LGT has signed a service agreement with BMO Global Asset Management (BMO GAM) for stewardship to support its sustainable investing strategy. BMO GAM will engage on behalf of LGT with listed companies in which it is invested in order to actively address sustainability issues. LGT is one of the first private banks in Europe to implement this collaborative approach to corporate engagement.
LGT is intensifying its commitment to sustainable investing. Stewardship, the active dialogue between investors and companies, is an important next step on its path to reaching net zero by 2030 and becoming the leading provider of sustainable investment solutions. The private bank of the Princely House of Liechtenstein therefore recently signed an agreement with BMO GAM, a leading service provider in the area of corporate engagement.
To date, stewardship has been reserved primarily for large institutional asset managers. "For our clients, ensuring that their portfolios have a focus on sustainability is becoming increasingly important. Our agreement with BMO GAM makes us one of the first private banks in Europe to take an active ownership role in companies and to address sustainability directly with these companies," says Christopher Greenwald, Head of Sustainable Investing Europe at LGT.
BMO GAM, since 2021 part of Columbia Threadneedle Investments, has been active in stewardship for more than 20 years and has represented the interests of its clients in approximately 1000 companies. "Active ownership is one of the most effective measures for achieving a change towards greater sustainability at companies," says Rochus Appert, Head of Sales for Central Europe at BMO GAM. "Sustainability is a core element of LGT’s strategic direction. We are delighted that we will have the opportunity to represent its interests and those of its clients in the companies."
Exercising voting rights in the UK
In addition to this new initiative, LGT is continuing to strengthen the stewardship measures it introduced in 2020. LGT in the UK is in particular focusing on the progress made by companies in the areas of climate and diversity. To this end, it will continue to actively advocate for further development of these areas at this year’s annual general meetings and to hold companies accountable. Through this increased analysis, LGT also advocates for greater diversity in terms of gender and ethnicity on company boards and beyond into management and teams.
LGT becomes a member of Climate Action 100+
LGT is also taking an important step with regard to cooperation and the further development of sustainability standards together with other financial institutions. It has become a member of Climate Action 100+, the largest collaborative engagement program in the fight against climate change. The aim of this initiative is to encourage the world’s biggest greenhouse gas emitters to reduce emissions across their value chains, provide enhanced climate reporting and improve their management of climate-related risks.