Climate Change Data

Legal & General Investment Management Limited

Climate Impact & Sustainability Data (2015, 2016, 2019, 2020, 2021, 2022, 2023-2024)

Reporting Period: 2015

Environmental Metrics

Total Carbon Emissions:54,162 tCO2e/year
Scope 2 Emissions:38,219 tCO2e/year
Renewable Energy Share:100% of occupied property and Investment Property electricity supply
Total Energy Consumption:24,909 MWh/year (UK); 3,749 MWh/year (Overseas)
Water Consumption:54,486 m3/year
Waste Generated:920.72 tons/year (UK); 92.2 tons/year (Overseas)

ESG Focus Areas

  • Housing
  • Income in Retirement
  • Health
  • Sustainable property
  • Corporate governance

Environmental Achievements

  • Reduced carbon emissions across all properties by 17%
  • Reduced electricity use by 15%
  • Reduced fuel use by 23%
  • Reduced overall water use by 7%
  • Diverted 87% of waste from landfill in 2014

Social Achievements

  • Launched Legal & General Home Finance business, helping retired people use home equity
  • Launched modular housing business creating over 400 jobs
  • Invested £50 million in social housing
  • Delivered 6 national consumer campaigns on Housing, Later Life and Health
  • Reached over 1 million people in the UK with financial education content

Governance Achievements

  • Increased number of US engagements to 97 from 94 in 2014
  • Achieved 30% women on the Group Board
  • 500 engagements with international companies on ESG issues
  • Delivered independent materiality process for each company subsidiary

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Achieve 50/50 gender diversity by 2020
Short-term Goals:
  • Invest £15bn in UK infrastructure
  • Reduce carbon emissions per policy by 20% by 2020
  • Reduce total waste generation per employee by 25% by 2020
  • Reduce paper consumption per policy by 30% by 2020
  • Increase gender diversity at middle and senior management grades to 40% women by 2017

Environmental Challenges

  • UK housing crisis
  • Inadequate retirement income provision in the UK
  • Rising costs of elderly social care
  • Need to improve transparency and communication in the US
  • Need to better understand the impact of institutional transactions on US citizens' lives
Mitigation Strategies
  • Investing in build-to-rent, build-to-sell, modular construction, social housing, and student accommodation
  • Working with charities to understand elderly needs and improve retirement products
  • Offering lifetime mortgages to help retirees access home equity
  • Conducting independent materiality assessments of US activities
  • Increasing communication with US stakeholders

Supply Chain Management

Supplier Audits: 286 key suppliers in 2015

Responsible Procurement
  • Supplier Code of Conduct
  • Compliance assessment

Climate-Related Risks & Opportunities

Opportunities
  • Investment in renewable energy

Reporting Standards

Frameworks Used: GRI G4 guidelines, including the ‘Financial Services Sector Supplement’ (FSSS)

Certifications: ISO 14001

Third-party Assurance: Group internal audit

Sustainable Products & Innovation

  • Modular homes

Awards & Recognition

  • GRESB green stars

Reporting Period: 2016

Environmental Metrics

Total Carbon Emissions:50,381 tCO2e/year
Scope 2 Emissions:32,884 tCO2e/year
Scope 3 Emissions:4,363 tCO2e/year (business travel)
Renewable Energy Share:100% of occupied property and Investment Property electricity supply is under a renewable energy tariff
Total Energy Consumption:23,929 MWh/year (UK) + 3,312 MWh/year (Overseas)
Water Consumption:49,183 m3/year
Waste Generated:991 tons/year (UK) + 70.4 tons/year (Overseas)
Carbon Intensity:1.3 kg CO2e/per customer policy (2016)

ESG Focus Areas

  • Low carbon economy
  • Societal resilience through financial solutions
  • New investments for the future economy
  • Higher business standards

Environmental Achievements

  • Invested £250 million into onshore wind energy projects
  • Launched modular housing business focused on energy efficiency

Social Achievements

  • Contributed over £3 million to UK and US non-profit organizations
  • Launched ‘1 in 4 campaign’ to support Mental Health Awareness Week
  • Worked with Living Wage Foundation to improve labor standards
  • Worked with Anti-Slavery International on Modern Slavery Act compliance
  • Launched a new diverse leadership program

