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ESG in our investment and monitoring process

Consideration of ESG issues is an integral part of our investment process, which we have developed to align with the PRI.

  • Our investment teams are responsible for taking ESG considerations into account when performing due diligence on investments.
  • These assessments form an important input for the portfolio manager and into the discussions held by the investment committees in reaching a decision whether to invest.
  • We then monitor our portfolio for a wide range of risks, including those related to ESG, and we engage with managers or companies by offering advice on further ESG integration.
  • In addition, we conduct bespoke ESG monitoring for certain clients to confirm compliance with their specific ESG frameworks, including ethical considerations.

 Processes to integrate ESG principles across various assets classes

  • We have developed specialized processes and frameworks to integrate ESG across the various assets classes and investment structures.
  • The launch of our dedicated sustainable bond and equities strategies in 2009 coincided with the go-live of our proprietary ESG analysis tool, the LGT ESG Cockpit. We use the tool for identifying and assessing the ESG risks and opportunities of corporates, supranationals and sovereigns.
  • When selecting external managers, performing a robust ESG due diligence is an essential part of our investment process.
  • Further, we have well-defined frameworks for ESG due diligence and monitoring in place for selecting co-investments and direct private debt investments.

We strongly believe in the value of participating in industry organizations focused on ESG  in order to collaborate with peers and to help raise awareness in our industry. This has included joining a number of organizations: