Stewardship Stewardship is a vital tool that sits at the heart of LGT’s investment strategy

An annual general meeting (AGM) is a yearly gathering of an organisation’s shareholders or members to review its financial performance, governance and strategic direction. Shareholders with voting rights vote on current issues, such as appointments to the company’s board of directors, executive compensation and environmental and social proposals. Shareholders who cannot attend the meeting in-person can still have a say by using proxy voting, which allows them to give specific instructions on how their votes should be cast. The AGM promotes transparency and accountability giving shareholders the chance to participate in key decisions and engage with the organisation’s leadership. 

Shareholder engagement captures any interactions between the investor and current or potential investee companies on Environment, Social and Governance (ESG) issues and relevant strategies, with the goal of improving (or identifying the need to influence) ESG practices and/or improving ESG disclosure. It involves a structured process that includes dialogue and continuously monitoring companies. These interactions might be conducted individually or jointly with other investors.

Companies are operating in an increasingly complex global regulatory environment. We aim to contribute our skills and expertise to public policy discussions in the best interest of our clients and portfolio companies. At LGT, we actively respond to consultations, participate in pan-industry working groups and contribute to investor letters when we deem it appropriate.

Stewardship, also known as active ownership, is the responsible allocation, management and oversight of capital to create long-term value for clients and beneficiaries, leading to sustainable benefits for the economy, the environment and society.

This term, as defined by the UN-backed Principles for Responsible Investment (PRI) and UNEP Finance Initiative, refers to the concept that large investors effectively own a broad slice of the global economy through their diversified portfolios. These investors have a vested interest in the overall health and sustainability of the economic system, to which their long-term returns are closely tied. As universal owners, they are incentivised to promote sustainable business practices and address systemic issues like climate change.

Voting or proxy voting refers to the exercise of voting rights on management and/or shareholder resolutions to formally express approval (or disapproval) on relevant matters. In practice, this includes taking responsibility for the way votes are cast on topics raised by management, as well as submitting resolutions as a shareholder for other shareholders to vote on (in jurisdictions where this is possible). Voting can be done in person, during an Annual General Meeting (AGM), or by proxy. Ballot items are not always closely related to environmental and social issues and cover financial performance, risk management, strategy and corporate governance matters.