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ESG in DC Pensions Report

Category: DB

Secure income assets: lifting the lid on ESG integration

As demand for investments in the private market continues to grow, there is an ever-increasing interest in considering environmental, social and governance (ESG) factors to promote greater transparency, for better risk management and to aim to deliver long-term value.

Renewing our Climate Impact Pledge

To spur net-zero carbon emissions, we are making our targeted engagement programme even more ambitious

LGIM's ESG scores

In 2019, LGIM ran a targeted engagement campaign focused on social, governance and transparency issues at large companies with poor ESG scores.

ESG in LGIM’s Active EMD investment process

As fixed income professionals, one question we find ourselves increasingly answering is: How do you make the connection between environmental, social and governance (ESG) considerations and credit?

Finding the greenest generation

Our research into the ESG views of Boomer, Gen X and Millennial savers

Active ownership 2019: Global engagement to deliver positive change

ESG, easy as 1,2,3

Practical steps for meeting increased disclosure requirements

Climate Impact Pledge: Tackling the climate emergency

The second annual results of our Climate Impact Pledge showcase the corporate leaders and laggards on climate action; we are encouraged by improvements across sectors but will continue to press companies to meet this era-defining challenge.

Modern Monetary Theory: are deficit hawks an endangered species?

A once-fringe economic theory has been embraced by liberal politicians at the same time as traditional budget hawks have been in retreat. Its rise has potentially radical implications for inflation and investors.

ESG: how is LGIM helping you?

The prospects for and implications of a four-day working week

A future in which there is less work to be done will radically reshape the economy, with important consequences for investors – including some contrarian implications for the consumer and real-estate sectors.

Category: Fundamentals

Retirement anxiety, rate depression, populism…and what to do about it

With global interest rates remaining near all-time lows, and $15 trillion of debt providing investors a negative yield, bond-market bears are in danger of becoming extinct. But could today’s ageing society finally provide the trigger for a sustained bond-market selloff?

The nuclear option

Does a decarbonising world need atomic energy?

Demographic strategy: the cost of unhealthy living

Raising the retirement age can help with the fiscal costs of living longer. But our unhealthy lives could force us to look at other options.

Freedom for the central banks

In the next economic downturn, central banks will likely have to reach further into their unconventional playbook. But which policymakers have the most freedom to act and what does that mean for asset prices?

Investing in future cities

Are battery prices in for a shock?

Battery costs have declined rapidly in recent years, but the market is likely too optimistic about both the timeline for lower battery costs and what happens when we get there.

Category: Index

Responsible investing: factor friend or foe?

Can environmental, social and governance concerns (ESG) fit within a factor-based portfolio? In this article, we tackle two issues: the inconsistency in methodologies for ESG scoring, and ways to integrate ESG considerations into factor portfolios.

What the battle against plastic means for oil demand

Cleaning up the world’s plastic waste will be a monumental effort – one which will have major implications for petrochemical companies and the long-term demand for oil.

EU migration, populism and investment risks

LGIM’s Climate Impact Pledge: The results so far

"We are publicising the global corporate leaders and laggards on climate change."

Category: Active equities

China’s rising middle class: sector implications

Today’s China no longer matches the view of the country that most people have. Could this gap between perception and reality offer a wealth of investment opportunities?

Artificial intelligence gets real

Is artificial intelligence overhyped, or are we at the vanguard of a new wave of corporate productivity improvements ushered in by next-generation technology?

Category: Multi-asset

All hail shale?

The disruptive change of the ‘shale revolution’ has forced existing producers to adapt while reducing OPEC’s pricing power. We expect further far-reaching changes to take effect in the coming years

Unconventional policy in the next downturn

A lack of policy space means that central banks may have to turn to more unconventional responses when the next recession occurs.

The renewable revolution

The future of TV: It's blurred

Predictions about the demise of the TV industry have persisted for over a decade, even as UK TV advertising and subscription revenues have continued to grow. However, we believe the industry has reached a tipping point, driven by rapid developments in technology and changing demographics.

Demographic dividends, corporate challenges

Increasing life expectancy is one of the most profound success stories of the post-war era. The pace and scale of this human success story has been remarkable, but it is creating its own challenges for corporates.

Demographics and inflation – an age-old problem

Slower population growth has probably depressed OECD inflation by around ½% over the past decade. Going forward, the outlook could change.

Knowing me, knowing EU: an update on Brexit

End of the baby boom

The retirement of baby boomers is having a negative impact on economic growth. This is bad news for the return on risky assets and applies downward pressure on interest rates.

What happened to peak oil?

Peak oil demand is a contentious topic. It is crucial for climate change, yet there are possible negative downsides such as volatile oil equity prices and corporate bond defaults.

Investing in change

The enthusiasm and excitement of a new technology has on many occasions captured the imagination of the supposedly hard-nosed investment community, and encouraged them to overstate its profit potential.

Investing in a changing world

The world is changing and how it looks in five years’ time will be very different to today. A long-term perspective is the key to success.

The disruption dilemma

Technology change presents risks as well as opportunities. Identifying and valuing these risks is crucial to preserving investor value in both the short and the long term.

Demographic drivers

Global passenger car penetration: Grid lock!

Population density and growing congestion could limit growth in vehicle penetration.

The driving machine transformed

After more than a century of incremental change, technological trends and consumer demands around road vehicles are converging.

Ageing and wrinkles in public finances

Pay-as-you-go pension and healthcare schemes are under increasing pressure from ageing populations.

Asia demographics: from ageing champions to young challengers

Category: DB + DC

North America’s board refreshment challenge

In the US, the board refreshment process is under scrutiny yet remains focused on retirement age limits. LGIM suggests a better way for US companies to refresh their boards.

Peak coal: in terminal decline?

Our forecast of a long-term structural shift away from coal could have dramatic implications for investors.