Climate change has heightened many people’s awareness of sustainable investments. Recently, however, interest has waned. Credit: Tom Weller/dpa/dpa-tmn
Investing in sustainability, once touted as an attractive financial option for the climate-minded investor, is like many climate initiatives losing ground.
The interest in sustainable investments down for the second year in a row. A survey conducted the comparison portal Verivox and published on Friday showed that 64% of respondents are interested in investments that meet ecological, social and ethical minimum standards, such as funds that exclude stocks from industries like arms, tobacco, oil and gas, or gambling.
Last year, a study recorded 69% interest in such investments and in 2022 it was 79%.
Only one in six respondents (16%) is currently investing in such financial products, according to the survey, which involved around 1,000 participants in May.
A year ago, this figure was 21%, while three years ago it was nearly a quarter with 24%.
“Today, other topics dominate the debates instead of climate protection,” said Verivox managing director Oliver Maier.
Big differences among households
Young adults under 30 are the most open to sustainable investments, with 81% expressing general interest in environmentally and ethically sound financial products, according to the survey.
In contrast, only half of those over 70 are interested in so-called environment, social and (good) governance investments or ESG investments.
The disinterest in sustainable investments is also higher among east Germans (44%) compared to west Germans (36%) and nearly twice as high among childless households (40%) compared to families with children.
Willingness to sacrifice returns for sustainability
More than half (55%) of respondents interested in sustainable investments said they would “definitely” or “probably” forgo returns if the investments adhered to important sustainability standards. For 34%, this would not be an option.
There are significant differences in the criteria respondents consider important.
The highest priority is given to avoiding exploitative labour conditions and animal testing (37% each). Other frequently mentioned factors include conserving the planet’s resources (29%), investing in renewable energy (27%), and excluding industries such as gambling (22%) and arms (20%).
