Sustainable Finance

Wolkenkratzer, in dessen Glasfassade sich ein grüner Wald spiegelt

Sustainable finance describes the consideration of sustainability aspects by private and public actors in their decisions. Sustainable finance thus concerns budgetary, financial, industrial and economic policy as well as sustainability, nature conservation and climate policy - a cross-cutting topic.

The need to respond to climate change and slow down the extinction of species requires comprehensive restructuring towards greenhouse gas neutrality and a sustainable economy. Sustainable Finance has a key role to play in the huge task of financing this socio-ecological transformation.

Economic structures and related production and consumption patterns will change fundamentally in the context of the socio-ecological transformation. Finance has a central leverage function as a provider of capital in the transformation of the real economy, as it can, for example, provide companies with financial capital more easily and more cheaply. In order to fulfill this function, there is a need for science-oriented, common standards, corresponding sustainability definitions and transparency. Based on these needs, Germanwatch works in the field of sustainable finance on German, European and international sustainable finance strategies and accompanies these political and economic processes as a civil society environmental and development organisation.

Germanwatch's activities in the context of Sustainable Finance

Germany ▾Germany ▴

Europe ▾Europe ▴

International ▾International ▴

Publication

02 February 2022

The German G7 Presidency: Ready to lead on climate?

Analysis of the new coalition agreement – Focus on climate protection and finance

Just weeks after the new coalition government took office, Germany took over the Presidency of the G7. The G7 Presidency provides the new federal government an opportunity to demonstrate the importance it attaches to international climate policy and ambitious climate protection. The coalition agreement lays out the government’s course. This briefing paper identifies issues on which the new federal government is already sending strong signals, as well as opportunities and gaps.

Download: The German G7 Presidency: Ready to lead on climate? [PDF; 2 MB]

Leveraging COP26 outcomes for the German G7 presidency in 2022

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Publication

22 December 2021

Insights into climate indicators for companies: What to report under European sustainability reporting standards

Full Disclosure: Monthly Briefing on EU Corporate Transparency Regulation

Last April, the European Commission published a new draft of the Corporate Sustainability Reporting Directive (CSRD), which is intended to provide companies with clarity on what and how they need to report and reduce administrative burden. The goal is to remove barriers and to leverage financing the transformation to climate neutrality. This briefing paper provides a brief overview of the ongoing processes around the CSRD and the standard-setting and then takes a first summarizing look at the new European corporate reporting standards.

Download: Full Disclosure. December 2021 Issue [PDF; 288 KB]

Full Disclosure: August Issue 2021

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Publication

01 October 2021

Sustainability due diligence – what it means for companies and how EU sustainability standards can help

Full Disclosure: Monthly Briefing on EU Corporate Transparency Regulation

Due diligence affects all companies, as it enables to properly assess relevant risks and impacts. While investors and customers show growing awareness of companies' impacts along the value chain, many companies still provide limited detail. In the sixth article of our briefing series “Full Disclosure” we examine how corporate due diligence legislation relates to sustainable finance and what questions a legislative proposal needs to answer to avoid greenwashing and support comparable due diligence.

Download: Full Disclosure. August 2021 Issue [PDF; 188 KB]

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Publication

22 July 2021

(Financial) Opportunities of European sustainability reporting rules for small businesses

Full Disclosure: Monthly Briefing on EU Corporate Transparency Regulation

No company can afford to ignore the financial risks of climate change. This also applies to small and medium-sized enterprises. To reduce these financial risks for companies and investors, it is crucial to be transparent. In the fifth article of our briefing series “Full Disclosure” we examine how small and medium-sized enterprises can benefit from forward-looking reporting requirements.

Download: Full Disclosure. July 2021 Issue [PDF; 142 KB]

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Publication

23 June 2021

Aligning Financial Intermediary Investments with the Paris Agreement

Development finance institutions (DFIs) play a key role in aligning financial flows with low-emission, climate-resilient development pathways. Many have committed to support the objectives of the Paris Agreement. In this working paper Germanwatch, the NewClimate Institute and the World Resources Institute take a closer look at financial intermediary lending by DFIs, proposing a phased approach for aligning indirect investments.

Download: Aligning Financial Intermediary Investments with the Paris Agreement [PDF; 635 KB]

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Publication

11 June 2021

Climate transition plans: How EU standards can help companies to focus on the right data

Full Disclosure: Monthly Briefing on EU Corporate Transparency Regulation

This year will be key for future climate policy and especially for sustainable finance in Germany and Europe. Sustainable finance plays a crucial role in improving climate protection and sustainable growth. To this end, Germanwatch joined forces with the Alliance for Corporate Transparency in order to push towards greater corporate responsibility and disclosure requirements to meet the EU and Paris climate targets. This is the fourth article of our briefing series “Full Disclosure: Monthly Briefing on EU Corporate Transparency Regulation”, in which we aim to shed light on the need for and benefits of forward-looking reporting requirements in a changing EU regulatory environment.