Survey on Sustainable Financial Products: Consumers Demand Clear Rules

The Federal Financial Supervisory Authority (BaFin) recently conducted a representative online survey in June 2025 to assess consumer attitudes towards sustainable financial products in Germany. The findings reveal that sustainable investment remains highly relevant, with a strong demand for transparency and clear regulatory guidelines.

Key Findings of the BaFin Survey

• Strong Consumer Interest: About 65% of the 1,528 respondents expressed interest in sustainable financial products—39% somewhat interested and 26% strongly or very strongly interested.
• Demand for Clear Definitions: Most consumers do not view financial products as sustainable if they lack explicit Environmental, Social, and Governance (ESG) objectives. Products without clear ESG goals are generally not considered trustworthy by those interested in sustainability.
• Transparency is Crucial: Nearly all participants want transparent sustainability information. 60% demand that providers clearly highlight relevant ESG facts before contract conclusion.
• Avoiding Greenwashing: Around 70% of consumers would feel deceived if ESG-labeled products included investments in controversial areas, such as weapons or businesses linked to severe human rights violations.
• Exclusion Criteria: Two-thirds want sustainable products to explicitly exclude companies or countries with human rights infringements. Over half also expect exclusions of sectors like coal-fired power and controversial weapons.
• Investment Proportions: At least 40% of the invested capital should be directed toward genuinely sustainable activities or those supporting a transition to a sustainable economy.

Consumer Perception of EU SFDR Product Categories

The EU is revising its Sustainable Finance Disclosure Regulation (SFDR), which currently mandates sustainability disclosures for various financial products. BaFin’s survey assessed consumer confidence in four proposed ESG product categories:

Implications for the Sustainable Finance Market

The BaFin survey underscores the urgent need for:

• Clear regulatory frameworks and labeling standards to enhance consumer trust and prevent greenwashing.
• Explicit exclusion policies in sustainable investment products, particularly on human rights and environmental grounds.
• Minimum thresholds for sustainable investment shares within products to ensure meaningful impact.
• Enhanced consumer education on different ESG product types to support informed decision-making.

BaFin views the ongoing SFDR revision as an opportunity to improve clarity and standardization in the sustainable finance sector, aligning product disclosures with consumer expectations.

About BaFin’s Sustainable Finance Strategy

BaFin is committed to promoting transparency and investor protection in the sustainable financial market as part of its broader sustainable finance strategy. By integrating consumer insights and regulatory updates, BaFin aims to foster trustworthy and impactful sustainable investment opportunities.

For more information, visit BaFin’s official survey publication here.

This summary is based on BaFin’s October 2025 report and reflects the current landscape of sustainable financial product regulation and consumer perspectives in Germany.

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