LGIM Future World Global Equity Index Fund (L&G)
SRI Style:
Sustainability Tilt
SDR Labelling:
-
Product:
Life
Fund Region:
Global
Fund Asset Type:
Passive Equity
Launch Date:
01/02/2020
Last Amended:
Dialshifter (
):
Fund Size:
£6200.80m
(as at: 31/12/2021)
Total Screened Themed SRI Assets:
£290000.00m
Total Responsible Ownership Assets:
£1421500.00m
Total Assets Under Management:
£1421500.00m
Sustainable, Responsible
&/or ESG Overview:
Awaiting update from manager - last updated April 2022
The fund employs an index tracking strategy, aiming to replicate the performance of its benchmark. The index aims to provide exposure to developed and emerging equity markets while reflecting significant environmental, social and corporate governance (ESG) issues. As part of LGIM’s commitment to address climate change, companies that fail to meet LGIM’s minimum standards in low carbon transition and corporate governance standards may be excluded from the fund, as a result the fund may not hold all of the constituents of the index.
Primary fund last amended:
Information directly from fund manager.
Fund Filters
Sustainability - General
Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information.
Environmental - General
Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.
Funds that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change. Funds vary - some funds may be 'underweight' in this area which means they may have some investment in highly carbon intensive areas. Funds of this kind may choose companies they consider to be 'best in sector' and encourage ever higher standards. Strategies vary. See fund information for further details.
Climate Change & Energy
Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.
Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.
Find funds where investment in clean / renewable energy companies an other assets is central to their investment selection strategy. The proportion of the fund that is directly or indirectly invested in renewable energy varies between funds and over time. See fund information for further details.
Funds that hold companies in the clean energy and renewable energy sectors (at the time research was supplied). Fund strategies vary, in particular the proportion of investment in these areas may vary significantly. Check fund literature for details.
This fund has a strategy that aims ensure its holdings will gradually reduce their greenhouse gas emissions in line with targets set at COP21 in Paris. The ultimate aim is to achieve ‘net zero emissions by 2050’ and a ‘maximum global temperature increase of +1.5 to +2 degrees above preindustrial levels’. Strategies and opinions vary. Read fund information.
Social / Employment
Find funds that have policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact). Funds with social policies typically avoid companies with low standards or work to encourage higher standards. See fund information for detail.
Find funds that invest in line with positive strategies that relate to 'people' issues - such as having strong human rights, labour standards and equal opportunities practices. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices. Read fund literature for further information.
Find funds with policies or themes that set out their approach to health and wellbeing issues. Funds of this kind typically aim to invest in companies with high standards - or encourage high standards. Themed funds are likely to have more of an emphasis on this area. Strategies vary. See fund information for further detail.
Ethical Values Led Exclusions
Find funds that have policies that set out their position on ethical or 'personal values' based issues. Strategies vary. See fund information for further detail.
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details.
Human Rights
Find funds that have policies relating to human rights issues. Funds of this kind typically require companies to demonstrate higher standards, although some fund managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary. See fund information for further detail.
Find funds that have policies or a theme that relates to the responsible management of supply chains. These may relate to employment issues, notably people employed by their suppliers, as well as the sourcing of materials and products. See fund literature for further information.
Governance & Management
Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information.
Asset Size
Find funds where more than half of the funds' assets are invested in smaller or medium sized companies (i.e. below around £5 -10 billion).
Impact Methodologies
Funds that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary. See fund literature for further information.
Funds that aim to measure the positive real world environmental and / or social benefits that are associated with their investment strategy. Funds that aim to deliver positive impacts and measure those impacts may be referred to as 'impact funds' - although impact measurement is not restricted to impact funds. Strategies vary. See fund information.
Find funds that specifically set out to help deliver positive environmental impacts, benefits or 'real world' outcomes.
Find funds that specifically state that they aim to deliver positive social (i.e. people related) impacts and/or outcomes.
How The Fund Works
Find funds with few exclusions - typically for example exclude tobacco or companies that breach commonly adopted standards or norms such as the UN Global Compact.
Find funds that have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) with additional criteria such as positive and/or negative screens, themes and stewardship strategies.
