With the growing importance of sustainability in investment decisions, the need for information on the sustainability of individual financial products is increasing. Various tools are available for this purpose: from simple sustainability labels to complex information systems.
This article written by our partner, Prof. Dr. Bernd Geier and Prof. Dr. Katharina Hombach addresses the growing need for information on the sustainability of financial products in view of the increasing consideration of sustainability aspects in investment decisions. The article analyzes the economic advantages and disadvantages of different labels and information systems, examines the legal framework for the disclosure of sustainability information and evaluates current regulatory initiatives. In particular, it examines how labels can reduce information asymmetries between providers and investors and what challenges are associated with their use and regulation.
Further details can be found in the article by our partner, Prof. Dr. Bernd Geier und Prof. Dr. Katharina Hombach in RdF (Recht der Finanzinstrumente), issue 03/2024.