In our 11th annual Active ownership report, we outline the decisive action we took last year to deliver positive change on behalf of our clients in the arena of responsible investing.

LGIM’s responsible investing statistics at a glance

£290 bn ⁽¹⁾

The amount of assets we manage in responsible investment strategies

48 ⁽²⁾

LGIM employees with roles dedicated to ESG activity

70%

The amount of AUM we aim to be aligned to net zero by 2030

flood-risk

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.
eagle-street

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.
social-housing

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.
We’re driving ambitious carbon reduction plans to achieve our net-zero carbon objectives.
Shuen Chan, Head of ESG, Real Assets

LGIM’s 11th annual Active ownership report

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From our work on climate change, through to our new commitment to tackle deforestation and our taking action on diversity, read the full report.

Media

See how we are encouraging global engagement to deliver positive change

 

Join Kurt Morriesen, Head of Investment Stewardship, and colleagues for the Active ownership podcast

Active ownership in action

Spotlighting the importance of the circular economy
North Quay House, Bristol

  • North Quay House in Bristol is the latest refurbishment by LGIM Real Assets to undergo a detailed lifecycle carbon assessment
  • Refurbishing the existing office building, rather than demolishing it, represented a significant carbon saving
  • As a result, the project is on track to achieve embodied emissions well below industry standards
  • Planned upgrades to the building fabric and systems will also substantially reduce operational emissions
Looking across the river to North Quay House, Bristol
North Quay House

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.

Find out more
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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.

Contact us

Sources:

  1. LGIM, as at 31 December 2021. AUM in responsible investment strategies represents only the AUM from funds or client mandates that feature a deliberate and positive expression of ESG criteria, in the fund documentation for pooled fund structures or in a client’s Investment Management Agreement.
  2. LGIM, as at March 2022.

Key risk

The value of any investment and any income taken from it is not guaranteed and can go down as well as up,
and investors may get back less than the amount originally invested.