Fund Name | SRI Style | Product | Region | Asset Type | Launch Date | |
---|---|---|---|---|---|---|
L&G Future World Global Credit Fund | Environmentally Focused | SICAV/Offshore* | Global | Fixed Interest | 11/07/2018 | |
Fund Size: £168.90m Total screened & themed / SRI assets: £332200.00 Total Responsible Ownership assets: £1195690.00 Total assets under management: £1195690.00 As at: 31/12/22 Contact: fundsales@lgim.com |
||||||
OverviewThe Future World Global Credit Fund is an actively managed global credit fund with a long-term investment horizon which aims to preserve and grow capital through avoiding defaults and enhancing credit spread over time.
|
||||||
FiltersFund informationSustainabilityEnvironmental policy Sustainability policy Limits exposure to carbon intensive industries Sustainability theme or focus Favours cleaner, greener companies Sustainability focus Report against sustainability objectives Encourage more sustainable practices through stewardship Nature & BiodiversityBiodiversity / nature policy Climate Change & EnergyCoal, oil & / or gas majors excluded Climate change / greenhouse gas emissions policy Fracking and tar sands excluded Fossil fuel reserves exclusion Encourage transition to low carbon through stewardship activity Fossil fuel exploration exclusion - direct involvement Human RightsHuman rights policy Child labour exclusion Modern slavery exclusion policy Social / EmploymentSocial policy Health & wellbeing policies or theme Labour standards policy Governance & ManagementGovernance policy Anti-bribery and corruption policy Avoids companies with poor governance UN sanctions exclusion Encourage higher ESG standards through stewardship activity How The Fund WorksPositive selection bias Combines norms based exclusions with other SRI criteria Combines ESG strategy with other SRI criteria ESG weighted / tilt Labels & AccreditationsSFDR Article 8 fund / product (EU) Intended Clients & Product OptionsIntended for investors interested in sustainability Fund management company informationAbout The BusinessESG / SRI engagement (AFM company wide) Responsible ownership / stewardship policy or strategy (AFM company wide) Responsible ownership policy for non SRI funds (AFM company wide) Responsible ownership / ESG a key differentiator (AFM company wide) Vote all* shares at AGMs / EGMs (AFM company wide) Diversity, equality & inclusion engagement policy (AFM company wide) Sustainable property strategy (AFM company wide) Integrates ESG factors into all / most fund research SDG aligned aims / objectives (AFM company wide) In-house diversity improvement programme (AFM company wide) Just Transition policy on website (AFM company wide) Invests in newly listed companies (AFM company wide) Invests in new sustainability linked bond issuances (AFM company wide) ResourcesIn-house responsible ownership / voting expertise Employ specialist ESG / SRI / sustainability researchers Use specialist ESG / SRI / sustainability research companies ESG specialists on all investment desks (AFM company wide) Collaborations & AffiliationsPRI signatory Climate Action 100+ or IIGCC member UN Net Zero Asset Owners / Managers Alliance member GFANZ member (AFM company wide) TNFD forum member (AFM company wide) Investment Association (IA) member AccreditationsPRI A+ rated (AFM company wide) Engagement ApproachRegularly lead collaborative ESG initiatives (AFM company wide) Encourage responsible corporate taxation (AFM company wide) Engaging on climate change issues Engaging with fossil fuel companies on climate change Engaging to reduce plastics pollution / waste Engaging to encourage responsible mining practices Engaging on biodiversity / nature issues Engaging on human rights issues Engaging on labour / employment issues Engaging on diversity, equality and / or inclusion issues Engaging on governance issues Engaging on responsible supply chain issues Engaging to encourage a Just Transition Company Wide ExclusionsReview(ing)carbon / fossil fuel exposure for all funds (AFM company wide) Coal exclusion policy (group wide coal mining exclusion policy) Coal divestment policy (AFM company wide) Controversial weapons avoidance policy (AFM company wide) Fossil fuel exclusion policy (AFM company wide) Climate & Net Zero TransitionEncourage carbon / greenhouse gas reduction (AFM company wide) Net Zero commitment (AFM company wide) Working towards a ‘Net Zero’ commitment (AFM company wide) Carbon transition plan published (AFM company wide) ‘Forward Looking Climate Metrics’ published / ITR (AFM company wide) Carbon offsetting – do NOT offset carbon as part of net zero plan (AFM company wide) In-house carbon / GHG reduction policy (AFM company wide) Publish 'CEO owned' Climate Risk policy (AFM company wide) Net Zero - have set a Net Zero target date (AFM company wide) Voting policy includes net zero targets (AFM company wide) Committed to SBTi / Science Based Targets Initiative TransparencyPublish full voting record (AFM company wide) Publish responsible ownership / stewardship report (AFM company wide) Full SRI policy information on company website Full SRI policy information available on request Paris Alignment plan publicly available (AFM company wide) Net Zero transition plan publicly available (AFM company wide) Sustainability transition plan publicly available (AFM company wide) |
||||||
PolicyThe Future World Global Credit Fund is a high-conviction expression of LGIM’s long-term themes, seeking to invest in sustainable opportunities that will shape both the investment industry and society for years to come. The Future World funds aim to have a positive impact on society and create a powerful incentive for companies to change their behaviour. We believe our approach can create opportunities for our clients and help to safeguard them against future risks, with the potential for better long-term financial outcomes.
LGIM’s Climate Impact Pledge is a targeted engagement campaign we started in 2016 to address the systemic risk of climate change. Our programme initially focused on 80 companies, with divestment sanctions associated with a single fund. In 2020, it was expanded to around 1,000 companies, and as at the end of 2022, potential exclusions applied to over £157.6 billion of our assets. Towards the end of 2022, we substantially broadened the scope and strengthened the expectations of our dedicated climate engagement programme with the goal of accelerating progress towards net-zero greenhouse gas (GHG) emissions globally. We have expanded the scope in three main ways:
Drawing on some 70 data points, leveraging LGIM’s proprietary climate modelling as well as third-party data, our company assessments (climate ratings) are focused on five key pillars. These are in alignment with recommendations from the Task Force on Climate-Related Financial Disclosures (TCFD) and are publicly available under a ‘traffic light’ system on our dedicated website; this enables companies to transparently verify progress and identify areas which need improvement. By linking our votes to specific data points aligned with our principles-based approach, we aim to exert our influence more consistently and widely across markets. We will follow this assessment with direct engagement with key selected companies whose actions have the potential to galvanise their sectors. We have selected 100+ companies for this in-depth engagement, combining the expertise of sector specialists from across LGIM’s investment teams and our Investment Stewardship team. We publish details of our key expectations and ‘red lines’ for each sector, allowing companies to address gaps in strategy and disclosures. To help improve climate accountability across sectors, under our expanded policy in 2020 we announced that we would be voting against all companies globally that do not meet at least one – or, for companies in North America, Europe and Australasia, three – of the minimum standards for their relevant sector. Where companies have fallen short of our expectations due to a lack of response to our engagement requests and/or crossing one of our ‘red lines’ this leads to voting sanctions, and potentially disinvestment from relevant funds. By linking our votes to specific data points aligned with our principles-based approach, we aim to exert our influence more consistently and broadly across markets, with automatic alerts to companies at risk of being voted against by us. Details of LGIM’s Climate Impact Pledge score can be accessed here. In our most recent report, we announced that we are keeping twelve companies on our sanction list from previous years and adding two more companies this year. We have removed one company from our sanction list and reinstated it in select funds. Details of LGIM’s Climate Impact Pledge score can be accessed here. All of LGIM’s funds incorporate our Investment Stewardship team’s approach to engaging with companies. The team ensures that the companies in which you’re invested are run with your interests in mind.
