According to a new study, more than half of UK financial services professionals believe that their companies will put less emphasis on diversity, equity, and inclusion (DEI), as well as environmental, social, and governance (ESG), over the next five-year period.
In the first report of the Banking on Banks 2025 series by CRIF, a specialist in credit bureaus and business information systems, senior finance professionals in the UK were surveyed. Many of them operate in other European markets. The survey found that 56% of respondents expect ESG principles to be deprioritised, and 44% predict DEI will also lose prominence.
A majority of professionals still acknowledge the importance of these practices in influencing consumer behaviour. According to the survey 69 percent of professionals think ESG contributes towards customer acquisition and retention. 68 percent say the same about DEI.
Sara Costantini is Regional Director of CRIF for the UK and Ireland. She said: “In the UK, ESG practices have become a key component in business, backed by a strong regulation framework.” Consumers and those in the industry are concerned about recent rollbacks on DEI.
Customers continue to value ethical behavior and inclusivity
In addition, the findings noted that there are concerns from the public regarding a possible retreat away from policies that promote diversity and ethics. Around 45 percent European consumers are concerned that financial institutions may reduce their ESG and DEI obligations. This number rises to 55 percent for those between 18 and 34.
A little under half (47%) of European consumers say they would be more inclined to work with financial providers who promote DEI. This number increases to 59 percent for the 18-34 age group.
In this context, environmental concerns are also relevant. CRIF cites data that shows G7 banks collectively are responsible for more than 2.7 billion tonnes of carbon emissions – more than Germany, France and the UK combined. European financial institutions responded in recent years by adopting sustainable business practices and offering green financial products.
Diversifying leadership and customer priorities
Although UK-based finance professionals expect a decrease in attention to ESG, DEI and other environmental factors, they acknowledge that these factors play a role in influencing customer trust and competitiveness on the market.
Costantini said, “As it has been established in the last decade, ESG, is not just a trend but can have a major impact on consumer loyalty and trust. In a market where social responsibility is still valued, banks, insurers and providers need to navigate the current political changes with care.
Women in Finance Charter is one of the ongoing initiatives by DEI. It was established in 2016 with the goal of improving female representation in senior finance roles. Although progress has been achieved, it is feared that the waning focus at the leadership level could slow down further development.
