Stockholm (NordSIP) – The ongoing cost of living crisis may be dampening Swedes’ enthusiasm for sustainable investing, according to new research published by the Swedish House of Finance (ShoF). While core beliefs about climate change have not weakened, some doubts are emerging about the rate of global warming. There is also less acceptance of the trade-off between positive sustainability outcomes lower investment returns.
The non-profit SHoF is part of the Stockholm School of Economics and act as Sweden’s national research center for financial economics thanks to funding from the government, financial institutions, and philanthropic foundations. Among its research activities the ShoF produces the Sustainability and Consumer Finances Survey (SUSY) Monitor. This survey-based project, which is supported by the Mistra Center for Sustainable Markets (MISUM), aims to provide insights into the climate finance attitudes and beliefs of Swedish consumers at regional and national levels.
With 77.8% of Swedes agreeing with the statement that global warming is caused by human activity, there is no sign of a rapid spread of climate denialism. However, there have been changes in beliefs in the likely effects of climate change over the coming 20 years. While a clear majority of respondents expect global average temperatures to rise by 1 degree in that period, the number of people considering it ‘unlikely’ has risen from 8% in 2023 to 17% in 2024. This downward trend is reflected in views about the expected sea level rise, with a far greater degree of overall scepticism. Nevertheless, there is still a majority in favour of greater government climate action.
Public sector should finance climate action
This desire for state-level action is not accompanied by high levels of individual commitment. The 2023 SUSY Monitor showed only 1 in 3 Swedes willing to pay higher fees for sustainable investment products. In just one year this has declined to 1 in 6. Respondents are also unwilling to sacrifice returns for better sustainability outcomes, with just 12% accepting a potentially lower pension – down from 19% just 12 months ago.
Anders Anderson, SHoF researcher behind SUSY and an associate professor at the Stockholm School of Economics, believes cost of living concerns are only part of the picture: “The findings point to a disconnect between climate concern and consumer financial behaviour. Although Swedes maintain a strong environmental ethic in daily life, they appear increasingly hesitant to translate those values into investment choices, especially in a political climate where climate messaging is more divisive.”
Anderson explored the latter point in a 2024 research paper he co-authored with David T. Robinson of Duke University, which explored the influence of regional demographic make-up, environmental media coverage, and populist politics and consumer appetite for green investments. It raises many questions for providers of sustainable investment products. For example, steps taken towards increased sustainability by passive investment products have been shown to exacerbate existing polarisation between climate sceptic and green unit holders.
