Britain’s biggest fund manager with more than $1.55 trillion in AUM, expands push towards low-carbon economy

On Wednesday, Britain’s biggest asset manager said, it plans on increasing the number of companies it assess and engages vis-a-vis climate change, in order to accelerate global efforts to move towards a low-carbon economy.

In a statement Legal & General Investment Management (LGIM), a unit of insurer Legal & General said, it would increase the number of companies it covers in its Climate Impact Pledge, from 100 to 1,000.

With more than $1.55 trillion in assets under management (AUM), Legal & General said it would make its climate ratings for companies available on its website.

“We thought it was really important that our own engagement framework really addresses this challenge of decarbonising very, very rapidly in the next 30 years,” said Meryam Omi, LGIM’s head of sustainability and responsible investment strategy.

“As part of its engagement with companies in the oil and gas, mining, electric utilities, automotive, food retail and financials sectors,” LGIM will “publish the names of the laggards, vote against their boards at the companies’ annual general meetings and potentially divest their shares from certain funds.”

Furthermore, it will also begin engaging with companies in the property, steel, cement, technology, food sectors, chemicals, telecoms, apparel, and transport sectors.

Of the newly targeted companies, the bottom end of the worst-performing 500, will receive a letter warning that their annual report would be rejected at next year’s AGM if appropriate action was not taken.

For the 60 companies which are seen as being pivotal to the transition to a low-carbon economy, LGIM said, it would develop a more in-depth assessment framework to better understand their strategy before engaging with them directly.



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