Drawing on more than 20 years of experience in integrating ESG considerations into investment processes, LGT Capital Partners refined its proprietary ESG manager assessment frameworks for both private and public markets in 2025. The introduction of this updated methodology brings a more quantitative and fact driven approach to the ESG assessment and strengthens the firm’s ability to engage constructively with managers. It also provides deeper insights into regional differences as well as diverging regulatory environments and investor expectations across different markets.

Key findings presented in the ESG Report 2025 include:

• Manager assessments: 375 managers across private and public markets were evaluated using LGT Capital Partners’ enhanced methodology, providing greater transparency about regional differences and emerging practices. Among private equity managers, 86% now produce ESG reports, reflecting advances in the integration of ESG considerations. In comparison, 53% of hedge fund managers report on ESG, demonstrating the structural challenges of embedding ESG in certain investment strategies.
• Climate action: the LGT Endowment has reduced its greenhouse gas emissions intensity by 40.6% compared to 2021. Carbon budgeting frameworks are now applied systematically across all major asset classes and engagement with fund managers and portfolio companies continues to drive progress in this area.
• Impact investing: LGT Capital Partners continues to expand its impact investing platform. In addition to its established private equity offerings, the firm has developed impact investing capabilities in private debt. The report presents examples of impact investments that aim to combine financial returns with impact outcomes in the areas of climate action, healthcare and inclusive growth.
• CSR: at the firm level, sustainability efforts include sourcing 100% renewable electricity at LGT Capital Partners’ Swiss headquarters, donating around 10% of annual dividends to LGT Venture Philanthropy and fostering a culture of belonging for a global workforce of 72 nationalities.

Tycho Sneyers, Managing Partner at LGT Capital Partners and member of the Board of the Principles for Responsible Investment (PRI), commented:

“Regional approaches to ESG are diverging and in some markets, even the terminology has become contested. Nevertheless, the underlying practices of assessing environmental and social factors continue to be important tools for managing long-term risks and opportunities. At LGT Capital Partners, we remain committed to navigating this evolving landscape with a clear focus on achieving meaningful outcomes.”