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

Transparency

Ocean Life

Active Ownership

Over the course of 2021, the pandemic continued to highlight critical environmental, social and governance (ESG) challenges. But other issues were also at the forefront of our thinking, not least the danger of a climate catastrophe and the risks posed by geopolitical crises. In our 11th annual Active Ownership report, we outline the decisive action we took to deliver positive change on behalf of our clients on a broad range of ESG challenges.

PDF file: Read the full report PDF size: 14046 KB
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Voting Disclosures

We are committed to a transparent approach in the exercise of our stewardship activities. We disclose the details of our vote instructions on a per-meeting basis, with the rationale provided for all votes cast against management.

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LGIM ESG Score

We have developed proprietary, rules-based approaches to scoring companies from an environmental, social and governance (ESG) perspective. Under the score, we have published our assessment of several thousand of the world’s largest companies against 28 key metrics.

Explore our scores
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Sustainable Development Goals

The Sustainable Development Goals (SDGs), set by the United Nations, are a framework for articulating some of the most pressing social, economic and environmental issues that could threaten the livelihood and wellbeing of everyone on the planet unless they are addressed urgently. We fully support the objectives of the SDGs and many of the SDGs’ principles and themes are embedded in our approach to responsible investing.

PDF file: Learn about the goals PDF size: 1515 KB

Climate Impact Pledge

Climate change is one of the defining issues of our time. In recognition of its potentially catastrophic outcomes for the world – and our clients’ assets – we support efforts to limit carbon emissions to net zero by 2050. Under our Climate Impact Pledge, we commit to helping companies to reach this objective.

PDF file: Climate Impact Pledge PDF size: 17588 KB Press release Access our scoring tool

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.

 

1 Unless otherwise stated, references herein to "LGIM", "we" and "us" are meant to capture the global conglomerate that includes Legal & General Investment Management Ltd. (a U.K. FCA authorized adviser), LGIM International Limited (a U.S. SEC registered investment adviser and U.K. FCA authorized adviser), Legal & General Investment Management America, Inc. (a U.S. SEC registered investment adviser) and Legal & General Investment Management Asia Limited (a Hong Kong SFC registered adviser). The LGIM Stewardship Team acts on behalf of all such locally authorized entities.© 2020 Legal & General Investment Management Limited. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, including photocopying and recording, without the written permission of the publishers.

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