LGT Group

The financial institution publishes an engagement/stewardship report detailing the outcomes of its engagements on sustainability impact topics. It has publicly available policy statements committing to respect ILO core labour rights and human rights. The institution assigns responsibility for implementing its sustainability strategy to specific functions, teams, or committees. It also monitors its Scope 1-2 emissions.

The financial institution has the opportunity to disclose a policy statement expecting suppliers to respect the human rights declared by the ILO as fundamental rights at work. While the institution identifies material sustainability impacts across its value chain, it could further detail the process and criteria used for identifying and prioritizing these impacts. It is recommended that the institution links senior executive remuneration performance criteria to specific sustainability targets.

Although the wealth management subsidiary publishes an ESG stewardship policy, the institution could benefit from publishing its own policy at the group level to support environmental transitions and social best practices in line with its sustainability strategy. It is also recommended that the institution establishes and discloses a transition plan covering its operations, supply chain, and portfolio. Additionally, it should provide the breakdown of clients and beneficiaries by income group.

While the institution discloses the breakdown of assets by country group or region, it could further detail the breakdown of clients and beneficiaries by country. It is recommended that the institution’s risk assessment process includes risks associated with ILO fundamental rights at work for those impacted by its products, services, and capital provisions. Furthermore, the institution should disclose its process for identifying social risks related to its products, services, and capital in relation to the net-zero transition and provide examples of specific conclusions and actions taken on at least one salient human rights issue within the last three years.

This scorecard refers to information in English which was publicly available by July 15 2024. AuM and Total assets are stated in USD for comparability and have been calculated based on reported local currency values multiplied by applicable IMF currency converter values.