Almost four in every ten customers (38%) would be likely to change banks if they found theirs was investing in fossil fuels, according to the latest research from non-profit ShareAction.
In addition, 54% would look for a new service if they knew their bank was investing in businesses that failed to meet labour and human rights standards for their workers.
ShareAction head of banking programme Jeanne Martin said: “It’s clear that the public have a strong moral compass when it comes to how their money is being invested.”
“This should be a wake up call to the financial sector to switch to more responsible investment practices that align with customers views and expectations.”
The survey – which spoke to around 2,000 adults – found that while just over half of respondents (53%) were interested in finding out more about how their financial service providers were investing, 83% said they knew little or nothing about where their money is being invested.
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Almost three-quarters (74%) of respondents said they would view their provider more negatively if they found out their money was invested in companies which did not meet human and labour rights for their workers.
In addition, 68% said they would view their financial service provider more negatively if they knew they were investing in businesses involved in deforestation and damaging the environment.
However, 32% of respondents said they would be less likely to change banking providers if they knew their bank was investing in companies with net zero carbon emissions.
Some, including Barclays, Lloyds and Natwest, have sought to improve their reputations and better their impact by investing in activities like nature recovery.
Martin added: “Banks in particular should take note that people are willing to walk away from institutions that don’t reflect their values.”
“We need to see banks step up and use their influence as financiers to steer companies away from practices that are violating human rights, damaging our vital ecosystems and escalating the climate crisis”.
