LGT Capital Partners' commitment to ESG is a reflection of our core values. Among these is the belief that being a good corporate citizen entails investing and acting responsibly.
LGT CP has a long-held commitment to incorporating environmental, social and governance (ESG) considerations into its client programs and its business overall. Since 2003, many of our programs have had a responsible investment clause written into their governing documents, authorizing us to exclude investments that are substantially exposed to arms-related activities, violations of human rights, irresponsible treatment of the natural environment or other non-ethical conduct of business. Consideration of ESG issues is an integral part of our investment process, as our investment teams are responsible for taking into account ESG considerations when performing due diligence on investments. Any opportunity that is pursued will have been vetted for such issues.
ESG integration has become more and more mainstream over the last years. In this context, we did see demand for a stronger outcome orientation, rather than an optimization of processes in regards to ESG. The introduction of the Sustainable Development Goals delivered a concept for outcome orientation. Tycho Sneyers, Chair of the LGT ESG Committee and UNPRI Board Member, elaborates on the opportunities and hurdles that come with this aspiration, sharing also insights from a recent survey done by LGT Capital Partners with several hundred investors globally.
How can investors assess the Sustainable Development Footprint of their portfolios? Alex Zanker, ESG analytics at LGT Capital Partners, explains how LGT Capital Partners can analyze the impact of a company’s products and services on the SDGs. Based on this holistic analysis, investors can debate how they want to enhance the positive impact of their portfolio – by focusing on a specific topic, for example climate action or by optimizing the portfolio in relation to all SDGs.
According to the Global Impact Investing Network, impact investments are investments made with the intention of generating a positive social or environmental impact alongside financial returns. Natalie Sediako and Keimpe Keuning, co-responsible for impact investing at LGT Capital Partners, share where and how this can be achieved and why we believe that private equity is very well positioned to drive substantial impact.
Tycho Sneyers, Managing Partner LGT Capital Partners, PRI Board member“The topic of ESG is likely to become even more critical as we come out of the coronavirus pandemic, with the crisis already causing a lot of reflection as to how a wide range of social and environmental issues can be improved. Investors will become even more outcome-oriented as a result, using tools such as the SDGs to ensure their sustainable investment activities have even more impact in a post COVID-19 world.”
Please learn more about the key findings from our 2020 report in the video.