About the Sustainable Finance Committee
The Sustainable Finance Committee advises the German government on the development and implementation of its Sustainable Finance Strategy. It was appointed by the Federal Government on 6 June 2019 for the duration of the current legislative period in order to pool existing expertise and promote dialogue between the relevant actors. Its members are practitioners from the financial and the real economy, civil society and academia.
The background is the decision of the State Secretaries Committee for Sustainable Development of 25 February 2019 to develop a Sustainable Finance Strategy of the Federal Government. The decision was taken on the initiative of the Federal Ministry of Finance (BMF) and the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU), in close cooperation with the Federal Ministry of Economics and Energy (BMWi). The aim is to develop Germany into a leading centre for sustainable finance.
The Sustainable Finance Strategy aims to support the financial sector in financing the real economy activities necessary to achieve the sustainability goals of the United Nations and implement the Paris Climate Agreement. Sustainable finance makes an important contribution to strengthening Germany’s competitiveness.
In addition to developing the Sustainable Finance Strategy, the Committee advises the Federal Government on its positioning in national, European and international discussions on sustainable finance. Furthermore, it develops proposals for the further development of the risk and opportunity management within the financial system in order to adequately reflect extra-financial indicators in the areas of environment, social affairs and governance in addition to financial indicators.
The members of the Committee are supported in their work by permanent observers.
In-depth discussions take place in the working groups “Strategy and Communication”, “Financial Market Stability and Risk Management”, “Disclosure, Transparency and Impact” and “End Customers”. Where necessary, the work of the working groups was supported by valuable contributions from external experts.
The consultation deadline is extended by four weeks to May 3rd due to the Covid-19 pandemic.
The Sustainable Finance Committee has drafted an Interim Report on its own authority to serve as a basis for discussion towards a Sustainable Finance Strategy for Germany. Feedback from the consultation will feed into the further process of drafting the Final Report for the Federal Government.
„With the establishment of the Sustainable Finance Committee, the German government is putting the financing of climate and sustainability goals on the agenda. In doing so, it is highlighting their importance for the entire economy and thus for the future-proofing and international competitiveness of Germany as a financial centre.“
„The Sustainable Finance Committee is made up of experts from the financial sector, the real economy, civil society and science. It has a strong political mandate to make Germany a leading location for sustainable finance. This level of ambition of the German government is a clear signal and underlines the central importance of sustainable finance structures in the context of the necessary and fundamental transformation of our economy – both nationally and in Europe.“