyle changes. The Doconomy platform enables banks to support their customers with tools that improve their financial wellbeing, at the same time helping them make more mindful and sustainable consumption choices.
Data shows that the average user of Doconomy’s tools has grown their savings by more than €2000 per year since they started using the platform, and the sustainable lifestyle changes they’ve reported making result in an average annual carbon footprint reduction of – 373 kg per user — equivalent to the power needed to charge 26,624 smartphones.
While there is a clear appetite from UK consumers to take positive climate action, a lack of awareness and support stands in the way. 37% agree they would not know where to start to take steps to address the climate crisis, while 39% state they don’t have access to the right financial tools and resources.
Mathias Wikström, CEO and co-founder, says: “The climate crisis is rightly becoming an increasing concern among UK consumers, but they feel helpless to act amid difficult financial circumstances.
Crucially, our research has found a strong relationship between financial wellbeing – feeling in control of finances and being able to plan and save – and sustainable lifestyle choices. By addressing both aspects, consumers can start to unite their financial goals and eco-conscious desires.
But this will not happen without the right support. Banks have a vital opportunity to act as changemakers by bridging the intention-action gap, and empowering customers to make sustainable financial choices that drive positive environmental impact.”
Professor Lorraine Whitmarsh, environmental psychologist at the University of Bath, says: “These findings build on extensive evidence highlighting the wide range of benefits that can come from taking climate action. As well as helping our finances, taking climate action can help to improve our health, wellbeing, social connections, and planet.
“There are many ways that people can take action on climate change – not only by cutting their carbon footprint and using their voices, but also by choosing green savings and investments – however, they need support to make these choices. Governments, banks, and financial institutions have a vital role to ensure they support and empower UK consumers to take these steps.”
According to the research, 35% of UK consumers agreed they would like support from their bank to help them save more money, while nearly a fifth (17%) would like help from their bank to make more sustainable choices with everyday purchases.
