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ESG Report 2018 published

July 17, 2018

LGT CP has published its ESG Report 2018, which highlights results of the firm’s annual assessment of 294 private equity, hedge fund and long-only managers.

The report shows the progress managers in the US, Europe and Asia have made over the last five years in integrating ESG into their investment and reporting practices. Key findings of the survey include: 

Private equity

  • Private equity managers have improved significantly on ESG over the last five years, with the proportion rated “excellent” or “good” increasing to 58% in 2018, up from 27% in 2014
  • Europe is still the clear leader on ESG integration, followed by Asia and the US
  • Strong ESG practices have become the norm in Europe, with 75% of managers rated “excellent” or “good” 

Hedge funds

  • Hedge fund managers have also improved significantly on ESG over the last five years. The proportion rated “poor” has decreased to 9%, down from 42% in 2013
  • 91% of are now rated “fair” or better because they invest on our managed account platform. This allows for greater transparency and the exclusion of companies involved in controversial weapons 

Monitoring ESG controversies

The report describes how LGT CP works with an external partner to monitor 80,000+ information sources in 15 languages for ESG controversies. Monitoring enables LGT CP to identify ESG controversies in real time in our private equity, public equity and fixed income portfolios. It also enhances investment decision-making in our sustainable equity and fixed income portfolios. 

Public equity and fixed income

The report shows how LGT CP’s sustainable bond and equity strategies are able to significantly reduce their carbon footprints relative to public market benchmarks, while also providing exposure to a broad set of risk drivers. For example, the carbon footprint of our Sustainable Equity Strategy is 114 metric tons smaller than the benchmark. 

Download the ESG Report 2018 to find out more.