Combining ETF expertise and LGIM’s leadership on climate and responsible investing.
A dynamic responsible process
Despite the widespread interest in the integration of environmental, social, and governance (ESG) considerations into portfolios, there is still a lack of consensus on how to approach responsible investing. Business models and market expectations are always evolving and, therefore, necessitate a more dynamic approach rather than the static one frequently seen in the market.
To overcome this challenge, the L&G Responsible Exclusions UCITS ETF range is guided by an expert advisory Sustainability Committee to provide a more dynamic approach to responsible investment.
The committee – comprising experts in a diverse range of fields – actively researches market developments and monitors companies to identify both those that are engaged in irresponsible behaviour and those becoming more responsible. The committee can thus set a high threshold for inclusion in its responsible index, enabling it to respond to shifts in views on responsible investing.
Responsible and responsive investing
An ETF range designed to invest responsibly in an ever-changing world.
LGIM’s approach to corporate governance
As a responsible investor, Legal & General Investment Management (LGIM) furthermore engages the boards of the companies in which the ETFs do hold shares to promote best practices. This active engagement in corporate governance can help specifically target any companies that may be flagged by the committee’s ‘watch list’ of companies at risk of exclusion.
At LGIM, we have a rich history in responsible investing because we believe well governed companies, which treat employees fairly and work to minimise their environmental impact, are likely to be good investments. Our credentials include:
- Award-winning Corporate Governance team, with a 20-year track record
- Part of the wider L&G Group, building a better society for the long term
- Leading provider of ESG solutions to some of the world’s largest organisations
We express our commitment to responsible investing through company engagement, using our voting rights globally, working with regulators and policymakers, and collaborating with other investors and stakeholders to help raise global market standards across all our products.
To learn more about the LGIM’s approach visit our blog.
Insights
Divestment damages: quantifying the impact of ESG exclusions
The perils of ESG exclusions are often exaggerated – but so are their benefits.
The ESG story: Icarus or Cinderella?
Purely as a matter of financial theory, high demand for highly rated ESG stocks should depress the returns available from them; should investors be worried?
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Key Risk
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.