We know that for many, investing responsibly is important: both because of a desire to better understand how wealth is invested and whether these investments reflect your values.
Our Sustainable Portfolio Service is a discretionary investment service designed to meet your unique financial objectives. We invest in a diversified range of holdings which include themes such as renewable energy, financial inclusion, education, social housing, climate change action, sustainable waste management and renewable material production.
Commitment: we look to invest in funds that have sustainability at the core of their investment mandate.
Integration: we want to invest with third party fund managers that have clear, demonstrable and integrated ESG processes.
Intentionality: we select funds that take a best-in-class approach and look to invest in businesses that are sustainable leaders and deliver positive impact.
We believe that companies wishing to create a long-term successful and sustainable business should consider the effect that their business has on the environment and the society in which they operate, and seek to minimise the negative impact on them.
Our approach has to start with our own firm and we are taking action to measure and reduce our business' impact on the environment. We have specific sustainability targets at LGT to achieve this.
When making investment decisions for the sustainable portfolios, we seek to exclude companies, via the funds chosen for investment, whose activities we deem to be controversial. We aim to invest in those that mitigate their risk by having a strong focus on the environment, society and good governance, and alignment to the United Nations Sustainable Development Goals (UN SDGs).
UN Sustainable Development Goals
The UN SDGs are a universal call to action, signed by United Nations Member States in 2015. The goals aim to improve the world, through encouraging collaboration and innovation with purpose to create a world without poverty, a healthier planet, and a just, peaceful society.
A combination of approaches
Sustainability is a long-term force for change in markets, countries and companies. The investment landscape has evolved in recent years and a more progressive, integrated approach has developed. When we make investment decisions, we eliminate certain industries (responsible investing), we prioritise sustainable practices (sustainable investing) and we invest in positive impact (impactful investing). We believe there is power in all three approaches and combine these to achieve a shared investment goal.
We use exclusionary or negative screening to avoid investing in companies through fund exposure with connections to specific activities.
We ensure the incorporation and integration of environmental, social and corporate governance (ESG) factors in our investment decisions.
Through our chosen funds, we invest in companies that are determined to create a positive environmental and social impact.
Climate change is one of the biggest challenges of our time. In order to achieve the aims of the Paris Agreement, the financial sector must also make a contribution. For example, climate change mitigation plays a decisive role in the investment decisions made for our sustainable portfolios. Read our latest white paper to learn more about our sustainable investing and the operational measures we are taking to curb global warming.