Governance Achievements

  • Embedded new corporate purpose, business principles, and behaviors into employee work
  • Improved company structure disclosure working with Open Corporates
  • Signed the ‘Women in Finance Charter’

Climate Goals & Targets

Long-term Goals:
  • Provide capital for 5% of UK clean energy by 2021
  • Invest £15 billion into long-term direct investments
Medium-term Goals:
  • By 2020, reduce carbon emission per policy by 20% based on 2013 baseline
  • By 2020, reduce operational office water consumption per policy by 20% based on 2013 baseline
  • By 2020, reduce total waste generation per policy by 25% based on 2013 baseline
  • By 2020, reduce paper consumption per policy by 30% based on 2013 baseline
  • By 2020, achieve 50:50 gender mix through recruitment and retention initiatives
Short-term Goals:
  • Publish the carbon intensity of our own balance sheet by the end of 2017
  • Increase gender diversity at middle and senior management grades from 35% to 40% women by the end of 2017
  • Improve diversity index from 78% to 85% across the group in 2017

Environmental Challenges

  • Housing shortfall in the UK
  • Increasing mental health problems
  • Need to improve customer privacy statement and big data usage policies
Mitigation Strategies
  • Investing in new homes to rent and buy
  • Developing products and services to support emerging customer vulnerabilities
  • Reinforced customer privacy statement and big data usage policies with input from Compliance, IT, Legal, and Data Security teams

Supply Chain Management

Responsible Procurement
  • Supplier Code of Conduct incorporating Modern Slavery Act 2015
  • Annual validation of key supplier compliance

Climate-Related Risks & Opportunities

Opportunities
  • Development of energy-efficient products
  • Investment in clean energy technologies

Reporting Standards

Frameworks Used: GRI

Certifications: ISO 14001

Sustainable Products & Innovation

  • Modular homes

Awards & Recognition

  • BITC Gold Award for Gender

Reporting Period: 2019

Environmental Metrics

Total Carbon Emissions:46,164 tCO2e/year
Scope 1 Emissions:15,226 tCO2e/year
Scope 2 Emissions:23,716 tCO2e/year (Location based)
Scope 3 Emissions:7,223 tCO2e/year (Business travel)
Renewable Energy Share:Not disclosed
Total Energy Consumption:15,950 MWh/year (UK) + 3,460 MWh/year (International)
Water Consumption:45,838 m3/year
Waste Generated:31,033 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • UK Electricity reduced by 39% and UK Gas reduced by 51% compared to 2013

Social Achievements

  • Increased employee satisfaction index to 74%

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • High employee turnover and multiple redundancies and TUPE transfers during 2019 impacted Unite membership penetration.
Mitigation Strategies
  • Hopeful that a full refresh and reinvigoration of our unique partnership in 2020 and 2021 will enable a more positive level of both membership and interaction with L&G.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: Null

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2020

Environmental Metrics

Total Carbon Emissions:40344 tCO2e/year
Scope 1 Emissions:15163 tCO2e/year
Scope 2 Emissions:20319 tCO2e/year
Scope 3 Emissions:3045 tCO2e/year
Renewable Energy Share:Not disclosed
Total Energy Consumption:172704 MWh/year
Water Consumption:Not disclosed
Waste Generated:25191 tons/year
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Reduced CO₂e emissions from 46,164 tonnes in 2019 to 40,344 tonnes in 2020. Note that this reduction is partly attributed to the impact of Covid-19.

Social Achievements

  • Increased UK employee parental leave uptake.
  • Maintained employee union membership levels despite the impact of the Mature Savings Division departure and the pandemic.

Governance Achievements

  • Not disclosed

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Covid-19 impacted business operations and environmental performance data.
Mitigation Strategies
  • Successfully transitioned to a predominantly home-based workforce.

