As the survey conducted by the Sustainable Finance department at the University of Kassel in cooperation with Consileon Frankfurt, EB-Sustainable Investment Management and Universal Investment shows, only 14% of private investors are familiar with the term impact investment - but at the same time, more than a third showed an interest in this form of investment after being given a description of it.

The new study provides insights into the attitudes, barriers and potential surrounding impact investments in the German private client market.

Trust is crucial

The survey suggests that impact investments are predominantly perceived positively. "Many people who know about impact investments are interested in them - the biggest obstacle according to our study is their low level of awareness," says Prof. Dr. Christian Klein, head of the department. "We see a great need for action here: Strengthening private investors' knowledge about impact investments could bring many benefits."

Trust in providers and transparency in terms of impact are key criteria that can have a positive impact on the attractiveness of this segment. "Established providers with a clear focus on sustainability in particular have great opportunities here."

Key findings at a glance:

• Low awareness: only 14% of respondents are aware of impact investments to date
• Great potential: Around 8% are already investing - 34% of respondents with no previous experience could imagine investing
• Too little information: 78% do not feel sufficiently informed; traditional bank advice remains the main source of information
• Desire for impact: In addition to climate and environmental protection, social goals such as education, poverty reduction and health are also important

Recommendation for action: providers, media and education needed

The study recommends that asset managers, banks and educational institutions explain impact investments more clearly, make them more visible and provide more targeted advice. Politicians are also called upon to provide more guidance through clear definitions and standardized labels.

You can find the full study here: Impact Investment Study.

You can find the article here.