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With a series of new regulations, the EU wants to urge savers to invest their money primarily in financial products that are committed to sustainability.
The first part of these regulations has just come into force.
With their help, the financial market should make a contribution to combating climate change.
Anyone can hardly have anything against that.
Stopping man-made climate change is the most important task of our generation.
The problem, however, is that sustainable investments do not make any contribution.
On the contrary, they preserve the status quo and prevent change.
Because almost all sustainable financial products work in such a way that they invest in companies that are already doing a lot for climate protection and that, for example, emit little CO2.
On the other hand, the climate sinners are excluded.
The thesis: When their shares are sold, capital is withdrawn from the companies and they strive for change.
However, this is a fallacy.
Because no capital is withdrawn from them by selling shares.
The shares then simply have other investors, in case of doubt Arab sovereign wealth funds or other investors who don't care about the fight against climate change.
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These then support the climate offenders in their attitude.
There is therefore no scientific evidence to date that such an approach, as the EU is now promoting, can bring about change.
In contrast, the effectiveness of another approach has been scientifically proven: engagement in companies.
The best way for investors to make change is by getting into a company and then putting pressure on its leadership.
Savers who care about the fight against climate change should do exactly the opposite of what the EU wants, they should avoid sustainable investments and instead get involved with the biggest climate sinners.
This is not only the most promising path to change, for these companies a reversal would also have the greatest effect on the carbon footprint.
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“Everything on stocks” is the daily stock market shot from the WELT business editorial team. Every morning from 7 a.m. with the financial journalists Moritz Seyffarth and Holger Zschäpitz. For stock market experts and beginners. Subscribe to the podcast on Spotify, Apple Podcast, Amazon Music and Deezer. Or directly via RSS feed.