Active Ownership
How we sought to create sustainable value for our clients in 2024
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.
E – engaging for change on climate
In 2024, our Climate Impact Pledge (CIP) covered 55% of total corporate securities by value, and 82% of total carbon emissions attributable to L&G’s Asset Management business’s corporate equity and debt holdings [5]
Under our CIP, 455 companies out of a universe of 5,000+ were identified by our quantitative assessment as subject to voting sanctions in 2024 due to not meeting our minimum standards
Of the 100+ ‘dial movers’, 37 companies were identified for voting sanctions. In total, 14 companies remained on our divestment list, and two more were added.
In 2024, we published our Nature Framework, which outlines our approach to aligning with the five direct drivers of nature change that have the largest global impact [6]
We updated our Deforestation Policy and 119 companies were identified for vote sanctions in 2024, due to not meeting our minimum deforestation expectations
S – shining a spotlight on social issues
In 2024, we co-filed shareholder resolutions at Walmart†, Target† and Kroger†, asking them to develop a policy on paying a living wage to their employees
We launched our human rights engagement campaign, contacting 400 companies in 43 countries. Our outreach has resulted in engagement with 20 companies so far. [7]
In November 2024, we published our Human Capital Management Policy, setting out our expectations of companies on how to manage their labour force
We continued to raise awareness among policymakers and government officials across the globe about the risks posed by antimicrobial resistance (AMR)
We seek to identify how asset managers can best use their influence as effective partners in the global battle against the rise of AMR
G – guiding companies towards good governance
In 2024, we voted against almost 260 US companies with dual-class share structures [8]
On executive pay, we apply flexibility when considering pay quantum and alternative structures, where these are aligned to long-term performance and stakeholder experience
We published our initial expectations of companies on artificial intelligence in 2023 and have continued to engage with the four largest US tech firms [9] that are building AI systems as products
Sources
[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 30 June 2025. 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).
Key documents
Active ownership
How we engaged globally to deliver positive change in 2024
Past annual reports
Quarterly Engagement Reports: a summary of our stewardship actions
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Key risks
(†) 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.