by Elisa Castagno, Noemi Oggero, Mariacristina Rossi; CeRP WP 218/25
Abstract
This paper investigates the role of financial literacy in shaping the intention to make Socially Responsible Investments (SRI) using survey data on a representative sample of Italian adults. We study to what extent the social/environmental component of a financial product is considered when making investment decisions and the financial conditions under which an individual would invest in a SRI product. Our results show that financially literate individuals are not only more aware of sustainable investing, but also display a greater intention to invest in SRI products. Moreover, they are willing to bear lower financial returns compared to traditional products, meaning that sustainable investing is an informed choice. However, we observe a negative association between financial literacy and investment opportunities aiming exclusively at financing social or environmental projects instead of yielding a monetary return.
Published: January 2025