STOXX Ltd., the operator of Deutsche Boerse Group’s index business and a global provider of innovative and tradable index concepts, has won a request for proposal to license four low-carbon sustainability indices to the pension funds of four states in Germany: Baden-Wuerttemberg, Brandenburg, Hesse, and North Rhine-Westphalia. The deal entails over EUR 7 billion in replicating assets.
“Sustainability is our guiding principle, and we also apply that to our investments,” said Gisela Splett, Permanent Secretary for Finance in Baden-Wuerttemberg. “We invest our assets responsibly: profitably, safely and with due regard to sustainability aspects.”
“This mandate win is a landmark for STOXX, because we won the trust of four large public investors at the same time. It underscores STOXX’s leading position in the ESG and sustainability space. Responsible investing continues to grow, transforming the way the asset-management industry allocates capital and leaving a mark on our world. By providing the right tools to investors we help generate more power to drive change and to impact our societies,” said Holger Wohlenberg, Head of Deutsche Boerse’s Data & Index business.
“The four pension funds were specifically looking for sustainable low-carbon indices that help them control their exposure to sustainability and climate risks, while at the same time meeting their investment policies regarding safe and stable returns. We are proud that our sustainable STOXX solutions enable them to provide impulses for a low-carbon economy and to achieve the objectives of the Paris Climate Convention,” said Willem Keogh, STOXX’s Head of ESG, Thematic and Factor Solutions.
STOXX partners with Sustainalytics on sustainability data and with CDP on CO2 emissions data. Sustainalytics provides classification and rating models; CDP’s climate-change research scoring methodology evaluates a company’s climate-related governance, strategy, risk and opportunities, targets and accountability.
STOXX first entered the sustainability, climate and ESG space in 2001. Today, its offering includes a wide range of index solutions, covering benchmarks, blue chips, ESG leaders, low carbon, climate impact, ESG factors and ESG-X indices.