Find funds that consider both the 'positive' and 'negative' aspects of company behaviour and make balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas.
Fund Management Company Information
About The Business
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex.
Resources
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types)
Accreditations
Finds organisations / fund managers that have an A+ PRI rating - meaning they are highly rated according to the 'Principles of Responsible Investment'
Company Wide Exclusions
This asset manager excludes direct investment in the coal mining industry. Managers ability to do this may depend on the geographic regions in which they invest.
Climate & Net Zero Transition
Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Fund manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
This asset management company plans to achieve net zero greenhouse gas (CO2e) emissions by reducing their emissions. Calculations and scope vary.
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'.
Transparency
This asset management company has published a plan that explains how they are to become a sustainable business - without significant negative environmental or social impacts.
This asset management company has published a plan that explains how they are going to achieve net zero greenhouse gas / CO2e emissions.
Sustainable, Responsible &/or ESG Policy:
The investment objective of the fund is to track the performance of the Solactive L&G ESG Global Markets Index (less withholding tax where applicable) to within +/-0.60% p.a. for two years out of three.
As part of the Future World range, the fund incorporates LGIM’s Climate Impact Pledge, a targeted engagement process, detailed below;
LGIM’s Climate Impact Pledge: “To engage with the world’s largest companies that are required to adapt their business models and drive innovation in order to meet the global climate change goals. LGIM commits to encourage and accelerate the transition to a low-carbon economy for the long-term benefit of all companies and their investors.”
LGIM’s longstanding climate engagement programme, the Climate Impact Pledge, is linked to tangible voting and engagement sanctions which we introduced in 2016. We launched our revised Climate Impact Pledge 2.0 in October 2020, where we made our targeted engagement programme even more ambitious. Details of LGIM’s Climate Impact Pledge score can be accessed here.
We have strengthened our approach by expanding the coverage of our pledge from 80 to 1000 companies in climate critical sectors, which now accounts for circa 60% of all GHG emissions from listed companies. Furthermore, climate ratings for c. 1000 companies are publicly available under a ‘traffic light’ system to allow companies to address gaps in strategy and disclosures. Our approach also includes a new engagement model – focused on large companies with poor scores relative to their scale – to help raise standards across market.
Climate-related voting and engagement examples can be found in our Active Ownership and ESG Impact reports.
Process:
The index methodology is designed to exclude securities involved in pure coal mining, manufacturing of controversial weapons, and companies in perennial breach of the UN Global Compact.
- Firearms - companies derive 5% or more of their revenues from assault weapons
- Military contracting - Companies deriving more than 10% of their revenues from military weapon system manufacturing
- Tobacco – Companies are involved in production or derive more than 10% of their revenue from retail of tobacco products and related services
- FWPL – Companies are included on the Future World Protection List
The index utilizes independent data providers to calculate and apply 28 ESG data points across:
- Environment - focused on climate change
- Social - focused on diversity, human capital and ethics
- Governance - focused on shareholder rights and good governance
- Transparency - Quality of company disclosures.
The index utilizes bespoke design with Solactive and uses overall ESG score to tilt company capital allocation. Moreover, the key differentiator for LGIM is active ownership to engage and influence through stewardship, and to escalate appropriately when required.
LGIM also has a climate impact pledge to encourage strong governance and sustainable strategies, and to divest from those who fail to meet minimum standards.
Resources, Affiliations & Corporate Strategies:
ESG resource
We 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 at mid-March 2022, there are a total of 48 LGIM employees with roles dedicated to ESG – 21 of these sit in our Investment Stewardship team and the remainder have dedicated ESG roles across our business, some of which are outlined in more detail below.
- There are 21 people in our global Investment Stewardship team, led by Kurt Morriesen. The team includes those located in the US and Japan, led by John Hoeppner and Aina Fukuda respectively. The team is responsible for developing and carrying out LGIM’s investment stewardship and responsible investment activities as well as the oversight, implementation and integration of ESG across the firm. The team comprises subject matter experts in all facets of ESG and is organised in a matrix sector and thematic coverage and engagement.
