Attitudes of Gen Z Germans towards Renewable & Sustainable Investments

Abstract

The need to shift to renewable energy sources is one of the most important strategies to prevent global warming and achieve economic development in a sustainable manner. Given the fact that Germany is Europe’s largest economy and a major supporter of renewable energy policies, it is interesting to see how the lifestyle and investment attitudes of Generation Z, who were born from 1997 to 2012, reflect the usage of renewable energy. This master thesis analyzes the perception of the German people from Generation Z on renewable energy sources and how this perception affects their investment decisions in the alternative energy business.

In light of existing theories and hypotheses, a survey based on quantitative data collection was applied in which an online questionnaire was used to gather data from young Germans including their demographic variables, attitudes towards renewable energy, investment choices, risk attitudes, and financial goals from renewable energy. Various mathematical models were applied to analyze the data collected and correlations were found between level of emphasis on Environmental, Social, and Governance (ESG) criteria, risk appetite, and interest in shares of companies involved in renewable energy.

The insights provided enhance knowledge on what influences the investments in renewable energy resources especially within Generation Z in Germany and what policies, businesses and investors can adopt to engage with this eco-friendly cohort. The investigation also points out shortcomings in the available literature and recommends ways in which further studies can be undertaken to understand niche markets within the industry, education programs and the idea of perceived sustainable investments evolving through time. By bringing them together, the thesis serves as a stepping stone to the promoting sustainable capital market behaviours anticipated in the global energy transition process.