Focus on Sustainability Labels: Economic and Legal Analysis of the Disclosure Regulation

How useful are labels and disclosure requirements for sustainable financial products?

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 and Prof. Dr. Katharina Hombach in RdF (Recht der Finanzinstrumente), issue 03/2024.

The full article is available in Beck-Online (subscription required).

Rimon is an international law firm widely known as being at the vanguard of legal tech and innovation with 46 offices on five continents. In Germany, it operates as Rimon Falkenfort. Rimon has been repeatedly recognized by the Financial Times as one of North America’s most innovative law firms.