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:

 

Stewardship

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

Solutions

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

Integration

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

Our approach to stewardship

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.

Theme-based

  • Long-term themes identified by L&G
  • Quantitative and qualitative solutions
  • Focused engagement
  • Direct consequences

Regional

  • Stewardship developments and ESG score
  • Focused engagement and consistent voting
  • Market change through advocacy
  • Collaboration to amplify impact

Individual companies

  • Strategy
  • Financial and non-financial performance
  • Capital structure
  • ESG risks
Glacer

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.

PDF file: Read the full report PDF size: 6919 KB

Spotlight on

Business Meeting

Executive Compensation

The scrutiny on executive pay in North America is increasing year on year. In this whitepaper, we outline our stance on the issue.         

PDF file: Learn about our principles PDF size: 614 KB
Nature

Asset Manager of the Future

This paper describes why we view stewardship as an essential feature for asset managers to thrive in an evolving financial landscape.

PDF file: Learn about stewardship PDF size: 897 KB
Ranking

ShareAction’s ESG Ranking

ShareAction’s independent report ranked our index equity team third out of the world’s 75 largest asset managers for our approach to sustainable investing.

PDF file: Learn about the ranking PDF size: 2815 KB

Global track record

Transparent feedback

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

Get in touch

To learn more about our stewardship and ESG efforts or to understand our full breadth of investment capabilities, contact us at 312.585.0300 or send us a message.

Email us

 

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