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Not disclosed
Transition Risks
  • Not disclosed
Opportunities
  • Not disclosed

Reporting Standards

Frameworks Used: GRI, SASB

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed

Reporting Period: 2021

Environmental Metrics

ESG Focus Areas

  • Climate Change

Climate Goals & Targets

Environmental Challenges

  • Data collection complexities, including the use of estimates for some emissions data.
Mitigation Strategies
  • Implementation of internal carbon reporting procedures to capture and collate data; review and approval by each business before group-level aggregation; further review by the Group Environment Team to confirm accuracy, completeness, and reliability; use of actual data where practical and feasible; use of estimated or extrapolated data based on actual usage in other parts of the business or industry benchmarks; addressing anomalies through queries with local teams; restatement of reported data where material impact is identified.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Greenhouse Gas Protocol Corporate Accounting and Reporting Standard (GHG Protocol), UK Government’s Streamlined Energy and Carbon Reporting (SECR) requirements, TCFD

Reporting Period: 2022

Environmental Metrics

ESG Focus Areas

  • Climate Change

Climate Goals & Targets

Environmental Challenges

  • Data collection complexities, including the use of estimates for some data points.
  • Limited access to accurate data for some subsidiaries (e.g., CALA Homes vehicles).
Mitigation Strategies
  • Implementation of internal carbon reporting procedures to capture and collate data.
  • Use of estimates based on industry benchmarks where metered or invoiced data is unavailable.
  • Internal data dictionary to track data collection.
  • Review and approval processes at business and group levels.
  • Independent limited assurance by Deloitte.

Supply Chain Management

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: TCFD, SECR, Greenhouse Gas Protocol Corporate Accounting and Reporting Standard

Third-party Assurance: Deloitte (limited assurance)

Reporting Period: 2023-2024

Environmental Metrics

Total Carbon Emissions:Not disclosed
Scope 1 Emissions:Not disclosed
Scope 2 Emissions:Not disclosed
Scope 3 Emissions:Not disclosed
Renewable Energy Share:Not disclosed
Total Energy Consumption:Not disclosed
Water Consumption:Not disclosed
Waste Generated:Not disclosed
Carbon Intensity:Not disclosed

ESG Focus Areas

  • Climate Change

Environmental Achievements

  • Increased engagement outreach to over 2,800 companies in April 2024 (largest campaign to date)
  • Observed upward trend in average CIP ratings across most markets (except China and US) between 2023 and 2024
  • Significant improvements in climate disclosure and Scope 3 reporting (+41%), net-zero ambition (+38%), and climate governance (+25%) since 2023

Social Achievements

  • Not disclosed

Governance Achievements

  • Raised the bar for companies in three emission-intensive sectors (oil & gas, mining, utilities), introducing baseline expectations
  • Co-filed a shareholder resolution at Nippon Steel (first in Japan) due to insufficient climate-related lobbying disclosures
  • Declared voting intentions ahead of AGMs for Woodside Energy and Glencore regarding climate risk management

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • Not disclosed
Short-term Goals:
  • Not disclosed

Environmental Challenges

  • Global progress to mitigate climate risk is too slow
  • Insufficient disclosure of Scope 1 and 2 emissions (approximately one-third of assessed companies)
  • Pace of transition is neither fast enough nor smooth enough
  • Varying pace of transition influenced by public policies, geographies, economics, and energy demand
Mitigation Strategies
  • Engagement with more companies than ever before, holding them accountable through potential voting sanctions or divestment
  • Raising the bar for companies in emission-intensive sectors
  • Scrutinizing companies’ climate transition plans closely and co-filing or supporting shareholder resolutions
  • Writing to companies to highlight the necessity to identify and disclose emissions and engaging with data providers on this issue
  • Applying a model of ‘engagement with consequences’
  • Highlighting progress and improvements made by investee companies

Supply Chain Management

Supplier Audits: Not disclosed

Responsible Procurement
  • Not disclosed

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes, market shifts
Opportunities
  • Development of energy-efficient products

Reporting Standards

Frameworks Used: TCFD

Certifications: Null

Third-party Assurance: Not disclosed

UN Sustainable Development Goals

  • Not disclosed

Not disclosed

Sustainable Products & Innovation

  • Not disclosed

Awards & Recognition

  • Not disclosed