Market view and Insights
LGT Private Banking will reduce its net emissions to zero by 2030. By taking this step, LGT is once again underscoring its commitment to the Paris Agreement and a sustainable financial sector.
Under the 2015 Paris Agreement, over 190 countries committed to limiting global warming to 1.5° Celsius above pre-industrial levels. In order to achieve this goal, global net emissions must be reduced to zero. LGT is convinced that the financial sector must also do its part. Among other things, it has therefore excluded companies that are involved in coal production and coalfired power generation from its investment universe since 2020. LGT is now going one step further: it is committing to reducing its net operational emissions to zero by 2030. It also aims to reduce net emissions from its own investments to zero by 2030.
In order to eliminate its net emissions by 2030, LGT will continuously reduce its operational emissions. By 2025, it will, for example, reduce these CO2 emissions by 20 percent per full-time equivalent and its energy and paper consumption by 30 per-cent, both compared with 2017. In addition, LGT aims to source 100 percent renewable energy by 2025. The net-zero strategy will be reviewed every three years in order to adjust the CO2 reduction target where possible. To compensate for its unavoidable emissions, generated, for example, through business travel or heating, LGT will remove the same amount of greenhouse gases from the atmosphere starting in 2030. This process of carbon dioxide removal (CDR) is achieved through activities such as reforestation or sustainable soil management aimed at capturing and storing carbon.
On the investment side of the business, LGT Private Banking's target is to reduce the carbon footprint of its own investments to the greatest degree possible by 2030. In addition, LGT aims to reduce the CO2 emissions of those investments in its client portfolios that can be influenced, i.e. that are directly managed.
Meaningful qualitative data are a prerequisite for systematically managing emissions. LGT already collects data on its operational emissions, but will continuously optimize and expand the quality thereof. To ensure harmonized accounting of investment-related emissions, LGT Private Banking is participating in the development of the harmonized industry standard Partnership for Carbon Accounting Financials (PCAF). In the coming years, LGT will use this as the basis for determining the exact CDR measures to be undertaken for its unavoidable emissions. LGT Private Banking will regularly review and disclose its progress on achieving net-zero emissions.
H.S.H. Prince Max von und zu Liechtenstein, Chairman LGT: "Climate change is threatening our way of life. It gives rise to significant economic costs and exacerbates social tensions and inequalities in many countries. LGT is convinced that all companies can contribute to ensuring a better future. I am proud of the fact that we are one of the first private banks to commit to reducing our net emissions to zero."
Details of LGT’s commitment to net-zero emissions can be found on the LGT website.