Active ownership: Global engagement to deliver positive change

Active ownership means working with companies, policy-makers and other investors to
create sustainable value. Our annual report details how we achieved this in 2019.

In 2019, LGIM:

4,000

Opposed the election of more than 4,000 company directors globally in 2019*

739

Held 739 engagements with companies to raise their environmental, social and governance (ESG) standards

11

Took sanctions against 11 companies named as laggards under our Climate Impact Pledge


*These votes represent instructions for our main FTSE pooled index funds

Active ownership reports

Climate change

  • LGIM supported more shareholder resolutions on climate change than any of the world’s 20 largest asset managers1
  • We encouraged many of the world’s largest companies – including oil major BP – to take action on climate

ESG integration

  • LGIM established a global platform for engagement and collaborative, active research across asset classes
  • We continued to develop our proprietary ESG scoring, taking action on poor‐scoring companies, and extended our industry‐leading Future World range

Income inequality

  • We opposed 35% of executive pay packages globally
  • In the US, we opposed 352 “say on pay” votes and supported a further 15 shareholder proposals to encourage stronger compensation practices


1
Source: ShareAction – Voting Matters (2019)

Our top five engagement topics with companies:

Climate change

Remuneration

Diversity

Board composition

Strategy

Learn more about the Investment Stewardship team and their work

What the new Stewardship Code 2020 means for investors

The ambitious update to the Stewardship Code goes a long way to putting an end to greenwashing. With new expectations about how investment and stewardship are integrated across asset classes, tougher hurdles to become a signatory and publicly available reporting from 2021, investors can expect a lot more transparency and comparability from asset managers in the future.

Why corporate culture matters

Whether it’s for future investment or a potential new job, a company’s culture matters to your decision. But with culture so often embedded in unspoken behaviours and patterns, it can be hard for boards and investors to measure and manage it. In this episode, we talk to Clare Payn about what makes a great corporate culture and some of the key things investors can look out for.

Climate Impact Pledge

See the second annual results of our Climate Impact Pledge, which showcase the corporate leaders and laggards on climate action.