Retail interest in climate slips but pressure on banks is building

A recent Hargreaves Lansdown (HL) survey shows concern on climate is declining. Despite this, expectations of action remain: 35% of investors still want HL to prioritise climate engagement, pointing to a growing gap between attention and accountability.

This comes as climate tensions in finance escalate, with banks softening policies, protests disrupting AGMs, and most of the public (76%) unaware that climate commitments are being scaled back.

 Tara Irwin, senior ESG analyst, Hargreaves Lansdown, said: ‘Data from Hargreaves Lansdown’s most recent Sustainable Investor Survey shows the proportion of investors who view climate change as ‘extremely important’ has fallen from 42% in 2022 to 33% in 2025. Over the same period, those who consider it ‘not at all important’ have more than tripled, rising from 2% to 7%. But just this week NatWest Group was forced to pause its AGM following disruption from climate protesters – showing that, for some, climate remains top priority.

‘This divergence raises a broader question about what is really driving sentiment. It may reflect a growing sense that governments and corporates are already taking action on investors’ behalf. Equally, the increasing politicisation of climate – alongside narratives around the cost of the transition and the perceived unreliability of newer technologies – may be dampening engagement. Climate risk itself hasn’t diminished, but the way it is being perceived clearly has.

‘What makes this more complex is that expectations haven’t disappeared. Climate remains the most popular engagement priority for survey respondents, only slightly down from last year. That points to a growing disconnect: while climate may be slipping down the list of stated personal priorities, many investors still expect institutions to lead. There is a sense of fatigue setting in, but not a willingness to step back entirely.

‘That tension is increasingly visible in the real world, as we saw with NatWest Group this week. Protesters were calling on the bank to reverse changes to its approach to oil and gas financing. The protest followed criticism that recent adjustments to its policy – including dropping requirements for certain companies to have credible transition plans or full emissions disclosure – had not been clearly explained.

‘Several major banks, including Goldman Sachs, HSBC and JPMorgan Chase, have softened elements of their climate frameworks in recent months. These changes range from easing restrictions on financing certain oil and gas projects to removing limits on exposure to thermal coal and Arctic oil and gas.

‘Yet public awareness of these shifts remains low. Recent polling suggests that 76% of people were unaware that some high street banks have scaled back parts of their climate strategies, even as households continue to face rising costs linked to extreme weather and broader global instability.

‘Taken together, this points to a more nuanced moment for climate in finance. Attention may be softening, but underlying risks are not, and scrutiny of institutional action is only increasing. Investors may be saying less, but they are still watching closely. The challenge for financial institutions is not just to act, but to do so in a way that is credible and transparent.’