One in seven German households makes sustainable investments – survey

Fourteen percent of German households are already putting their money into sustainable investments, while another 30 percent can imagine doing so in the future, a survey by the government-owned banking institution KfW shows. However, 53 percent of respondents do not want to put their money into such investments, blaming a lack of funds and doubts about whether the money is actually invested in a climate-friendly way. Respondents stated that the possible prospect of earning lower returns played only a minor role in their decision about making a sustainable financial investment. People aged 18 to 30 are around three times more likely (15% vs. 5% of households) to hold sustainable funds and securities than those over 65.

"Given the tight public finances, the contribution of private capital to the funding of the green transformation is highly relevant," said KfW chief economist Fritzi Köhler-Geib. German households currently hold 7.7 trillion euros in financial assets, which makes them an important factor in the funding of the climate transition, said KfW. Sustainable investments include green accounts and savings deposits, sustainable funds and securities, as well as financial investments in renewable energy generation plants. Despite Germany's longstanding experience with the energy transition, its financial sector has yet to pull its full weight in contributing to a smooth continuation of the Energiewende and a rapid reduction of greenhouse gas emissions. The survey also showed that young people have a particular interest in green investments.