Sustainable investment through action
Helping people and institutions positively influence change while addressing their financial goals
L&G encourages companies to develop resilient strategies, think longer-term and consider all their stakeholders. We are committed to leadership, transparency and consistency in sustainable investments. As part of our holistic approach to sustainable investing, we ensure our decisions, influence and products are focused around three important criteria:
Solutions
Designing solutions that reflect clients’ investment goals and values
Using our global analytical expertise to construct strategies and solutions that reflect a client’s preference for certain investment themes
Integration
Incorporating sustainability factors into company and security valuation where financially advantageous
Ensuring a security’s value adequately compensates for key risks/opportunities as they relate to the probability of default
Stewardship
Engaging with some of the world’s largest companies and aiming to raise standards
Embracing positive corporate stewardship by voting proxies to promote sustainable business activities
Our approach to stewardship
As proponents of the benefits of stewardship codes, we aim to improve the quality of stewardship and ownership across the markets in which we invest. We adhere to the ISG Framework’s Principles for the US market. In addition, we help promote the long-term success of companies in such a way that the ultimate providers of capital also prosper. Effective stewardship benefits companies, investors and society as whole. Our approach is intended to be:
Theme-based
- Long-term themes identified by Legal & General
- Quantitative and qualitative solutions
- Focused engagement
- Consequential
Regional
- Stewardship developments and ESG score, where applicable
- Focused engagement and consistent voting
- Market change through advocacy
Focused on individual companies
- Strategy
- Financial and non-financial performance
- Capital structure
- Sustainability risks
Transparency
Voting Disclosures
We are committed to a transparent approach in the exercise of our stewardship activities. We disclose the details of our vote instructions on a per-meeting basis, with the rationale provided for all votes cast against management.
Active Ownership and Climate Impact Pledge
Our Active Ownership Report highlights how we engage with companies and policymakers, and how we prioritize positive change for our clients and the world. Our Climate Impact Pledge outlines our global efforts to help companies limit carbon emissions. Please contact us for copies of these reports.
Insights
Unless otherwise stated, references herein to "L&G", "we" and "us" are meant to capture the global conglomerate that includes Legal & General Investment Management Ltd. (a U.K. FCA authorized adviser), Legal & General Investment Management America, Inc. (a U.S. SEC registered investment adviser) Legal & General Investment Management Asia Limited (a Hong Kong SFC registered adviser), Legal & General Investment Management Japan KK (licensed by the FAS in Japan), and LGIM Singapore Pte. Ltd. (licensed by the MAS in Singapore).