NEXT-GEN SUSTAINABILITY: UNVEILING THE FINANCIAL INTENTIONS, CHALLENGES, AND TRANSFORMATIVE POWER OF GENERATION Z INVESTORS

Sustainable finance (SF) has emerged as a pivotal tool in addressing global and societal challenges by integrating economic, social, and governance factors into investment and decision-making processes. In Hyderabad, a rapidly growing urban hub with a significant youth population, Generation Z investors are increasingly influencing the sustainable finance landscape. This study explores the awareness, motivations, and investment behaviours of Gen Z in Hyderabad, with a particular focus on their engagement through social media platforms. Using Structural Equation Modelling (SEM) via SmartPLS, primary data were collected from 152 Generation Z respondents through a structured survey. The study finds that sustainable finance attitude is the strongest predictor of investment behaviour (β = 0.5583, p = 0.0092), followed by technology awareness (β = 0.4125, p = 0.0486), while financial literacy alone is not a statistically significant predictor (β = 0.3087, p = 0.1253). These findings challenge the conventional assumption that financial literacy drives sustainable investment participation, positioning technology accessibility and values alignment as more powerful behavioural enablers. The research highlights the transformative potential of Generation Z in reshaping Hyderabad into a model city for sustainable finance in India, offering actionable insights for policymakers, financial institutions, and educators.

1. Ho, M.N., Abhayawansa, S., & Adams, C.A. Sustainable finance. Elgar Encyclopedia of Corporate Communication, August, 200–205 (2024). https://doi.org/10.4337/9781802200874.ch32

2. Gutterman, A.S. Sustainable Finance. SSRN Electronic Journal. 2024. https://doi.org/10.2139/ssrn.3804435

3. IFC. SBFN Toolkit: Developing Sustainable Finance Roadmaps. 2023. https://www.sbfnetwork.org/sites/default/files/2025/Mar/SBFN_Sustainable_Finance_Roadmap-Toolkit_Guide.pdf

4. KPMG. Sustainable Investing: Fast Forwarding its Evolution. 2020. https://assets.kpmg/content/dam/kpmg/xx/pdf/2020/02/sustainable-investing.pdf

5. Kumar, S., Sharma, D., Rao, S., Lim, W. M., & Mangla, S.K. Past, present, and future of sustainable finance: insights from big data analytics through machine learning of scholarly research. Annals of Operations Research, 345(2), 1061–1104 (2025). https://doi.org/10.1007/s10479-021-04410-8

6. Martiny, A., Taglialatela, J., Testa, F., & Iraldo, F. Determinants of environmental social and governance (ESG) performance: A systematic literature review. Journal of Cleaner Production, 456, 142213 (2024). https://doi.org/10.1016/j.jclepro.2024.142213

7. Taneja, S., Bhatnagar, M., & Ozen, E. Greening the economy: Harnessing the power of sustainable finance. Encyclopedia of Management Practice, 537–539 (2025). https://doi.org/10.1016/B978-0-44-3137761.00150-1

8. Ahmed, R., Chen, X. H., Hoang, Y. H., & Do-Linh, C. Climate change effects and their implications for the financial markets: Evidence from the United Kingdom. Journal of Environmental Management, 366, 121782 (2024). https://doi.org/10.1016/j.jenvman.2024.121782

9. Eren, E., Merten, F., & Verhoeven, N. Pricing of climate risks in financial markets: a summary of the literature (Issue 130) (2022).

