LGT aims to reduce net emissions from its operations and investments to zero by 2030. With this step, LGT is once again underscoring its commitment to the Paris Agreement and a sustainable financial sector.
LGT’s commitment to reducing emissions to net zero by 2030 comprises the following:
To achieve net-zero emissions from operations, LGT has set the following ambitious targets for 2025:
These goals are to be achieved by raising employee awareness, reducing consumption, increasing efficiency and introducing more environmentally friendly solutions. By 2030, operational emissions are to be reduced to the greatest extent possible, so that only unavoidable emissions, generated, for example, due to indispensable in-person client meetings, heating during the winter months and electricity used for the data center have to be neutralized. Between 2025 and 2030, LGT will systematically pursue a path towards further reducing CO2 and resource consumption. Starting in 2025, an initial share of operational CO2 emissions will be removed from the atmosphere through carbon dioxide removal (CDR) measures, while the remainder will continue to be offset. Beginning in 2030, all unavoidable emissions will be removed from the atmosphere through CDR measures.
On the investment side of the business, LGT's target is to reduce the carbon footprint of its own investments to the greatest degree possible by 2030. LGT also aims to reduce the CO2 emissions of those investments in its client portfolios that can be influenced, i.e. that are directly managed.
The detailed targets will be defined by 2025, and will be based on the company's capabilities, improved data and new technologies.
LGT will neutralize emissions that cannot be reduced through CDR measures. It is evaluating possible engineered and natural CDR solutions for its private banking business to this end.
High-quality data and transparent reporting are key to reaching these goals. The progress being made on achieving net-zero emissions is monitored and adjusted every three years. To this end, data quality is continuously improved and the data set expanded. LGT applies global and local reporting standards, also in cases where there is no obligation to do so.
LGT's voluntary commitment to the following partnerships and standards support transparent reporting.
LGT collaborates with the Partnership for Carbon Accounting Financials (PCAF), where, together with other financial institutions, it is developing harmonized reporting standards for the assessment of investment-related CO2 emissions.
In 2022, LGT will publish its first report in accordance with the standards of the Task Force on Climate-related Financial Disclosures (TCFD) for the 2021 financial year. In particular, this will include climate risks associated with investments and how these are being actively managed.
LGT is a signatory to the United Nations Principles for Responsible Banking (PRBs). This network of signatories facilitates the harmonization of sustainability standards and supports joint projects aimed at strengthening and developing sustainable financial institutions. LGT will report on its progress on sustainable investing for the first time in May 2022 and will conduct an impact analysis to identify potential high-impact activities and targets.
LGT is a founding member of the United Nations Net-Zero Banking Alliance (NZBA). Established in 2021, its members have committed to reducing their emissions to net zero by 2050. The NZBA's goal is to avoid the inclusion of carbon-intensive sectors and sectors that are damaging to the climate in investment portfolios. Through specific targets and regular reporting, it provides banks with the necessary framework to drive their transformation, decarbonize their clients' portfolios and promote change in the real economy.
LGT's operations have been climate-neutral since 2010. LGT is currently offsetting its emissions with a wind project (Gold Standard) in India.
Employee awareness of sustainability and sustainable investing is raised through internal training at LGT.
Supplier compliance with the principles set out in the Supplier Code of Conduct as well as with the applicable laws and industry regulations is required and actively monitored.
LGT has excluded companies involved in coal production and coal-fired power generation from its investment universe since 2020.
LGT is a member of numerous international organizations that play a key role in creating a climate-neutral financial sector:
LGT is a member of various associations that aim to make the financial sector more sustainable. These include Swiss Sustainable Finance, the Liechtenstein Bankers Association and the German association Verein für Umweltmanagement und Nachhaltigkeit in Finanzinstituten.