Active Ownership
How we engaged globally to deliver positive change in 2023
Active ownership: aiming to deliver real-world outcomes
Our Active Ownership report details how our Investment Stewardship and Investment teams exercised voting rights across our entire book and engaged with companies, policymakers and other stakeholders with an aim to deliver positive change on topics including deforestation, income inequality, human rights and artificial intelligence.
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For LGIM, active ownership means engaging with companies, industry peers and policymakers to tackle systemic issues and create sustainable value for our clients. In doing so, we seek to realise Legal & General Group’s (L&G) vision of the benefits of economic growth being shared as broadly as possible.
We recognise that change is a journey that is typically delivered in steps, not leaps. We believe that constructive engagement with companies and policymakers is the best way to deliver this long-term, systemic change. Indeed, we celebrate those that take action to improve ESG outcomes.
But those that do not engage, or take heed of our drive for minimum standards, will find that we will use the range of stewardship tools to influence a better ESG outcome. These include voting against specific resolutions at these companies or, as a last resort, withholding investment while continuing to engage. That’s because we believe divestment is a blunt and often ineffective tool, which can result in investors overlooking the problem they are trying to solve.
2023 highlights
Key documents
Active ownership
How we engaged globally to deliver positive change in 2023
Past annual reports
Quarterly Impact Reports: A summary of our stewardship actions and impact.
1. Data as at 31 December 2023. This comprised 2,021 engagements in the environmental category, 354 in social, 561 in governance and 123 in other areas.
2. Data as at 31 December 2023. LGIM across all assets under management. Voting data in the Voting statistics by region section of the report represents all votes cast by LGIM in each fund in line with our Corporate Governance & Responsible Investment Policy in the 12-month period to 31 December 2023.
*Source: As at 30 June 2024. AUM in responsible investment strategies represents only the AUM from funds or client mandates that feature a deliberate and positive expression of ESG criteria, in the fund documentation for pooled fund structures or in a client’s Investment Management Agreement. Mandates which only invest in government bonds are not included, however where LGIM manages a mandate (for a third-party client) which is invested in a broad asset exposure that includes, but is not limited to, government bonds, these mandates would be included subject to that mandate having a deliberate and positive expression of ESG criteria.
Key risks
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results.
Whilst LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.
The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing in this fund is available in the prospectus at. http://www.lgim.com/fundcentre