More than half of financial services professionals in the UK believe their company leaders will place less emphasis on environmental, social and governance (ESG) and diversity, equity and inclusion (DEI) over the next five years, according to new research.
The findings, published in the first of credit bureau and business information systems specialist CRIF’s Banking on Banks reports for 2025, surveyed senior finance professionals across the UK, many of whom operate in wider European markets. It was found that 56 percent anticipate a deprioritisation of ESG principles, while 54 percent expect DEI to similarly decline in prominence.
Despite this, a majority still recognise the importance of such practices in influencing customer behaviour. According to the survey, 69 percent of professionals believe ESG contributes to customer acquisition and retention, with 68 percent saying the same for DEI.
Sara Costantini, Regional Director for the UK and Ireland at CRIF, said, “In the UK and EU, ESG has become a core component of business practices, bolstered by a strong regulatory framework. Recent rollbacks around DEI in the US have raised concerns among consumers, and perhaps more worryingly, those working within the sector, who fear a damaging ripple effect on current commitments.”
Consumers continue to value ethics and inclusivity
The findings also noted concerns among the public about a potential retreat from diversity and ethics-driven policies. Around 45 percent of European consumers worry that financial institutions will scale back their ESG and DEI commitments, rising to 55 percent among those aged 18 to 34.
Just under half of all European consumers (47%) say they are more likely to engage with financial providers that promote DEI, increasing to 59 percent in the 18 to 34 age group.
Environmental concerns also remain relevant in this context. CRIF points to data showing that G7 banks are collectively responsible for over 2.7 billion tons of carbon emissions – more than the combined emissions of Germany, France, the UK and Italy. In recent years, European financial institutions have responded by offering green financial products and adopting more sustainable business practices.
Diverging leadership and customer priorities
While UK-based finance professionals anticipate a reduction in attention to ESG and DEI, they also acknowledge their role in shaping customer trust and market competitiveness.
Costantini added, “As has been firmly established over the past decade, ESG is not a mere trend, but a significant differentiator in the financial sector that can influence consumer trust and loyalty. Banks, insurers and other providers must navigate current political changes carefully amid a market that clearly continues to value social responsibility.”
Among ongoing DEI initiatives is the Women in Finance Charter, established in 2016 to improve female representation in senior financial roles. While progress has been made, the concern is that waning emphasis at leadership level may slow further development in this space.
