Environmental matters.

Climate change is something that impacts the very core of what we do from annuities, life insurance, institutional investment, commercial property investment and savings to home insurance. There has been lots of work across the Group in 2012 to help our customers cope with climate change through our products and services. We have been recognised as a leader in this field, scoring 100% in this year’s ClimateWise Index.


Climate change affects many parts of our business – from health to commercial property assets and our customers’ investment holdings. We need to adapt to the effects of climate change, both in developing products (including pricing and who we insure) and the services that we deliver to our customers.

We are on the managing committee of ClimateWise, the global insurance industry’s leadership group to drive action on climate change risk, which gives us the chance to talk to policymakers about business, investment and climate change.

The physical environment has a significant influence upon how we do business in two main ways:

  • How we provide our customers with products that mitigate climate-related risks in the design of our products and services.
  • How we consider the use of natural resources to run our own business.


Traditionally we have collected our environmental data by calendar year, but because of new legislation we’ve decided to consolidate our environmental data collection to run from April to April going forward. This report therefore updates the information provided in April 2012 and includes our environmental performance from April 2011 to April 2012. Information from April 2012 to April 2013 will be available from August 2013 in our online CSR Report.

At Legal & General, we have a strong commitment to the environment and high expectations of our employees. This is set out in our Group Environmental Policy statement. We recognise that our operations impact the environment:

  • directly, through our buildings and business travel in the UK and overseas;
  • indirectly, through our investment assets; and
  • indirectly, through our supply chain.

We have measured our direct environmental impacts for over ten years, focusing on energy, transport, water and waste, as well as addressing the risks and opportunities associated with climate change.

To do this, we operate certified Environmental Management Systems (EMS) covering the areas where we can make a difference:

  • UK facilities
  • UK procurement
  • Legal & General Property
(XLS:) Environmental impacts







Energy per UK employee and per UK policy includes UK occupied offices, Suffolk Life (occupied properties), Legal & General Surveying Services and Estate Agency Franchising offices (including voids).

CO2 (UK occupied properties) per employee1





Car based business miles per UK policy





Waste to landfill per UK employee (kgs)





Estimated water per UK employee (CuM)






Business in the Community (BITC) Corporate Responsibility Index 2011 (logo)

Business in the Community (BITC) Corporate Responsibility Index 2012
We retained our Platinum status having first achieved this in 2011.

FTSE4Good (logo)

We achieved a score of 89% in 2012, down from 94% in 2011. This score reflects the belief of FTSE 4900 that we should do more in harder to reach markets.

Dow Jones Sustainability Index (logo)

Dow Jones Sustainability Index
We scored 73% in 2012 up from 71% in 2011. The sector leader scored 81%.

SIG Watch (logo)

SIG Watch
We scored -9 in the Corporate Reputations Index with NGOs in 2012. This was an improvement on our score of -28 in 2011.

Climatewise (logo)

We have improved our ClimateWise rating to 100%, an increase of 1% from 2011, we are now joint first in the insurance sector globally.

OEKOM / ECPI (logo)

We are rated as a prime stock by Oekom in their investment universe.

We were one of the first financial services companies to become certified to ISO 14001 and this programme has expanded to cover our supply chain and property investments. We don’t offset our impacts or make claims of ‘carbon neutrality’; our priority is to actually reduce our impacts. During 2012, there were no notifiable environmental incidents as a result of our operations.


Management of our supply chain is an important aspect of running our business efficiently and in a sustainable way. Terms and conditions for business transactions are agreed with suppliers and payment is made in accordance with these terms provided the suppliers’ obligations are met. The Company has no trade creditors. As at 31 December 2012, the average number of days of payments outstanding for the Legal & General Group of companies was 20 days (2011: 36 days). Suppliers are regularly assessed to ensure that they comply with our environmental, social and ethical policies.


Our strategy remains to reduce year-on-year use of resources to run our business. Our focus for environmental targets includes:

  • further reduction of Group Operations CO2 emissions;
  • UK waste reductions;
  • reductions in energy use in our commercial property portfolio; and
  • reduce UK paper use and increase the online servicing of our customers from current level of 2.7%