Germany boasts a strong financial landscape with 1717 banks and savings banks, 530 insurance companies, and 2983 auditing firms, including the world's Big Four auditing giants: PwC, EY, KPMG and Deloitte. This cements the country’s reputation within the banking and finance sectors as a leader within the European Union. Germany has also embarked on a series of innovations to push it into the future with a predominant focus on a green and sustainable economy, which also extends to the financial sector.
Over the past decade, Germany has secured the second-largest share of green Initial Public Offerings (IPOs) globally, trailing only the USA and China. Approximately three out of every four green IPOs are conducted in these three economic giants. Germany has played a substantial role as it contributes 8.6% of the total national green IPO activities and as a result has solidified its global leadership in this sphere. On a broader scale, Europe leads in terms of green bond issuance volume, commanding 52% of the market. Germany accounts for nearly a quarter of the European market. The issuance of sustainable loans is on an upward trajectory in Germany. The German development bank, KfW, has exhibited consistent growth in sustainable loans, reaching a value of nearly €50 billion in 2021.
Germany and the European Union possess a robust ecosystem conducive to sustainable finance. The nation excels in terms of comprehensive sustainability reporting by local companies, a dependable regulatory environment, and hosts vital institutions like the International Sustainability Standards Board (ISSB). Germany's government has adopted a Sustainable Finance Strategy based on recommendations from the Sustainable Finance Advisory Council. The strategy aims to fortify the financial system, enhance resilience against sustainability risks, and facilitate companies' transition towards sustainable investments. It is tightly integrated into the broader European sustainable finance agenda.