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Sustainable development

Sustainability Intentions Gap: Business Decision Makers Overlook Environmentally Responsible Banking Practices

Strategic Insights

— 2 min read

Business leaders and executives often believe their companies have a long way to go in terms of Corporate Social Responsibility (CSR), yet many struggle with understanding how their bank is financing their company's operations. According to the Bank of the West's sustainable finance report, "Money Matters Report: Revealing the Sustainability Intentions Gap," more than a third (36%) of business decision makers do not know what sectors their bank is financing with company dollars. This lack of transparency and awareness highlights a significant gap between sustainability intentions and actual practices.

Key Takeaways:

  • Business decision makers, manager level or higher, report use of sustainable finance products drove increased profitability over the past two years, 21% more than those who did not implement sustainable finance initiatives.
  • Despite the recognized benefits, executing sustainability practices prove to be more difficult as 30% of business decision makers say they are unsure how to truly make an impact.
  • Consumers report they're passionate about reducing the impact of climate change (79%), and believe individuals can have an impact on climate change just by making small changes in their own lives and behaviors (87%).
  • However, only 15% report that their bank currently addresses climate change.
  • Gene Z leads the charge in reducing climate change, with 88% saying it's their passion and more than 3 in 5 (61%) would switch to another bank if they knew their current bank was financing fracking.
  • Bank of the West has policies in place to restrict financing for the dirtiest forms of fossil fuel extraction, such as coal and fracking, and other activities that it deems harmful to the planet, including Big Tobacco.
  • The 1% for the Planet Checking Account gives back to environmental non-profits through the 1% for the Planet organization at no cost to the customer.
  • Bank of the West also provides services for businesses, including the Conversation Alliance, Protect our Winters, Sustainable Ocean Alliance, Apparel Impact Institute, and Sustainable Surf.

Statistics:

  • 42% of business executives and 77% of consumers don't know how their bank is investing their money.
  • 47% of business decision makers would quit their job or look for other opportunities if their company did not support environmental and social issues that are important to them.
  • 72% of business decision makers, VP level or higher, believe sustainability is extremely important.
  • 30% of business decision makers do not know how to truly make an impact in sustainability.
  • 87% of Americans believe that individuals can have an impact on climate change by making changes in their own lives and behaviors, yet 66% would remain with their bank even after learning it had no restrictions on financing issues that are driving climate change.
  • 88% of Gen Z says reducing the impact of climate change is their passion, and more than 3 in 5 (61%) would switch to another bank if they knew their current bank was financing fracking.

Sources:

  • "Bank of the West's Money Matters Report: Revealing the Sustainability Intentions Gap"
  • Bank of the West's website: https://meansandmatters.bankofthewest.com/moneymatters/
  • Source: Bank of the West

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