- Nick Stansbury, Head of Climate Solutions and Commodity Research, leads our energy transition approach and is one of our most prominent spokespeople on this topic. He leads our Climate Solutions team which has a total of four team members.
- As Global Head of Responsible Investment Integration, Michael Marks’ role spans all functions within LGIM from investment stewardship, distribution and investment teams to operational functions such as data and technology; embedding ESG across the firm in all areas and ensuring that focus is maintained on delivering the capabilities required by all stakeholders.
- Amelia Tan has recently joined LGIM as the Head of Responsible Investing Strategy for Investments (January 2022). This role ensures that LGIM stays at the cutting edge of innovation within responsible investing and creates a coordinated approach across asset classes, which is embedded throughout our funds and portfolios.
- Caroline Ramscar, Head of Sustainable Solutions, is responsible for engaging with clients on sustainability and the development of responsible investment solutions. This is a role which was created to develop LGIM’s sustainable strategy. Two further colleagues are dedicated to supporting clients’ journeys to adopt more responsible investing strategies.
- LGIM’s Real Assets team has a team of seven dedicated ESG experts working across the range of private credit and real estate strategies that we manage. This team is led by Rob Martin and Shuen Chan.
- As at mid-March 2022, we also have a further 62 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.
- 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 at mid-March 2022, there are over 70 participants which includes members of our investment teams primarily along with representation from Investment Stewardship, who overlap on these groups.
Memberships
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.
- 30% Club (2010): Campaign group taking action to increase gender diversity on UK company boards and senior management teams.
- 30% Club Investor Group Japan (2019): Group of investors taking action to coordinate the investment community's approach to gender diversity on Japan company boards and senior management teams. Meetings are held in Tokyo on a monthly basis. Member of the Best practices working group and Progress tracking working group.
- 30% Club UK France Investor Group (2020): Group of investors taking action to coordinate the investment community's approach to gender diversity on French company boards and senior management teams. Group was launched in 2020.
- 30% Club UK Investor Group (2011): Group of investors taking action to coordinate the investment community's approach to gender diversity on UK company boards and senior management teams. Meetings are held in London on a quarterly basis. Chaired Group from 2017-2020.
- 30% Coalition (2017): Committed to the goal of women, including women of colour, holding 30% of board seats across US public companies
- Access for Medicine (2020): The Access to Medicine Foundation stimulates and guides pharmaceutical companies to do more for the people living in low- and middle-income countries without adequate access to medicine. Pharma companies are scored in the Access to Medicine Index. ATMF also score companies on their efforts within antimicrobial resistance (AMR) via the AMR Benchmark.
- Aldersgate Group (2012): An alliance of leaders from business, politics and civil society that drives action for a sustainable economy. L&G/LGIM use this forum to engage with UK and EU policy-makers – e.g. they were instrumental in securing the net zero legislation in the UK.
- Alliance for Financing a Just Transition (London School of Economics)(2020): Investors and financial institutions joined forces with universities and trade unions to create the FJTA and translate the growing commitment to a just transition across the financial sector into real world impact. Group was launched in 2020.
- Asian Corporate Governance Association (ACGA)(2012): The ACGA is dedicated to working with financial regulators, stock exchanges, institutional investors and companies to develop and implement better corporate governance practices across 12 markets in Asia.
- Assogestioni (2015): Representative association of Italian Investment management industry. We are a foreign member of the association.
- British Council of Offices ESG committee (2001): ESG committee within the BCO, which aims to research, develop and communicate best practice in all aspects of the office sector.
- British Property Federation (2001): BPF is a membership organisation representing companies involved in property ownership and investment, work with Government and regulatory bodies to help the growth and development of the real estate industry.
- Building Better Partnership (BBP)(2019): Collaboration of 35 of the UK’s leading commercial property owners who are working together to improve the sustainability of existing commercial building stock.
- CDP (formerly Carbon Disclosure Project): LGIM is a part of the CDP Investor Program. We also use data points from CDP as part of our company engagement and analysis.
- Climate Action 100+ (2017): We take part in the ‘world’s biggest single-issue engagement initiative’, focused on the largest corporate emitters of greenhouse gas emissions.
