ESG investors

Inclusive capitalism can deliver better returns by unlocking pension money and putting it to work building better societies, tackling the climate emergency, reducing inequality, closing the infrastructure gap and fostering a new intergenerational contract.

Nigel Wilson

Chief Executive Officer

Inclusive Capitalism and ESG

We think about the long-term ESG impact of our businesses, particularly in terms of:

  1. How our businesses operate
  2. How we invest our £95bn (ex. Derivatives and cash) of proprietary assets
  3. How we influence as one of the world’s largest asset managers with £1.3tn AUM
Inclusive Capitalism naturally aligns to ESG principles
  Environmental Social Governance
 

1 Asset Owners disclosure committee
2 Decrease from 2018 to 2019 by CO2e/£m
3 InfluenceMap
4 ShareAction - Voting Matters (2019)
5 50/50 by 2020 aims to have 50% of senior management roles filled by women

Operationally Ranked 4th among global insurers for approach to climate change risk and opportunity1 50/50 by 2020 gender diversity programme5 NED's on board: 67%
All renewable energy for operations Delivering 80k+ new homes over the past 5 to 10 years (3k p.a. of affordable) Women on Board: 42%
Principally Commitment to 2°C climate objective, with a 6% reduction in carbon intensity of Group asset portfolio2 £28bn social impact from investments and programmes to date Internal ratings set by independent team and reviewed by internal and external auditors and rating agencies
2m homes powered by L&G investments in wind farms Created 20k new jobs in regional cities through property platform driving science & technology growth Regular audits of asset portfolio, 4 in 2019, including 1 focused on environmental impact of assessment portfolio
Agent Leader on climate engagement among the 15 largest asset managers3 (239) 274 engagements on social topics in 2019 379 engagements on governance topics in 2019
Supported more shareholder resolutions on climate change than any of the worlds 20 largest asset managers4 Pushed investee companies to adopt a Living Wage for their staff 51 of the 72 US companies we engaged with over the past 3 years have now appointed at least one woman to their board
Inclusive Capitalism is not new to L&G, it is what we do, and have done, for years
Examples Then (2011) Now (H1 2020)
Affordable Housing London Central Saint Giles development delivered 53 affordable homes. 3,500 affordable homes pipeline (GDV: £750vm) with an ambition to deliver 3,000 affordable homes p.a. by 2023
Sustainable Buildings Bill Hughes (MD, LGIM Real Assets), was named Chairman of the Green Property Alliance, a collection of leading property member organisations which collaborate to achieve a more sustainable built environment. CALA includes ground source heat and PodPoint electrical vehicle charging. LGC Homes had committed to deliver low carbon, energy efficient homes, operationally net zero from 2030.
Clean energy London developments include c500 bicycle spaces LGC invests in Oxford PV to commercialise perovskite, a low cost, higly efficient solar cell absorber material that can vastly improve a solar panel's ability to convert sunlight into electricity, when produced at industrial scale, we believe this technology will make solar power cheaper and more widely available across the world (2016) Across the Legal & General Group, clean energy investments have now reached £1.4bn
ESG investment products LGIM launched its UK Equity Carbon Optimised Index Fund, which is sector neutral weighted compared to the FTSE All-Share but is around 20% less carbon intensive. BT Pension Fund was an anchor investor, with a 100m investment LGIM manages £174.4bn in responsible investment strategies explicitly linked to ESG critieria.
We can deliver strong, consistent returns for shareholders because we are economically and socially relevant
ESG resources