Active Ownership

We have been committed to active engagement to represent investor rights since L&G’s Asset Management business was established in 1970, and our dedicated Investment Stewardship team was formed in 2000. 

Our commitment to responsible investing is reflected in L&G’s purpose: “Investing for the long term. Our futures depend on it.” 

As a universal owner [1] on behalf of our clients, we take responsibility to seek to address key macro and systemic risks, with the aim of tackling market issues and accelerating progress against complex, global sustainability challenges.

Our Active Ownership report details how we exercised voting rights across our entire book and engaged with companies, policymakers and other stakeholders with an aim to deliver positive change on topics including climate, nature, diversity, health and governance. 

[1] Universal owners hold such large, diversified portfolios that they represent a slice of the entire market or economy. Because their investments span multiple sectors and industries, they are exposed to an array of macro and systemic risks.

[2] This comprised 3,617 engagements in the environmental category, 753 in social, 694 in governance and 303 in other areas.

[3] Resolutions voted exclude do-not-vote instructions.

[4] As at 31 December 2024. AUM in responsible investment strategies represents only the AUM from funds or client mandates that feature a deliberate and positive expression of responsible investing characteristics, in the fund documentation for pooled fund structures or in a client’s investment management agreement. This expression could be exclusions; ESG outcome focus; positive environmental and social impact; or a combination of these. The Asset Management responsible investing reporting criteria is reviewed in line with existing industry frameworks as well as significant regulatory developments relating to sustainable finance disclosure requirements, as deemed to be relevant to the markets in which L&G’s Asset Management business operates, including but not limited to the EU Sustainable Financial Disclosure Regime (SFDR) and the UK Sustainability Disclosure Requirements, which was published on 28 November 2023.

[5] As at 31 December 2024. Percentages are calculated by looking at corporate equity and debt holdings only. Percentages are calculated on corporate equity and debt holdings, where GHG data can be sourced. Data is from ISS and uses data and reporting enrichment to map to issuers of corporate bonds.

[6] Climate change; land/freshwater/ocean use change; natural resource use; pollution; and invasive alien species; as identified by Intergovernmental Science-Policy Platform on Biodiversity and Ecosystem Services (IPBES) and aligned with the TNFD.

[7] Internal engagement data; as at 14 November 2024.

[8] Internal vote data, 2024.

[9] Alphabet† (ESG score: 56; unchanged), Apple† (ESG score: 67; +1), Meta† (ESG score: 65; +3), Microsoft† (ESG score: 73; unchanged).

(†) Any references to companies are mentioned for illustrative purposes only and does not constitute a recommendation. The value of an investment and any income taken from it is not guaranteed and can go down as well as up, and the investor may get back less than the original amount invested.

Whilst L&G’s Asset Management business, where relevant, has integrated financially material Environmental, Social, and Governance (ESG) considerations into its stewardship practices and investment decision-making, funds that do not include specific ESG goals within their objectives might not pursue responsible investing goals.

Assumptions, opinions, and estimates are provided for illustrative purposes only. There is no guarantee that any forecasts made will come to pass.