- Climate Bonds Initiative (2015): LGIM is a signatory of the Paris Green Bonds Statement, committing to support the development of green bonds as part of climate finance solutions.
- Coalition for Climate Resilient Investment (CCRI) (2020): CCRI is a United Nations Climate Action Summit and COP26 flagship initiative, which represents the commitment of the global private financial industry, in partnership with key private and public institutions, to foster the more efficient integration of physical climate risks in investment decision-making.
- Corporate Governance Forum (1999): The UK Corporate Governance Forum is a group of UK/EU investors where members can raise UK corporate governance issues. Membership is by invite. Meetings monthly and phone calls bi-weekly.
- Corporate Reporting and Auditing Group (From 2020, CRAG was formally adopted as an IA sub-committee): Investor Group influencing regulators, standard setters, companies and auditors on corporate reporting, accounting & auditing matters. Shapes the positioning of the IA and PLSA.
- COP26: Business Leaders Group (2021): LGIM’s CEO, Michelle Scrimgeour, is the co-chair of the UK government’s COP26 Business Leaders Group,an important forum focused on creating business and sector breakthroughs in how we deliver net zero.
- Council of Institutional Investors (CII) (2011): The CII is an association of pension funds, investors and other foundations and is a leading voice in the US for good corporate governance and strong shareowner rights. We attend the conference every year and have been involved in several collaborative initiatives led by the CII on various ESG topics.
- Diversity Project (2016): The Diversity Project is a cross-company initiative championing a more inclusive culture within the Savings and Investment profession.
- European Association for Investors in Non-Listed Real Estate Vehicles (INREV)(2015): Platform for sharing knowledge on the non-listed (unlisted) real estate industry, to improve transparency, professionalism and best practices across the sector.
- FAIRR Initiative: LGIM is a member of the FAIRR Initiative, an investor group focused on ESG risks, such as climate change and antibiotics resistance, associated with the livestock industry.
- Finance for biodiversity pledge ( 2021): As a signatory, by 2024 at the latest we commit to: Collaborating and knowledge sharing; Engaging with companies; Assessing impact; Setting targets; Reporting publicly
- Glasgow Financial Alliance for Net Zero (2021): The Glasgow Financial Alliance for Net Zero (GFANZ) brings together existing and new net-zero finance initiatives in one sector-wide coalition, GFANZ provides a forum for leading financial institutions to accelerate the transition to a net-zero global economy. LGIM’s CEO, Michelle Scrimgeour, represents L&G on the CEO Principals Group.
- Global Real Estate Sustainability Benchmark (GRESB)(2012): GRESB is an investor-led initiative to provide ESG data on real asset investments to investors, lenders, managers and the wider industry. GRESB Assessments provide a consistent framework to measure ESG performance based on self-reported data that is validated, scored and peer benchmarked.
- Green Finance Institute – Coalition for the Energy Efficiency of Buildings (2019): Made up of more than 200 individual members from the finance, property and energy sectors, and across policy, academia and non-profit organisations, the CEEB’s remit is to develop the market for financing a net-zero carbon and climate-resilient built environment in the UK. Established by the Green Finance Institute as its flagship coalition in December 2019.
- Harvard Institutional Investor Forum (2019): The Harvard Institutional Investor Forum aims at contributing to discourse, policy making and education with respect to institutional investors and issues of interest to them
- Hong Kong Technical Group on Sustainable Finance (2020): The TEG is a body that aims to improve sustainable finance regulation in the Hong Kong market, under the aegis of the local financial regulator.
- Human Capital Management Coalition (2011): HCMC is a cooperative effort to further elevate human capital management as a critical component in company performance. The Coalition engages companies and other market participants with the aim of understanding and improving how human capital management contributes to the creation of long-term shareholder value.
- Institutional Investor Group on Climate Change (IIGCC) (2011): The IIGCC is a forum for collaboration on climate change for European investors. We participate in both the Policy and Solutions working groups. We also have contributed to the strategic direction of the organisation as our Head of Sustainability and Responsible Investment, Meryam Omi, was appointed to the board in early 2016. In 2018, LGIM co-authored the IIGCC Guide to Addressing Climate Risks and Opportunities in the Investment Process. This report shares practical tips and examples of good practice so that trustees of asset owner organisations are better equipped to adapt their investment processes not only to underpin more resilient investment portfolios, but to also steer capital in support of the attainment of the goals of the Paris Agreement.
