Baden-Württemberg relies on sustainability: joining to the Pri initiative!

On January 7, 2025, the Baden-Württemberg state government announced that it is joining the Principles for Responsible Investment (PRI) investor initiative. The PRI was founded in 2006 in cooperation with the financial initiative of the UN Environment program and the UN Global Compact. The aim of this initiative is to integrate sustainability into investment processes and to give a public commitment to the corresponding principles.

signatories of the PRI are obliged to report their investment activities annually. Baden-Württemberg also undertakes this transparency for its two special funds, the supply reserve and the supply fund. As part of this step, a planned annual publication of the investment portfolio is planned in order to further increase transparency. The Pri principles have been largely met in pension assets since 2017, supported by a law for sustainable financial investments that has increased the standard in Baden-Württemberg.

sustainability and transparency in the focus

Finanzminister Dr. Danyal Bayaz underlined the importance of sustainability and transparency for Baden-Württemberg's investment policy. The first report for the special fund will be published in mid -2025. In this context, the consideration of environment social governance issues (ESG) is necessary. ESG issues conclude evaluation standards in the areas of environment, social affairs and corporate management and require an appropriate disclosure in invested companies.

The promotion of acceptance and implementation of the Pri criteria in the investment industry is also sought. Baden-Württemberg plans close cooperation with other signatories to better implement the criteria. The special funds include the pension reserve and the pension funds, which serve to finance the pension expenses of civil servants and judges. While the pension fund is supervised by the Deutsche Bundesbank, the pension reserve manages its funds by two fund companies. As of October 31, 2024, the fund's assets were around 12.93 billion euros.

In addition, the principles of PRI have been developed by investors for investors in order to promote a more sustainable global financial system. The signing of the signatories includes the consideration of ESG issues in the long-term advocacy of the beneficiaries, since such topics can significantly influence the performance of investment portfolios. Six principles lead the responsible investments and are designed to reconcile investors with social goals, such as Unpri.org explained.