Liechtenstein-headquartered private financial group LGT has announced the introduction of a sustainability rating in its investment process.
The rating, established on five levels, assesses equities, bonds, funds and ETFs according to key environmental, social and governance criteria.
With the new rating, LGT’s sustainability analysts assess the individual financial instruments using a proprietary rating instrument. The tool assesses the financial instruments’ underlying companies and countries according to around 20 key environmental, social and corporate governance criteria.
Raw sustainability-related data are incorporated into the assessment process. Therefore individual financial instruments receive a sustainability rating ranging from one star (poor) to five stars (excellent) based on their ESG score.
Andrea Ferch, head Fund Research, LGT Bank (Switzerland): “With the new LGT Sustainability Rating, our clients receive easy to understand information about the sustainability characteristics of investments, and therefore have a valuable additional tool when making their investment decisions. The rating can be used to assess individual securities, but also overall portfolios, and investors can use this tool to align their portfolios in a sustainable manner. LGT is thus contributing to the sustainable allocation of capital.”
A signatory of the UN Principles for Responsible Investment since 2008, LGT introduced a clause for responsible investing for many of its investment programs in 2003.
As of 31 December 2016, LGT managed assets of CHF152.1bn (€139.7bn).