How is the Real Assets team taking real action on responsible investment issues?
LGIM’s 12th annual Active Ownership report
From our work on physical climate change, through to our collaboration with occupiers and borrowers, read the full report.
Real assets case studies
Analysing flood risk across our real estate portfolios
- Flood risk – both coastal and river – has been identified as the biggest physical climate threat to our UK-based real assets portfolios.
- Our long-term partnership with global physical climate risk specialist, XDI, has helped enhance the granularity and accuracy of our analysis at an individual asset level across all of our real estate portfolios.
Net-zero carbon audits for new acquisitions
- We’ve introduced net-zero carbon audits for all new acquisitions.
- On existing assets, we’ve continued to build on our sustainable property management framework.
- This includes net-zero carbon roadmaps, across targeted assets to identify practical considerations and costs of transitioning them to net zero.
Private credit sustainability loans
- We’re developing sustainability-linked loan structures, incentivising borrowers to achieve specific sustainability targets.
- These structures have been used across several sectors, including social housing, where a potential margin discount is available if the borrower improves the energy efficiency of the portfolio in line with their target.
Responsible investing
We believe embedding responsible investing factors into our investment analysis and decision-making will enable our business to deliver long-term positive value to all our stakeholders.
The launch of our first ever responsible and sustainable investment report was a real achievement for 2022 and shows the extent of the environmental and social actions we took across the real assets platform.
Responsible and sustainable investment report 2022
LGIM Real Assets continues to focus its attention on responsible and sustainable investing. Acknowledging that tackling climate change and addressing other ESG-related risks is critical to our investment process.
Get in touch
The Real Assets ESG team operates across the LGIM Real Assets platform. This dedicated group works closely with the asset management and investment teams to support ESG integration in investment strategy and decision making.