German Sustainable Finance Committee to Redouble Efforts to Transform the Financial System | New

The Sustainable Finance Committee, a body appointed by the German government for a legislative period, will redouble its efforts to fully implement a sustainable strategy for the financial sector, including pension funds, over the next four years.

During this legislature, the committee, called Sustainable Finance-Beirat, will mainly support and advise the government in implementing and strengthening its sustainable finance strategy, Silke Stremlau, board member of the occupational pension provider for the non-profit sector Hannoversche Kassen, and appointed by ministries to chair the new body, IPE said.

The Sustainable Finance-Beirat will certainly focus on topics related to the transformation of finance flows, EU regulation and the alignment of the financial system with the objectives of the Paris Agreement and the Sustainable Development Goals , she added.

Beirat – a working group of experts from the finance, real economy, science and civil society sectors that advises the government on its sustainable finance strategy – published a report in February of the last year with 31 recommendations for building a sustainable financial system.

In May, the government presented a strategy with five objectives and 26 measures to transform the economy. Measures include progress on the EU taxonomy, strengthening non-financial corporate reporting, strengthening oversight activities through BaFin and developing indicators to analyze progress in sustainable finance over the medium term, among others.

“It was passed by the former government in May last year, but not much concrete happened after the election,” she said, adding that time had been spent building the new government, then the war in Ukraine had begun.

The Committee on Sustainable Finance has recommended including specific asset classes in the regulation of pension fund investments, such as infrastructure, which are important in the context of financing the transformation of the economy but which are not not considered an independent asset class, she said in the finale. report.

“It remains to be seen what exact topics regarding pension funds and sustainable finance will be suggested by the new committee,” Stremlau said, saying that would also depend on members’ opinions.

She added: “The coalition agreement already suggests that it should be easier for long-term investors, such as pension funds, to invest in sustainable infrastructure. This would be important to achieve climate goals and make investments more profitable. I would like to continue working on this[topic[»[topic[”[sujet[ »[topic[”

Stremlau has been nominated by relevant ministries to chair the body, and committee members will elect the chair and vice-chair on Friday.

The 34 Beirat members government appointees include Claus Stickler, managing director of Allianz Investment Management, Michael Menhart, chief economist of Munich Re, Gerald Podobnik, chief financial officer of Deutsche Bank’s corporate banking, among other members.

“I’m really looking forward to my new job. I hope we will advise the government with a strong voice for a sustainable financial market. It’s a huge challenge, but I’m really looking forward to it,” said Stremlau.

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Don F. Davis