Skip navigation Scroll to top
Scroll to top

Thinking sustainably at LGT

We want to assume our social and corporate responsibility, give something back to society, make careful use of natural resources and contribute to protecting the climate. Thinking and acting sustainably is firmly enshrined in our corporate culture. However, we also maintain regular contact with various stakeholders in order to achieve these objectives.

On the basis of a survey about the relevance of sustainability issues carried out in 2015, we reviewed and modified the direction and objectives of our sustainability activities. Representatives from the business and academic worlds and from society as a whole took part in the survey together with employees from different departments and regions. The results confirm that the LGT 2020 sustainability objectives are on the right track. They also demonstrate that a sustainable approach is an essential means of future-proofing our business.

LGT Private Banking Report – sustainable thinking among wealthy investors

A client survey conducted by LGT in German-speaking countries in 2016 confirms that private banking clients believe that thinking, acting and investing sustainably is an important issue. However, environmental, social and ethical factors were rated differently in the individual countries. For example, ethical issues are relevant for more than half of the clients surveyed in Germany, but only for around one third of respondents in Switzerland and Austria.

Additional results:

  • On average, 40 percent of the clients surveyed already hold sustainable investments.
  • For up to 40 percent of the clients surveyed, environmental factors played a very important role in their investment decisions in the past.
  • Around 30 percent of respondents intend to increase their share of sustainable investments in future and two thirds would like to keep it unchanged.
  • Approximately 56 percent of the clients surveyed are of the opinion that the returns from sustainable investments are the same as those from traditional investments.

Study on the importance of sustainability among institutional clients of LGT

The results of the Global Insights on ESG in Alternative Investing study conducted by LGT Capital Partners and consulting firm Mercer were published in 2015.

Around 100 institutional investors from 22 countries were asked whether and in what way they take ESG criteria into consideration when allocating alternative investments. The results confirm our assessment of thinking and acting sustainably:

  • The majority of the investors surveyed (76 percent) consider ESG criteria when allocating alternative investments.
  • In addition, 57 percent of the investors believe that considering ESG criteria has a positive impact on the risk/return profile, while only nine percent feel that there is a negative connection.
  • A total of 69 percent of the investors are certain that their stakeholders are involved with ESG issues.
  • More than two thirds of them are convinced that integrating ESG criteria into the investment process is a key factor in reputation management.

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

lgt.com/joint-survey-esg

LGT encourages external investment managers to think sustainably

LGT makes substantial investments via external investment managers, in particular in the two alternative investment categories of private equity and hedge funds. We work closely with these managers and use our influence to convince them to take sustainability criteria into consideration to a greater extent in their investment process.

LGT ESG Report

Since 2013, we have carried out an annual survey of our hedge fund and private equity managers that covers their initiatives in the area of environmental and social responsibility and good governance (ESG). We publish the results in our ESG Report. We use the survey to demonstrate to our investors the extent to which the managers have integrated ESG factors into their investment process, their ownership guidelines and their reporting practices. The survey is also the starting point for encouraging the managers to set themselves sustainability objectives and to invest in sustainable development and in developing their ESG expertise and processes.

Download: ESG-Report (PDF)

Some important sustainable development results among hedge funds and in private equity:

  • Since 2015, the number of private equity managers who take ESG criteria into consideration when investing has risen continuously. Some 55 percent of the 184 managers we assess to determine whether they comply with ESG criteria are now rated either “good” or “excellent.”
  • There are still regional differences as regards the integration of ESG criteria in the private equity domain. Europe is the clear leader, followed by Asia and the USA. In Europe, where 66 percent of managers are rated “excellent” or “good,” the integration of ESG criteria is becoming a standard feature of the investment process.
  • The ESG ratings of hedge fund managers have also improved in recent years, though in 2017, the proportion of managers rated “excellent” or “good” remained relatively stable at nine percent.
  • The number of hedge fund managers who do not take account of ESG criteria has steadily fallen over the past three years. This is evidence of greater attention being paid to ESG issues and a growing commitment to sustainable development among hedge fund managers.

Encouraging sustainable thinking – in dialog with LGT’s suppliers

It is important to us to remain in regular contact with our suppliers. We therefore regularly invite them to attend the LGT Supplier Day. At this event, we raise awareness of our sustainable procurement standards and give examples of best practices. The dialog strengthens our partnership with our suppliers and meets our objective of developing stable, long-term relationships with them and of contributing to a sustainable performance.

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

 

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