Credit crunch stalls sustainable development of financial services industry

According to the Direct Marketing Association�s (DMA) inaugural Financial Services Greenscape Study, companies are undertaking initiatives to save resources but the majority of financial services organisations see environmental impacts as low to medium priority. However, over two thirds of respondents believe that this will change in the next 18 months and become a higher priority.

The report, which explores the awareness, understanding and importance placed on the �green� agenda across the financial services sector, also shows that many financial services marketers are failing to make the link between cost savings and sustainability. Many respondents cited the need to prioritise price, trust, reassurance and convenience above the green agenda.

Robert Keitch, chief of membership & brand at the DMA, comments:

�The report shows disparate views on the perceived cost of making changes and the value of these changes. Marketers need to understand that efficiency lies at the heart of sustainable marketing, leading not only to cost savings but to greater trust and reassurance among customers.�

The study demonstrates definite improvements in the industry since the blanket mailings of the past. The most popular environmental initiatives undertaken by financial services organisations include �improved targeting� (92 per cent); �using alternatives to paper communications� (82 per cent); using sustainable / recycled paper (68 per cent); and reducing paper communications (60%). Some respondents felt that there was a disconnect between the perception of financial services providers� marketing waste and the reality � believing that the environmental strategies being undertaken were not being recognised.

A potential reason behind this disconnect could be further findings which show that marketing environmental activities were often conducted in isolation of the more publicised Corporate Social Responsibility (CSR) policy. Half of respondents cite that they have no link with the CSR team while 66 per cent of respondents regard marketing efforts as being local and tactical.

Keitch adds: �It�s encouraging that respondents view the quest for sustainability as an ongoing change, and not just a one-off exercise. However, to be truly effective it�s vital that marketers have buy-in and consensus from across the whole company and make it central to their company environmental or CSR policy to achieve real success.�

According to the study, the imminent launch of PAS2020, an over-arching environmental standard for the direct marketing industry, was seen as positive move for the industry, particularly in light of concerns regarding customer understanding of the various schemes.

Sallie Hinks, author of the report and director of Parallel Marketing, comments: �These findings are a positive sign that there is a high level of environmental awareness within the financial services direct marketing sector. Once the recession recedes, perhaps we can expect to see a positive shift towards greater engagement with environmental initiatives. The Greenscape study will continue to monitor how companies prioritise the environment over time, and how they act on it.�

To view a copy of the report, please visit: www.dma.org.uk/research

- ENDS -

For press enquiries, please contact:
Rachel Aldighieri
DMA PR Manager
Tel : 07801 573324
Email : rachel@dma.org.uk

Published: 4 Nov 2009


	News Article Credit crunch stalls sustainable development of financial services industry Despite progress on a number of fronts, sustainable development initiatives are being afforded low priority within the financial services sector as companies continue to react to the depressed economic climate, a new study has revealed. According to the Direct Marketing Association�s (DMA) inaugural Financial Services Greenscape Study, companies are undertaking initiatives to save resources but the majority of financial services organisations see environmental impacts as low to medium priority. However, over two thirds of respondents believe that this will change in the next 18 months and become a higher priority. The report, which explores the awareness, understanding and importance placed on the �green� agenda across the financial services sector, also shows that many financial services marketers are failing to make the link between cost savings and sustainability. Many respondents cited the need to prioritise price, trust, reassurance and convenience above the green agenda. Robert Keitch, chief of membership & brand at the DMA, comments: �The report shows disparate views on the perceived cost of making changes and the value of these changes. Marketers need to understand that efficiency lies at the heart of sustainable marketing, leading not only to cost savings but to greater trust and reassurance among customers.� The study demonstrates definite improvements in the industry since the blanket mailings of the past. The most popular environmental initiatives undertaken by financial services organisations include �improved targeting� (92 per cent); �using alternatives to paper communications� (82 per cent); using sustainable / recycled paper (68 per cent); and reducing paper communications (60%). Some respondents felt that there was a disconnect between the perception of financial services providers� marketing waste and the reality � believing that the environmental strategies being undertaken were not being recognised. A potential reason behind this disconnect could be further findings which show that marketing environmental activities were often conducted in isolation of the more publicised Corporate Social Responsibility (CSR) policy. Half of respondents cite that they have no link with the CSR team while 66 per cent of respondents regard marketing efforts as being local and tactical. Keitch adds: �It�s encouraging that respondents view the quest for sustainability as an ongoing change, and not just a one-off exercise. However, to be truly effective it�s vital that marketers have buy-in and consensus from across the whole company and make it central to their company environmental or CSR policy to achieve real success.� According to the study, the imminent launch of PAS2020, an over-arching environmental standard for the direct marketing industry, was seen as positive move for the industry, particularly in light of concerns regarding customer understanding of the various schemes. Sallie Hinks, author of the report and director of Parallel Marketing, comments: �These findings are a positive sign that there is a high level of environmental awareness within the financial services direct marketing sector. Once the recession recedes, perhaps we can expect to see a positive shift towards greater engagement with environmental initiatives. The Greenscape study will continue to monitor how companies prioritise the environment over time, and how they act on it.� To view a copy of the report, please visit: www.dma.org.uk/research - ENDS - For press enquiries, please contact: Rachel Aldighieri DMA PR Manager Tel : 07801 573324 Email : rachel@dma.org.uk Published: 4 Nov 2009
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News Article

Credit crunch stalls sustainable development of financial services industry