Sustainable finance literacy predicts investment behavior beyond general financial literacy: Evidence from two representative samples

We investigate sustainable finance literacy (SFL) as a complementary concept to general financial literacy. Study 1 uses a representative sample (N = 1,047) to develop a well-founded SFL inventory and confirms a relationship to self-reported sustainable investments. Study 2 uses an incentivized, framed field experiment (N = 1,510) to demonstrate that SFL is related to greater stock market investments and sustainable investments, and lower potentially greenwashed investments. SFL has more explanatory power than does general financial literacy. This is true for both experienced investors and non-investors. Our results underscore the pivotal theoretical and practical role of SFL for informed investments.