Greenwashing Fears Hindering Consumer Confidence in Sustainable Finance Products

A recent survey by the European Consumer Organisation (BEUC) highlights growing consumer apprehension about greenwashing, which is undermining trust and deterring investments in sustainable finance products across Europe.

Key Findings from the BEUC Survey

• Survey Scope: More than 10,000 consumers from 11 European countries, including Belgium, France, Germany, Italy, the Netherlands, and Spain, participated.
• Current Investment Trends:
  • 27% have already invested in sustainable finance products.
  • 41% are open to investing in the future.
  • 55% report never having been offered sustainable finance options.
• Consumer Priorities:
  • 86% seek investments with a genuine positive environmental impact.
  • 71% support financing transitions in high-emission sectors toward sustainability.

Barriers to Consumer Participation

• Greenwashing Concerns: 34% of respondents identified misleading, unverifiable, or unreliable green claims as a key deterrent.
• Lack of Clarity: Over half (52%) find distinguishing sustainable finance products from regular investments unclear.
• Information Gap: 45% feel insufficiently informed about the sustainability credentials of financial offerings.

Calls for Stricter Regulation and Transparency

• 76% of respondents demand robust regulations defining what qualifies as sustainable finance.
• 67% advocate for strong sustainability rules to be accessible to all retail investors.

Agustín Reyna, BEUC’s director general, emphasized the need for credible standards and transparency in sustainable finance products. He stated, “These products have to offer more than marketing spin. They need strong minimum standards, excluding harmful activities like fossil fuels, and actively contributing to a sustainable economy.”

Implications for the Green Finance Industry

The survey underscores a strong consumer appetite for sustainable investment options, tempered by skepticism caused by greenwashing. Introducing stringent product standards and enhancing transparency could unlock greater consumer investment, supporting both environmental goals and financial returns.

For sustainable finance to truly drive the EU’s climate ambitions, earning consumer trust through verified and transparent products is essential.

Source: European Consumer Organisation (BEUC) survey reported by Sustainability Online, 2025.

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