(BFM Bourse) – The French are showing growing interest in sustainable investments. Especially those under 35 who are the most likely to find these products interesting. They represent half of investors who have subscribed to sustainable funds since 2022, according to the latest AMF survey
The younger generations are more and more inclined to green their investments. Investors under 35 represent half of investors who have subscribed to sustainable funds since 2022, according to a study carried out in April 2023 by the OpinionWay institute, for the Autorité des marchés financiers (AMF).
More generally, this survey of 2,000 savers shows that French people’s interest and knowledge of sustainable investments have increased compared to the previous survey conducted in June 2021.
Two-thirds of French people in fact attach importance to sustainable development issues, including in their savings choices. This is four points more than in 2021. The majority (54%) say they take these sustainable development issues into account in their choice of investment when 75% of those surveyed consider the impact of investments on the environment “as an important subject”.
The survey also indicates that the holding of these investments has also increased. Nearly one in five French people say they have at least one investment “related to sustainable development”, i.e. 19% of those surveyed. This share is up two points compared to 2021.
A generational gap
Respondents mainly cite collective investments, shares or bonds purchased directly and the sustainable and solidarity development booklet (LDSS). However, this regulated savings account is used to finance loans to small and medium-sized enterprises and does not constitute a responsible investment invested in financial instruments. By removing this savings product, the holding rate drops to 13%.
Regarding responsible fund holders, who represent 8% of respondents, more than a quarter have invested recently, in 2022 or early 2023. Half of these new investors in sustainable funds are under 35 years old. Women make up half of recent subscribers.
Slightly less than half of those questioned, ie 44%, consider these sustainable or responsible investments “interesting”. A proportion unchanged from the last study. Behind this relative consensus, however, hides a “significant” generational gap, underlines the study. If 42% of those under 35 have a good image of this type of investment, they are only 24% among those over 65.
This generational gap is also visible in investment projects: 44% of those under 35 plan to invest part of their savings there in the short or medium term, compared to 15% of those over 65.
A need for information to better understand sustainable investments
Even if these investments tend to become more popular over the years, savers say they feel the need to be better informed about these products. They want to better understand the advantages and disadvantages of sustainable investments, their real impact and how they work.
64% of them declare that it is important for their bank or financial adviser to question them about their desire to make “responsible” or “sustainable” investments, while only one in ten French people has already been questioned about their ESG preferences (environmental, social and governance criteria). Especially since since August 2022, bank advisers must collect their client’s “sustainability” preferences, just like financial investment advisers since January 1, 2023, recalls the AMF.
Overall, the notoriety of this financial universe has improved, notes the study. 57% of respondents are able to define what sustainable investments are and this is 5 points more than in 2021.
Respondents, however, feel that they are not comfortable with the main concepts of European regulation in terms of sustainable finance. They are thus 26% to say they know the “taxonomy” (including 19% vaguely) and 24% the SFDR regulation on the publication of information on sustainability in the financial services sector (including 18% having heard of it).
The more specific notions of “Article 8” funds (taking environmental and/or social criteria into account) or “Article 9” funds (having a sustainable investment objective) are less accepted since only 16% of respondents said they knew these two terminologies.
Sabrina Sadgui – ©2023 BFM Bourse