Willingness to Invest: 44% of German households are already involved in or open to sustainable investments.
Information Gap: 32% doubt the effectiveness of green investments, with 19% unsure about product details.
Youth Interest: Young adults (18-30) are three times more likely to invest in sustainable funds than those over 65.

Germany’s Households and Sustainable Investments

Germany’s households hold a substantial role in financing the green transformation. According to KfW Research, 44% of households are either already investing in sustainable financial products (14%) or are open to doing so (30%) in the future. These products range from green bank accounts and savings deposits to sustainable funds, securities, and investments in renewable energy projects.

However, despite this apparent openness, many households remain hesitant. One of the primary reasons is the lack of clear information on the true impact of these investments. “The results of the survey show that many people in Germany are willing to allocate capital to climate-friendly projects within their possibilities,“ noted KfW’s Chief Economist, Fritzi Köhler-Geib. “Crucially, however, they need to be given easier access to information on sustainable financial investments, especially on how it contributes to climate action.“

Investment Barriers

A significant 32% of households express doubts about whether their investments genuinely support climate initiatives. Additionally, 19% of potential investors are confused by the available products, further dampening their enthusiasm. Despite these concerns, the prospect of lower returns is not a major deterrent. In fact, 86% of those surveyed are willing to accept slightly lower returns if their investments contribute to sustainability.

Youth Leading the Charge

Younger generations, particularly those aged 18 to 30, are showing a strong preference for sustainable investments. This age group is three times more likely to hold sustainable funds and securities than those over 65 (15% vs. 5%). The trend is similar for green bank accounts, with 7% of younger adults participating compared to just 2% of older households.

As Germany navigates its green transition, the role of private households as investors cannot be underestimated. With an enabling environment and better access to information, German households have the potential to significantly contribute to the global green transformation. “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,“ Köhler-Geib emphasized.