Net Zero Asset Managers Initiative: LGIM is a founding signatory of the Net Zero Asset Managers. “By signing up to the Net Zero Asset Managers Initiative, LGIM is committing – in partnership with and on behalf of our clients – to invest in alignment with the net-zero emissions framework by 2050 or sooner.”
|
||||||
ProcessBelow we summarise the key ESG credentials of the strategy
We believe that well-managed companies are more likely to deliver sustainable long-term returns. Assessing companies on their management of environmental, social and governance (ESG) issues is an important element of risk management, and therefore part of investors’ fiduciary duty. In portfolio construction the portfolio managers favour companies that we believe will exhibit higher ESG standards over the long-term.
The Future World Protection List has been specifically developed for our Future World fund range. Through this fund range, companies are incentivised to operate more sustainably allowing clients to go further in integrating ESG factors into their investment strategy. The list may also be used in other investment strategies as determined by LGIM. Companies are incorporated into the list if they fail to meet minimum standards of globally accepted business practices. Across the LGIM-designed Future World funds, securities issued by such companies will not be held or exposure to them will be significantly reduced. The Future World Protection List includes companies which meet any of the following criteria: Involvement in the manufacture and production of controversial weapons Perennial violators of the United Nations Global Compact, an initiative to encourage businesses worldwide to adopt sustainable and socially responsible policies. Pure coal miners – companies solely involved in the extraction of coal The methodology will be formally reviewed on an annual basis by the LGIM Corporate Governance team. Any changes to the methodology will be subject to a formal overview and approval by senior management. Controversial weapons – have an indiscriminate and disproportional humanitarian impact on civilian population, the effects of which can be felt long after military conflicts have ended and often result in multi-generational humanitarian suffering. These include anti-personnel landmines, cluster munitions, biological, chemical and nuclear weapons.
The fund aims to produce a return derived from capital growth and income by investing in fixed and floating-rate securities. The fund aims to deliver this objective while decarbonising the portfolio over time, targeting a 50% reduction in weighted average carbon intensity by 2030, compared to a December 2019 baseline level.
In portfolio construction the portfolio managers favour issuers within their sectors that have the potential to demonstrate lower carbon intensity over the long term. The fund’s objective overall is to have a lower carbon footprint than the monitoring index, that it will exhibit a preference for issuers generating revenue from green sources and will seek to avoid companies with a high exposure to potentially stranded coal and oil assets. Our Future World Global Credit Fund follows a Buy and Maintain investment approach expressing long-term ESG themes. In our Buy and Maintain funds, our philosophy is that value can best be added/preserved through an understanding of the macroeconomic environment in order to identify and position portfolios to benefit from medium- and longer-term investment themes. Our resulting investment style can be described as macro-thematic, in that we utilise the work of our in-house economists and strategists to establish long-term themes which provide guidance for sector allocation and bottom-up stock-selection by our team of credit researchers. Fundamental credit analysis is central to the strategy. We have 27 credit analysts based in two locations, London and Chicago, providing the team with greater capacity to cover the global market and seek out the best ideas. Our credit research team consists of experienced career analysts who are industry specialists. Having a local presence enables our analysts to meet regularly with the companies that they monitor and provides the team with greater capacity to cover the global market in order to seek out the best ideas. Regular communication is the key for our analysts particularly when analysts are covering sectors for two locations. Dialogue among team members is continuous and our investment process is supported by a well-defined and regular meeting cycle. Daily meetings take place in both London and Chicago, with team members dialling in via conference calls. Other forms of communication include InteractiveBroker chats and Bloomberg Research Publisher. Our Buy and Maintain investment process has two distinct parts – the buy process which determines initial portfolio construction and the maintain process which covers portfolio monitoring, decisions about when to sell securities and when to hold them, plus how to replace the value of bonds that have been sold.
