Stewardship and integration

Stewardship aims to promote the long term success of companies in such a way that the ultimate providers of capital also prosper. Effective stewardship benefits companies, investors and the economy as a whole. (UK Stewardship Code, FRC September 2012)

At LGIM we take our stewardship responsibilities seriously and devote significant resource to ensure our clients’ assets are protected and enhanced over time.

We take an active and impactful approach to stewardship by using our scale as a global investment manager to influence and change company and market behaviours. In doing so, we strive to achieve positive societal impacts, in the belief that it will create more sustainable long-term value.

We do this through:

  • Company engagement
  • Using our voting rights globally
  • Integrating environmental, social and governance factors into portfolio management
  • Addressing systemic risks and opportunities
  • Influencing governments, regulators and policy makers
  • Collaborating with other investors and stakeholders

We believe that real change is achieved by being an engaged and active owner.

We are active proponents of the benefits of the global stewardship codes in improving the quality of stewardship and ownership across the markets in which we invest. Please find more information in Influencing the debate.

LGIM is a signatory of the UN Principles for Responsible Investment and is committed to implementing its six principles to incorporate and report on environmental, social and governance (ESG) activities.

Link to the latest survey results - 2015

Integration

LGIM is committed to integrating ESG issues into our investment analysis and decision making processes.

Integrated analysis involves the consideration of ESG factors in traditional financial analysis. Such analysis can be complementary by identifying mispriced risks and opportunities. The purpose is to enrich the research process of issuers, sectors and the macro outlook, in order to generate enhanced risk-adjusted returns.