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.
Inclusive capitalism
Our purpose is to build a better society, while improving the lives of our customers and creating value for shareholders. To do this we’re investing in long-term assets that benefit everyone from housing to renewable energy – we call it inclusive capitalism.
ESG at LGIM
Our purpose is to create a better future through responsible investing. What does this mean in practice?
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.
L&G CSR
As part of L&G, our Corporate Social Responsibility (CSR) encompasses the work we do with communities and charities and our journey to net zero. You can also download our latest reports and read our latest CSR stories here
LGIM ESG Tools
LGIM Destination@Risk has been developed as a proprietary toolkit to assess climate related risk for our investments.
LGIM Temperature Alignment provides a tool for measuring and managing the impact of investments on climate change.
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
Engagement report - Q3 2024
Using our influence and scale to bring about real, positive change to deliver sustainable investor value.
Investment Stewardship
Our Investment Stewardship team engages with companies, alongside LGIM’s investment teams, to address company-specific and market-wide risks and opportunities. The team exercises our voting rights globally, holding companies to account. At the same time, the team works with regulators, policy makers and our peers to tackle systemic issues.
Active ownership
Global engagement to deliver positive change
Key risks
The value of any investment and any income taken from it is not guaranteed and can go down as well as up, and investors may get back less than the amount originally invested.
Whilst we have incorporated ESG information into investment decision making and stewardship practices, there can be no assurance that any responsible investing goals will be met.