ESG AWARENESS AND ADOPTION: A GENERATIONAL ANALYSIS OF RETAIL INVESTORS

Abstract

This study investigates generational disparities in ESG (Environmental, Social, and Governance) awareness and the influence of ESG-specific information accessibility on ESG adoption among retail investors. Utilizing a sample of 400 retail investors evenly distributed across four generational cohorts—Gen Z, Millennials, Gen X, and Baby Boomers—the research employs descriptive and inferential statistical tools to examine behavioural trends. The findings reveal that younger generations, particularly Gen Z and Millennials, display significantly higher awareness and familiarity with ESG principles, attributed to greater exposure to sustainability education and digital platforms. In contrast, Gen X and Baby Boomers exhibit lower levels of ESG engagement. The study further identifies a strong positive correlation between access to ESG-specific information and the likelihood of ESG adoption, highlighting that accessible, user-friendly resources significantly boost investor confidence in sustainable investing. Challenges such as knowledge gaps, complex metrics, and greenwashing concerns remain barriers to adoption, especially for older and less informed cohorts.

The study recommends tailored awareness programs, improved digital access to ESG data, and regulatory support as essential interventions. These measures can foster a more inclusive and sustainable investment culture across generations, supporting broader environmental and social impact goals in financial markets.