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Greenwashing Undermines Consumer Confidence in Sustainable Finance Investments – Euroconsumers Survey Insights

Euroconsumers ran a survey. It shows that greenwashing hurts trust. Misleading claims stop many investors from choosing sustainable finance. These ideas come from Belgium, Italy, Spain, and Portugal.

Key Findings

• Widespread Savings but Limited Sustainable Investment Experience
  Across the four countries, 79% of consumers save or invest money. Yet only 10–18% have tried sustainable finance products. Forty percent of respondents may try sustainable investments. For those who know these products, that number climbs to 81%.

• Strong Motivation to Make Positive Environmental and Social Impact
  Eighty-nine percent of consumers want to back companies with clear sustainability. Seventy-five percent favor companies that lower emissions. Sixty-one percent avoid companies that push fossil fuels or harm society.

• Information Gaps Foster Susceptibility to Greenwashing
  Many sustainable investors feel less informed about a product’s green details than its money aspects. This gap gives room for false promises. Thirty-seven percent said they bought products that did not live up to their green claims.

• Marketing Influences but Often Misleads
  Eighty-nine percent of sustainable investors look at labels like “green” or “sustainable” when they choose products. Yet 34% of all respondents avoid green finance products because of bad or unproved claims. This worry is highest in Italy, where 40% share it.

• High Consumer Demand for Regulation and Verification
  Seventy-eight percent of consumers want clear rules for what "sustainable" means. About 70% ask for scientific proof of green claims, and 72% support labels that are checked by an independent party. Still, 62–66% wrongly assume current rules keep sustainability claims honest.

• Greenwashing’s Negative Impact on Market Growth
  When consumers learn that an investment falsely claimed sustainability, 43% feel tricked. Thirty-four percent stop using that provider. Thirty percent may avoid green investments in the future. These results show trust is lost.

Recommendations for Enhancing the Sustainable Finance Disclosure Regulation (SFDR)

Euroconsumers asks regulators to change the SFDR. Their aims are to boost trust and keep the market fair. The suggestions include:

• Clear Distinctions and Standardized Criteria
  Make sustainable products easier to spot. Reduce any mixed signals.

• Stronger Marketing and Naming Rules
  Stop non-green products from using green names.

• Requirement for Credible Climate Transition Plans
  Demand clear plans from companies that want to cut their environmental impact.

• Enhanced Expertise Among Financial Advisers
  Improve adviser skills so they can guide consumers well.

• Robust Enforcement and Accountability Mechanisms
  Use strict penalties for vague or misleading green claims.

Conclusion

Greenwashing hurts the sustainable finance market. It weakens consumer trust. Better rules can bring more clarity and true green investments. This change helps both portfolios and the planet.

Survey Details:
Euroconsumers led an online survey with 4,193 consumers from Belgium, Italy, Spain, and Portugal. The KR Foundation supported it. The study looked at attitudes, experiences, and expectations about sustainable finance.

Source: Euroconsumers, January 2026 – Full Survey & Methodology

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