Malta Financial Services Authority study finds low sustainable finance understanding but demand expected to rise over the next five years

The Malta Financial Services Authority published consumer research on awareness, attitudes and behaviour towards sustainable finance in Malta, finding that knowledge and uptake remain limited even as interest is expected to grow substantially over the next five years. While more than 70% of respondents reported being aware of sustainable finance, only 58% could describe it correctly. Only around a quarter said they had recently purchased sustainable products, with bonds and insurance-based investment products most common and “better returns” the main motivator, raising the risk that consumers may buy products they do not fully understand. For green loans, respondents mainly expected lower interest rates, fees and charges, while only 0.2% expected environmental benefits. The leading barriers to purchasing sustainable finance products were existing financial commitments (41.3%), lack of knowledge (40.6%) and lack of clear, useful information (31.3%), yet 90% said they were inclined to consider such products in coming years. Awareness of greenwashing was also weak, with around a third having never heard the term and fewer than half able to define it correctly, which the MFSA linked to vulnerability to misleading information. The MFSA encouraged financial service providers to use the findings when designing products, with an emphasis on transparency, straightforward features and alignment with target customers’ knowledge levels.