Socially Responsible Investing. Young adults attitude and propensity to invest green

Abstract

This study’s purpose is to see if young adults between the ages of 18 and 30, invest sustainably and if there are factors that influence their decision making process when making green investments and if there are determining variables that predict their willingness to make green investments. The study was performed over a two month period starting in early November. The findings are limited to the particular population examined in the study and cannot be assumed to be true for the entire Swedish population of young adults. The theoretical framework discusses The Buying Decision Process in relation to investments, The Adoption Process that explains different stages of adoption of new innovations and characteristics that determine its success. Thereafter, the concept of attitude behavior gap is discussed which describes the differences between intention and action, which then is followed by Maslow’s Hierarchy of Needs which can ease the understanding of incentives and self-interests. The study was constructed based on Mixed Method research which includes both quantitative and qualitative methods. 15 individuals were interviewed and asked questions about their background, investment experiences and beliefs revolving around ESG investments and other young adults. As for the quantitative part, a survey that examined 239 qualified respondents out of 254 replies. The survey investigated age, investment experience, perceived investment difficulty and different types of goals and factors related to investing. The results from the regressions were based on data from the survey in relation to age and perceived investment difficulty, as well as age, investment experience, portfolio size and green investment interest. The regressions did not find any definitive relationships between the variables in a simple linear regression and a multiple linear regression. However, the descriptive statistics highlighted a pattern of behavior that showed a relatively shallow interest for green investments. When asked if there was an existing interest for green investments, the engagement was quite high, however for each question related to sustainability, the engagement dropped. The interviews were summarized and the results showed that the initial engagement toward green investments was relatively positive, however when further asked about their interests or knowledge about green investments their resolve seemed to falter. To many it seemed like investing green implied a personal sacrifice. It was becoming increasingly clear that there was no genuine interest. What was made evident was that most respondents knew what to say to seem like an ethical person, but few could back up their claims.