Every person leaves a social and ecological footprint. For their part, business owners and executives have a responsibility, H.S.H Prince Max von Liechtenstein writes.

H.S.H Prince Max von Liechtenstein is CEO of LGT

The global population and economy have experienced strong growth in the last 50 years. This has had a substantial impact on the environment and resulted in pollution, and the negative consequences thereof are becoming increasingly acute. Climate change is one of the biggest global threats.

In order to contain its effects to some extent, it is imperative that global warming be limited to under two degrees Celsius compared to pre-industrial levels – one and a half degrees would be even better. This ambitious goal is contained in the Paris Agreement, which was agreed to by all the UN member states in December 2015.

Worrisome Developments

But it is not only climate change that harbors major risks. Social and political developments in many regions of the world are also worrisome. History has shown us that political and social systems that do not develop in an inclusive manner or that do not promote social integration, but instead are characterized by divergence and political polarization, often fail.

Only inclusive political and societal systems that promote social integration exhibit good long-term characteristics in terms of development – our past teaches us that. Unfortunately, however, that is not the current reality.

Ambitious Objectives

In the fall of 2015, the UN adopted the Agenda 2030 with its 17 sustainable development goals in order to address the environmental, societal and economic challenges of our times. These aim to take the world’s development in a better, more sustainable direction at all levels. To achieve these ambitious objectives, however, it is not enough for governments alone to implement legal and regulatory changes.

Business must also play its part – through structural adjustments and technological innovation. Instead of populism and protectionism, we must take an intelligent, inclusive and environmentally sustainable approach to our conduct – both at the personal and corporate levels, as well as at the national and international levels.

Solve Problems Instead of Creating Them

The finance industry has an important responsibility in this area. As an investor and investment advisor, it can play a key role in the necessary transformation process through capital allocation.

LGT, as a global private banking and asset management group, strives to implement this conduct in a number of areas: as an investor and investment advisor, for example, we collaborate with companies that take a long-term approach and focus on technologies as well as processes that are in line with long-term trends and that solve problems instead of creating them.

Important Guidance

We don’t only use typical financial data to evaluate companies that we invest in or that we work with, we also look at their overarching goals, their leadership principles and their attitudes toward employees, the environment and society (so-called ESG criteria).

In the areas where we have sufficient influence as advisors or investors, we specifically endeavor to ensure that organizations define meaningful social and environmental objectives in order to improve their sustainable positioning and impact. We also help our private clients align their portfolios in a more sustainable manner. With the LGT Sustainability Rating, we offer them important guidance in terms of the sustainability of their investments.

Deeply Rooted in the Corporate Culture

The sustainable approach and the resulting consistent integration of ESG criteria in all business segments is an important success factor for LGT. We want to achieve sustainable value enhancement – for our clients, our employees and the owner, but also for society and the environment.

This sustainable and long-term mentality and conduct is deeply rooted in our corporate culture. One key reason for this is that these values have played an important role in my family for generations.

Sustainability and a long-term approach have been an economic success factor for my family and have been significant in the Princely House of Liechtenstein’s ability to make a valuable contribution not only to the economy, but also to society.