Interview with Ursula Finsterwald – Head of Group Sustainability Management at LGT

Deloitte: LGT has set itself the goal of achieving net zero CO₂ emissions by 2050. What progress has it made towards meeting this target?

Ursula Finsterwald: We’re on track in many areas. For example, we’ve cut the emissions generated by our own investments by around 65% since 2022 and reduced our energy consumption by almost 25% from the 2019 level. Progress in other areas has been slower than we expected, though, so there is still a lot to do. Our emissions from operations, for instance, have actually increased since 2019. But we’re not giving up and we continue to work towards meeting our ambitious targets.

Deloitte: Demographic change means Swiss society is getting older. What opportunities and risks does this pose to LGT’s efforts to achieve net zero CO₂ emissions?

Ursula Finsterwald: We see demographic change as a megatrend, so it is an integral part of our long-term sustainability and investment strategy. In macroeconomic terms, an ageing society spends more on healthcare, infrastructure and pensions arrangements, and that creates opportunities for investment in sustainable technologies and energy-efficient systems. But an ageing society also requires more intensive healthcare provision, and that drives up both consumption of resources and costs. It makes a sustainable transformation even more challenging.

Deloitte: Demographic ageing can also have an impact on investment behaviours, for example because investment horizons are shorter. Has LGT found older investors to be more or less aware of sustainable investment than other age groups?

Ursula Finsterwald: We’re careful not to generalise. Ultimately, every client has a unique set of needs and goals, and both older and younger investors want portfolios that align with their values. What we can say, though, is that the underlying motivation of the two groups is different. Many older investors place particular emphasis on stability and risk awareness and on protecting the value of their assets. Younger investors, by contrast, are often willing to accept more risk, for example by choosing private equity impact investments.

Deloitte: LGT’s 2030 sustainability strategy focuses not only on environmental measures but also on social aspects, such as equal opportunities and diversity. What specific measures is it taking to ensure age diversity across its teams?

Ursula Finsterwald: We think it is important to support our employees throughout their career. We offer more experienced colleagues both ongoing professional development and also support for personal development: for example, our in-house Liechtenstein Academy offers courses on preparation for retirement. We also explicitly acknowledge long service (tenure). For younger colleagues, we provide support in the early years of their career, for example through apprenticeships in various departments, work placements, and graduate programmes. Recruitment is a key factor here: when we recruit new staff, we ensure the new hire is a good fit for the team maintaining a balance between experience and fresh perspectives.

Deloitte: One of the cornerstones of sustainability is making a positive contribution to the planet for the benefit of future generations. But over recent years and decades, birth rates have declined markedly in most countries around the world. As societies shrink, is it going to be less important to make a positive contribution to future generations?

Ursula Finsterwald: No. We believe that sustainability means long-term stability and a liveable future. To be really successful, you need both. And that applies equally to current and future generations – regardless of changes in population size.