The buy process, in a similar way to LGIM’s active benchmarked credit portfolios, uses the top-down thematic and bottom-up issuer-selection approach described in the following pages. The portfolio manager is able to leverage the shared resource of the credit analysts, strategists, economist and other research functions. The outputs of the credit research process are used heavily during the initial investment phase and in the investment of new cash flows in the portfolio. These outputs are used to screen the investment universe and in the final stages of the portfolio construction process we emphasise themes/issuers where we see the most value and have the highest conviction. In Buy and Maintain portfolios, we buy with an expectation to hold to maturity and therefore: emphasise long-term visibility of sector/issuer fundamentals look for a strong and stable management team where we have confidence in their abilities look for alignment of shareholder, bondholder and management interests ensure that there are minimal risks that could cause step-changes in valuation identify structural features (e.g. asset backing) that provide downside protection in periods of lower liquidity.
Although it is our intention to hold securities to maturity, we will sell if we become concerned about severe downside risk in a specific security, sector or region. The key decision here is when to sell and when to hold. We will endeavour to replace the duration and spread from sales. In order to recoup the value lost in these situations and to improve the portfolio, we will engage in other trades, including relative value trades (e.g. cross currency) to help achieve this. Additionally, we will incorporate the latest credit strategy and bottom-up views as we reinvest the proceeds of sales or other cash flows that may arise and can be reinvested. In this way we are able to preserve the credit income earned.
While the credit analysis process is similar for all credit strategies at LGIM, for Buy and Maintain portfolios there is a larger emphasis placed on credit quality over technicals (e.g., market liquidity) given the longer expected investment time horizon. In general, for our Buy and Maintain portfolios, we prefer to invest in strong cash flow generating companies within fixed-asset heavy, high barrier-to-entry industries. For example, industry leaders in the utility sector, in particular water companies are generally preferred over companies within technology risk or other ‘asset-light’ industries. We have a Green/Amber/Red Buy and Maintain ‘universe recommendations’ which is a long-term view on a company’s credit quality. To summarise, the Buy and Maintain ‘universe recommendations’ include: Stable/Improving (green): The Referenced Credit demonstrates the characteristics to provide stable or improving credit quality characteristics over the life of the investment. Threats of a credit rating downgrade are minimal (i.e., less than 30%) given the information available at the time of analyst review. The company, sector, and management team are supportive of stable credit quality over the next five years. There is no near-term catalyst that would likely cause a rating downgrade during this period. Caution (amber): The Referenced Credit demonstrates characteristics that are appropriate for Buy and Maintain investment, but has characteristics that require closer monitoring. There is a meaningful (i.e. greater than 30%) likelihood of credit deterioration that would result in a rating downgrade of at least one notch, but remain investment grade. Avoid (red): The Referenced Credit has risk of severe credit quality deterioration or demonstrates a business model that the analyst deems to be unsupportive of a long-term investment. The severity of the expected credit deterioration is defined as a greater than 50% probability of: (i) a credit rating downgrade to High Yield or (ii) a greater-than-one-notch credit rating downgrade.
Given the long-term investment horizon of the strategy, sectors that we typically avoid are: Deeply subordinated financials (T1, UT2 and contingent capital bank and insurance securities) – these can be highly volatile securities, with less certain cash-flows and hence are less suited to a liability aware Buy and Maintain approach and, as such, are more suitable to an actively traded mandate as oppose to a buy and maintain approach. Technology sector – technology industries are rapidly changing and as such longer dated securities in particular are more suitable for an actively traded mandate as opposed to a buy and maintain approach. High yield – companies in this universe typically operate with higher business risk and/or financial risk than investment grade peers. As such there is usually greater sensitivity to the business cycle, refinancing costs and any change in industry dynamics, with the implication that visibility on fundamentals tends to be more short-term in nature. These securities also typically contain call options which make cash flows uncertain and combined with the non-negligible probability of default mean that these do not make reliable matching assets for pension liabilities. As such we do not typically purchase sub investment grade securities as we do not believe this is consistent with what we call a liability aware approach. We do however typically permit ourselves to hold bonds that are downgraded to sub-investment grade up to a maximum of 10% in order that we are able to mitigate losses from being a forced seller in the event that an issuer held is downgraded.
