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.

Active ownership: global engagement to deliver positive change

Our 2023 Active Ownership report spotlights how we engaged with our occupiers and supply chains across real estate equity, our borrowers across private credit, and the wider industry.

We have also laid out ambitious goals for the year ahead, including further rolling out our Integrated Energy Solutions strategy, supporting the adaptation of assets facing climate risk, and continuing to leverage our occupier engagement platform to support their decarbonisation strategies.

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LGIM’s 13th annual Active Ownership report

From our rollout of net-zero audits to detail on our place-based social impact toolkit, read the full report.

Real assets case studies

Analysing flood risk across our real estate portfolios

  • We were the largest lender in the world’s largest ever debt-for-nature swap, purchasing $250 million of bonds.¹
  • The transaction allows Ecuador to restructure its debt at much lower repayment rates.
  • In return, Ecuador will direct savings of over $450 million to marine conservation activities around the Galápagos Islands.

Development of place-based social impact toolkit

  • When looking at social impact, it is essential we understand local needs, support community integration, and reinforce local economic resilience – which we believe drive better long-term returns for investors.²
  • To support fund managers in delivering positive place-based social outcomes, we have developed a toolkit to help apply these core principles across the investment lifecycle.²

Campaigning for safe sick pay

  • We are working to support The Safe Sick Pay Campaign in partnership with the Centre for Progress.
  • In November 2023, we hosted the Safe Sick Pay Business Symposium, at which over 100 businesses were represented.
  • We are working closely with our peers and The Royal Institution of Chartered Surveyors (RICS) to establish new standards in this area for the real estate industry.

Responsible investing

We believe embedding responsible investing factors into our investment analysis and decision-making will enable our business to deliver long-term positive value to all our stakeholders.

Learn more about responsible investing
I’m proud of our work over the past year financing nature-positive initiatives. By being more intentional in our efforts to drive positive outcomes, based on the needs of the communities where our assets are located, we can aim to generate long-term value for our investors.
Shuen Chan, Head of Responsible Investment & Sustainability, LGIM Real Assets

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. 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 is available from LGIM’s Fund Centres.

While 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.

¹Reuters, Ecuador seals record debt-for-nature swap with Galapagos bond, May 2023. 
²An investment which targets financial returns as well as positively impacting a local area, such as increasing sustainability or economic development. See case study on page 71 of the Active Ownership Report for more information.