Materiality matters

Our business is constantly part of a changing world, and we need to ensure we have the right people to manage and harness this change for the benefit of all our stakeholders. We invite our stakeholders to share issues that affect and are affected by our operations. For this reason we carry out a materiality assessment each year.

This gives us a better idea of what our stakeholders expect from us.

How we identified material issues

We identified a number of economic, social, environmental and governance issues through internal and external information, which include:

  • Legal & General Group risk register
  • Media Articles
  • Direct contact with internal and external stakeholders
  • Sustainability frameworks
  • Current and future legislation
  • Customer complaints
  • Employee surveys

Engaging with stakeholders

We identified the following stakeholder groups as being key for us:

  • Employees
  • Customers
  • Investors
  • Community Groups
  • Non-Government Organisations
  • Governments and Regulators
  • Charities and not-for-profit partners
  • Suppliers

We invited representatives from these groups to participate in roundtables, on-line surveys and one to one meetings. Communicating with and listening to our stakeholders helps us understand their views and explain our perspectives.

How materiality is reflected in our 2016 CSR report.

The material issues in this section have been reported from our stakeholders and we have addressed our engagement processes to suit each different stakeholder group. Our local markets play an important role in forming relationships with local stakeholders.

In addition, you can find out how many other issues relate to our performance as a responsible business by using our comprehensive GRI foundation index.

Looking ahead

We will continue to engage with all our stakeholders as frequently as possible and use their insight to inform our strategy and our reporting approach. This will include material issues in the US and India. 

Our most material issues in 2016

Stakeholder Group

How we engage

Outcomes and Examples for 2015/2016

Employees

We gained feedback from employees on how we are doing through the annual employee survey and forums on business principles and our culture. We engage informally through internal communications channels and regular meetings with managers.

We launched our new behaviours with an internal campaign and a ‘new framework’ to make our culture link through to pay and bonus. With the support of Institute of Business Ethics and Blueprint for better Business.

We continued working with the Living Wage Foundation to ensure that we keep improving labour standards as an employer and as a procurer.

Customers

At the end of transactions in our direct business, surveys are issued for feedback.

We have meetings with community groups who represent many of our customers on our carbon commitment.

We talk regularly to community groups and NGOs such as ShareAction and Christian Aid, in regards to our role in moving to a decarbonised economy. LGIM’s Climate Impact Pledge is a commitment we made to ensure we are holding companies to account for their commitment to a low carbon future.

Investors

We meet with investors through events, conference calls and direct meetings to understand their concerns on where we invest funds free of tobacco.

We have been working with Tobacco Free Portfolios to develop investment portfolios for clients looking to reduce tobacco stock holdings in line with their mission.

Community Groups

We have contact through phone calls, roundtables and direct meetings on how our infrastructure investment affects communities.

Our work with the Social Value Portal helps us analyse the economic, social and environmental impacts we have on communities when building properties and managing those property portfolios.

Non-Government Organisation

We engage with NGOs when their campaign or focus is relevant to our business. We organise face-to face meetings and roundtables.

We worked closely with Responsible 100. They enable businesses – and civil society organisations such as charities and public bodies – to better understand the social and environmental challenges they face. They help analyse performance and benchmark against peers. Identify better and best practices, and determine how well your values are manifest in what you do across your organisation.

Governments and Regulators

We engage with regulators and governments on a wide range of issues relevant to our business..

We have been working with QED Group and the European Commission in Brussels to highlight the positive role that we play in improving ESG performance of customers we directly invest in and those businesses we own on behalf of our clients.

We are working with Open Corporates as a major FTSE company and an investor to improve standards and ultimately create a Global Open Ownership Database to help make it clear to investors and consumers alike who owns who.

Charities and not for profit partners

We regularly meet with charities and NGO’s through meetings, conference calls. They have become our critical friends on products and services within the business.

Working with Stepchange we understand how our customers face financial difficulties. Action for Elder Abuse and Elderly Accommodation Counsel have reviewed our Power of attorney process.

Suppliers

We work closely with suppliers to ensure they maintain high standards by conducting assessments in line with our code of conduct. We also collaborate with key network suppliers to help us reduce climate impacts by improving the energy efficiency on our investments

With the assistance of Anti-Slavery International, we have been able to review our business in depth around the Modern Slavery Act.