Motivating Retail Investors to Fund Capital-Intensive Decarbonization

Investigators

• Dale Griffin, Marketing and Behavioural Science

Co-investigator:

• Shakti Sethi, Marketing and Behavioural Science

Background

Achieving global net-zero goals requires trillions in investment each year, particularly in hard-to-abate sectors such as heavy industry, shipping, aviation, and cement. Current climate finance levels fall far short of these needs, making private capital—especially from individual retail investors—critical to closing the gap. Yet retail investors vary widely in their motivations, values, and political orientations, all of which shape their willingness to invest in sustainable financial products. Better understanding these psychological drivers is essential for expanding participation in climate-focused investment.

Research Objectives

This project studies how targeted behavioral interventions can motivate retail investors across the political spectrum to invest in sustainable funds. Building on newly developed measurement scales and investor segmentation models, the research will test communication strategies that resonate with different investor profiles. The results will help financial institutions design more inclusive, effective tools to mobilize private capital for large-scale decarbonization.