Leaders in helping people and institutions positively influence change while achieving their financial goals
As part of a global enterprise, we encourage companies to develop resilient strategies, think longer-term and consider all their stakeholders.
We are committed to leadership, transparency and consistency in sustainable investments, a commitment that runs throughout the global organization. We also work towards changing wider market standards, policies and regulations to make the financial system more sustainable.1
As part of our holistic approach to ESG Investing, we ensure our decisions, influence and products are focused around three important criteria:
Engaging with some of the world’s largest companies, driving change and raising standards
Embracing positive corporate stewardship by actively voting proxies to promote sustainable business activities
Designing solutions that reflect clients’ investment goals and values
Using LGIM’s analytical expertise to construct portfolios that reflect a client’s preference for certain investment themes
Incorporating ESG factors into company and security valuation
Ensuring a security’s value adequately compensates for ESG risks/opportunities as they relate to the probability of default
As active proponents of the benefits of stewardship codes, we aim to improve the quality of stewardship and ownership across the markets in which we invest. We endorse and adhere to the ISG Framework’s Principles for the US market. In addition, we help promote the long-term success of companies in such a way that the ultimate providers of capital also prosper. Effective stewardship benefits companies, investors and society as whole.
Active Ownership Report 2019
Our ninth annual Active Ownership report outlines the decisive action we’re taking on behalf of our clients to tackle issues as varied as climate change, diversity, board independence and income inequality. Through our active engagement with companies around the world, we are seeking to effect positive outcomes at the businesses in which we invest and for society.
Engaged with key global regulators, frequently commenting publicly (e.g. enhanced human capital disclosures2 and proposed proxy advisor regulations)
Leveraging media influence
Named 13 companies as laggards as part of our latest Climate Impact Pledge
Capital allocation driving change
Launched the Future World Fund, a suite of ESG oriented strategies, in April 2019
Taking a distinct stance
Recognized as a leader on key proxy votes on climate change, political lobbying, and executive pay3
1 “Legal & General” also seen as “we” throughout this presentation relates to Legal & General Investment Management America (“LGIMA”), an SEC registered investment advisor, Legal & General Investment Management (“LGIM”), an FCA authorized advisor, LGIM Asia an adviser registered with the Hong Kong Securities and Futures Commission and LGIM International (“LGIMI”), an FCA authorized advisor and SEC registered investment advisor. The foregoing presentation is for the services of only LGIMA.
2 Submissions are posted publicly, e.g. https://www.sec.gov/comments/s7-11-19/s71119.htm
3 Majority Action- Climate in the Boardroom: How Asset Manager Voting Shaped Corporate Climate Action in 2019. https://www.majorityaction.us/asset-manager-report https://www.sec.gov/comments/s7-11-19/s71119.htm