In collaboration with Kantar, a French polling institute, Wavestone conducted a survey to measure French people's awareness of climate change, their expectations of financial industry involvement in environmental issues, and their knowledge of sustainable financial products. A total 300 respondents took part in this survey.
The results are clear: the French, whatever their age and socio-professional category, feel concerned about climate change, with more than 80% of them considering it a major issue.
This awareness has an impact on their financial choices. Even if price and performance are still the most important selection criteria, the environmental criterion is gradually becoming a determining factor when subscribing to a financial product (66% stating that environmental impact is part of their criteria). This observation is even more pronounced among 18-24 year olds, confirming the idea that future generations will increasingly consider the climate issue in their financial choices.
Beyond being sensitive to climate issues, the French are also ready to make financial sacrifices in favor of the climate, with 63% of the respondents ready to give up part of their investment profitability for that. However, when it comes to property insurance, they are less inclined to pay more for companies that undertake pro-climate actions, with only half of respondents prepared to make such efforts. This lower level of enthusiasm can be explained by:
- the direct impact on insurance policy cost, harder to accept than a reduction in potential profits
- the indirect impact as the link between the insurance contract and green projects is less tangible than for a financial investment raising funds for sustainable actions.
This is particularly true for young working people (25-34 years old), who are more sensitized to green finance issues and are more willing to favor green products over higher profit.
Only 47% of people are aware of a so-called ‘green’ offer or service and have therefore already invested or would be ready to invest in these products.
Moreover, banks and insurance are expected to play a key role in the fight against climate change. With nearly three quarters of respondents believing that these institutions have a role to play, financial industry players must take these expectations into account and promote more actively green products. Even if these products already exist, they remain fairly unknown or unclear as only 47% of people are aware of a so-called ‘green’ offer or service and have therefore already invested or would be ready to invest in these products.
Beyond this policy of evangelization regarding green products, banks and insurance companies should help their clients optimize their environmental impact. Indeed, the survey highlighted that the French are eager to:
- receive information and training regarding eco-friendly practices (72% of respondents)
- have access to carbon footprint calculation tools (69% of respondents)
- be offered schemes to reward their pro-climate efforts (79% of respondents).
In conclusion, despite some reluctance, it is in the interest of banks and insurance companies to fully engage in the development and promotion of green products and services in order to attract and retain the customers who prove to be receptive to this type of offer and are particularly sensitive to the climate issue.
