Climate action – five years into our net zero commitment
The climate action chapter describes our progress since the firm made a net zero commitment five years ago. In the LGT Endowment, greenhouse gas (GHG) emissions intensity has decreased by 40.6% since 2021. Carbon budgeting frameworks are now systematically applied across all major asset classes, supporting ongoing decarbonization efforts.
We continue to broaden our approach to climate solutions, focusing on the identification and integration of investments that contribute to the energy transition. Active ownership remains a key element, with regular engagement and collaboration with fund managers and portfolio companies to support climate objectives.
In private markets, we contribute to advancing ESG data standards through our role on the Steering Committee of the ESG Data Convergence Initiative (EDCI), working with industry peers to improve the quality and consistency of ESG portfolio company-level information available to investors.
To explore these topics in more depth and access supporting materials, please see the resources below:
In addition to these materials, we present examples from our portfolio companies that illustrate how climate action is implemented in practice:
Company exampleIberola
One of our portfolio companies well aligned with the net zero pathway is Iberdrola, a Spanish utility provider with ambitious climate targets. In 2024, Iberdrola produced electricity with carbon emissions significantly below the net zero aligned budget.
Company exampleH&MV Engineering
H&MV Engineering supports the energy transition through renewable infrastructure. The company designs and constructs substations that connect wind and solar farms, battery systems and industrial facilities to national grids.
Company exampleSSE
SSE is a UK-listed energy company investing heavily in renewable power and electricity infrastructure. With 5 GW of renewable power generation already operational, the company is a major contributor to the UK’s decarbonization.
Case studyNeoen
In Q4 2024, we co-invested in Neoen, a global renewable energy developer, alongside Brookfield. Neoen is one of the world’s largest independent renewable energy platforms, with 8.9 GW of assets in operation or under construction.
Case studyResolution Capital
Resolution Capital is a global listed real assets specialist with ESG at the core of its philosophy. The manager engages with companies and uses proxy voting to promote best practices, focusing on energy efficiency and green building standards as key drivers of long-term value.