Risk management is an essential part of the strategy. Risk is managed at the stock, sector and overall market level. We consider all positions in terms of position size and credit beta (or duration times spread) and this is embedded into our portfolio management platform. The portfolio is constructed to have balanced sector exposure on a portfolio value and DTS basis, and to have multiple sources of risk and return. Stock-specific risk is screened by our team of credit analysts. A summary of our main portfolio management risk controls for the strategy is provided below:
In our Active Fixed Income strategies, ESG is one of the many risk factors considered in our investment process. We believe that if companies fail to meet minimum standards on ESG, it can undermine the customer franchise and competitive position of corporate borrowers and expose them to heightened regulatory and litigation risks; this may severely impair their ability to fund themselves in the debt or equity markets. Our investment framework has therefore been designed with several objectives in mind:
The long-term thematic groups were established to undertake top-down research and analysis of macro-economic issues, many of which relate to macro-level ESG issues. The groups consist of investment professionals from credit, equity, real assets and multi-asset teams and representatives from the Corporate Governance team. The companies in which we invest stand to benefit from or are driving the long-term thematic shifts changing our world. As structural shifts in demographics, energy, technology and politics transform society, it is more important than ever for investors to understand the structural changes shaping the world in which we live. Our starting point is forming a clear and connected view of the world. In addition, analysing the connections between these themes, through a combined research effort across asset classes, can provide valuable and often unique insights into how companies are adapting to a changing world, ultimately leading to investment ideas.
Our experienced credit research team undertakes comprehensive bottom up analysis into companies, incorporating the long-term views, fundamental sector and company analysis, and material ESG factors, alongside a strict valuation discipline. To support this process we have developed systematic and scalable tools and processes to identify, assess and appropriately integrate relevant ESG factors across asset classes and investment strategies. These are detailed below.
Active engagement Our direct engagement with companies helps us identify ESG risks and opportunities. Ongoing dialogue with companies is a fundamental aspect of LGIM’s approach to responsible investment. Investment teams and the Corporate Governance team regularly meet companies together, when appropriate. Importantly, outcomes from these engagements are fed back into our Active View tool.
Here we focus on: The ESG Score – used to drive the engagement framework for our Corporate Governance team and used throughout the business. The ESG Score follows a rules-based methodology to score companies against ESG metrics. We have identified 28 ESG indicators – a relatively limited set – which we believe to be most significant and material for long-term investors. The ESG Active View – used as an essential component of the research and portfolio management process for our active equity and fixed income teams. The tool goes further than the LGIM ESG Score, incorporating additional granular quantitative and qualitative inputs and assessments in order to reflect a full picture of the ESG risks and opportunities embedded within each company. We believe that incorporating a qualitative element is essential in order to fully capture the ESG risks and opportunities embedded within each company. Where our internal analysis and engagement has led to additional ESG insights– either on an individual data point or an overall factor – we feed that back into the ESG tool and it is captured in our overall ESG Active View. When we combine these considerations we are able to apply a status ranging from ‘very strong’ through to ‘very weak’ for each company. The degree to which this ESG View drives bond and equity selection will depend on the fund design.
|
||||||
Resources, Affiliations & Corporate StrategiesAs of May 2023, there are a total of 88 LGIM employees with roles dedicated to ESG, some of which are outlined in more detail below. Investment Stewardship team
Responsible Investing Strategy team
Climate Solutions team
Distribution
Real Assets
Product Development and Strategy
ESG Programme The LGIM ESG Programme has been running since 2020 and is aligned to LGIM purpose to create a better future through responsible investing. The ESG Programme has been deemed firm critical and necessary to transform the firm capabilities to meet client, industry and regulatory needs around responsible investing. Delivery in 2023 is focussed on strategically meeting mandatory regulatory obligations, and to further enhance and extend usage of ESG data sets and leverage central data mastering capabilities.
