The European Central Bank as a Sustainability Role Model

Philosophical, Ethical and Economic Perspectives

Editors: Prof. Dr. Harald Bolsinger, Prof. Dr. Johannes Hoffmann, Dr. Bernd Villhauer

Publisher: Springer International Publishing

Book Series : Sustainable Finance

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Wirtschaft"

Table of Contents

About this book

This book examines selected actions and investments of the European Central Bank (ECB) from a climate and sustainability standpoint. Shedding new light on the topic from various angles – ethical, philosophical, political, economical and legal – it situates sustainability mainstreaming in the finance and investment field at all levels. The former ECB President Mario Draghi once said that he considered sustainable development and an intact environment to be human rights, and therefore enshrined in the EU Charter of Fundamental Rights. The acting ECB President Christine Lagarde added that the future path for the climate is uncertain, but it would remain within our power to influence it. However, with all that in mind the ECB’s policy of buying assets as securities is often questionable. This volume analyzes these actions in connection with sustainability, and puts forward practical recommendations for improving the ECB’s investment strategy on its way creating a sustainable financial market.

Frontmatter

Where Do We Stand When It Comes to Sustainable Financial Markets?

Abstract

If we intend to support sustainability in the financial markets, research and analysis must come first. In the last 30 years, the groundwork has been laid by the Ethical Environmental Research Group (Forschungsgruppe Ethisch-Ökologisches Rating) leading to a rating system for Impact Investing. The article shows the progress in Sustainable Finance through the years and highlights essential aspects, connecting environmental, social and cultural compatibility. Only an integrated view can lead the European fiscal and financial policy towards a new level.

Johannes Hoffmann

Ethical Standards Beyond Monetary Policy: Approaches to a Philosophical Foundation

Abstract

This paper illustrates why the European Central Bank has obligations that go far beyond economic and financial market-related responsibilities. As a European institution, it is committed to a core set of values, especially with regard to the preservation of human rights. These obligations are part of its contribution to the creation of a social and ecological market economy in Europe and do not conflict with its regulatory and market-related responsibilities.

Bernd Villhauer

Fundamental Rights in the Core Business of the ECB: No Issue?!

Experience with the EU Petition 429/2017

Abstract

Petition 0429/2017 has been brought forward by Prof. Harald Bolsinger. In this article he describes backgrounds and developments around the petition. The petition, submitted on May the 8th 2017, addressed the investments policy of the ECB. Compliance with EU Fundamental Rights, it claimed, should be specifically included into the eligibility for EU owned assets. As Bolsinger explains, at the moment the ECB is involved in violations of the Charter of Fundamental Rights of the European Union through possession and trading of unethical securities.

Harald J. Bolsinger

On the Role of the ECB in Sustainable Finance

Abstract

The ECB has successfully performed its main task in the context of an independent monetary policy: The euro is stable and enjoys the confidence of the population and the economy. Regarding sustainability, the ECB has so far displayed varying degrees of ambition. The ECB on its own can, and should, expand its commitment within its mandate. By contrast, any attempt by politicians or corporates to exercise undue influence would end up in a loss of stability and prosperity.

Michael Schmidt

Legal Approaches to Encouraging the ECB to Comply with Human Rights Aspects When Establishing the List of Marketable Assets

Abstract

This essay deals with the question of whether the European Central Bank may certify reserve adequacy without taking into account compliance with the European Charter of Fundamental Rights by companies whose securities are to be included in the list of marketable assets. It will also be discussed whether there are legal means of enforcing the provisions of the Charter of Fundamental Rights with regard to the European Central Bank’s list of marketable assets.

Marian Szidzek

Central Banks in Europe: On the Road to more Sustainability

Abstract

The different central banks follow their own different paths to sustainability. The article asks, what types of sustainability they already practice. It describes progressive strategies, looks at the learning processes and analyses the shortcomings. The Network for Greening the Financial System (NGFS) tries to bring all these experiences together and helps the central banks and supervisors contribute to true climate protection and adaptation. But overall, the ecological and social effects of central banks are still underexposed.

Susanne Bergius

Backmatter

Title: The European Central Bank as a Sustainability Role Model
Editors: Prof. Dr. Harald Bolsinger
Prof. Dr. Johannes Hoffmann
Dr. Bernd Villhauer
Publisher: Springer International Publishing
Electronic ISBN: 978-3-030-55450-7
Print ISBN: 978-3-030-55449-1
DOI: https://doi.org/10.1007/978-3-030-55450-7