CONDITIONING
Supranational and national pleas for sustainability and green economy
The corporate bonds (bonds) offered by INVESTBOAT International fully comply with the criteria, political guidelines, and national regulations that must be observed worldwide.
The global focus on societal developments in establishing and increasing sustainability in dealing with primary resources and environmental protection has moved beyond the stages of appeals and declarations. More emphasis is being placed on achieving a "better world" by establishing regulations and restrictions in the banking and finance sector to enforce green economy sustainably and globally.
The United States of America, as one of the leading economic nations, is establishing corresponding guidelines and standards for implementing sustainable environmental policies in all industrial and service sectors, including asset management. To this end, the USA has set up a task force with extensive control tasks to prevent circumvention of the criteria to be observed, which are geared towards verifiable sustainability.
In the future, green economy will be raised as a requirement at the European level and nationally, behind which traditionally oriented sectors of the economies will have a politically desired disadvantage.
According to research by the editorial team of "Börse im Ersten," a program of Hessischer Rundfunk from August 26, 2021, the majority of Germans want sustainable investments. Globally, 2 trillion dollars have already been invested sustainably. To exclude greenwashing, however, the successes for financial investments and investments concerning their sustainability must be empirically measurable and comprehensible through appropriate written reports[1].
The Federal Financial Supervisory Authority (BaFin) is currently developing guidelines intended to bring about investments geared towards sustainability. It is under discussion that 75% of the so-called "green funds" should flow into sustainable corporate bonds. It is envisaged that investments in traditional economic sectors that generate their energy from fossil fuels should be limited to a maximum of 10%. This leads to unsuitable attempts by economic circles to enforce their traditional financing needs in "the new age" through so-called greenwashing. Therefore, there is a demand formulated by the state that those involved in economic life, primarily companies, banks, and other financial market actors, must disclose their sustainability strategies.
For "green" funds, care is taken to ensure that they also have objectively verifiable sustainability, although this demand is already part of the public discourse at this point when there are no yet formulated guidelines for the future permissible handling of investment assets.
It is intended to formulate commands and prohibitions to be issued in the context of the Capital Investment Act (KAGB), i.e., in connection with sustainability and environmental protection, which will lead to the regulation of the actors involved in economic activity. Domestic investment assets are to be subject to approval by BaFin concerning the conditions for their investment. In this context, it is stipulated that the designation of investments must not be misleading by choosing terms that merely indicate sustainability and environmental protection (§ 4 para. 1 KAGB). The legislator has provided that BaFin formulates fund categories for investment assets that correspond to future investment conditions. At the European level, Regulation EU 2019/1165 stipulates that in the area of fund investments, advertising texts and other publications must not contain any information with terminology that does not correspond to the actual intention and the investments to be financed.
A "green return" results from the investments desired by the state, which must be observed and maintained in accordance with the criteria of BaFin. Such a return then fulfills the criteria of Environmental Social Governance (ESG) by maintaining social, ecological, and ethical concerns alongside economic aspects.