Roles substantially contributing to our responsible investing capabilities As of May 2023, we also have a further 70 colleagues across Investments whose roles have very substantial contribution to our responsible investing capabilities and whose objectives reflect this although their responsibilities are broader than solely ESG. Investments
Global Research and Engagement Groups Our Global Research and Engagement Groups (GREGs) bring together colleagues from across LGIM to identify the challenges and opportunities that will determine the resiliency of sectors and the companies within them. The output from the group strengthens and streamlines the firm’s engagement activities across investments and stewardship, to enable us to collectively set goals and targets at a company level with one voice, whilst supporting and guiding our investment decisions across the capital structure. As of May 2023, there are over 80 participants which includes members of our investment teams primarily along with representation from Investment Stewardship, who overlap on these groups.
Memberships and associations We are members of multiple industry-wide associations and networks which promote and encourage strong ESG practices and responsible investing standards. Our involvement with the organisations summarised below highlights how we promote collaborative engagement.
|
||||||
Literature
LGIM UK Disclaimer and important legal notice The information contained in this document (the ‘Information’) has been prepared by Legal & General Investment Management Limited, Legal and General Assurance (Pensions Management) Limited, LGIM Real Assets (Operator) Limited, Legal & General (Unit Trust Managers) Limited and/or their affiliates (‘Legal & General’, ‘we’ or ‘us’). Such Information is the property and/or confidential information of Legal & General and may not be disclosed by you to any other person without the prior written consent of Legal & General. No party shall have any right of action against Legal & General in relation to the accuracy or completeness of the Information, or any other written or oral information made available in connection with this publication. Any investment advice that we provide to you is based solely on the limited initial information which you have provided to us. No part of this or any other document or presentation provided by us shall be deemed to constitute ‘proper advice’ for the purposes of the Pensions Act 1995 (as amended). Any limited initial advice given relating to professional services will be further discussed and negotiated in order to agree formal investment guidelines which will form part of written contractual terms between the parties. Past performance is no guarantee of future results. 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. The Information has been produced for use by a professional investor and their advisors only. It should not be distributed without our permission. The risks associated with each fund or investment strategy are set out in this publication, the relevant prospectus or investment management agreement (as applicable) and these should be read and understood before making any investment decisions. A copy of the relevant documentation can be obtained from your Client Relationship Manager. Confidentiality and limitations Unless otherwise agreed by Legal & General in writing, the Information in this document (a) is for information purposes only and we are not soliciting any action based on it, and (b) is not a recommendation to buy or sell securities or pursue a particular investment strategy; and (c) is not investment, legal, regulatory or tax advice. Any trading or investment decisions taken by you should be based on your own analysis and judgment (and/or that of your professional advisors) and not in reliance on us or the Information. To the fullest extent permitted by law, we exclude all representations, warranties, conditions, undertakings and all other terms of any kind, implied by statute or common law, with respect to the Information including (without limitation) any representations as to the quality, suitability, accuracy or completeness of the Information. Any projections, estimates or forecasts included in the Information (a) shall not constitute a guarantee of future events, (b) may not consider or reflect all possible future events or conditions relevant to you (for example, market disruption events); and (c) may be based on assumptions or simplifications that may not be relevant to you. The Information is provided ‘as is' and 'as available’. To the fullest extent permitted by law, Legal & General accepts no liability to you or any other recipient of the Information for any loss, damage or cost arising from, or in connection with, any use or reliance on the Information. Without limiting the generality of the foregoing, Legal & General does not accept any liability for any indirect, special or consequential loss howsoever caused and on any theory or liability, whether in contract or tort (including negligence) or otherwise, even if Legal & General has been advised of the possibility of such loss. Third party data Where this document contains third party data ('Third Party Data’), we cannot guarantee the accuracy, completeness or reliability of such Third Party Data and accept no responsibility or liability whatsoever in respect of such Third Party Data. Publication, amendments and updates We are under no obligation to update or amend the Information or correct any errors in the Information following the date it was delivered to you. Legal & General reserves the right to update this document and/or the Information at any time and without notice. Although the Information contained in this document is believed to be correct as at the time of printing or publication, no assurance can be given to you that this document is complete or accurate in the light of information that may become available after its publication. The Information may not take into account any relevant events, facts or conditions that have occurred after the publication or printing of this document. Telephone recording As required under applicable laws Legal & General will record all telephone and electronic communications and conversations with you that result or may result in the undertaking of transactions in financial instruments on your behalf. Such records will be kept for a period of five years (or up to seven years upon request from the Financial Conduct Authority (or such successor from time to time)) and will be provided to you upon request. Legal & General Investment Management Limited. Registered in England and Wales No. 02091894. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119272. Legal and General Assurance (Pensions Management) Limited. Registered in England and Wales No. 01006112. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority, No. 202202. LGIM Real Assets (Operator) Limited. Registered in England and Wales, No. 05522016. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 447041.Please note that while LGIM Real Assets (Operator) Limited is regulated by the Financial Conduct Authority, we may conduct certain activities that are unregulated. Legal & General (Unit Trust Managers) Limited. Registered in England and Wales No. 01009418. Registered Office: One Coleman Street, London, EC2R 5AA. Authorised and regulated by the Financial Conduct Authority, No. 119273. . Notes re Responsible Ownership Filter options Vote all shares at AGMs/EGMs (AFM Company Wide) LGIM have voting policies in place for approximately 70 markets, and as a result, we vote 99% of the total value of our listed equity holdings. We aim not to abstain unless it is technically impossible not to.
Offer structured intermediary training on sustainable investment (AFM)/Offer unstructured intermediary training on sustainable investment (AFM) We take our role in the industry, our global influence and our position as a major global investor very seriously and continue to support and educate our clients and stakeholders on how we can tackle environmental and social challenges arising from a rapidly changing world. To improve awareness of sustainability externally, we have been working with our clients, along with engaging with policy makers, index providers, our peers and the wider industry through regular engagement, communications and training. For example, we issue regular educational materials and training sessions, including;
ESG specialists on all investment desks Given the changing landscape of ESG and responsible investments, LGIM continuously expands resources within this function. We therefore have many people across the business contributing to our ESG insights and research. They sit across various teams with different levels of responsibility relating to ESG but all feed into our responsible investing capabilities. As of August 2023, there are a total of 88 LGIM employees with roles dedicated to ESG. We also have a further 70 colleagues across Investments whose roles have very substantial contribution to our responsible investing capabilities and whose objectives reflect this although their responsibilities are broader than solely ESG.
Fossil fuel exclusion policy (AFM company wide) https://www.lgim.com/landg-assets/lgim/_document-library/capabilities/lgimh-coal-policy.pdf
Coal divestment policy (AFM company wide) https://www.lgim.com/landg-assets/lgim/_document-library/capabilities/lgimh-coal-policy.pdf https://www.lgim.com/uk/en/responsible-investing/climate-impact-pledge/
Last amended: 25/01/24 11:26 |
This report is for information purposes only and is intended to complement existing services used by UK based financial advisers only. sriServices is not authorised to give investment advice. The information on this site does not in any way constitute advice, recommendation or endorsement of any product or service. Investment decisions should not be based on this information alone. sriServices cannot be held in any way responsible for decisions made or advice offered as a result of using this site.
Whilst we take care to ensure information is as accurate as possible at time of publication we recommend you/financial advisers confirm specific fund details with fund providers. Please see www.sriServices.co.uk for additional information and for our contact details.
© Copyright sriServices 2024
05/07/2024