Design Delight Studio

Greenwashing Concerns Hampering Consumer Confidence in Sustainable Finance Products

A recent survey by the European Consumer Organisation (BEUC) reveals that fears over greenwashing and unclear standards are significant barriers preventing consumers from investing in sustainable finance products.

Key Survey Insights

• The survey included over 10,000 participants across 11 European countries such as Belgium, France, Germany, Italy, the Netherlands, and Spain.
• Only 27% of respondents have already invested in sustainable finance, while 41% are open to investing. However, 55% reported never being offered sustainable finance options.
• 86% of interested investors look for products that generate a positive environmental impact, and 71% want investments aiding the transition of high-emission sectors toward sustainability.
• Despite strong interest, 34% are deterred by “misleading, hard to verify, or unreliable green claims.”
• Over half (52%) find it difficult to distinguish between regular and sustainable investment products.
• About 45% feel ‘less informed’ about the sustainability aspects linked to financial products.

Calls for Stricter Regulation and Transparency

• A clear majority (76%) advocate for strong, mandatory rules defining what qualifies as sustainable finance.
• 67% believe that such regulated sustainable investment options should be accessible to all retail investors.
• BEUC Director General Agustín Reyna emphasized the need for “strong minimum standards” that exclude harmful activities like fossil fuels and contribute positively to a sustainable economy.
• Reyna highlighted that combating greenwashing is essential to build trust and drive substantial investments that can support EU climate goals and benefit both the environment and consumers financially.

Conclusion

The findings underscore a critical demand for transparency, standardized definitions, and stricter regulations within the sustainable finance sector. Addressing greenwashing challenges effectively can unlock greater consumer participation, accelerating the transition to a sustainable economy.

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

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