Swiss Banks Forecast Decline in Demand for Sustainable Financial Products

A recent survey by consulting firm EY reveals that 86% of Swiss banks anticipate a stagnation or decline in customer demand for sustainable financial products over the medium to long term. This marks a significant slowdown in momentum for green investments, which are currently viewed as niche offerings primarily attracting institutional investors and wealthy private clients.

Key Insights from the Survey

• Customer Interest Drops: Banks report that end-user enthusiasm for sustainable products is lower than initially projected, limiting growth prospects.
• Regulatory Burdens: Financial institutions highlight that the stringent regulatory requirements for sustainable products impose substantial costs in data collection, reporting, and compliance.
• Disproportionate Efforts: The intensive efforts required for sustainability and climate-related disclosures often outweigh the perceived benefits.
• Major Challenges Identified:
  • Compliance with sustainability and climate reporting standards.
  • Accurate calculation of carbon footprints.
  • Managing risks related to “greenwashing,” where products may be misleadingly marketed as sustainable.

Sustainable Finance in Switzerland: Current Landscape

Despite Switzerland’s reputation as a leader in sustainable finance, the practical challenges underscore ongoing debates about the sector’s future viability. The green finance market remains concentrated in specific investor segments, suggesting that broader mainstream adoption is still a work in progress.

Implications for Sustainable Product Stakeholders

For companies and investors committed to sustainability, the findings indicate a need for:

• Streamlined regulatory frameworks that balance rigor with feasibility.
• Enhanced transparency and reliable data to build trust and demonstrate impact.
• Greater education and engagement strategies to expand customer awareness and demand.

Source: EY survey as reported by SWI swissinfo.ch, January 2026
Contact: english@swissinfo.ch for inquiries and feedback on sustainable finance reporting.

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