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Environmental, Social and Governance

Environmental, social and governance (ESG) factors and impact investing in the real economy are at the heart of our investment approach

Addressing climate change is one of our Group’s key strategic growth drivers, which are set to deliver sustainable returns, as well as positive environmental and social outcomes.

Our key ESG objectives are summarised below.

Environmental – Portfolio decarbonisation

Our Group carbon emission intensity is published annually in the Legal & General Group Climate and Nature report.

This report also contains further information on our environmental initiatives.

Our interim targets are to reduce our portfolio’s greenhouse gas intensity by 18.5% by the start of 2025 and by 50% by the end of 2030. This is relative to year-end 2019 levels.

Our target is to achieve a net zero asset portfolio by 2050. As at year-end 2023, we are on track for the 2025 target.

Social impact – Creating new investments for the future economy

When allocating capital towards investments, our aim first and foremost is to ensure the safety of our policyholders’ benefits, but where possible we invest to generate positive societal impacts, local and global economic growth.

Further details of our social impact are in our Group Social Impact report.

Governance – Influencing the transition to a low-carbon economy

We are primarily fixed income investors, i.e. invest in corporate and government debt.

We leverage our in-house asset management business’ policies and commitments for compliance with ESG initiatives including climate frameworks.

That means our stewardship covers both the fixed income assets we own but also assets it manages on behalf of other clients.

We also engage with wider stakeholders and have been members of many environmental initiatives for over a decade.

For example, we’ve been a signatory to the UN Principles of Responsible Investment since 2010 and a member of the Institutional Investor Group on Climate Change since 2011.

For details on our policies including on stewardship please see here: Investment Stewardship & Governance.

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A proud signatory to the Sustainability Principles Charter for the bulk annuity process

We are proud to be a founding signatory to the Sustainability Principles Charter launched by Accounting4Sustainability.

The charter aims to raise standards across industry and bring a more unified approach on how bulk annuity insurers report relevant information on their sustainability approaches.

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Insights

A proud signatory to the Sustainability Principles Charter for the bulk annuity process

We are proud to be founding signatory to Accounting for Sustainability’s Charter released early in 2024.

Raising the (West) Bar: Investing in Sheffield

Our CEO, Andrew Kail, recently returned to his hometown of Sheffield to explore how the power of pensions is helping to forge a bright future for the Steel City.

UK and US PRT Monitor - September 2024

Read our latest PRT Monitor, analysing the growing momentum in the UK and US markets.

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What we offer

A full range of pension scheme insurance. Learn more about how we can support your pension scheme.