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.
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.
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:
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.
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:
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.
H.S.H. Prinz 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.”