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HomePaperDo sustainable investors get what they ask for?

Do sustainable investors get what they ask for?

1 February 2024
Authors: Julia Eckert (University of Kassel), Thomas Cauthorn (University of Kassel), Anne Kellers (University of Groningen), Christian Klein (University of Kassel) and Bernhard Zwergel (University of Kassel)
Presenter: Julia Eckert (University of Kassel)

To understand if investment advisors are responsive to private investors’ sustainability preferences, we send trained mystery shoppers to 414 investment consultations. Our findings show that although investment advisors are legally required to inquire private investors’ sustainability preferences, in 22 percent of the cases investment advisors commit misconduct by not inquiring about these preferences. On average, only 47 percent of recommended products match expressed preferences. Furthermore, we find a strong divergence in the retail banking land-scape and demonstrate that the query of sustainability preferences and the suitability of investment advisors’ product recommendations differ significantly between public, commercial and cooperative banks.

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