Not only since last year has the focus on our environment increased. In the financial sector, a growing shift towards “sustainable finance” offerings has been evident since 2007. The investments, which are also grouped under the term ESG (Environment, Social and Governance), are recording a steady increase in investment. More than 30 trillion dollars have been invested worldwide in such offerings. The role of Europe stands out strongly here. A list of the five largest investors in these sustainable investments includes Germany, the Netherlands and France.
A trend reversal on the capital market
Only a few years ago, this market represented only a niche. However, Deutsche Börse alone now lists over 122 index funds that invest according to ESG criteria. Ingo Speich, Head of Sustainability and Corporate Governance at the savings bank fund subsidiary Deka, also suspects a trend that will continue in the Handelsblatt: “If private investors are the first to enter the market, which has so far been dominated by major investors, growth is likely to increase even further”.
The growth prospects in particular are tempting for investors. For example, Deka assumes that the assets managed in corresponding funds will increase three to four times as strongly as the growth of the overall market.
However, a further development has also accelerated this trend reversal. Rating agencies are now increasingly including climate risks in their assessments. As a result, “sustainability” is becoming increasingly important for many institutions and companies.
The social perspective of “sustainable finance
However, the greatest success factor of the “Sustainable Finance” offers lies in the growing environmental awareness of the population. New offers that promise to protect or promote the environment are being used more frequently. Green start-ups have it much easier on the market today. Environmental awareness has become a success criterion for companies. Those who support social change will be rewarded. Jens Mühlhaus, CEO of Green City Ag, also commented on this development: “People want the traffic turnaround! The fact that we, as a financing partner, are driving forward emmy’s expansion plans and can thus make an active contribution to this gives a good feeling and also clearly shows that we have hit the nerve of the times with our commitment to the mobility sector”.
Born 1981 in Strasbourg, is a freelance journalist for various online media throughout Europe, focusing on finance, real estate and politics. He gathered his professional expertise as a consultant for global players and medium-sized companies. Fournier studied economics and german in Paris and Dresden. He currently lives in Saarland and has been a member of the Euro Leaders team since the beginning of 2019.