MERCATOR PROJECT
„SUSTAINABLE FINANCE FÜR KLIMA“
Since spring 2025, the Mercator Foundation has been funding the joint project "Sustainable Finance für Klima" (Sustainable Finance for Climate). The research consortium consists of the University of Hamburg and the University of Kassel; the Universities of Augsburg and Paderborn are also involved in the project as partners.
Background
The World Economic Forum's Global Risk Report 2024 shows that extreme weather events, biodiversity loss, and changes to global ecosystems are among the greatest long-term risks to the economy and to society.
The project „Sustainable Finance für Klima“ examines the role the financial sector can play in managing these risks. Climate change and biodiversity loss directly affect companies and financial markets—through physical damage, regulatory changes, or the loss of ecosystem services. At the same time, new opportunities are emerging, for example through investments in green technologies, climate-friendly infrastructure, or business models that promote biodiversity.
Sustainable Finance is the lever for directing capital in a targeted manner toward solutions that are economically viable and contribute to transformation. Our focus is on the risks—and on the potential that the intelligent integration of climate and biodiversity aspects into financial decisions opens up.
The results of the project are not only incorporated into scientific publications, but above all into practical discussions on sustainable finance. Through policy briefs, events, and targeted exchanges with politicians, the financial sector, and civil society, we contribute to the further development of regulation, market practices, and educational opportunities. The aim is to provide scientifically sound impetus for sustainable transformation and real impact in practice.
Policy Briefs
1. Advancing Impact Measurement Practices
2. Advancing Product Categories in SFDR
Main topics
DISCLOSURE Reliable, comparable reporting is a basic requirement for sustainable financial markets. We examine how disclosure standards—particularly at the European level—need to be designed in order to create transparency, promote ambition, and at the same time remain practicable for small and medium-sized enterprises. A particular focus is placed on implementation practices and digital support.
IMPACT Impact investments are financial products that are designed to contribute to a more sustainable economy and society. In this context, a distinction must be made between the impact of real investors or companies (“company impact”) and the impact of financial investors or financial investments (“investor impact”). Based on this, a distinction can be made between two types of investments: “impact-aligned investments” and “impact-generating investments.” In line with this logic, we examine: How can the impact of different forms of investment be measured? Which impact channels play a role and to what extent? And how can the actual impact of sustainable investments be communicated in a comprehensible way?
SMALL INVESTORS Many people want to invest sustainably, but encounter high barriers to entry, a lack of transparency, or unsuitable products. We analyze how sustainable investments can be designed in such a way that they are accessible, understandable, and useful for small investors. The focus is on questions relating to the perception of sustainable financial products, the development of suitable forms of investment for transformation financing, and classification and consumer orientation. The aim is to lower the barriers to effective investing and to identify new ways in which small investors can also become part of the solution.
EDUCATION The new EU reporting requirements arising from the Corporate Sustainability Reporting Directive and the European Sustainability Reporting Standards pose various challenges for companies, auditing firms, supervisory authorities, and universities. The new regulation, which calls for comprehensive and standardized reporting on environmental, social, and governance (ESG) aspects, has a significant impact on training and skills in these institutions. The project develops practical continuing education formats and ideas for teaching in order to strengthen ESG expertise, digital skills, and regulatory understanding in the long term.