Responsible investment strategies

In addition to the active ownership that underpins all LGIM’s investment processes and portfolios [1], LGIM has developed capabilities and solutions to help clients target ESG outcomes across asset classes in addition to financial goals.

Since the launch of the LGIM Future World fund in 2017, LGIM has designed sustainable investing strategies with ESG objectives in mind. For example, across the LGIM Real Assets portfolio, new fund-level strategies have included setting ambitious carbon-intensity targets and other enhanced ESG criteria.

Tangible outcomes

While investment strategies reflect a spectrum of ESG objectives, LGIM believes the focus is shifting towards more explicit and tangible outcomes. These include incorporating reductions in carbon-emissions intensity or an increased allocation to 'green opportunities' and targeted objectives related to clean water, healthcare breakthroughs and clean energy.

To help LGIM’s clients better understand ESG risks and opportunities, it is focused on developing tools to deliver strategies aligned to client outcomes with forward-looking ESG metrics. For example, LGIM established a Climate Solutions team to focus on LGIM Destination@Risk, its proprietary climate model. This is used to link a company's or government’s emissions and decarbonisation targets to an implied temperature increase, thus enabling LGIM to assess alignment with net-zero outcomes.


[1] LGIM's Investment Stewardship team votes on, and engages with, companies held across entire LGIM book

LGIM Funds are registered for professional investors only

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.