LGT Group

No leading practices were identified for the financial institution in the governance and strategy measurement area. 

As a member of the Net–Zero Banking Alliance, LGT Group has set a target of net-zero financed emissions by 2050. Additionally the financial institution discloses that it collectively engages with its clients on the topic of climate change as a member of Climate Action 100+. It also states that nature- and biodiversity-related impacts as one of its engagement topics/priorities with companies to which it provides financial services. 

LGT Group discloses the proportion of its total direct operations workforce for each employee category by age group and gender. The financial institution also has a grievance mechanism accessible to all workers to raise human rights complaints or concerns. Additionally it discloses a policy prohibiting bribery and corruption and a public commitment to protect personal data.  

In terms of its approach to senior leadership accountability the financial institution’s private banking segment has a sustainability structure in place however there is no evidence that LGT Group assigns responsibility for sustainability to the group’s board, nor links the remuneration of its executive or management teams to sustainability performance criteria. In terms of female representation in leadership positions, women are underrepresented on the board of directors where only 11% of board members are women. The financial institution also has an opportunity to describe its engagement approach on sustainability themes and impact topics with clients and investees on group level. 

LGT Group’s private banking segment commits to reduce as many emissions as possible until 2030, however no target across all financing activities could be found. Furthermore there is no evidence that the financial institution discloses key sectors or companies identified as priorities to engage with on climate issues, specifically alignment with the Paris Agreement. Other than that the financial institution discloses the share of EU Taxonomy aligned positions, there is no evidence that the financial institution discloses its financing activities devoted to climate solutions. While the financial institution’s private banking business segment is a signatory of the Finance for Biodiversity Pledge, no similar evidence was found across all financing activities. 

There is no evidence that LGT Group has a publicly available policy statement committing it to respect human rights laid out in the UNGPs and the ILO declaration on fundamental rights at work. The financial institution also has an opportunity to describe a comprehensive process for identifying its human rights risks and impacts across all its activities, especially its financing activities. In addition, to provide transparency on financial inclusivity, the financial institution has an opportunity to disclose the amount of finance directed towards, for example, women-owned businesses, small- and medium-sized enterprises (SMEs) or low-income developing countries.