Tracking ESG progress

We expect the companies we invest in to adopt ambitious sustainability strategies, treat their employees and suppliers fairly, and implement the robust checks and balances to drive long-term success. Therefore, we have developed proprietary tools to assess ESG performance, which help drive our engagement with companies, and influence our voting and investment decisions.

Our approach draws on decades of stewardship activities to promote best practices, combined with long-term thematic research and the remarkable growth in ESG data in recent years. Our scoring also brings transparency to our assessments – this helps companies identify and tackle gaps in their strategies and their disclosures, thereby contributing to better market outcomes. 

Climate Impact Score

Under LGIM’s Climate Impact Pledge, we have focused our engagement on ‘climate-critical’ sectors which we believe are key to meeting the world’s net-zero emissions challenge. We assess the strength of companies’ climate ambitions and their strategic shift, encouraging them to step up, whilst systematically holding companies accountable through voting sanctions and capital allocation.

We do this by using quantitative and qualitative measures. Drawing on independent data providers and our proprietary climate modelling, we have mapped circa 1,000 companies globally in ‘climate-critical’ sectors against key indicators and assessed them under a ‘traffic light’ system. Companies are thus able to verify their progress directly, whilst also encouraging improvements in the accuracy and availability of climate data in the market. We have also produced guidance around net zero challenges and opportunities in each sector.

Open the LGIM Climate Impact Scoring Tool

Disclaimer: The Future World Protection List (“FWPL”) is generated periodically from information provided to LGIM by its third party service providers/licensors. Although the FWPL is believed to be accurate, LGIM does not independently audit or verify the data contained in the FWPL and cannot guarantee the availability, accuracy, completeness or the reliability of such data. Although LGIM will seek to exclude all relevant securities set out in the FWPL from the relevant funds (being those funds  that apply the FWPL as set out in the relevant Prospectus) (each, a “Relevant Fund”), LGIM cannot guarantee that all securities listed on the FWPL (and all securities related to an issuer on that list) will be excluded from each Relevant Fund. To the maximum extent permitted by law, LGIM does not accept any liability which arises from its use or reliance on the FWPL or any errors or omissions contained therein.

The Terms and Conditions that govern your access and use of the LGIM Climate Impact Pledge score are limited to informational, non-commercial purposes only and do not constitute advice of any kind (including investment, tax or legal) on which you should rely, or a recommendation to buy or sell any product, service or investment. Except in accordance with the Terms and Conditions, the reproduction, redistribution or any other form of copying or transmission of the data and information displayed is prohibited without the prior written consent of LGIM and its partner third-party data providers. For more information on LGIM’s use of content from third-party data providers, please see the Terms and Conditions.

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