Concerns over greenwashing and unclear product standards are deterring consumers from investing in sustainable finance products, a new survey by the European Consumer Organisation (BEUC) has found.
According to BEUC‘s survey, which polled over 10,000 people across 11 European countries, including Belgium, France, Germany, Italy, the Netherlands, and Spain, consumers believe that sustainable finance products should be subject to stricter rules, with greater transparency also needed.
“The survey results show that consumers have a clear idea of what sustainable finance should be,” commented BEUC director general Agustín Reyna. “These products have to offer more than just marketing spin. They need strong minimum standards, excluding harmful activities such as fossil fuels, and contributing to a sustainable economy.”
Investment in sustainable finance
More than a quarter (27%) of respondents have already invested in sustainable finance products, the survey found, with just over two fifths (41%) saying that they would consider doing so, and 55% saying that they have never been offered sustainable finance options.
Of those that are interested in sustainable finance, 86% are seeking investments that have a positive impact, with 71% eager to support investments that transition high-emission sectors towards sustainability.
However, at the same time, more than a third (34%) cite ‘misleading, hard to verify, or unreliable green claims’ as a reason not to invest in sustainable finance products, while just over half (52%) said that the distinction between regular and sustainable investments is unclear.
Some 45% of respondents said that they felt ‘less informed’ about the sustainability aspects of financial products.
The majority of respondents (76%) said that they believed finance products should follow ‘strong rules’ on what is considered sustainable, while 67% believe that these should be made available to every retail investor.
Misleading claims
“Our survey shows that, despite strong consumer interest for sustainable investment products, many consumers are simply put off by misleading claims or pure greenwashing,” Reyna added.
“Ensuring consumers can invest in trustworthy sustainable finance products can be a key driver in achieving EU goals, offering a good deal for both the environment and consumers’ pockets.” Read more here.
