The Evolution of Sustainability and Ethics in Financial Services.
Over the past 25 years, I’ve had the privilege of working in a client-facing agency role working with brands large and small in the financial services sector, across banking, building societies, insurance, retail financial services, financial advice, and investing.
One of the biggest changes I’ve witnessed has been the rise of sustainability and ethics as central pillars in financial decision-making. What was once a niche concern has become a mainstream priority, reshaping how financial institutions operate and how consumers choose their financial products and services.
In this blog, I’ll explore how ethical banking, saving, lending, and investing have evolved, the pioneers who led the way, and how consumer attitudes have transformed. I’ll also reflect on my personal experiences, including a memorable visit to the Ecology Building Society in 1997, and discuss what the future holds for sustainability and ethics in financial services.
When I first started working in financial services marketing in the late 1990s, ethical and sustainable finance was a fringe concept. Brands like Ecology Building Society and Triodos were among the few pioneers challenging the status quo.
I vividly remember visiting the Ecology Building Society in 1997. Their office was a modest terraced cottage in Silsden, Yorkshire, and the team consisted of just a handful of passionate individuals. At the time, their mission—to promote sustainable housing and environmental conservation through ethical savings and mortgages—felt revolutionary.
Back then, they were often dismissed as “Conservationists doing banking” by the wider market. Their focus on lending for eco-friendly projects, such as renovating derelict properties or building energy-efficient homes, was seen as idealistic rather than practical. Yet, their commitment to sustainability resonated deeply with a small but growing group of consumers who wanted their money to have a positive impact.
The challenges they faced were significant. They had to educate consumers about the concept of ethical finance, compete with mainstream banks offering higher interest rates for consumer savings, and navigate a financial landscape that was largely indifferent to environmental concerns. Despite these hurdles, Ecology Building Society laid the groundwork for a movement that would eventually transform the industry.
Around the same time, Triodos Bank was making waves in Europe. Founded in the Netherlands in 1980, Triodos entered the UK market in 1995 with a clear mission: to use money as a force for good. They focused on financing projects that delivered social, environmental, and cultural benefits, from renewable energy to organic farming.
Triodos was one of the first banks to offer complete transparency about where customers’ money was being invested. This radical approach challenged the opaque practices of traditional banks and set a new standard for ethical finance. Today, Triodos continues to thrive, with a strong presence in the UK and a reputation as a leader in sustainable banking.
Over the past two decades, consumer attitudes have shifted dramatically. What was once seen as a “leftfield” concept is now a key consideration for many when choosing financial products. This change has been driven by several issues, including:
Increased Awareness: Climate change, social inequality, and corporate scandals have heightened public awareness of the impact of financial decisions.
Regulatory Pressure: Governments and regulators have introduced measures to promote sustainability, such as the UK’s Green Finance Strategy and the EU’s Sustainable Finance Disclosure Regulation (SFDR).
Generational Shift: Younger consumers, particularly Millennials and Gen Z, are more likely to prioritise ethical and sustainable values when selecting financial products, not just when they choose their coffee from.
As a result, large and mainstream financial services brands have begun to adopt the approaches pioneered by ethical and sustainable brands.
Lloyds Banking Group: Committed to becoming a net-zero bank by 2050, Lloyds has introduced green mortgages and sustainable investment products.
NatWest: Launched a “Green Loans” scheme to help businesses fund eco-friendly projects, such as solar panels and energy-efficient equipment.
Aviva: A leader in sustainable investing, Aviva has integrated environmental, social, and governance (ESG) criteria into its investment strategies.
It now feels like ethical finance has moved from the fringes to the forefront of the industry.
Looking ahead, I believe sustainability, social responsibility, and ethics will continue to shape the financial services landscape, and there are a few trends worth keeping an eye on:
Wider and more innovative use of digital: Fintechs are leveraging technology to make ethical finance more accessible. Apps like Tred and TreeCard allow consumers to track their carbon footprint and support reforestation projects through everyday spending.
Impact Investing: There’s a growing demand for investments that deliver measurable social and environmental benefits alongside financial returns.
Regulatory Evolution: Stricter regulations will push financial institutions to adopt more transparent and sustainable practices.
Consumer Empowerment: As consumers become more informed, they will increasingly hold financial institutions accountable for their impact on society and the planet.
Just looking back on my visit to the Ecology Building Society in 1997, it’s remarkable to see how far the industry has come. What was once a small, idealistic venture is now part of a global movement transforming finance for the better. Brands like Ecology and Triodos paved the way, proving that ethical finance is not only viable but essential.
Without sounding too cliched, the progress the industry has made is encouraging, and I’m excited to see what might come next. Sustainability and ethics are no longer optional - they’re integral to the success of financial services. As consumers, we have the power to drive this change by choosing brands that align with our values, just like we do with Fairtrade groceries.
The journey is far from over, but one thing is clear: the financial services industry has a critical role to play in building a more sustainable and equitable world.
Proud to partner with
