ESG investing tools

LGIM’s Active ESG View tool informs fund managers on the ESG credentials of issuers by combining LGIM’s research with multiple external insights.

ESG tools

In 2021, this included building out LGIM’s approach to assessments of the UN’s Sustainable Development Goals (SDGs) contributions of companies, by analysing revenue streams and business practices; and of sovereigns, by analysing factors such as human rights and gender equality. This enables positive and negative alignments to the SDGs to be incorporated into LGIM fund objectives and portfolio construction.

The LGIM ESG scores (which are publicly available), are used for LGIM index fund construction and to support LGIM engagements, capture companies’ carbon emissions intensity, carbon reserve intensity (from fossil fuels) and exposure to ‘green’ revenues,[1] as well as the levels of transparency and certification around carbon and ESG data.

[1] Revenues of public companies engaged in the transition to the green economy

Key risk: The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested.