FRANKFURT (dpa-AFX) – In the thicket of supposedly “green” investments, investors urgently need more perspective, according to Bafin President Mark Branson. “Investors still cannot see clearly and quickly enough how sustainable a product really is. They get too much information, too complex information,” said the head of the Federal Financial Supervisory Authority (Bafin) on Wednesday at a Bundesbank symposium in Frankfurt.
The EU Commission wants to direct more money into “green” investments in order to accelerate the climate-friendly restructuring of the economy. Bank advisors and insurance brokers must therefore now ask their customers what they think of sustainability when providing investment advice. When investing, it should no longer just be about return opportunities and risk, but also about the environment, social issues and good corporate governance: the abbreviation ESG (Environmental Social Governance) has found its way.
“Investors are drowning in transparency but sometimes lack clarity about what they’re buying when it comes to sustainability,” Branson said. Less and more understandable information is needed. For example, customers should be able to easily see whether a product is investing in companies that are already “green” or in companies that are about to go “green”.
At the same time, the Bafin President warned against products and services being sold as sustainable that are actually not: “Greenwashing destroys trust. That is one of the biggest risks of transformation financing.”/ben/DP/men