- Interfaith Center on Corporate Responsibility (ICCR): A coalition of 300 global institutional investors. Members represent faith-based organizations, socially responsible asset management companies, unions, foundations, and other responsible investors working alongside a global network of NGO and business partners. The SDGs and the UN Guiding Principles on Business and Human Rights provide the frameworks for the ICCR corporate engagements. The Investor Alliance for Human Rights was launched by ICCR in 2018. Via the ICCR between 200-300 shareholders resolutions are filed per year. We’re members since 2020. ICCR was founded in 1971, filing its first shareholder resolution at GM requesting that the company withdraw its business from South Africa until such time as apartheid was abolished.
- International Corporate Governance Network (ICGN)(2011): The ICGN is an investor-led organisation which aims to promote better standards of corporate governance and stewardship worldwide.
- Investment Association (IA)(2014): The IA provides a structure for LGIM to discuss corporate governance policy and push for collective engagement alongside a number of UK investment managers. LGIM is involved within the organisation at board level; LGIM’s CEO sits on the board of directors, while members of LGIM’s Investment Stewardship team sit on the IA’s corporate governance and remuneration committees, as well as the Sustainability and Responsible Investment Committee.
- Investor Forum (2015): LGIM is a founding member of the Investor Forum, and our Director of Investment Stewardship sits on its board. Membership of the Investor Forum facilitates collaborative engagement with other members and ensures investors speak with one powerful voice.
- IOPA (Investors for Opioid and Pharmaceutical Accountability)(2018 – as observers. 2019 as members): IOPA came together out of escalating concerns that opioid company business risks can both threaten shareholder value and have profound long-term implications for the economy and society
- ISG (Investor Stewardship Group) (2017): The ISG brings all types of investors together to establish a framework of basic standards of investment stewardship and corporate governance for U.S. institutional investor and boardroom conduct
- Japan Climate Leaders’ Partnership (JCLP)(2021): JCLP is a coalition of 178 Japanese companies (as of May 2021). Its goal is to achieve net-zero in Japan by 2050 through activities and voices from business. Activities include:
- Capturing Important Updates
- Taking Actions through Collaboration
- Policy Engagement
- Japan Stewardship Initiative (2020): Founded in Nov 2019, JSI aims to seek industry-wide solutions through discussions and information sharing among asset owners, asset managers and relevant parties on practical challenges in stewardship activities. (Secretariat: Japan Exchange Group, Inc. and ICJ, Inc.)
- Japan TCFD Consortium: The consortium aims to undertake projects to promote information disclosure based on the TCFD recommendations; projects pertaining to the use of information disclosed in accordance with the TCFD recommendations; and raising awareness of TCFD in Japan.
- Net Zero Asset Manager Initiative (Founding Signatory since 2020): At the end of 2020, we were one of the founding signatories of the Net Zero Asset Managers Initiative (NZAMI) and committed to being one of those leading our industry to support the transition to reach net-zero greenhouse gas emissions by 2050 or sooner across all assets under management. LGIM sits on the Advisory Committee and is actively involved in the initiative’s Stewardship Working Group.
- One Planet Asset Manager Initiative (2020): An initiative under the aegis of President Macron, aimed to advance the understanding of climate risk and opportunities within long-term investment portfolios. The asset managers will be supporting six of the world’s largest sovereign wealth funds (Abu Dhabi, Kuwait, Qatar, Saudi Arabia, New Zealand, Norway) to build climate considerations into their decision-making.
- SASB Standards Advisory Board (SAB) (2020): The SASB SAB provides feedback to the SASB Staff and Standards Board regarding the implementation and use of the standards, and emerging topics and metrics worthy of future consideration.
- Sustainability Accounting Standards Board (SASB)(2019): LGIMA sits on the Investment Advisory Group of SASB, intending to promote ‘consistent, comparable and reliable disclosure of material and decision-useful ESG information’
- Sustainability Reporting Standard for Social Housing: Development of a new voluntary ESG disclosure framework in the UK social housing sector.
