Legal & Regulatory News

German Federal Government adopts sustainable finance strategy

On 5 May 2021, the German Federal Cabinet adopted the first German Sustainable Finance Strategy (the Strategy). The goal of the Strategy is to mobilise investments that are urgently needed for climate action and sustainability, while also addressing the climate risks that are increasingly relevant to the financial system.

The Strategy comprises a comprehensive package of 26 measures based on the core themes of climate action and sustainability. The measures include:

• redirecting federal investments towards sustainable investments;
• increasing transparency on sustainability in companies and financial instruments;
• sustainability 'traffic light' labels to provide more clarity for investors; and
• mandatory sustainability reporting obligations for companies.

A key driver in creating the Strategy was the final report of the German Sustainable Finance Committee, which was published on 25 February 2021.

Click here to access the Sustainable Finance Strategy (available in German only).

Click here to read further about the final report of the Sustainable Finance Committee.