Human-induced climate change is one of the largest, most pervasive threats to the natural environment and societies. LGT CP recognizes that the financial industry has a role to play to fight against these challenges, and we therefore continuously develop our climate action strategy, especially as it pertains to the LGT endowment and our direct sustainability funds.
To address climate change in the LGT endowment and its underlying building blocks, we have implemented a framework for climate action around two core objectives:
The first objective is about measuring the GHG emissions for individual portfolio holdings and taking the necessary steps to decarbonize the portfolio over time, in line with the net zero commitment by 2050 or sooner. The second objective is more top-down in nature, as it focuses on identifying critical vulnerabilities within the strategy by stress-testing the investment portfolio against adverse future pathways. Based on this analysis, portfolio managers can reallocate capital, where necessary, in order to make the overall portfolio more resilient to physical and transition risks related to climate change.
Over the last few years, we have developed a comprehensive climate action framework allowing us to stringently implement and measure defined targets and action items. Since the commitment to align the LGT endowment with the net zero target by 2050 or sooner, made in 2021, we have reduced the GHG emissions intensity by 30% through consistent efforts across the major asset classes. This brings the portfolio to a level that is currently well in line with the emission pathways of limiting the temperature increase to 1.5°C.
In addition, several other of our liquid funds are also aligned with the goals set under the net zero commitment.
Find out more about our initiatives and achievements in our ESG Report 2023.
Supporting the global efforts to combat climate change, limit global warming to 1.5°C and achieve net zero emissions by 2050 or sooner, we have joined several initiatives dedicated to climate action, including the Net Zero Asset Managers Initiative (NZAM).
For further information on our NZAM disclosures, please visit this website.
Additional memberships include: