Christian Vollmuth
Just how holistic the SFC is in its approach is apparent from its recommendation to the German government that standardised human- and machine-readable raw ESG data should be made publicly available free of charge at a central digital location. Not only would this reduce dependency on a small number of data monopolists and promote more competition in the area of sustainability, it would also mean that decisions can be made by all stakeholders on the basis of comparable and transparent raw ESG data. Prescribed standards would also help the real economy, as market participants currently complain about there being too many different ESG questionnaires. The credibility and transparency of sustainable financial products is an essential component of directing the necessary capital from the private sector into environmentally friendly and social projects.