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Responsible investing

Our approach and credentials

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.

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Spotlight on SDR: How will the FCA’s new sustainability regulations affect financial advisers?

These articles unpack the key issues within the FCA’s SDR consultation paper and explore what this means for advisers and their clients.

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Net Zero 2050: More affordable than ever, if we act now

Our research suggests the window to achieve a 1.5°C outcome, consistent with ‘net zero’ emissions by 2050, is closing fast. But it also highlights the surprisingly positive reductions in the cost to achieve such an outcome.

LGIM ESG Score

We have developed a proprietary, rules based approach to scoring companies from an environmental, social and governance perspective. Learn more about our transparent scoring methodology and view our assessments of companies.

Climate Impact Pledge

The world is facing a climate crisis. Inaction is not an option. Download the latest version of LGIM’s Climate Impact Pledge report, which details our targeted engagement programme to achieve net zero, and learn about our scoring criteria.

Sustainability Policy

Our Sustainability Policy describes how we integrate sustainability risks into the investment decision-making process and consider the principal adverse impacts of our investments on sustainability factors.

 

 

Why choose us for ESG?

Our credentials as a responsible investor

  • We take a consistent approach, across our entire book, to voting and engagement
  • Innovation in tackling climate change, from modelling the energy transition to targeted engagements
  • A wide range of responsible investment strategies, across different asset classes

Integrated approach

Across both public and private assets, we have established a fully integrated framework for responsible investing, seeking to strengthen long-term returns and raise market standards. This is based on investment stewardship with impact and collaborative, active research across asset classes.

Future World

The Future World funds are for investors who wish to express a conviction on ESG themes. The range extends LGIM’s approach to responsible investing across a broad array of asset classes, strategies and investment styles.

Climate Impact Pledge

The world is facing a climate emergency, which could have drastic consequences for markets, companies and our clients’ assets. As a result, in 2016 we launched our Climate Impact Pledge, under which we assess, score and engage with companies key to the energy transition, to help them address this era-defining challenge.

Investment stewardship and engagement

Our Investment Stewardship team engages with companies to address company-specific and market-wide risks and opportunities. The team does so alongside LGIM’s investment teams, as part of our Global Research & Engagement Platform.

Active ownership

Active ownership means working with companies, policymakers and other investors to create sustainable value. Our annual report details how we achieved this in 2023.

View report

Disclaimer

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.

Funds in focus

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

Content and media

Q3_2024_Engagement_Report

Engagement report - Q3 2024

Using our influence and scale to bring about real, positive change to deliver sustainable investor value.

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