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The City of Science Darmstadt and HEAG strengthen transparency and good corporate governance
The Darmstadt City Council approved the revised Darmstadt Participation Code Final approval by the City Assembly is scheduled for February 2026 .
Since its introduction in 2012, the Code of Conduct for Public Enterprises has formed a central basis for responsible, transparent, and sustainable corporate governance within Darmstadt's municipal economy. It is regularly updated and complements other management tools such as the municipal economic strategy.
Mayor and Head of Municipal Holdings Hanno Benz emphasizes the importance of the update: The municipal holdings code creates clear and binding guidelines for modern, values-based, and responsible management of the city's holding companies. At the same time, it reflects a municipal economy that acts transparently, efficiently, and with a future-oriented approach in the interest of its citizens. The continuous development demonstrates that corporate governance in Darmstadt is understood as a dynamic process that responds to new challenges and strengthens established structures.
Revision with a focus on risk management and compensation transparency
The revision of the code was carried out by HEAG , the entity responsible for investment management, in close cooperation with the Department of Urban Economic Coordination of the City of Darmstadt. The aim of the adjustments is to enable municipal companies to identify potential risks even earlier and manage them effectively. This includes, in particular, the further development of internal control and early risk detection systems.
Furthermore, the updated code promotes greater participation of municipal companies in economic development in Darmstadt. Another focus is on increasing transparency in the remuneration of management and supervisory boards . At the same time, recommendations that had proven to be no longer effective or redundant, or that had become obsolete due to legal changes, were removed.
HEAG board members Prof. Dr. Klaus-Michael Ahrend and Dr. Markus Hoschek explain that the new version ensures that Darmstadt's municipal utilities operate not only in a sound economic manner but also with a positive impact on society. Transparency, risk management, and responsibility for the local community are key building blocks for the long-term performance of municipal companies.
Declarations of conformity demonstrate a high level of implementation of the code
Municipal holdings submit a so-called declaration of conformity . In this declaration, management and supervisory boards jointly confirm the extent to which the recommendations of the Participation Code have been followed. Deviations must be justified.
For the 2024 financial year, 79 companies submitted a declaration of compliance, including 75 majority-owned companies held by the City of Darmstadt and four minority-owned companies on a voluntary basis. All companies met more than 75 percent of the recommendations, with 50 companies even exceeding 90 percent . The declarations of compliance are published annually in the City of Darmstadt's report on its holdings .
The declaration of conformity for the 2025 financial year must already be submitted based on the new version of the code. Following its adoption by the city council, the revised Darmstadt Participation Code be available online in the "City Economy" section of the HEAG website.
(Darmstadt - Red/PSD/Stip)
