Support for sustainable finance and investment in Europe

Abstract

Sustainable finance and investment has become an important factor in achieving environmental sustainability. Evidence also suggests it has become more prominent in the global financial system. Although academic interest has increased in recent years, most prior studies have investigated support for sustainable finance within corporate environments. Studies examining the support of individuals, or the wider public, are scarce. Consequently, using a Eurobarometer survey of 27,862 Europeans across all 27 EU countries, this study explores support for sustainable finance among people in Europe. We used a nested fixed effects model – with two levels – to examine the influence of sociodemographic factors, knowledge of sustainable finance, and a country's progress towards attaining the United Nations Sustainable Development Goals (SDGs). Our results show that sociodemographic factors are the most influential predictors of support for sustainable finance. We found that age, gender and living in rural/urban areas all influenced people's support for sustainable finance. Meanwhile, the influence of sustainable finance knowledge and SDG progress were either negligible or negative.