In Germany, 44% of households either already invest in (14%) or are open to (30%) sustainable financial products, including green accounts, sustainable funds, and investments in renewable energy. However, many remain hesitant due to concerns about whether their money is genuinely benefiting the climate (32%) or a lack of understanding of these products (19%).
The data was revealed as a part of research conducted by government-owned banking institution KfW for its KfW Energy Transition Barometer, a research, which surveyed 6,000 households. Households currently hold EUR 7.7 trillion in financial assets, which makes them an important actor in the funding of the climate transition.
“Given the tight public finances, the contribution of private capital to the funding of the green transformation is highly relevant,” said Fritzi Köhler-Geib, Chief Economist of KfW. “The results of the survey show that many people in Germany are willing to allocate capital to climate-friendly projects within their possibilities. Crucially, however, they need to be given easier access to information on sustainable financial investments, especially on how it contributes to climate action.”
The survey also reveals that 53% of households are not interested in green investments, with 3% undecided. This includes many low-income households who cannot afford to invest. Among those with financial assets, about 23% already invest in sustainable options.
Young people, aged 18 to 30 (15% of households), are more likely to hold sustainable investments compared to those over 65 (5% households). The impact of lower returns on investment decisions is minimal; most households are willing to accept a reduction in interest for the sake of sustainability.
The picture is similar for green bank accounts and savings deposits (7% vs. 2%). It is slightly different with regard to investments in renewable energy generation, however (2% vs. 3%).
All households that were potentially willing to invest or have already invested were shown a base scenario of EUR 10,000 in capital investment with 3% interest, or EUR 300 per year. In their response, 86% of all households stated their willingness to forego 0.1 percentage points in interest – or EUR 10 – if their investment was sustainable, while 74% would be willing to renounce 0.5 percentage points – EUR 50 – and 57% would even accept a 1.5 percentage point reduction – EUR 150.
“Households in Germany are a relevant group of investors for sustainable investments who, in an enabling environment, can play their part in contributing to the transformation of Germany and the world”, said KfW’s Chief Economist Fritzi Köhler-Geib.