More than half (55 per cent) of people in the UK do not know what green finance is, yet 60 per cent would move banks if they were offered more environmentally responsible and sustainable products and services.
A new survey by Tandem Bank found that confusion surrounds the UK’s green finance industry, with 54 per cent of Brits saying that they wouldn’t know how to reduce the environmental impact of their personal finance decisions.
However, 52 per cent said that they would move their savings to a bank account that invested their money in green causes.
“Green finance and the zero carbon home in particular is something that consumers are becoming more aware of, but something they still don’t necessarily understand; they either don’t know how to make a difference or how best to fund the changes they want to make,” said Ricky Knox, founder and chief executive of Tandem Bank.
“Consumers need to be helped to access green finance whether that is by saving in a way that supports the green agenda or by improving the green credentials of their everyday life through their choice of energy supplier, day-to-day spend decisions, investment decisions including choice of pension, or residential decisions like home purchases and home improvements.
“There’s a real opportunity for positive change in the “post-corona” world of retail banking and there has never been greater potential for green banking pioneers to lead the way to a more sustainable financial future for all of us and our planet.”
Tandem Bank recently acquired green loans company Allium Lending Group, and counts Pollen Street Capital among its backers.
Pollen Street Capital partner James Scott said that the alternative investment management company was “proud” to support the bank in “accelerating our progress towards a more sustainable future.”
Last month, Chancellor Rishi Sunak unveiled plans to issue the UK’s first ever sovereign green bond to help the UK meet its 2050 net zero target.
Alternative lenders such as Abundance, Downing Crowd, Folk2Folk and Crowdstacker already offer green energy investment opportunities.