The future is what we make it. Make it count

As a pension saver, you are an investor. As your pension provider our main aim is to protect and grow your retirement savings.

There are many different factors that are both a risk and an opportunity to the growth of your pension. A responsible investing approach enables us to focus on a key area, which is the management of Environmental, Social and Governance (ESG) practices.

ESG issues include things like, climate change, fair work conditions, executive pay, supply chain management and impact on local communities.

These issues are directly linked to your pension through the assets your pension is invested in, such as equities which are shares in companies.  

Our investment management business, Legal & General Investment Management (LGIM), considers ESG issues as part of its decision-making process, for the funds it manages directly. Funds managed by external fund managers may take a different approach. As a global investor, LGIM aims to use its influence to encourage:

• companies to integrate ESG factors into their culture and everyday thinking,
• markets and regulators to create an environment in which good management of ESG factors is valued and supported.

This approach helps LGIM to manage investment risks and opportunities and seek the best possible financial returns for you.

Watch the following video for an overview on ESG and why it matters to your pension 

So, we see responsible investing as the incorporation of ESG considerations into investment decisions, alongside engagement with companies, regulators and policymakers, to help create positive change.

The rest of this site provides examples of how LGIM does this, including the Active Ownership and Climate Impact Pledge reports.

The ‘your investment choices’ section provides a responsible investing fund guide, matching funds to specific responsible investing characteristics. Some funds may not have a mandated sustainability objective but may still include responsible investing approaches as part of its overall investment strategy. Where a fund does include responsible investing, it doesn’t necessarily mean that ALL assets held by that fund can be considered sustainable. Pension funds generally include a range of companies and sectors.

LGIM’s responsible investing policies and frameworks

LGIM’s responsible investing policies and frameworks are published online. These include policies on biodiversity, deforestation, climate change, controversial weapons, coal, diversity and engagement.

These policies are available for everyone to view but were created with investment professionals in mind. This means the communication style and terminology used is more technical than the standard communications you might receive.

 You can read the full set of policies on the investment stewardship webpage.