Meanwhile, awareness of the threats posed by climate change is greater than ever. At the beginning of January 2022, the World Economic Forum presented the Global Risk Report 2022. In it, it becomes clear that global GDP could fall by one-sixth if nothing is done about climate change. Among other serious consequences, this would be a significant economic loss that the global community must address. Against this background, E S G is not a fad, but a MUST.
Good advice is in demand
Of course, the financial sector must also do its part. The potential of green and sustainable investments is great. A survey commissioned by the BdB (Association of German Banks) in December 2021 shows that it is important to 67% of investors to invest their money in socially and environmentally responsible projects. However, only around four out of ten investors have actually invested in corresponding products. Studies also show,that women in particular like to invest their money in a way that has a positive impact on society and the environment.
So, quite incidentally, a huge demand is growing here. Qualification and qualified consulting are more than ever a good business idea.
Regulation pushes sustainability
The trend toward sustainable investing is also being pushed by regulation. The legislation provides for the financial industry to significantly improve customer education and protection. Under the EU Markets in Financial Instruments Directive (MiFID II), financial institutions must disclose whether they take ESG into account in their advisory process as early as April 2021. This must be communicated publicly on the website. From August 2022, clients' ESG preferences must also be asked about and documented in the advisory meeting. "This will significantly change the everyday work of advisors, and clients will have corresponding queries about ESG," says Hartmut Petersmann, founder and managing director of the Petersmann Institute.
Multifaceted topic of sustainability
However, the topic of sustainability is multifaceted. A distinction is made between Article 6, Article 8, and Article 9 funds in regulatory terms. In addition, there are many ESG labels, each of which focuses on different aspects of sustainability. The fact that the EU Commission has now classified nuclear and gas power plants as "sustainable" in a transitional technology is causing outrage and uncertainty. Consultants must know the nuances and be able to explain them.
Petersmann believes that financial literacy plays a very important role -the regulatory steps that will be mandatory from 2022 onwards alone require a broader level of knowledge, in his opinion. "Due to the sustainability megatrend, it is now also becoming clear that this knowledge must be supplemented by another specialist area. Regardless of whether I as a customer: in want to check the products for their sustainability purpose, whether I as an investor: in want to check the future viability of the capital invested for its risk assessment, or whether I as a consulting company have to meet my increasingly complex consulting and information obligations, I should take care of the topic of sustainability," says Petersmann.
Further education platform with discount for Fondsfrauen
For these reasons, the Petersmann Institute has launched the ESG Academy, an education and training platform for sustainable investing. This qualifies financial advisors to provide professional advice on sustainable investments. "Experience learning in a new way and test this learning platform for free at www.petersmann-institut.de. In cooperation with e-mission, edutainment has been redefined," Petersmann is proud of his new training platform.
He provides Fondsfrauen with a discount of over 20% for the first 200 licenses. Instead of 450 € (net), only 345 € net will be charged. The payment method can be spread over 3 or 6 months if desired. The discount code for fund women is FONDSFRAUEN2022. (*
*) After registering on the Petersmann Institute website, you will be taken to the free test. From there the course can be booked. In the payment mode, the discount code must be specified and then the lower price automatically applies.
Anke Dembowski is a financial journalist and author of various investment fund-related and other financial books. She is also a co-founder of the "Fondsfrauen" network.