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