Climate Change Data

Legal & General Investment Management Limited

Climate Impact & Sustainability Data (2024)

Reporting Period: 2024

Environmental Metrics

ESG Focus Areas

  • Environmental
  • Social
  • Governance
  • Transparency

Environmental Achievements

  • Developed a proprietary ESG scoring system to improve market standards and monitor ESG developments of 17,000 companies.
  • Includes value chain emissions intensity to close the 'emissions gap'.

Social Achievements

  • Developed a scoring system that tracks social diversity (gender representation) across different levels of a company.
  • Uses human capital indicators to assess company policies on discrimination, bribery, supply chain, and freedom of association.

Governance Achievements

  • Developed a scoring system that assesses investor rights (equal voting rights, free float), board composition (independence, tenure), and governance oversight (audit committee expertise, non-audit fees, audit opinion, lobbying activities).

Climate Goals & Targets

Environmental Challenges

  • Inconsistent, globally accepted definitions for ESG indicators.
  • Poor data availability for certain ESG themes and risks (e.g., employee satisfaction).
Mitigation Strategies
  • Regular review and refinement of ESG scores as data availability and reliability improve.
  • Focus on market-wide standards expected of all companies, irrespective of sector.

Supply Chain Management

Responsible Procurement
  • Assessment of supply chain policies.

Climate-Related Risks & Opportunities

Physical Risks
  • Extreme weather events
Transition Risks
  • Regulatory changes, market shifts, reduction in value of fossil fuel assets
Opportunities
  • New revenue streams from low-carbon technologies