Manager assessments in public markets
Explore how ESG integration varies across long-only and hedge fund strategies, alongside developments in ESG priorities, governance and human rights.
Public markets
LGT Capital Partners captures opportunities across public markets through multi-asset, hedge fund, sustainable equity, fixed income and insurance-linked strategies, while integrating ESG throughout the investment process. We combine active and systematic investment styles across the risk-return spectrum.
In public markets, there are meaningful variations of ESG integration across investment strategies and asset classes. The assessment results show a widening gap between managers with highly institutionalized ESG practices and those where ESG integration remains less developed.
Assessment outcomes
At the beginning of 2026, we ran our annual ESG assessment across our full universe of public markets managers. We work with more than 70 managers and achieved a 100% response rate.
Overall, the 2026 ratings are broadly consistent with the trends of recent years. As we noted last year, the distribution continues to shift away from the middle: a decreasing share of managers are in the mid-tier (rated 2), while more are now positioned at either end of the scale. This reflects a widening gap between managers with highly institutionalized ESG practices and those where ESG integration remains less developed.
ESG ratings for long-only managers
Source: LGT Capital Partners. ESG rating assigned by LGT Capital Partners. Trends depicted here are for illustrative purposes, there is no assurance or guarantee that trends depicted will continue. Note: From 2025 onwards, ESG ratings 1 and 2 for long-only managers are shown as separate categories.
ESG ratings for hedge fund managers
Source: LGT Capital Partners. ESG rating assigned by LGT Capital Partners. Trends depicted here are for illustrative purposes, there is no assurance or guarantee that trends depicted will continue. Note: From 2025 onwards, ESG ratings 1 and 2 for hedge fund managers are shown as separate categories.
ESG priorities and governance
Beyond headline assessment results, the data provides insight into which ESG topics are addressed in manager policies and how formal governance structures are evolving.
Topics addressed in ESG policies
Source: LGT Capital Partners. ESG rating assigned by LGT Capital Partners. Trends depicted here are for illustrative purposes, there is no assurance or guarantee that trends depicted will continue.
Human rights: evolving investment practices
The risk of breaches of human rights are increasingly recognized as financial and operational risks, particularly in global and outsourced business models. As regulatory expectations rise and supply chain risks grow more visible, investors are focusing on how companies identify, manage and mitigate human rights-related exposures.
In our sustainable equity strategies, we have strengthened our human rights oversight by introducing third-party benchmarking data from the World Benchmarking Alliance (WBA) to identify companies with material exposure and performance gaps in human rights management. The WBA’s Social Benchmark allows us to assess companies against internationally recognized standards, shifting the focus from high-level policy commitments to the effectiveness of governance, due diligence and remediation processes.
Montrusco Bolton InvestmentsManager in focus
An example of how human rights considerations can be embedded across screening, analysis and stewardship.
American Water WorksEngagement in practice
An example of how third-party benchmarking can help identify opportunities for targeted engagement on human rights governance and disclosure.
From policy to practiceExpert perspective
How enhanced human rights analysis is becoming a core component of investment risk management and active ownership.
Marc Gonzales, Head of Sustainable Equities, discusses how our Sustainable Equity Investment team is strengthening its approach to human rights due diligence.
Stewardship activities and engagements
