2016 – 2018 Group targets

Creating a better place to work

We want to create a better and more diverse place to work for our employees and are taking a number of practical actions.  We believe that diverse organisations make better business decisions. Our commitments are to:

Help our employees to be more financially resilient

  • Deliver a credit union savings and loans relationship in all of our UK offices as part of our employees benefits package in 2016
  • Deliver a Shelter designed rental deposit product for all UK employees providing them with interest free finance in 2016

Help future consumers to be more financially resilient

  • Deliver a financial education programme which provides 200 UK teachers a year with the ability to run their own financial education programme in 2016

We will involve our employees further in working in our communities

  • Deliver community investment programmes around our major locations in the UK and US that get as many employees as possible involved with their money and time

Improving the diversity in our workplace

  • We aspire to 50/50 by 2020 – balanced gender diversity at all levels in the organisation. We will increase gender diversity at middle and senior management grades (G5-8 and LGIM G4-7) from 35% to 40% women by the end of 2017.
  • We will create diverse shortlists when recruiting – at least one woman on every shortlist for roles at G5+ (LGIM G4+).
  • Divisional action plans in place for each business with gender diversity targets aimed at improving the female talent pipeline.
  • Roll out unconscious bias training to all employees across the group in 2016.
  • Improve our equality index from 78% to 85% across the group in 2016.

Research & Development 

We need to better understand the opportunities for our business to innovate our products, services and investments. We improve our knowledge by working with an ever diverse set of stakeholders. We are committed to…

  • Deliver at least 6 major not for profit partnerships for Legal & General group businesses that provide us with insights into emerging macro trends that our business needs to better understand in 2016.
  • Deliver the 'Mission Led Business Review' for Government on the number, role and support needed for the UK Economy in 2016.
  • Deliver a social investment fund in Wales to stimulate new forms of finance and jobs for social enterprises in 2016 and 2017

Responsible asset management

As a major institutional owner of assets we can have a major influence on other businesses because we have an equity, bond, direct investment or landlord to tenant relationship. We are committed to…

With our own balance sheet

  • Continue to invest £15 billion into sectors of the economy that are economically, socially and environmentally useful
  • Provide our 10 million retail customers with a way of understanding how doing business with Legal & General funds UK Infrastructure by the end of 2016.

As a major Investor

  • In 2016 engage with over 500 companies on environmental, social and governance issues
  • As an investor we will actively promote:
    • The removal of quarterly reporting and promotion of long-termism.
    • Director succession planning at US listed companies through reducing the length of service on boards.
    • Better board independence on Japanese listed companies.
    • Greater gender diversity in boardrooms, especially in UK mid-cap listed companies.
    • The process and board oversight of cyber security
    • The value of reviewing board effectiveness.
    • Greater collective engagement with institutional investors.

As a major commercial property landlord

  • Work with the ‘British Council of Offices’ and the ‘Social Value Portal’, to establish a standard 'Social Return' on Investment calculation for the real estate sector, producing three case studies on development, refurbishment and fund management, to help demonstrate a forward for the sector’’

Buying products and services responsibly 

To run our business we rely upon other suppliers to provide products and services which we deliver to our customers. We continue to find ways of improving the standards of our suppliers in emerging areas of regulation and where we think there is a need.

  • Implement a consistent global procurement code during 2016 for all our international subsidiaries
  • Disclose our position on ‘Modern Slavery’ as a group working with key external NGOs to guide us.

Environmental performance

As a user of energy and a major investor in the UK energy sector we can influence the UK energy agenda to achieve a reduction in resources being used. We are committed to…

  • Increase investments into UK energy infrastructure with our own money and that of our customers that support the transition to a low carbon economy over the next three years.
  • By 2020 reduce carbon emission per policy by 20% based on 2013 baseline
  • By 2020 reduce operational office water consumption per policy by 20% based on 2013 baseline
  • By 2020 reduce total waste generation per policy by 25% based on 2013 baseline
  • By 2020 reduce paper consumption per policy by 30% based on 2013 baseline
  • Publish the carbon intensity of our balance sheet assets so that consumers can understand how carbon intensive we are by the end of 2017

Fairness & Transparency 

There are a number of policy areas we want to be ahead of regulation and on the side of best practice. To do this there are number of critical friends and networks we use to make sure that we are fit for the future. We are committed to…

  • Work with Responsible 100 to have at least six critical friend reviews with NGOs on material policies for the Group to check they are fit for purpose by the end of 2016
  • Work with Open Corporates to improve our company structure disclosure to stay ahead of beneficial ownership transparency by the end of 2017
  • Deliver the first local sustainability report for India First and LGIM / LGA by the end of 2017
  • Launch the new and more inclusive ‘speak up and speak out’ line working with the Institute of Business Ethics by the end of 2016.

Improve End Customer Service

 We have a role in providing our products and services to customers’ lives when they most need them. We also realise that in the markets in which we operate lives are changing fast with emerging vulnerabilities such as mental health and dementia increasing the vulnerability in life for more people. We are committed to…

  • Deliver an e-learning package for all Legal & General employees to understand their role in dealing with vulnerable customers in 2016
  • Deliver a ‘critical friend’ review of at least one product and process a month to improve our work with vulnerable customers by the end of 2016