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.
