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In the ever-evolving landscape of pension investments in Germany, a notable shift towards sustainable and long-term investments is underway. This trend is particularly evident in the choice of fixed income and long-duration assets, which corporate pension funds are favouring to ensure stability and manage risks amid market volatility.
This cautious approach, which also includes reducing exposure to public equities and expanding into private credit and infrastructure investments, is part of a broader strategy aimed at improving governance and incorporating advanced analytics to better manage risks.
Notably, Germany’s largest corporate pension funds have recently reached record funding levels, indicating strong balance sheet positions that support sustainability goals.
One company at the forefront of this movement is Stuttgart-based Green Pension. As one of the insurers consistently implementing the green pension provision in Germany, Green Pension has been offering sustainable, private, and corporate pension provision since 2013.
While specific data on Green Pension’s market share or detailed implementation practices are not readily available, the company has made a significant stride in sustainable investing. As of December 31, 2020, Green Pension had invested 323 million euros in sustainable investments, three times more than what results from the contracts of the Green Pension.
Moreover, compared to the end of 2019, sustainable capital investments by Green Pension increased by around 15 percent. The fund selection for the Green Pension has been rated "excellent" by the Institute for Pension and Financial Planning (IVFP).
Green Pension's approach to sustainability is evident in its investments, which are assessed as neutral from an ESG perspective. This includes bonds from countries, real estate, or stocks. The company collaborates with fund providers who must demonstrate the sustainability approach of their funds.
The product family of Green Pension includes classic pension insurance, additional fund policies with and without guarantees, an index pension, and managed ESG portfolios. In 2020, the sustainable pension concept of Green Pension doubled its share in new business to 20 percent.
As the EU continues to push for sustainability, more and more insurers are following suit and offering sustainable products. By prioritising sustainability in its investments and consistently innovating, Green Pension is setting a strong example for the industry.
As of 2021, the total amount of contributions received by Green Pension stands at 93 million euros. With its commitment to sustainability and impressive growth, Green Pension is undoubtedly a company to watch in the world of pension investments.
- Green Pension's sustainable investments have increased significantly, with a 15% rise in sustainable capital investments from 2019 to 2020.
- In the realm of environmental-science, Green Pension evaluates its investments from an ESG perspective, ensuring bonds, real estate, and stocks achieve neutral scoring.
- Committed to sustainability, Green Pension has doubled the share of its sustainable pension concept in new business to 20% in 2020.
- In the domain of wealth-management, Green Pension aims to lead by example, demonstrating a strong focus on sustainability and extensive innovation in the pension industry, with a total contribution of 93 million euros as of 2021.
