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.
Ethical charter for responsible investors
Michelle Scrimgeour (LGIM CEO) comments in Investment Week on an ethical charter for responsible investors.
Reaching net zero: LGIM’s approach
Fighting climate change requires global greenhouse gas emissions to reach net zero. As an asset manager, we are committed to playing our part in this critical mission.
ESG at LGIM
Our purpose is to create a better future through responsible investing. What does this mean in practice?
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
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 in an era of uncertainty
The pandemic disrupted our lives in 2020 in numerous and profound ways.
In our tenth annual Active Ownership report, we outline the decisive action we took on behalf of our clients during this challenging period across a range of environmental, social and governance issues.
We gave particular attention to the near-term dangers posed by COVID-19 and the longer-term threat of climate change, while doubling down on our progressive stance on income inequality, diversity and board independence.
4,700
the number of directors whose election we opposed due to governance concerns
66,037
the number of resolutions worldwide on which we voted
20
the number of new responsible investment strategies we launched
*Source: LGIM, as at 31 December 2020. Includes responsible investment strategies explicitly linked to ESG criteria, across both pooled funds and segregated accounts globally. 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.
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 not a guide to the future.