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Sustainable Equity

We offer clients the opportunity to make an ESG investment while benefitting from equity returns. Our sustainable equity strategies focus on companies with sound ESG credentials and strong fundamentals that can create sustainable value over the long term.

USD 3.5bn

invested

17

professionals

15-year

track record

What we do

As an early mover in the sustainable equity space, we have been integrating ESG criteria into our equity portfolios since 2009. When managing our global, quality, European and market-neutral strategies, we follow a fully integrated approach that combines in-depth fundamental analysis with a holistic ESG assessment at every stage of the investment process − from defining the investment universe to portfolio construction.

Pillars of our investment philosophy

Our investment philosophy is based on the following convictions:

  • Companies with sustainable business models and strong fundamentals are well positioned to create value over the long term
  • Bottom-up, active management results in concentrated, high-conviction portfolios
  • ESG is a driver of risk-adjusted returns

Our approach – why partner with us

We follow a fully integrated approach that combines fundamental and ESG analysis throughout the investment process, from defining the investment universe to portfolio construction.

We exclude companies that generate income from sensitive industries, ranging from tobacco or gambling to arms, thermal coal production or oil and gas extraction. Companies identified as UN Global Compact violators or considered worst-in-class are also excluded from the investment universe. Additional exclusions can be applied for mandate solutions.

Using our proprietary ESG Cockpit, we score all stocks in the investment universe according to ESG criteria and their impact on the UN Sustainable Development Goals (UN SDGs). When doing so, we examine each company’s ESG performance across operations, products and services, and we consider any ESG controversies.

We screen all stocks in the investment universe based on fundamental criteria. We aim to identify companies with stable business models and a long-term focus that demonstrate the ability to generate attractive returns, coupled with strong pricing power, low debt levels and a strong growth outlook.

We seek to identify companies with strong market positions that can participate in the structural trends driving long-term growth and benefit from a compelling combination of ESG and traditional financial returns drivers.

The final stock selection stage is based on a bottom-up approach focusing on our highest convictions across sectors as well as stock interaction in a portfolio context. The responsible portfolio manager collaborates closely with sector specialists.

We engage with portfolio companies on ESG, both bilaterally and in collaboration with other investors. Additionally, we exercise our shareholder rights in the form of proxy voting to strengthen corporate governance and support strategic ESG initiatives.

Our commitment to sustainable equity investing goes beyond integrating ESG factors. All of our sustainable equity funds have been awarded the Towards Sustainability label by Febelfin, an independent organization with a stringent selection process. This recognition underscores our dedication to investing in companies that drive positive environmental and social impact alongside financial returns.

The Towards Sustainability label was awarded to the LGT Sustainable Strategies on 14 October 2024. Investors shall not rely on the Towards Sustainability Label with regard to investor protection or investment performance of these strategies. Please refer to the website of Towards Sustainability for important information regarding the criteria and manner in which such labels are awarded.

Team – an average of 16 years of industry experience

Our Sustainable Equity team leverages the combined expertise of 17 professionals with an average of 16 years of industry experience to drive our proven investment and risk management process, generating performance across market cycles.

Gonzales_Marc

Marc Gonzales

Principal

Doswald_Adrian

Adrian Doswald

Executive Director

Rosengren_Sally

Active ownership – A targeted approach for positive impact

"At LGT Capital Partners, active ownership is one of the pillars of our holistic ESG approach to pursue sustainable value creation. In my role, it is rewarding to see how our proactive dialogue with investee companies can drive positive real-world impact. I greatly value the fact that the firm’s engagement approach prioritizes well-informed, targeted and consistent messaging. These strong foundations are becoming increasingly critical as we navigate significant environmental and societal challenges.”

Sally Rosengren

Equity Analyst

Hao_Jimmy

Investing for the long term

“Since joining the Sustainable Equity team in Hong Kong in 2018, I have been impressed by how we have continuously grown our expertise in fundamental, bottom-up research in Asia over the years. LGT Capital Partners launched its first sustainable equity fund in 2009. Today, we are an experienced specialist in sustainable long-term investing, which is one of the reasons why many Asian clients want to partner with us.”

Jimmy Hao

Portfolio Manager

Piersig_Ralf

Shared values for long-term success

“Our early recognition of the importance of sustainable equity investing has contributed to our successful growth in recent years – and we believe that the greatest part of this journey still lies ahead of us. Our team has grown steadily and, today, remains fully committed to our core values of mutual respect, flat hierarchies, quick decision-making processes and a healthy enthusiasm for future challenges in the sustainable investing space.”

Ralf Piersig

Portfolio Manager