- Taskforce on Climate-related Financial Disclosures (TCFD)(2015): LGIM has been a promoter of the Taskforce on Climate-related Financial Disclosures (TCFD), and has publicly encouraged investee companies to report in line with the TCFD recommendations. LGIM has recently published its own TCFD-aligned publication as an asset manager as has the parent company Legal & General as an asset owner.
- Taskforce on Nature-related Financial Disclosures (TNFD)(2021): LGIM joined the TNFD Observer Group as a member this year, and our primary contribution at this stage is to provide feedback on the output of the working groups, so as to help support the preparatory phase of the TNFD.
- The United Nations Principles for Responsible Investment (PRI) (2010): An international network of investors promoting responsible investment. LGIM are involved with a number of their workstreams.
- Transition Pathway Initiative (2017): Research funding partner on asset-owner led initiative which assesses companies' preparedness for the transition to a low carbon economy.
- UK Green Building Council (UKGBC)(2010): UKGBC is part of the World Green Building Council (WorldGBC) network, a global network of over 70 national Green Building Councils.
- UNEP Finance Initiative: LGIM participated in the joint project from UNEP FI and the PRI on corporate tax, culminating in the launchof a report entitled Engagement Guidance On Corporate Tax Responsibility
.
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Literature
Fund Holdings
Voting Record
| Fund Name | SRI Style | SDR Labelling | Product | Region | Asset Type | Launch Date | Last Amended |
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|---|---|---|---|---|---|---|---|---|
LGIM Future World Global Equity Index Fund (L&G) |
Sustainability Tilt | - | Life | Global | Passive Equity | 01/02/2020 | ||
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Fund Size: £6200.80m (as at: 31/12/2021) Total Screened Themed SRI Assets: £290000.00m (as at: 31/12/2021) Total Responsible Ownership Assets: £1421500.00m (as at: 31/12/2021) Total Assets Under Management: £1421500.00m (as at: 31/12/2021) |
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Sustainable, Responsible &/or ESG OverviewAwaiting update from manager - last updated April 2022
The fund employs an index tracking strategy, aiming to replicate the performance of its benchmark. The index aims to provide exposure to developed and emerging equity markets while reflecting significant environmental, social and corporate governance (ESG) issues. As part of LGIM’s commitment to address climate change, companies that fail to meet LGIM’s minimum standards in low carbon transition and corporate governance standards may be excluded from the fund, as a result the fund may not hold all of the constituents of the index. |
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Information received directly from Fund Manager |
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Fund FiltersSustainability - General
Sustainability policy
Funds that have policies that consider (environmental and social) sustainability issues. Strategies vary but are likely to consider environmental issues like climate change, carbon emissions, biodiversity loss, resource management, environmental impacts; and social issues like equal opportunities, human rights, labour standards, diversity and adherence to internationally recognised codes. See fund information. Environmental - General
Environmental policy
Funds that have policies which relate to environmental issues. These will typically set out the fund's stance on issues such as pollution, climate change, resource management, biodiversity loss, carbon emissions, plastics and/or additional environmental impacts. Strategies vary. See fund information for further information.
Limits exposure to carbon intensive industries
Funds that limit or 'reduce' their exposure to carbon intensive industries (ie sectors which are major contributors to climate change. Funds vary - some funds may be 'underweight' in this area which means they may have some investment in highly carbon intensive areas. Funds of this kind may choose companies they consider to be 'best in sector' and encourage ever higher standards. Strategies vary. See fund information for further details. Climate Change & Energy
Climate change / greenhouse gas emissions policy
Funds that have policies (documented strategies that explain their position on) climate change related issues such as greenhouse gas/carbon emissions, net zero, transitioning to lower carbon. Strategies vary. Read fund details for further information.
Coal, oil & / or gas majors excluded
Funds that avoid investing in major coal, oil and/or gas (extraction) companies. Funds vary: some may exclude all companies that extract oil. Others may have exposure to oil extraction via more diversified energy companies. See fund literature to confirm details.
