Influencing the debate

We take action to address key themes and emerging environmental, social and governance (ESG) issues that could impact the value of our clients’ investments.

LGIM’s clients are invested in thousands of companies around the globe. As we manage these investments on their behalf, and seek to deliver positive long-term outcomes, we have a responsibility to address topics that can impact companies, sectors and entire markets. We outline below some of the issues on which we engage with companies, governments, regulators, our peers and other stakeholders

Board accountability

To be successful, we believe companies need to have people at the helm who are best-equipped to generate resilient and long-term growth. By voting on and engaging directly with companies, we encourage the formation of management structures that help companies to control risks and benefit from emerging opportunities.

Resilience and long-termism

As a long-term investor, it is essential that markets are able to continue to generate value for our clients over time. We work to prevent market behaviours that are detrimental to the value-creation of our clients’ assets.

Sustainable systems

Natural and human capital are the most vital components of every business. It is in the interest of all stakeholders that companies build a sustainable business model that is beneficial to society as a whole. In doing so, we believe companies will become more resilient to change, benefiting the whole market..

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Board accountability

Board effectiveness

An effective board is central to any successful company. A board should regularly review its composition and succession planning to ensure it continues to be made up of the right people for future success.

Recent publications on the subject:

LGIM’s annual non-executive director event 2020

Data security and privacy

A guide to effective employee engagement

A guide to the proxy voting chain

A guide to the role of the non-executive director

A guide to climate governance

Understanding corporate culture

Board-investor Dialogue

Board Tenure in United States

The Role of the Senior Independent Director

A guide to separating the roles of CEO and board chair

A guide to the role of the Lead Independent Director

A guide to the nomination of board chairs 

A guide to board effectiveness reviews

A guide to managing shareholder activism

Board Diversity

Having a diverse board can strengthen and broaden a board’s dialogue and debate, leading to better decisions for investors. We believe that having a mix of genders, ethnicities, ages, cultures, nationalities, experiences, skills and technological know-how is important in order to enrich the decision-making process in the boardroom.

Recent publications related to board diversity::

Improving diversity at US public companies

Debunking eight persistent myths about corporate diversity

Market insights: The importance of gender diversity

Gender Diversity on Boards

Board Independence in Japan

LGIM Sponsors New Financial’s Diversity and Culture analysis

Ethnic Diversity

Remuneration

The reward and incentive structures provided to management are an important mechanism to align executives with investors. We promote remuneration frameworks that are simple, transparent and aligned with the long-term strategy of the company.

Recent publications related to remuneration:

LGIM's Principles on Executive Remuneration – UK

LGIM's Principles on Executive Remuneration – North America

Executive Pay - Mind the Gap