Research projects

Duration: February 2021 - January 2023

Project partners: Evangelische Bank eG; EB - Sustainable Investment Management; Department of Sustainable Finance at the University of Kassel; Chair of Management and Sustainability at the University of Hamburg

Summary: Various cooperative research projects in the field of impact-oriented investing.

Duration: July 2020 - December 2022

Project Leader: Prof. Dr. Timo Busch - Research Group on Sustainable Finance at the University of Hamburg

Project partner: Prof. Dr. Christian Klein - Department of Sustainable Finance at the University of Kassel

Funding institution: Qualitätssicherungsgesellschaft Nachhaltiger Geldanlagen mbH (QNG)

Summary:The FNG seal is the quality standard for sustainable investment funds in German-speaking countries. The holistic methodology of the FNG-Label is based on a minimum standard. In order to further differentiate itself from the market, the quality standard awards particularly high-quality sustainability funds with up to three stars, which excel in the areas of "institutional credibility", "product standards" and "portfolio focus". The QNG is responsible for coordinator, awarding and marketing. An independent committee with interdisciplinary expertise also accompanies the review process.

Audits are carried out on behalf of QNG, a subsidiary of FNG, and in cooperation with the University of Hamburg to determine whether an investment fund can be described as sustainable. The methodology of the FNG seal is also being further developed.

Duration: December 2018 - November 2022

Project Leader: Dr. Kai Lessmann - Potsdam Institute for Climate Impact Research (PIK)

Project partners: Prof. Dr. Christian Klein - Department of Sustainable Finance at the University of Kassel; Prof. Dr. Andreas Ziegler - Department of Empirical Economics at the University of Kassel

Funding institution: Federal Ministry of Education and Research (BMBF)

Summary: Private sector financing will play a key role in the transition to a climate-neutral economy. It can finance innovative, low- or zero-emission alternatives for energy production or energy-efficient infrastructure while assuming the associated financial risks. However, success depends on the financial instruments available. The IF project examines existing and novel instruments, their attractiveness for different investor groups and their potential within national climate policy.

The IF project examines financial instruments for low-emission infrastructure that can be used to mobilize new investors. Institutional investors are of particular interest as they seem to favor the risk-return profile of infrastructure projects, but have so far largely ignored the financing of green infrastructure projects. Currently, both small institutional and individual investors have very limited access to low-emission infrastructure investments.

The project relies on a broad methodology to identify investment instruments that can be used to mobilize these investor groups. The range of existing financial instruments will be examined and new instruments developed. Key questions are what makes low-emission infrastructure an attractive investment for institutional investors and households and how much private infrastructure investments can contribute to climate protection.

Duration: September 2020 - February 2022

Project partners: German Savings Banks Association; Department of Sustainable Finance at the University of Kassel

Summary: This research project analyzes the impact of MiFID II and the implementation of the fourth measure "Consideration of sustainability in investment advice" of the EU Action Plan. The aim is to gain a deeper understanding of the effects of the integration of the sustainability preference survey and the potential barriers resulting from this regulatory intervention on the part of investment advisors. Semi-structured interviews were conducted with 30 investment advisors to answer the research question. This analysis was carried out using grounded theory according to Strauss and Corbin. The integration of the sustainability preference survey and the other measures taken by the Sparkassen-Finanzgruppe in this area at an early stage have resulted in many of the barriers that investment advisors previously perceived in the area of sustainable investments being reduced and in some cases overcome, as the present analysis shows. However, the following barriers on the part of investment advisors were identified: (1) lack of a uniform definition of the term "sustainable investment", (2) lack of a uniform label for sustainable investments, (3) perception of green-washing, (4) lack of impact reporting of sustainable investments, (5) risk aversion of German retail investors, (6) scope of sustainable products in product baskets is insufficient and (7) high perceived complexity of the future mandatory sustainability preference survey.