Clean / renewable energy theme or focus
Find funds where investment in clean / renewable energy companies an other assets is central to their investment selection strategy. The proportion of the fund that is directly or indirectly invested in renewable energy varies between funds and over time. See fund information for further details.
Invests in clean energy / renewables
Funds that hold companies in the clean energy and renewable energy sectors (at the time research was supplied). Fund strategies vary, in particular the proportion of investment in these areas may vary significantly. Check fund literature for details.
Paris aligned fund strategy
This fund has a strategy that aims ensure its holdings will gradually reduce their greenhouse gas emissions in line with targets set at COP21 in Paris. The ultimate aim is to achieve ‘net zero emissions by 2050’ and a ‘maximum global temperature increase of +1.5 to +2 degrees above preindustrial levels’. Strategies and opinions vary. Read fund information. Social / Employment
Social policy
Find funds that have policies which set out their approach to social issues (e.g. human rights, labour standards, equal opportunities, child labour and adherence to internationally recognised codes such as the UN Global Compact). Funds with social policies typically avoid companies with low standards or work to encourage higher standards. See fund information for detail.
Favours companies with strong social policies
Find funds that invest in line with positive strategies that relate to 'people' issues - such as having strong human rights, labour standards and equal opportunities practices. Such funds are likely to invest in companies that have market leading standards with regard to employee and supplier practices. Read fund literature for further information.
Health & wellbeing policies or theme
Find funds with policies or themes that set out their approach to health and wellbeing issues. Funds of this kind typically aim to invest in companies with high standards - or encourage high standards. Themed funds are likely to have more of an emphasis on this area. Strategies vary. See fund information for further detail. Ethical Values Led Exclusions
Ethical policies
Find funds that have policies that set out their position on ethical or 'personal values' based issues. Strategies vary. See fund information for further detail.
Armaments manufacturers avoided
Find funds that avoid companies that manufacture products intended specifically for military use. Fund strategies vary - particularly with regard to non-strategic military products. See fund literature for fund specific details. Human Rights
Human rights policy
Find funds that have policies relating to human rights issues. Funds of this kind typically require companies to demonstrate higher standards, although some fund managers work to encourage improvements. Investee companies are often judged against internationally agreed norms or standards. Strategies vary. See fund information for further detail.
Responsible supply chain policy or theme
Find funds that have policies or a theme that relates to the responsible management of supply chains. These may relate to employment issues, notably people employed by their suppliers, as well as the sourcing of materials and products. See fund literature for further information. Governance & Management
Governance policy
Find fund options that have policies that relate to corporate governance issues such as board structure, executive remuneration, bribery and/or corporate corruption. These funds will typically avoid companies with poor practices. Strategies vary. See fund literature for further information. Asset Size
Over 50% small / mid cap companies
Find funds where more than half of the funds' assets are invested in smaller or medium sized companies (i.e. below around £5 -10 billion). Impact Methodologies
Aims to generate positive impacts (or 'outcomes')
Funds that aim to help or support the delivery of positive social or environmental impacts (or societal/real world outcomes) by investing in companies they regard as beneficial to people and / or the planet. Strategies vary. See fund literature for further information.
Measures positive impacts
Funds that aim to measure the positive real world environmental and / or social benefits that are associated with their investment strategy. Funds that aim to deliver positive impacts and measure those impacts may be referred to as 'impact funds' - although impact measurement is not restricted to impact funds. Strategies vary. See fund information.
Positive environmental impact theme
Find funds that specifically set out to help deliver positive environmental impacts, benefits or 'real world' outcomes.
Positive social impact theme
Find funds that specifically state that they aim to deliver positive social (i.e. people related) impacts and/or outcomes. How The Fund Works
Limited / few ethical exclusions
Find funds with few exclusions - typically for example exclude tobacco or companies that breach commonly adopted standards or norms such as the UN Global Compact.
Combines ESG strategy with other SRI criteria
Find funds that have an ESG strategy (which is typically focused on avoiding companies that pose environmental, social or governance related risks) with additional criteria such as positive and/or negative screens, themes and stewardship strategies.