10. International Monetary Fund. Global Financial Stability Report, April 2025: Chapter 1. https://www. imf.org/en/Publications/GFSR/Issues/2025/04/22/global-financial-stability-report-april-2025

11. Wijethunga, A.W.G.C.N., Rahman, M. M., & Sarker, T. Environmental impact of financial market’s development in Australia. Environmental and Sustainability Indicators, 23, 100438 (2024). https://doi.org/10.1016/j.indic.2024.100438

12. Gutterman, A. Sustainable Entrepreneurship. SSRN Electronic Journal. 2022. https://doi.org/10.2139/ssrn.4192086

13. Cooperation, I., Annual, C., & Report, P. Green Consensus and High Quality Development: CCICED Annual Policy Report 2020. (2022). https://doi.org/10.1007/978-981-16-4799-4

14. Faria, J.R., Tindall, G., & Terjesen, S. The Green Tobin’s q: theory and evidence. Energy Economics, 110 (2022). https://doi.org/10.1016/j.eneco.2022.106033

15. Financial Stability Board. The Implications of Climate Change for Financial Stability. 2020. https://www.fsb.org/wp-content/uploads/P231120.pdf

16. Ozili, P.K. Green finance research around the world: a review of literature. International Journal of Green Economics, 16(1), 1(2022). https://doi.org/10.1504/ijge.2022.10048432

17. Rahman, M.H., Tanchangya, T., Rahman, J., Aktar, M.A., & Majumder, S.C. Corporate social responsibility and green financing behavior in Bangladesh. Innovation and Green Development, 3(3), 100133 (2024). https://doi.org/10.1016/j.igd.2024.100133

18. Roth, N., Thiele, T., & von Unger, M. Blue Bonds: Financing Resilience of Coastal Ecosystems. IUCN GMPP Technical Report. 2019. URL: https://www.greenfinanceplatform.org/research/blue-bondsfinancing-resilience-coastal-ecosystems

19. Cagarman, K., & Stiftung, B. Gen Z Pioneering Entrepreneurs: Reflections and Policy Considerations. 2023. https://doi.org/10.11586/2023090

20. Judijanto, L., Utami, E.Y., & Siagian, A.O. Gen Z Investor Behavior: Analysing the influence of Sustainable Investment Practices, Financial Education and Risk Tolerance in Indonesia. Journal of Management and Business, 15(1), 37–48 (2024). https://doi.org/10.31539/jomb.v6i3.8832

21. Lulewicz-Sas, A., Kinowska, H., Zubek, M., & Danilewicz, D. Examining the impacts of ESG on employee engagement: a study of Generation Z. Central European Management Journal, 33(4), 634–649 (2025). https://doi.org/10.1108/CEMJ-08-2024-0242

22. Sengupta, D., Mathews, M., Bridges, L., D’Costa, R., & Bastian, B.L. Sustainability Orientation of Generation Z and Its Role in Their Choice of Employer. Administrative Sciences, 14(10), 249 (2024). https://doi.org/10.3390/admsci14100249

23. Zaka, K., & Al Juboori, M. The Impact of Generation-Z on International Branding Strategy. Linnaeus University Working Paper. 2023.

24. Sait, S.A., & Vijesh, P.V. Green Economics in Action: Exploring the Nexus Between Industrial Growth, Market Forces, and Carbon Credit Movements in Emerging Economies – With Reference to India. Journal of Vasyl Stefanyk Precarpathian National University, 12(4), 49–65 (2025). https://doi.org/10.15330/jpnu.12.4.49-65

25. Gómez Sánchez, L., & Tobon, S. Sustainable investing among young generations: balancing ideals and financial realities. Discover Sustainability, 6(1) (2025). https://doi.org/10.1007/s43621-025-01053-8

26. Adel, N. The Impact of Digital Literacy and Technology Adoption on Financial Inclusion. Heliyon, 10(24), e40951 (2024). https://doi.org/10.1016/j.heliyon.2024.e40951

27. Filippini, M., Leippold, M., & Wekhof, T. Sustainable Finance Literacy and the Determinants of Sustainable Investing. Journal of Banking & Finance, 163, 107167 (2024). https://doi.org/10.1016/j.jbankfin.2024.107167

28. Ramesh, A. Attitudes of Gen Z Germans towards Renewable & Sustainable Investments. HEC Liège. 2024.

29. United News of India. The city is home to major IT campuses like HITEC City and Cyberabad, as well as over 1,500 technology startups. 2026. URL: https://www.uniindia.com/news/business-economy/ business-telangana-nasscom-gcc-summit-minister/3835537.html

