This paper examines the effects of an educational program on Sustainable Finance Literacy (SFL) and its influence on sustainable investment decisions. Through a randomized controlled trial and an incentivized choice experiment, we found that the SFL program significantly enhances literacy, with participants more likely to invest in highly sustainable funds by 6 percentage points and less likely to choose less sustainable options (by 2.5 to 3 percentage points). These treatment effects were stronger among investors with pre-existing green attitudes. Additionally, higher SFL correlated with more accurate sustainability perceptions and reduced tendencies to chase past high returns. This paper examines the effects of an educational program on Sustainable Finance Literacy (SFL) and its influence on sustainable investment decisions. Through a randomized controlled trial and an incentivized choice experiment, we found that the SFL program has a significant impact on enhancing literacy. The program also increased the probability of investing in a highly sustainable fund by 5 percentage points on the extensive margin and decreased allocations to a brown fund by 2.5 percentage points on the intensive margin. Among participants who already held pro-sustainability attitudes, the treatment further lowered the propensity to invest in moderately sustainable funds on the intensive margin. Higher SFL further led to lower sustainability perceptions and reduced tendencies to chase past high returns.