Balances company 'pros and cons' / best in sector
Find funds that consider both the 'positive' and 'negative' aspects of company behaviour and make balanced, considered decisions as part of their investment approach. May apply to a range of different issues and policy areas. Fund Management Company InformationAbout The Business
In-house diversity improvement programme (AFM company wide)
Finds organisations / fund managers that have an in-house (company wide) diversity improvement programme - meaning that they are working to ensure that within their own businesses they employ people from diverse backgrounds - often typically focused on ethnicity and/or sex. Resources
ESG specialists on all investment desks (AFM company wide)
Finds organisations / fund managers that have one or more ESG/sustainability experts on all investment teams or 'desks' (all asset types) Accreditations
PRI A+ rated (AFM company wide)
Finds organisations / fund managers that have an A+ PRI rating - meaning they are highly rated according to the 'Principles of Responsible Investment' Company Wide Exclusions
Coal exclusion policy (group wide coal mining exclusion policy)
This asset manager excludes direct investment in the coal mining industry. Managers ability to do this may depend on the geographic regions in which they invest. Climate & Net Zero Transition
Net Zero commitment (AFM company wide)
Fund management organisations that have pledged to reduce their greenhouse gas emissions to ‘net zero’. Strategies vary - this area is changing rapidly.
Voting policy includes net zero targets (AFM company wide)
Fund manager AGM / EGM voting strategy has processes in place that mean they will normally be expected to vote in a way that will encourage the transition to net zero greenhouse gas emissions.
Net Zero - have set a Net Zero target date (AFM company wide)
This asset management company has set a date by which they plan to achieve net zero greenhouse gas / CO2e emissions.
Carbon transition plan published (AFM company wide)
Finds organisations / fund managers that have a company wide carbon transition plan - meaning that they have plotted a path to how they will move away from activities that produce or use carbon based energy sources (that emit greenhouse gases) towards clean, alternative, renewable energy sources.
‘Forward Looking Climate Metrics’ published / ITR (AFM company wide)
Finds organisations / fund managers that have published ‘forward looking climate metrics’ e.g. 'implied temperature rise' data that are a total of the asset management company's share (% owned) of all the investee company emissions of the assets they manage, as well as their own direct and other indirect emissions.
Carbon offsetting – do NOT offset carbon as part of net zero plan (AFM company wide)
This asset management company plans to achieve net zero greenhouse gas (CO2e) emissions by reducing their emissions. Calculations and scope vary.
Working towards a ‘Net Zero’ commitment (AFM company wide)
Finds organisations / fund management companies that are in the process of working out how to make a ‘net zero commitment’ - meaning that when that is finalised they will have started the process of reducing their total greenhouse gas emissions to'zero'. Transparency
Sustainability transition plan publicly available (AFM company wide)
This asset management company has published a plan that explains how they are to become a sustainable business - without significant negative environmental or social impacts.
Net Zero transition plan publicly available (AFM company wide)
This asset management company has published a plan that explains how they are going to achieve net zero greenhouse gas / CO2e emissions. Sustainable, Responsible &/or ESG Policy:The investment objective of the fund is to track the performance of the Solactive L&G ESG Global Markets Index (less withholding tax where applicable) to within +/-0.60% p.a. for two years out of three. As part of the Future World range, the fund incorporates LGIM’s Climate Impact Pledge, a targeted engagement process, detailed below; LGIM’s Climate Impact Pledge: “To engage with the world’s largest companies that are required to adapt their business models and drive innovation in order to meet the global climate change goals. LGIM commits to encourage and accelerate the transition to a low-carbon economy for the long-term benefit of all companies and their investors.”
We have strengthened our approach by expanding the coverage of our pledge from 80 to 1000 companies in climate critical sectors, which now accounts for circa 60% of all GHG emissions from listed companies. Furthermore, climate ratings for c. 1000 companies are publicly available under a ‘traffic light’ system to allow companies to address gaps in strategy and disclosures. Our approach also includes a new engagement model – focused on large companies with poor scores relative to their scale – to help raise standards across market.
Process:The index methodology is designed to exclude securities involved in pure coal mining, manufacturing of controversial weapons, and companies in perennial breach of the UN Global Compact.
Resources, Affiliations & Corporate Strategies:ESG resource
Memberships 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.
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