Addressing climate change is a strategic priority for Legal & General, and we are pleased to report that during 2021 we made further progress towards achieving our climate-related goals.
16 Mar 2022
The annual Climate Report details our progress, key performance data, and future plans. We have strengthened our goals and are committed to decarbonising the assets on our balance sheet and our operations. This year’s report sets out our proposed ‘journey to net zero’ with various interim milestones. We are also in the process of setting and externally validating science-based targets (SBTs) and will disclose our targets in early 2023.
In 2021, we have:
We have now made £1.4 billion in renewable energy investments to date. We have also tightened our exclusion policies for high carbon investments, as well as launching investment products with accelerated net zero targets. We consider our main exposures to climate change risks and opportunities to be through our proprietary assets, and our investment strategy sets out ways to mitigate and reduce this exposure.
Our climate transition strategy is built of three pillars of Invest, Influence and Operate. There is still a long way to go in order to meet our climate goals, and the report also sets out our targets for the long and short-term future.
We recognise the role of international leadership and collaboration in delivering a decarbonised future. In 2021, we were at the heart of COP26, and we look forward to engaging with COP27 and using our influence to encourage progress.
Sir Nigel Wilson, Group CEO: “Sustainability is central to our purpose and we will continue to do everything we can to help translate the COP26 promises into realities over the coming years. Achieving net zero will require an astonishing feat of international cooperation and coordination – perhaps the greatest ever.”
Sir John Kingman, Chairman “We will, of course, continue to use our influence as a large global investor to promote a ‘just transition’ to a low carbon economy. A ‘just transition’ must be an inclusive transition. We regard active engagement as an effective way of achieving climate goals rather than divesting from high-carbon companies. Leaving the toughest issues to others is not the kind of inclusive capitalism that we regard as the best platform to achieve net zero by 2050.”
Established in 1836, Legal & General is one of the UK's leading financial services groups and a major global investor, with over £1.2 trillion in total assets under management* of which a third is international. We also provide powerful asset origination capabilities. Together, these underpin our leading retirement and protection solutions: we are a leading international player in pension risk transfer, in UK and US life insurance, and in UK workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
*at 31 Dec 2022