Kristina Jeromin & Karsten Löffler

Management GSFCG

Sustainable Finance – what is it for you?

Kristina Jeromin: For me, Sustainable Finance stands for putting the financial system in a position to fulfil its central cross-cutting function in the transformation of economic value creation towards more sustainability and thus future viability. The world in which we live is constantly changing, and it is our task to continuously review the systems we have created to see whether they are contributing to the goal of achieving social well-being while consistently taking into account planetary boundaries. These theoretical questions then break down into the everyday practice of financial market players in our Cluster – I find that very exciting.

Karsten Löffler: That’s right, because the concept of sustainability needs to be anchored in the core business of financial market players. This requires a good understanding of the risks and opportunities involved and the sustainability impact of financing and investments. Both are prerequisites for ensuring that financial resources flow to sustainable uses, as formulated in the strategy of the European Commission

What do you see as the key to the successful development of the Sustainable Finance movement?

Karsten Löffler: In my opinion, two things are crucial. One is a broader understanding of risk, which includes both an internal and external perspective. Secondly, clarity about the impact that financial market activities have on the economy and society and how they contribute to their transformation. Without regulatory guard rails, it will not be possible to ensure a level playing field for all financial market participants. First and foremost, this means transparency about the risks and effects along the entire value chain, based on solid and standardized data.

Kristina Jeromin: Cooperation is essential on the road to a sustainable financial system. The financial sector plays an important cross-divisional role in building sustainable social structures. An open exchange with politics, the real economy, civil society and science is essential here.

What role does the cluster play here?

Kristina Jeromin: The cluster sees itself as a network that spans its sphere of action between the aforementioned stakeholders. A silo mentality is not suitable for successfully shaping the societal transformation in which we find ourselves.

Karsten Löffler: We are primarily solution-oriented; we work closely with our members and partners to learn together and from each other. The cluster is thus a protected resonance space and a place for open dialogue in order to discuss and develop pre-competitive approaches.

“For me, Sustainable Finance stands for putting the financial system in a position to fulfil its central cross-cutting function in the transformation of economic value creation towards more sustainability and thus future viability.”

“In my opinion, two things are crucial. One is a broader understanding of risk, which includes both an internal and external perspective. Secondly, clarity about the impact that financial market activities have on the economy and society and how they contribute to their transformation.”

“In my opinion, two things are crucial. One is a broader understanding of risk, which includes both an internal and external perspective. Secondly, clarity about the impact that financial market activities have on the economy and society and how they contribute to their transformation.”

What is your personal goal?

Karsten Löffler and Kristina Jeromin: Our goal is to make a decisive contribution to firmly anchoring sustainable structures in the financial system through our work in the Green and Sustainable Finance Cluster Germany. This is not only crucial for the competitiveness of Germany as a financial centre, but is also central to Germany’s role in shaping the development and expansion of a sustainable European economic area.

„In order to stop climate change – the effects of which have long since been noticeable – enormous investments are needed. This is why we are embracing the idea of private capital also being invested according to the principles of sustainability. The Cluster aims at further promoting this movement.”

Hessian Minister of Economy, Tarek Al-Wazir