Core subjects and tasks
of a Cluster

Creation of transparency

Existing products, opportunities and instruments shall be made transparent and publicly accessible through the activities of the Cluster as a central platform. Transparency as a core subject is of elementary significance to the understanding of green and sustainable finance among actors in the financial sector and the general public. The provision of information on risks associated with this topic, and on the consequences of such risks for financial institutions in regulatory terms, as well as on physical risks – such as damage caused by climate change – and on the related liability risks is hence of particular importance to the positioning of the GSFCG. In that respect, the activities of the Task Force on Climate-related Financial Disclosures (TCFD; an initiative of the private sector, which accompanies the G20 process) on “Carbon Risks” and their disclosure shall be taken into consideration. Closely interrelated with this subject is the solution of the question as to how a factually realisable reduction of climate-damaging influences can be measured (impact) and how resilience to climate change can be fostered.

Standardisation and certification

Already existing approaches in the area of standardisation of green and sustainable Finance products and criteria (such as Green Bond Principles) shall be identified/recorded and assessed with regard to their suitability for setting standards in different market segments. Where gaps are identified, proposals on how to close such gaps shall be developed in close cooperation with the research institutes. The objective is to develop joint approaches for the specification and operationalisation (example: by which methods and measures can the “Below 2 Degrees Compatibility” of financing products/arrangements be evaluated?). In this respect, close collaboration with rating agencies, auditing companies and consultancy firms is considered advantageous.

Research, knowledge transfer and communication

A main objective of the efforts concerning the sharing of knowledge is the development of practice-related criteria for capital market-based, real estate market-based and balance sheet-affecting green and sustainable finance products and the measurability of climate risks in the financial sector, so as to exert influence on future regulation intentions and endeavours (such as advocating longer time horizons and defining reporting obligations for green and sustainable finance). For this purpose, supra-regional and international cooperation is indispensable (collaboration with national, international and EU working groups and initiatives).

Alongside the indispensable knowledge transfer to achieve synergies, professional public relations are also crucial for the success of the GSFCG. In particular, this includes events with a high level of public visibility such as lecture series, presentations, workshops, seminars and practical studies.

Um den Klimawandel – dessen Auswirkungen längst spürbar sind – zu stoppen, sind enorme Investitionen notwendig. Deshalb setzen wir auf die Idee, dass auch privates Kapital nach den Prinzipien der Nachhaltigkeit angelegt wird. Ziel des Clusters ist es, diese Bewegung weiter zu fördern.”

Hessischer Wirtschaftsminister, Tarek Al-Wazir