Addressing climate change

We believe that addressing climate change is the right thing to do, not just for our business but for the many different stakeholder groups our business impacts

Our three strategic pillars

Invest, Influence and Operate

We seek to support the fight against climate change through our own investments, by using our influence as one of the world’s largest asset managers, and in the ways we operate our business.

Incorporating climate considerations into how we invest:

  • through reducing the intensity of our financed emissions
  • through investing in the technology and infrastructure needed to transition away from carbon emissions

Using our influence as an asset manager to promote a 1.5°C net zero transition:

  • through the products we offer
  • through our engagement with companies, governments and policymakers

Changing the way we operate to decarbonise our business:

  • through shaping our business strategy to build the reduction of emissions into our operations
  • through measuring and reducing the emissions from the goods we purchase
  • through achieving net zero carbon across our real estate equity platform by 20501

Our commitments

  • 2.1°C investment portfolio rating for listed bonds and equities by the end of 20262
  • reduce our portfolio greenhouse gas emissions intensity by 50%3
  • phase out investment in coal and oil sands and run off high carbon assets4
  • 70% of eligible AUM to be managed in alignment with net zero5
  • 42% reduction in our absolute scope 1 and 2 greenhouse gas emissions6
  • our core occupied offices (scope 1 and 2) and business travel to operate at net zero carbon emissions7
  • all new homes will be capable of operating at net zero carbon

    Commitments in detail

    The climate and nature report, prepared in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), describes our climate and environment strategy, scenario planning, risk management, metrics and governance.

    Climate and nature report 2023

    The first release of our climate transition plan sets out how we will invest to support the transition, use our influence as a large investment manager, and how we will decarbonise our operations.

    Climate transition plan

    1For more details please see LGIM's Real estate equity: Net-zero carbon roadmap.
    2On an ‘enterprise value including cash’ emissions-weighted temperature score, covering portfolio scopes 1 and 2.
    3From a 2019 base year.
    4Investment with more than 5% revenue exposure by 2030.
    5Excludes sovereigns and derivative securities until such time as agreed methodologies exist.
    6To account for the impact of the pandemic our 2021 base year includes estimated emissions data from our Real Assets portfolio based on 2019 data. All other base year emissions are from 2021.
    7Applies to occupied offices where we actively control the management of utilities.