Sustainability & Banking- Investing for the future?
On June 10th, 2015 the first MIBAS Debate on CSR of the summer semester was held at the University of Hamburg. The panel discussion was entitled “Sustainability & Banking: investing for the future?” and was moderated by MIBAS students Sarah Carroux and Tobias Froese. The panel was comprised of Frank Klein of Deutsche Bank AG, Thomas Küchenmeister of Facing Finance e.V., and Dirk Grah of GLS Gemeinschaftsbank e.G.
After a brief opening speech by the two moderators, each guest speaker was given five minutes to voice their standpoint on the topic. According to Thomas Küchenmeister, banks are major players with a lot of responsibility and thus, they must be transparent. If voluntary self-reporting is ineffective, the government must introduce regulatory measures. In Küchenmeister’s opinion, transparency is essential for raising the awareness of Deutsche Bank’s not-so-sustainable business activities among the general public.
After Dirk Grah finished his keynote address, a moderated discussion round commenced with the question: “what will the banking industry look like in 15 years?” Considering the current debacle with low interest rates, a change in the banking business model is not only highly likely, but also necessary, according to Dirk Grah of GLS. Küchenmeister agrees that traditional banking business models have become obsolete. ROI, risk, and liquidity are no longer the sole decisive factors in investing. Frank Klein responded by saying that the banking industry is currently in a pioneering phase, which will determine its future course.
To the question: “what are the determining factors for investment decisions?” Dirk Grah responded that good partnership is vital. GLS prides itself by investing solely in sustainable financial products, which have been researched thoroughly to ensure that they meet GLS criteria. Frank Klein stated that only 2% of Deutsche Bank’s investment portfolio is made up of sustainable financial products, mainly because most investors do not have a high demand for such products. In response, Küchenmeister repeated his call for more transparency and highlighted the need for financial institutes to voluntarily publish their credit reports.
A lack of transparency results in distrust and a deep sense of insecurity. - Dalai Lama