Stewardship through action
Leaders in helping people and institutions positively influence change while achieving their financial goals
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
Theme-based
- Long-term themes identified by Legal & General
- 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
Active Ownership
At LGIM America, our purpose is to create a better future through responsible investing. Our 12th Active Ownership report shows how we engage with companies and policymakers, and how we push for positive change for our clients and the world. Read the report to find out more about how we put our purpose into action.
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.
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.
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.
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.
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
We’re here to help
Please reach out to learn more about our stewardship and ESG efforts or to understand our full breadth of investment capabilities.
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