How sustainable is Germany as a financial centre and how does it compare to other financial centres? A project group of students and alumni - Anastasija Djokic, Felix Knabe, Linus Leiendecker, Mathieu Pietz, Nico Rivinius, Julius Voigt - headed by Prof. Dr. Peter Scholz and Prof. Dr. Stefan Prigge - dealt with these questions at HSBA. The study was commissioned by Germany Finance and evaluates the performance of Germany as a financial centre in terms of sustainable finance in an international comparison with France, Luxembourg, the Netherlands and the United Kingdom. The study "Facts and Figures on Germany as a Sustainable Finance Location in European Comparison" is now available for download.
Europe is the global pioneer market for sustainable finance. The volume invested in sustainable investments in Europe is around ten times as large as in the United States of America. Germany is unquestionably one of the leading European financial centres for sustainable finance. This is confirmed by the results of the study "Facts and figures on Germany as a location for sustainable finance in a European comparison".
Five facts on Germany as a location for sustainable finance:
- After the USA and China, Germany has the largest share of green IPOs worldwide in the last ten years. Almost three out of four green IPO activities take place in these three countries.
- With a share of 8.6% of the total national green IPO activity, Germany has been a global leader in the past ten years.
- With a current market share of 52%, Europe is the world's largest driver of green bonds in terms of total issuance volume. With 24 %, Germany accounts for almost a quarter of the European market and is thus a key player on the global market.
- The issuance of sustainable loans in Germany is steadily increasing. The German development bank KfW, for example, shows a linear growth of sustainable loans to a value of almost 50 billion euros in 2021.
- The performance of a financial centre depends largely on the performance of its ecosystem. Germany and the EU have a supportive ecosystem in the area of sustainable finance. Germany scores well, for example, with a highly developed sustainability reporting system of the local companies, a reliable regulatory environment or important institutions based in Germany, such as the International Sustainability Standards Board (ISSB).
GERMANY FINANCE is an informal association of German financial centre initiatives from Berlin, Frankfurt, Hamburg, North Rhine-Westphalia and Stuttgart. The common goal is to strengthen Germany as a financial centre in the German, European and international context, to give it a face and to be the contact for interested parties in Germany as a financial centre from Germany and abroad. More about the working group at www.germany-finance.com.