Motivation factors for sustainable investment in Germany – a generational comparison

Abstrakt

Amidst the growing global environmental issues, sustainable investment is gaining significance. This study examines the correlation between generational dynamics and preferences for sustainable investment in Germany. Employing the generational approach, the analysis explores how traditionalists, baby boomers, generation X and generation Y perceive and utilize sustainable investment opportunities. The research indicates a significant generational divide in the acceptance of sustainable finance. Millennials and generation X show a higher propensity for such investments compared to baby boomers and traditionalists. The study explores the motivational factors that influence investment decisions in different generations and uncovers different patterns that shape attitudes towards sustainable finance. Participants from previous generations prioritise long-term financial returns, while millennials and generation X show a stronger preference for impact investing that aligns with sustainability goals. Additionally, baby boomers and traditionalists show less inclination towards sustainable investment and emphasise financial returns and incentives over sustainability concerns. These findings highlight the significance of customizing strategies to involve various generational cohorts in sustainable finance initiatives. By comprehending the distinct motivations and preferences of each generation, stakeholders can create specific interventions to promote wider participation in sustainable investing and establish a more inclusive and environmentally aware financial landscape.