Fostering sustainable investments through micro-investing platforms

Abstract

We uncover the underlying factors that influence perceived trade-offs between sustainability and financial returns and risks, and the resulting real-world investment behaviour of micro-investors. Given the direct-to-consumer nature of new age investment platforms, the context for our study is framed within a consumer-centric context. Through a survey and conjoint experiment (383 investors), and analysis of actual investment decisions (for 89,744 micro-investors), we show that individual motives—specifically sustainability values and feelings of empowerment—are key drivers for sustainable investments, influencing willingness to forgo financial returns and the duration of investment. We provide practical implications for fostering sustainable investments through micro-investing platforms.