1.
Strategic Fundamentals And Preliminary Considerations
The capabilities of the financial system play an important role in the transformation of existing production and consumption patterns. A holistic, systemic and intelligent approach taking into account the entire financial system is necessary for this endeavour to be effective in the scope required and develop the requisite momentum. It will not suffice to focus merely on strengthening green or sustainable parallel structures. Therefore, limiting the work to the regulation of sustainable finance products will fall short too. Additional requirements on those products for avoiding socalled greenwashing incur costs which place then at a systematic competitive disadvantage.
The Sustainable Finance Committee believes that three overarching, strategic aspects will be decisive to the success of the transformation. 1. Coherent political approach5 2. The roles of key financial market players 3. Flow of information between companies and the financial sector
In order to achieve the transformation, the financial sector needs the help of the political sphere as well as of civil society and science. Politically binding approaches to transformation to achieve the sustainability goals are key benchmarks for the financial sector which it can use as guideposts. Given the structure of the German financial sector and the special significance of small and medium-sized enterprises (SMEs) in Germany, particular attention must be paid as well to how smaller institutions and companies with fewer resources can contribute. Their help is needed for the transformation to be achieved in the required scope. While financial sector entities are subject to both European and international requirements, particularly in respect of risk management, any national leeway should be utilised to the extent that it exists.
5
Here, a coherent political approach is defined as support from other policy domains and/or the collaboration of different political areas to achieve overarching goals or, at minimum, to avoid any political act which runs counter to these goals
11
