Investment stewardship

Investment stewardship means the responsible oversight of capital that we allocate on behalf of our clients, in order to generate sustainable benefits for the economy, the environment and society.

This involves engaging with the companies in which we invest, to address risks and opportunities – both company-specific and market-wide.

At the same time, the team works with regulators, policymakers and our industry peers to tackle systemic issues.

Our Investment Stewardship team exercises voting rights globally, across LGIM’s active and index funds, holding companies to account on the issues that matter most to our clients. These range from climate change to board independence and diversity.

The LGIM Investment Stewardship team comprises 22 professionals with an average of 11 years’ experience in areas including responsible investment, investment stewardship, accounting and audit, impact investment, and public policy.7 The team members cover many geographies, across both emerging and developed markets. The team includes both sector specialists and experts on ESG themes, such as sustainability, diversity and climate change. While it is predominantly based in the UK, it has a global remit, with members in Japan and the US. Team members represent around a dozen nationalities and speak as many languages.

The LGIM Investment Stewardship team focuses on client outcomes and broader societal and environmental impacts in its engagements with companies and policymakers. This spans consideration of systemic risks and macro developments through to company specific issues, implemented using the following six step approach:

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.