Gen Z's Interest vs ESG Investment Outflows
Despite high interest among Gen Z and Millennials in sustainable investing, global data shows significant outflows from ESG funds in 2025. Surveys indicate strong personal commitment to sustainability; however, financial constraints and performance concerns are deterring investment into these areas. The shift is attributed not only to market volatility but also to the cost-of-living pressures affecting younger investors' ability or willingness to take on perceived risks associated with ESG investments. This trend raises questions about whether Gen Z will ultimately drive growth in sustainable investing as they gain more financial independence and influence over investment decisions. While awareness is higher among young investors, uncertainty remains regarding their capacity to sustainably fund the future of green portfolios given current economic conditions.
Topics: ESG investing Gen Z investor behavior Millennials sustainability