Duration: October 2018 - September 2021

Project Leader: Prof. Dr. Rüdiger Hahn - Chair of Sustainability Management at the University of Düsseldorf

Project partners:Prof. Dr. Christian Klein - Department of Sustainable Finance at the University of Kassel; Prof. Dr. Frank Schiemann - Department of Business Administration, in particular Corporate Accounting at the University of Hamburg; Prof. Dr. Daniel Reimsbach - Department of Economics and Business Economics at Radboud University; Claudia Tober - FNG e.V.; Matthias Kopp - WWF Germany

Funding institution: Federal Ministry of Education and Research (BMBF)

Summary: The project will investigate the contribution and underlying mechanisms of climate reporting to the reduction of CO2 emissions using a mixed-method research approach. It will first analyze whether and to what extent voluntary and mandatory reporting are related to the reduction of corporate CO2 emissions and how the capital market reacts to the publication of climate information. Building on this, the content dimension of climate reporting will be examined from an investor's perspective. In addition, the influence of alternative forms of climate reporting on management decisions is examined. In utilizing the results, "policy briefs" will be prepared for relevant decision-makers in politics and civil society, also with reference to the work of the Task Force on Climate-related Financial Disclosures (TCFD) and experiences from other countries, thus providing relevant impetus for the further development of climate reporting.

Duration: January 2015 - December 2017

Project Leader: Prof. Dr. Michael Hiete - Department of Business Chemistry at the University of Ulm

Project partners:Prof. Dr. Christian Klein - Department of Sustainable Finance at the University of Kassel; Prof. Dr. Rüdiger Hahn - Chair of Sustainability Management at the University of Hohenheim; Prof. Dr. Stefan Seuring - Department of Supply Chain Management at the University of Kassel; Dr. Gudrun Franken - Federal Institute for Geosciences and Natural Resources (BGR); Dr. Andreas Barth, Dr. Frank Schmidt and Enrico Kallmeier - Beak Consultants GmbH

Funding institution: BMBF

Summary: Mining and raw materials processing are associated with numerous environmental aspects. Many of the mines are located in developing and emerging countries, some of which have very poor working conditions. In some regions, the revenues from raw materials are used to finance conflicts (conflict minerals). Many end customers and companies at various points in the value chain therefore attach importance to receiving information on the extent to which sustainability requirements are met in the extraction of raw materials in order to fulfill their responsibility for the value chain of their products. The aim of the project is to develop a standard or certification system for mineral raw materials. A multi-stakeholder process is chosen as the methodological approach to ensure legitimacy and applicability. The impact on further processing along the value chain and the involvement of financial institutions will also be analyzed. The result will be a concept for the certification of mineral raw materials, for which the creation of a standardization document (DIN SPEC) is also being sought.

Duration: July 2016 - December 2016

Project Leader: Prof. Dr. Ulf Hahne - Department of Economics of Urban and Regional Development at the University of Kassel

Project partners: Prof. Dr. Christian Klein - Department of Sustainable Finance at the University of Kassel; cities of Frankfurt am Main and Bologna, Modena Energy Agency; ASTER

Funding institution: Climate KIC

Summary: In the CMF 2.0 project, the University of Kassel, the Modena Energy Agency (AESS) and the cities of Bologna and Frankfurt am Main have set themselves the goal of developing a customized structure for climate funds. CMF 2.0 differs from existing climate protection funds in that it is not only energy efficiency measures that generate a direct return on investment that should benefit from the funds, but also projects that make a substantial contribution in terms of holistic sustainability development in a local/regional context. Climate protection and climate adaptation form the framework for investment and funding measures as equivalent subject areas. Close and direct cooperation with local key players from politics, administration, business and the financial sector throughout the entire concept development process ensures a high level of connectivity towards implementation. The basic logic of the project gives equal attention and relevance to the supply and demand side. To this end, a robust analysis of potential local and regional investors is first carried out and their motives and expectations for investing in a regional climate fund (supply side) are determined. The demand side is determined by the measures and project areas included in the local climate strategies, which need to be analyzed in terms of their financial viability via a fund.