30. Akibun, F., Prayitno, H., Z, R., & Otto, N. Financial Literacy In Gen Z Generation. Jurnal Ekonomi, Manajemen, Akuntansi Dan Keuangan, 6(2), 8 (2025). https://doi.org/10.53697/emak.v6i2.2286

31. Abdullah, A., Basuki, H., Santoso, W.I., Sukresna, I.M., & Indriani, F. Utilization of Digital Banking Services for Generation Z Economic Sustainability. Research Horizon, 1(3), 86–93 (2024). https://doi.org/10.54518/rh.4.4.2024.298

32. Aini, N. The Motivation of Gen Z Towards Creating a Sustainable Business. JUSTEK: Jurnal Sains dan Teknologi, 7(4), 380–386 (2024).

33. Ravani, K., Verma, H., & Vidani, J. Comparative Study of Investment Preferences Among Millennial and Gen Z in Ahmedabad. International Journal of Economics, Finance and Business Statistics, 2(4), 203–228 (2024). https://doi.org/10.59890/ijefbs.v2i4.261

34. Malzara, V.R.B., Widyastuti, U., & Buchdadi, A.D. Analysis of Gen Z’s Green Investment Intention: The Application of Theory of Planned Behavior. Jurnal Dinamika Manajemen Dan Bisnis, 6(2), 63–84 (2023). https://doi.org/10.21009/jdmb.06.2.5

35. Saliha, & Dinesh, P. A review on the sustainable purchase behavior of Gen Z. Journal of Harbin Engineering University. 2023. URL: https://harbinengineeringjournal.com/index.php/journal/article/view/1806

36. Sethuraman, P., Arasuraja, G., & Rajapriya, M. Social Media’s Effect on Millennials and Generation Z’s Green Purchasing Habits. International Journal of Professional Business Review, 8(5), 1–18 (2023). https://doi.org/10.26668/businessreview/2023.v8i5.1470

37. Ghouse, S., Shekhar, R., & Chaudhary, M. Sustainable choices of Gen Y and Gen Z: exploring green horizons. Management & Sustainability: An Arab Review, 4(3), 533–559 (2024). https://doi.org/10.1108/MSAR-04-2024-0018

38. Gutterman, A.S. Sustainable Finance and Impact Investment: A Guide for Sustainable Entrepreneurs. SSRN Electronic Journal. 2024. https://doi.org/10.2139/ssrn.4944162

39. Davis, F. Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information Technology. MIS Quarterly, 13, 319 (1989). https://doi.org/10.2307/249008

40. Mehrabian, A., & Russell, J.A. An Approach to Environmental Psychology. MIT Press. 1974.

41. Ajzen, I. The theory of planned behavior. Organizational Behavior and Human Decision Processes, 50(2), 179–211 (1991). https://doi.org/10.1016/0749-5978(91)90020-T

42. Hair, J.F., Risher, J.J., Sarstedt, M., & Ringle, C.M. When to use and how to report the results of PLSSEM. European Business Review, 31(1), 2–24 (2019). https://doi.org/10.1108/EBR-11-2018-0203

43. Dwivedi, Y.K., et al. Setting the future of digital and social media marketing research. International Journal of Information Management, 59, 102168 (2021). https://doi.org/10.1016/j.ijinfomgt.2020.102168

44. Agarwal, H., & Vaghela, P. Work Values of Gen Z: Bridging the Gap to the Next Generation. National Conference on Innovative Business Management Practices in 21st Century, 1–26 (2018).

45. Fuchs, O., Lorenz, E., & Fuchs, L. Generational Differences in Attitudes Towards Work and Career. International Journal of Innovative Research and Advanced Studies, 11(7) (2024).

46. Salvadorinho, J., Hines, P., Kumar, M., Ferreira, C., & Teixeira, L. Empowering Generation Z in manufacturing organizations. Journal of Work-Applied Management. 2024. https://doi.org/10.1108/JWAM07-2024-0087