Risk and Reputation Management is at the core of being a responsible Company. At the heart of Legal & General’s strategy is the need to provide our customers with good value products, quality service and a wide choice of ways to buy.
Corporate Governance of CSR
It is important that our customers feel confident that we will treat them fairly. They trust us to look after their savings and to provide financial protection for themselves and their families.
To manage returns and customer expectations in the long term, we must constantly understand the Environmental, Social and Governance (ESG) risks and opportunities faced by us as a business and make decisions based on protecting our current customers’ assets and attracting new clients in the future.
Decision Making Structure
The Group CSR Committee, chaired by Tim Breedon, Group Chief Executive, reports to the Group Board and oversees CSR issues. The Committee meets at least four times a year.
The following are members of the Group CSR Committee:- Tim Breedon, Group Chief Executive (Chair of Committee)
- Peter Chambers, Chief Executive Officer LGIM
- John Godfrey, Group Communications Director
- Gareth Hoskin, Resources and International Director
- Elaine MacLean, Group HR Director
- Nick Manns, Unite National Officer
- Graham Precey, Head of CSR.
CSR Sub Committees then feed into the CSR Committee.
CSR and Renumeration
Tim Breedon is Chair of the CSR Committee and CSR is implicitly covered in his objective to meet the long-term objectives of stakeholders and measure the reputation of the business.
Corporate Responsibility at the Core of Decision making
When making decisions affecting its business, Legal & General Group is committed to ensuring that the ESG impacts are considered. Some examples from 2008 include:
Overseas Expansion: In 2008, Legal & General announced its intentions to joint venture with Bank of Baroda and Andhra Bank. As part of our due diligence process, Legal & General commissioned bespoke research by Watson Wyatt to produce a country report on market potential early in process. In summary, this indicated of insurance penetration per capita, a need for social inclusion especially in the deprived and rural areas. See International Section for more details.
Outsourcing: In 2008 Legal & General made the decision to outsource its IT Development to Tata Consulting Services (TCS). As part of the decision making process we used our Sustainable Supply Chain Policy to analyse the Environmental and Social Impact of this activity. Specifically we:- Conducted an initial assessment of Health and Safety, Environment and Finances for the six bidders
- Asked additional questions about TCS’s employee relations overseas, which was reviewed and approved.
In 2008 we have taken further counsel from engaging SRI analysts, such as Cazenove and Jupiter Asset Management (who invest in Legal & General), who have asked for further disclosure and more detail on environmental risks we model as an organisation.
Looking Forward
We continue to look for opportunities to further disclose how we factor in Environmental, Social and Economic impacts into our Corporate Governance Structure and core decision making.