Sustainable investing among young generations: balancing ideals and financial realities

Abstract This study examines the attitudes and behaviors of young investors toward sustainable finance, focusing on the gap between awareness and actionable investment choices. Utilizing a mixed-methods approach, the research combines survey data capturing young investors' attitudes and financi...

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Bibliographic Details
Main Authors: Laura Gómez Sánchez, Sandra Tobon
Format: Article
Language:English
Published: Springer 2025-04-01
Series:Discover Sustainability
Subjects:
Online Access:https://doi.org/10.1007/s43621-025-01053-8
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Summary:Abstract This study examines the attitudes and behaviors of young investors toward sustainable finance, focusing on the gap between awareness and actionable investment choices. Utilizing a mixed-methods approach, the research combines survey data capturing young investors' attitudes and financial portfolio analyses from a European institution to explore behavioral patterns and preferences in sustainable finance. The findings reveal a significant discrepancy: while environmental awareness and knowledge of sustainable finance are high, these factors do not necessarily translate into sustainable investment preferences. Key barriers include risk aversion, perceived high costs, and limited availability of attractive ESG investment options. The study highlights the need for targeted educational programs and policy interventions to bridge the gap between ideals and actions. Limitations include a small sample size and reliance on self-reported data, which future research should address. These findings contribute to the growing literature on sustainable investing and offer actionable insights for financial institutions and policymakers.
ISSN:2662-9984