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ESG Report 2020
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The industry has moved from awareness toward outcomes

The ninth annual ESG Report from LGT Capital Partners analyses the activities of 344 managers globally (including 267 private equity managers) and assesses the improvements made in ESG practices. The new report shows that alternative investors are increasingly focusing on ESG outcomes in order to address key issues including climate change and diversity & inclusion (D&I).

Committed to outcomes

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Alternative investors increasingly focusing on outcomes as ESG integration deepens

Please learn more about the key findings from our 2021 report in the video.

ESG Report – scope and methodology

LGT Capital Partners has been publishing its ESG Report annually since 2013. The ESG Report forms part of the firm’s larger ESG due diligence, monitoring and manager engagement process. The assessment serves a two-fold purpose. First, it shows our investors the extent to which managers are considering ESG factors in their investment, ownership and reporting practices. Second, it facilitates our engagement with managers on ESG, highlighting excellence in implementation and flagging areas for improvement. LGT Capital Partners’ analysis is based on assessment of managers across four key criteria: commitment to ESG through the development of specific policies or adherence to broader industry standards (such as UN PRI); the extent to which ESG is formally integrated into investment processes; ownership philosophy and the extent to which managers are active in defining the ESG practices of investee companies; and their reporting on ESG (at both portfolio company and aggregate fund levels). Managers are then assigned an overall rating on a scale of one to four, where one indicates ESG excellence and four indicates little or no institutionalized commitments to ESG practices.

Tycho Sneyers
Tycho Sneyers, Managing Partner at LGT Capital Partners and board member at UN PRI

"Clear trend towards more outcome-oriented approaches"

“Our analysis shows a clear trend towards more outcome-oriented approaches in the way managers implement ESG across different asset classes. This reflects the significant ESG progress we have seen over the last five years. Issues, such as climate change, diversity and inclusion, are now very clear priorities for investors, and managers will need to clearly demonstrate how they are positively contributing to address these challenges.”