Generation Green Exploring the Influence of Demographic Factors and EU-Regulations on Sustainable Investment Decisions

Abstract

The global challenges associated with social and environmental problems have opened up new investment opportunities, more commonly referred to as sustainable investments. The concept of sustainable investment raises questions about which different groups and individuals in society tend to choose it over conventional investments. The thesis is therefore based on finding answers about possible differences between different individuals when choosing these sustainable investments. The main purpose is to find answers to whether there are differences between older and younger generations when making these investment decisions, but also how other demographic factors may affect these decisions. In addition, we investigate whether the EU regulation SFDR may have influenced individuals to invest more sustainably. To find explanations, data has been collected from Fondbolagens Förening, which conducted a survey through Kantar Sifo. The data is based on Swedish households' views on sustainable fund investments. To find answers from the data, statistical models are used in combination with what previous research and theories suggest. The results obtained from the analysed data suggests that there is no evidence of age affecting sustainable investment decisions. Regarding the other demographic factors, both income and gender cannot be shown to explain sustainable investment decisions. On the other hand, it is possible to conclude that a higher level of education tends to increase the possibility of sustainable investments. Lastly, it is possible to conclude that those who are familiar with the EU regulation (SFDR) also tend to have an increased interest in choosing sustainable investments.