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Thinking sustainably at LGT

Thinking and acting sustainably is firmly enshrined in our corporate culture. We want to fulfill our social and corporate responsibility, give back to society, use natural resources carefully and contribute to climate protection. In order to achieve these goals, we engage in a regular dialog with various stakeholders.

Strategic dialog based on partnership

The only way to successfully deal with problems such as climate change, social imbalances and political polarization is to address them collectively. That is why LGT engages in a regular dialog with a broad range of stakeholders – first and foremost with our clients, our owner and our employees. But we also actively discuss sustainability with the authorities and representatives of civil society. It is very important to us that in these discussions, we provide information about our concerns in a way that is systematic, clear, comprehensible and geared towards the target group.

LGT Private Banking Report – high-net-worth investors and sustainability

A survey of clients in German-speaking countries conducted in 2020 by LGT confirms that private banking clients in Germany, Austria and Switzerland attach significant importance to sustainability. Environmental, social and ethical aspects play a role in investment decisions in all three countries. The ethical aspect is especially relevant to the respondents.

Further results:

  • 83% of respondents agree with the statement that the global destruction of the environment and climate change are serious problems
  • 75% share the view that the growing gap between rich and poor is causing major problems in society
  • Over 50% believe that sustainable investments have a positive impact on social conditions and ethical standards
  • For more than 75% of respondents, sustainable aspects have played a role in past investment decisions

Interested in reading the full report? LGT Private Banking Report 2020 (PDF)

 

Study “From ESG to SDG – the road ahead”

LGT Capital Partners surveyed over 200 investors from 28 countries, including pension funds, insurers and investment managers, about the extent to which they integrate ESG into their investment activities, how they assess the SDGs and what requirements they have for greater ESG integration.

The study found that 89 percent of the investors surveyed believe the SDGs will give rise to new investment opportunities. While only one-tenth of respondents currently assesses the impact of the companies they are invested in on the SDGs, 40 percent plan to do so in the next two years.

For the investors, the most important SDGs that they take into account in their investments are SDG 13 (climate protection) and SDG 7 (affordable and clean energy). In general, they prefer SDGs that offer specific investment opportunities – and can be linked to areas such as clean water, health and education.


Other findings:

  • 84 percent of the investors are of the opinion that integrating ESG factors into investment decisions has either a neutral or a positive effect on risk-adjusted returns.
  • Over half of investors (54 percent) say that the ESG criteria are relevant for their investment decisions and 47 percent of respondents say that they have already excluded managers from their investment universe for ESG reasons.
  • At the very top of the respondents’ wish list are best-practice standards and more sources of data that would make further integrating ESG criteria into their investment decisions easier.

Further information about the study by LGT Capital Partners is available here

lgt.com/joint-survey-esg

LGT promotes sustainable thinking among external investment managers

LGT invests substantially with external investment managers, particularly in the alternative asset classes private equity and hedge funds. We work closely with these managers and use our influence to persuade them to take greater account of sustainability criteria in their investment processes.

LGT ESG Report

Since 2013, we have been conducting an annual survey of our hedge fund and private equity managers about their ESG activities. The results are then published in our ESG Report. With this survey, we illustrate to our investors the extent to which managers integrate ESG factors into their investment processes, ownership guidelines and reporting practices. The survey is also a starting point for motivating managers to set sustainability targets for themselves, invest in sustainable development and in building and expanding their ESG expertise and processes.


Download

ESG Report 2020 (PDF)

LGT’s dialog with suppliers

Having a regular dialog with suppliers is important to us. That’s why we regularly invite them to our LGT Supplier Day. At this event, suppliers are sensitized to our sustainable procurement standards and provided with examples of best practices. The dialog strengthens the partnership with our suppliers and is in line with our goal of building long-term and stable relationships, and contributing to sustainable development.


Dialogue within LGT

We also foster an active dialog on sustainability within LGT. The idea behind these exchanges is to take into account current trends and developments. Our Think Tank consists of in-house experts and works on a project basis with external specialists. It supports the Sustainability Board in forming opinions, provides expertise to the various committees and helps in decision-making.


The fight against slavery

An important initiative that LGT strongly supports is the Liechtenstein Initiative on Modern Slavery and Human Trafficking.
Forty million people worldwide live in slave-like conditions, and around 25 million perform forced labor. According to estimates, these abuses generate a worldwide profit of around USD 150 billion. The issue of human trafficking and modern slavery are fortunately being given increasing priority in the political debate, and measures are being taken to combat them.

The Principality of Liechtenstein wants to actively help in this matter and in 2018, established a commission to combat modern slavery and human trafficking. For one year, members of the governments of Liechtenstein, the Netherlands and Australia, as well as representatives from a broad range of authorities and companies, discussed how the financial sector can contribute. The results were presented at the UN on 23 September 2019.

This Blueprint for Mobilizing Finance Against Slavery and Trafficking defines five main goals and contains concrete measures that build on these goals. The goals include taking laws against slavery into account in compliance, creating transparency (e.g. in supply chains), using leverage (e.g. in lending), actively supporting victims (e.g. when restoring their creditworthiness) and the use of technological innovations.

LGT strongly condemns child labor, forced labor and human trafficking. We do not invest in companies associated with these practices and actively support the Liechtenstein Initiative.

Further information can be found here: www.fastinitiative.org

H.S.H. Prince Max von und zu Liechtenstein, CEO LGT

“For us, sustainability means conducting our activities in a socially responsible manner and with a long-term, holistic view.”

H.S.H. Prince Max von und zu Liechtenstein, CEO LGT