The Italian Securities Commission (Consob) has published a Quaderno di Finanza paper on Italian retail investors and sustainable finance, focusing on how information and skills influence sustainable investment choices and how excessive confidence in one’s own sustainability knowledge can lead to less informed decisions. Based on data collected for Consob’s “Report on the investment choices of Italian households”, the study finds that greater access to sustainable finance information increases both knowledge of sustainable products and the risk of overconfidence in perceived competence. The authors argue that the regulatory and informational framework should not only build investor capability but also take account of cognitive distortions linked to overconfidence. The paper also reports that financial advice is associated with a higher propensity to invest in sustainable assets, particularly where advisers proactively ask about sustainability preferences or provide information on sustainable products.
Italian Securities Commission (Consob) 2025-12-10
Italian Securities Commission publishes research highlighting overconfidence risks and the role of financial advice in ESG investing
The Italian Securities Commission (Consob) released a paper examining the impact of information and skills on Italian retail investors' sustainable finance choices. The study highlights that increased access to information boosts knowledge of sustainable products but raises the risk of overconfidence. It suggests regulatory frameworks should enhance investor capability while addressing cognitive distortions, noting that financial advice increases sustainable investment, especially when advisers engage on sustainability preferences.