Transition labels in climate finance


The collaborative project “Transition Labels in Climate Finance” (ClimLabels) aims to develop future-oriented perspectives for products in the financial markets and incentives for emission reductions, thus supporting the development of new labels for the transition.

It consists of four subprojects.

Subproject 1: Surveys, recommendations for action and coordination

The first subproject focuses on planning and conducting surveys, developing recommendations for action, and coordination within the collaborative project.

Subproject 2: Laboratory experiments

The second subproject uses laboratory experiments to investigate how participants in incentivized experiments demand transformation labels and to what extent these could compete in experimental economic markets.

Prof. Dr. Markus Dertwinkel-Kalt

Subproject 3: Future-oriented indicators and configuration of funds

The third subproject first analyzes existing sustainability labels for financial products and their use of future-oriented indicators. Subsequently, the informative value of future-oriented indicators (e.g., the reliability of science-based targets) will be empirically investigated. The results can be used to design financial products with a “transition focus” (e.g., equity funds) or to design disclosure requirements.

Subproject 4: Perception and use by private investors

The fourth subproject uses the findings of the laboratory experiments and investigates in field experiments whether the findings hold under these circumstances, the influence of expectation updates on allocation decisions, and the role of financial experts.