As an investor
As a major global investor, LGIM has a fundamental interest in ensuring that shareholder value is not eroded by a company’s failure to manage its impact on its natural and social environment. At the same time, LGIM believes that a company’s value can be enhanced over time through taking advantage of opportunities which arise from identifying efficiency in its operations.
We engage directly with companies. Environmental considerations, such as climate change, water, biodiversity, waste and other types of pollution, are assessed in their context of the financial materiality, regulatory compliance and industry best practices.
We influence policy decision-makers on key global issues like climate change. We worked with other investors to ensure governments globally curb greenhouse emissions successfully through the United Nations Framework Convention on Climate Change.
We integrate environmental components in our investment process. Our proprietary database allows for ranking of companies in each sector based on key risks to their performance.
We invest in renewables. The Paris climate agreement (COP21) shows a global recognition that the world’s energy system needs transformational change, but for this to happen, hard investment decisions need to be made to deliver reductions in carbon emissions and benefits to energy consumers. Legal & General sees clean energy including wind and solar power as key components to delivering lower cost and more secure energy in the long term both for the UK and globally.
In December 2015 Legal & General Capital invested in a clean energy investment and asset management business, NTR Wind Management Ltd and committed to build an onshore wind portfolio targeting assets worth up to £0.5bn. The generating capacity of the assets will be up to 270MW, which could generate sufficient electricity to power up to 170,000 homes and avoid more than 300,000 tonnes of CO2 per annum across the UK and Ireland.
By using its balance sheet capital to invest in new clean energy for the UK, L&G can lead the way for large scale, long term institutional investment in the decarbonisation of the energy system.
Legal & General Real Assets combines our expertise in Property, Infrastructure and Commercial Lending enabling an integrated investment approach. And with £20.4bn in assets under management (as at 31st December 2015) we can provide sustainable and innovative investment opportunities for our clients.
Creating sustainability within our assets is deeply important to us, and it’s why we are determined to provide our tenants with exceptional buildings to work and live in, as well as regenerating areas for local communities, giving them a sustainable future that contributes to their everyday life. We are proud to say our vision and ability is endorsed by GRESB who in 2015 awarded us with ‘green stars’ for every applicable fund.