Beyond Paris alignment

Despite increasing integration of environmental, social, and governance (ESG) considerations into portfolios, there is still a lack of consensus on how to approach responsible investing. Business models and market expectations are always evolving and, therefore, necessitate a more dynamic approach than the static one frequently seen in the market.

To overcome this, the L&G ESG Exclusions Paris Aligned UCITS ETF range is guided by an expert advisory Sustainability Committee to provide a more dynamic approach to responsible investment.

The committee – comprising experts in a diverse range of fields – actively researches market developments and monitors companies to identify both those that are engaged in irresponsible behaviour and those becoming more responsible. The committee can thus set a high threshold for inclusion in its responsible index, enabling it to respond to shifts in views on responsible investing.

​At LGIM, we believe environmental, social and governance (ESG) factors – such as climate change, social inequality and executive pay – are financially material. So we see responsible investing as the incorporation of ESG considerations into investment decisions.

Responsible investing, in our view, is essential to mitigate risks, unearth investment opportunities and strengthen long-term returns for clients. It is also core to our approach: our very purpose at LGIM is to create a better future through responsible investing.