UK businesses back greener banking, but economic climate risks undermining support
Ahead of COP31, UK businesses are the most confident in Europe about Britain’s sustainable finance credentials, but most say affordability and growth must come first during uncertain economic times.
More than half of UK business decision-makers (‘businesses’) (52%) believe their country is a global leader in sustainable finance, ahead of every other European market surveyed, according to new research from CRIF.
That confidence is potentially translating into greater support for greener, more sustainable financial providers, with 57% saying they are more likely to choose a financial provider that demonstrates strong ESG practices.
For businesses, a sustainable provider is about both how it operates, such as tracking its emissions and what it invests in, and what it offers customers, from green loans and finance for electric vehicles and solar panels to insurance for low-carbon projects.
However, the current challenging economic climate is testing this support. Six in ten (63%) say affordability of products and services must take priority over sustainability commitments in times of uncertainty, while more than half (56%) say banks, insurers and financial providers should prioritise supporting economic growth, even if this slows ESG progress.
The findings reflect the wider pressures on businesses’ green ambitions. Two-thirds of UK organisations (66%) cite high costs as a barrier to reaching net zero, according to the UK Net Zero Business Census 2025.
Sara Costantini, regional director, UK & Ireland at CRIF, said: “UK leaders can head into COP31 buoyed by the fact that UK businesses are the most confident in Europe about their country’s performance in sustainable finance, with many favouring providers with strong ESG credentials.
“But this support is fragile. With ongoing economic uncertainty, affordability comes first for most businesses, and there is a risk that environmental priorities slip down the agenda just as COP31 puts the focus on turning commitments into investment.
“Green products often involve additional assessment, classification and reporting, which can add costs for providers and their customers. Maintaining ESG commitments during tough economic times is critical and providers that use better data and analytics to price and reward progress can make sure that sustainability and affordability don’t become an either/or choice.”
The findings come ahead of COP31 in Antalya, where leaders have put turning climate commitments into investment at the centre of the agenda.
CRIF supports banks, insurers and businesses to measure and evidence sustainability through its ESG services. CRIF’s ESG Analytics helps providers assess the ESG performance of the companies and customers they work with, while Synesgy enables businesses to evaluate the sustainability credentials of their entire supply chain.
The research forms part of CRIF’s Banking on Banks 2026 series. The first report, launched in June, looks at the biggest financial pressures currently facing European consumers and businesses. The second report, published in October, looks at the financial services gap between consumers and businesses.