FUCHS | RICHTER, a German company that reviews private banks, has introduced a new sustainability ranking for private banks. The main criteria assessed for the rating are the quality of advice, how sustainability is incorporated into the investment process and investment proposal, as well as the overall investment process. Around 25 private banks in German-speaking countries have been reviewed to date, with new providers being added on an ongoing basis. The reviewers were impressed by LGT’s long-standing experience, high level of expertise and transparency, as well as its excellent execution, and gave the bank 92 out of 100 points. This puts LGT in the “Grand Master” category, which is the highest of a total of five levels. LGT’s sustainable product range and the LGT Sustainability Rating both received praise in the review report and were referred to as a rarity in the market. LGT was also found to be one of the top providers for advisory services. In this context, the report cites the relationship manager’s high level of expertise in sustainability as well as their ability to identify which values are important to an individual and introduce those into the investment proposal. “LGT is one of the top private banking providers for sustainability in German-speaking countries,” according to the review.
Olivier de Perregaux, CEO LGT Private Banking, says: “We are very pleased about the outcome of this ranking. Making sustainable investing straightforward, transparent and attractive for our private clients is something we have put significant effort into in recent years. This was driven by our conviction that investors can make an important contribution to sustainable development. This great result gives us added motivation to further expand our initiatives and our offering in this segment.”
An in-depth review process
The FUCHS | RICHTER sustainability ranking, which was conducted for the first time this year, consists of five levels. The highest is “Grand Master”, followed in descending order by “Master”, “Journeyman”, “Apprentice” and “Novice”. When conducting their assessment, the reviewers create a profile of each private bank’s strengths and weaknesses, taking into account factors such as: the company’s sustainability practices; how consideration is given to sustainability in its advisory services; how clients’ values are incorporated; how well sustainability is reflected in the investment proposal and product range; as well as the overall quality of the investment proposal. The profiles are broken down as follows: information provided by the banks: 25 percent; an assessment of the advice provided about sustainability 40 percent; how sustainability is incorporated into the investment process: 10 percent; how client requests relating to sustainability are integrated into the investment proposal on the basis of the annual market test in private banking: 25 percent. The private banks receive up to 100 points based on their strengths and weaknesses. Their score determines which level they are assigned to.