Parisa Shahyari: Why is a sustainable financial system so important?
Ms. Shahyari, what made you decide to join WWF?
There are several organizations and NGOs that can be used for sustainable financing.
I've seen a lot, worked in the financial market, in a ministry and also in the solar sector. At some point I realized that while I enjoy my job, it was not a real accomplishment. Finally, I have seen the job posting from the WWF and I have something positive and emotional connected to the WWF. They were looking for someone who comes from the financial sector, who knows the sector and the political actors that I already got to know in my work at a solar company and my job as a consultant for infrastructure projects for the Ministry of Transport. I just wanted to do something where on the one hand I knew my skills were in demand and I wanted to be able to identify with the brand and the organization. And the WWF has given me that, everyone has a common vision and works with all their heart on their projects. They are all the same: committed, energetic, positive, authentic and present.
You have long worked in the financial sector in Germany. Did you ever have any disadvantages due to your immigrant background and as a woman?
It's the other way round. It never mattered much which country I came from. With a large bank, much is international anyway, which is why people with different cultural backgrounds are needed. It was therefore an advantage for me that I had a different background.
Nevertheless, you will have mastered many challenges in your life?
The biggest fight was actually to survive the 11th grade in Germany and to learn the language in parallel. Looking back at the cultural differences was what drew me the most, but also strengthened me. Because once you do something like that, you know you can do other things as well. The death of my father in Iran was very difficult for me. I was not with him and could not care for him the last few years as I would have wanted. On the other hand, he was the one who shaped me so that I am now with the WWF: He believed that the current consumption of resources and the endless consumption will eventually bring us to our knees. I would be so proud if I could say to him now: I'm trying to avert the disaster at least a little bit.
What do you think are currently the biggest opportunities and risks in Germany in terms of fiscal policy?
The biggest opportunity is to see what kind of leverage the financial system has for our environment, for our climate and also for social issues. With the signing of the Paris Climate Agreement and the United Nations Sustainable Development Goals (SDGs), the world community has made much needed decisions for more sustainable development for the environment, society and the economy. Since then these topics have reached the top of the political and public discussion. It is high time to take action to put into action the necessary steps to reach these agreements. The financial industry plays a key role in this, because banks and investors have a tremendous influence on the sustainable transformation of the overall economy and many social conditions with the conscious control of cash flows. Both the EU Commission and the European Parliament are currently working on various legislative initiatives that include concrete proposals on how the financial sector can make its contribution.
That's where we come from the WWF: we talk to the relevant political actors and draw attention to the need for greater engagement, so that Germany also supports activities at EU level. While other EU member states are taking significant steps in the right direction, the German government is still holding back. Many players have already recognized that sustainability is no longer a theme in the fashion world, but pure necessity. The financial actors, ie banks and investors, need a standardized framework from the state.
What is important in terms of sustainable financing for industrialized nations such as Germany?
Industrialized nations make up a small percentage of the total population. But these nations consume the most resources and cause the highest CO2 emissions worldwide. And if we continue like this, we will cause ecological and, ultimately, economic and social problems, especially in developing countries, which use scarce resources. That is, we have the responsibility in the industrialized countries to change things and, for example, to change processes in the production and consumption of energy so that CO2 emissions are reduced.The role of the financial system is to consider how the company that I finance actually works, how does it produce? Are environmental aspects and social criteria observed? It is not only a moral issue, it also affects long-term bank lending: if the financed company consumes too much CO2, it will eventually be limited by law and works could be closed down. Then loans can not be repaid and the bank makes losses. In order to secure one's own survival, does the financial system have to look carefully where the money goes? And with regards to environmental issues, that's not enough.
What is your heart project right now?
What are your goals right now? In general, we at the WWF want to draw attention to the leverage of the financial world in order to correct certain things or to do something else. In this context, we would like to focus on the sustainable investment of individual consumers. Millions of Germans can go to their client advisor and tell their bank not to invest their own money in companies that have environmentally harmful productions or child labor. Today, you go to your relationship manager and have the four or five stock funds or other products to choose from and get selected from. It would be great if everyone concerned with their retirement plans or capital investment paid attention to sustainability. If, for example, the client adviser hears these wishes from 500 customers and at some point desperately goes to his store manager, this reaches the board of the bank. So our demand can make sure that the bank's board is thinking about how to increase the supply of sustainable investments. As with our entry into the organic market, we can also control our consumption behavior in our investment.
Do you believe that sustainable investment is especially important for women?
Sustainable investments have little to do with gender. But we women in general care far too little about our pension and it will rely too much on the partners or husbands. We make part-time contracts, have children, step back and believe that everything is going well. Of course, it's nice when everything goes well, but often it does not. It is precisely these women - and this is statistically proven - that are affected by old-age poverty. Since you as a woman should take care of your retirement anyway, you can do it sustainably. Ask your client advisor at the bank what sustainable ideas are.
What three tips would you give women for their finances?
- Even at the beginning of working life, every woman should take care of her own finances and pensions. The guarantee of being cared for by someone else does not exist.
- Ask the employer which forms of company pension plans are offered. An employee has a right to make provisions for the operation for old age. But in what form and over which contract this happens, the employer decides. In many companies, the employer also pays a certain amount of money that can be used for old-age provision. Unfortunately, these so-called asset-based services are not used by many employees.
- Pay attention to the sustainability of your financial products. So you can not only provide financially for your future, but help to make the whole system fit for the future. But, as with all investment decisions, the risks of sustainable products must be considered. Before any big and long-term investment, advice from trusted experts makes sense.
What questions can we ask our bank advisor at the next appointment?
- Which sustainable investments are offered?
- How is sustainability defined? Is investing only in pioneers in matters of environmental protection, etc., or is there a negative list? So companies and industries that are not invested in?
- How does the product contribute to achieving the climate goals?
- Are social criteria taken into account (for example, exclusion of child labor)?
- Are there any investment products that have a sustainability seal, for example from the Forum Nachhaltiges Geldanlagen?
Thank you for the interview, Ms. Shahyari.
