31 Recommendations of the Sustainable Finance Advisory Council to the German government

According to the Sustainable Finance Advisory Board, the German economy is undergoing a fundamental transformation process due to the climate crisis, digitalization and globalization, and requires the financial sector to mobilize the necessary funds. Sustainable Finance aims to activate all market forces for effective capital allocation combined with resilient risk management. The Sustainable Finance Advisory Council has presented 31 recommendations from 5 areas of action to provide the German government with practical and forward-looking approaches for the development of the planned Sustainable Finance Strategy: 

1. a reliable policy framework in Germany and the EU for coherently setting the course for sustainability in the financial and real economy
2. integrated and forward-looking corporate reporting with transparency and comparability as the basis for sustainable investment decisions and holistic risk management
3. research and systematic knowledge building with a view to changing competence requirements for those responsible in regulation, management and supervision of companies, in financial consulting and the general public
4. financial products that are effective in terms of sustainability and meet the growing needs of investors
5. institutional stabilization for continuous support in the transformation process.

The full report can be found here.

The German banking industry (DK) has commented on this final report, emphasizing in particular the importance of increasing government risk-sharing in ESG projects, increasing demand for sustainable finance through appropriate incentives among companies and private customers, and improving the database for ESG information. 

The full statement can be found here.