The German states of Hessen, Baden-Württemberg, North Rhine-Westphalia and Brandenburg have appointed index provider STOXX to develop and maintain a family of sustainable equity indices to invest pension assets of €7bn.
A spokesperson for Hessen told Responsible Investor that it has already transitioned its equity portfolio to the new index family and no longer invests in the European ESG index created for it by Switzerland-based Stoxx in 2012. STOXX is part of the Qontigo index business of German exchange group Deutsche Börse.
RI covered the tender for the index in a recent profile of the State of Hessen – the home of the Frankfurt financial centre and which is increasingly seen as a leader on ESG in the country.
In May, Hessen became the first German state to sign up to Principles for Responsible Investment (PRI) on behalf of its €3.7bn reserve pension fund, which is managed by Hessen’s Ministry of Finance.
A few months later, Hessen anno…