Finance Montréal and Frankfurt Main Finance sign a Memorandum of Understanding

Interview with Hubertus Väth, Managing Director of Frankfurt Main Finance

Finance Montréal and Frankfurt Main Finance have signed a Memorandum of Understanding to support the Global Baseline in Sustainability Reporting of the International Sustainability Standards Board (ISSB). Cluster Managing Director Michael Schmidt spoke with FMF Managing Director Hubertus Väth about the background.

Jacques Deforges, Chief Executive Officer of Finance Montréal, and Hubertus Väth, Managing Director of Frankfurt Main Finance, sign a Memorandum of Understanding in Montreal on cooperation between the financial centers.
Jacques Deforges, Chief Executive Officer of Finance Montréal, and Hubertus Väth, Managing Director of Frankfurt Main Finance, sign a Memorandum of Understanding in Montreal on cooperation between the financial centers.

“Creating the Global Baseline for sustainability reporting deserves the full support of all stakeholders.”

On June 22, 2023, Frankfurt Main Finance signed a Memorandum of Understanding with Finance Montréal in Montréal. What did the two financial centers agree on?

Väth: The ISSB has decided to move the seat of their Board and Chair to Frankfurt. This was and is a great success for the financial center to have such an important international standard setter here. The ISSB has chosen Montréal as its second major location. In North America, Canada is a pioneer in sustainability. And Montréal, along with Toronto, is the country’s central financial center, making it a natural partner for us. We therefore found it only logical to work together.

What should the collaboration look like in concrete terms?

Väth: The focus is on building and transferring knowledge, sharing best practices, and supporting the work of the ISSB through international networking. Frankfurt has a lot to offer here. The joint declaration of intent provides for cooperation and networking, especially in the area of research and capacity building. There is a lot of work and many opportunities waiting for us. The strengths of the financial center, its universities, its associations, its think tanks, its training structures, etc. must be brought to bear. It was particularly exciting to see how the possibilities offered by German structures were absorbed there in order to reach small and medium-sized enterprises, which form the backbone of the economy in Canada just as they do in Germany. It is precisely with such companies that the most support is needed.

The Green and Sustainable Finance Cluster Germany is already connected to Montréal through its membership in the global network of Financial Centres for Sustainability (FC4S). How can we join forces here in the future?

Väth: We are active in the World Alliance of International Financial Centers, just as GSFCG is active in FC4S. So our closer collaboration here, as in many other places, makes a lot of sense. We are looking forward to it. After all, the cluster is a source of know-how and expertise for us. We have complementary communication channels, networks and proven clout. We can and want to strengthen and network the cluster’s numerous workstreams wherever possible and useful. The linking of existing networks and initiatives as well as the pooling of know-how are explicitly also a concern of the ISSB. We think: creating the “Global Baseline” of sustainability reporting deserves the full support of all stakeholders. And, from the point of view of the financial center, not to be underestimated: The ISSB has enormous charisma. We see this in high-level visits and the interest shown by national and international stakeholders.