Stewardship 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, on which returns, and client and beneficiary interests, depend1. Stewardship involves different tools and levers that investors can use to influence and drive positive change with a company from both a financial and sustainability perspective.
1This definition is based on the UK Stewardship Code and the definition used by the Principles for Responsible Investment (PRI), the world’s leading proponent of responsible investment.
LGT recognises that stewardship is core to resilient investments as well as the transition to a just and low-carbon economy. The stewardship strategy focuses on achieving two key outcomes. The first is fulfilling our fiduciary duty, as stewards of clients’ investments, LGT’s primary responsibility is to deliver stable, long-term returns in line with contractual obligations, objectives, and risk parameters. Secondly, LGT also seeks to contribute to a sustainable future for clients, our owners, and wider society. Through sound capital management, LGT aims to contribute to a safer and more sustainable future. We undertake direct and collaborative engagement with companies, aiming to address systemic risks by encouraging them to address pressing sustainability issues such as global warming, biodiversity loss and the protection of human rights.
We focus on three key areas where we believe we have the most influence and can help to create the most positive possible outcomes.
We engage both proactively and reactively to identify and address material ESG risks and opportunities. Our four thematic engagement priorities – include Climate Change, Fairer Societies, Nature & Biodiversity and Strong & Robust Governance a mechanism which is at the heart of any successful business or strategy. These themes not only demonstrate our commitment to fostering sustainable growth but also represent material risks to our clients’ portfolios and the long-term operating models of the companies we invest in.
LGT believes that through collaboration, investors can contribute to more efficient and impactful outcomes by having a stronger voice and more effectively expressing concerns to companies. Collaborative engagement initiatives involve groups of investors working together, with or without the involvement of a formal investor network or other membership organisation, to help encourage debate and conversation on key engagement areas. Examples of these and other engagement activities can be found in our Stewardship Report.
We believe that clear and open communication with our stakeholders is essential to building trust and fostering long-term relationships. This commitment to disclosure underpins our stewardship and proxy voting policies, ensuring that our actions align with our values and the interests of our clients.
Stewardship embodies our commitment to creating long-term value, not just for our clients, but for society and the environment. Through our collaborations and partnerships, we hope to foster a resilient global economy for future generations.
Learn more about the definitions behind the key terms used in the stewardship landscape.
