Empowering Retail Investors for a Greener Future: The Pivotal Role of Environmental Literacy Education in Sustainable Investing

In partnership with Futu Securities (Australia) Ltd., we have made ground-breaking progress in our understanding of the obstacles that prevent retail investors from engaging in sustainable, responsible, and impact investing (SRI) in this project. Conducted between August 2022 and March 2023, the study focused on educating a diverse sample of 725 university students and industry professionals on financial literacy, environmental literacy, and social norms on pro-environmental behaviors.

The study's most significant finding reveals the importance of environmental literacy in fostering sustainable trading practices among retail investors. Participants in the environmental literacy group demonstrated a remarkable 21% increase in their Portfolio Impact Score after receiving targeted training. These findings have the potential to revolutionize the retail investment sector and create a ripple effect throughout the financial industry, encouraging a societal shift towards sustainable investment practices and contributing to a greener economy.