Delivering sustainable growth
- Download entire PDF
- Download this section
- All downloads
To deliver growth sustainably for the future, the company has committed to a number of Environmental, Social and Governance targets.
We also recognise that beyond our own strategy we play a wider role in the world to improve society, the economy and the environment. As such we have linked these targets to the United Nations Sustainable Development Goals (SDGs) where applicable.
The Group Corporate Responsibility and Ethics Committee (GCRE) is responsible for monitoring and delivering these targets for the Group.
CAMPAIGN 1 - We will seek to influence stakeholders in the transition to a low carbon economy
In the next five years:
- reduce the number of carbon intensive companies that we own in our shareholder funds and replace them with less carbon intensive companies By the end of 2017 we will publish the carbon intensity of our own balance sheet.
- our Insurance business will deliver insurance solutions to support low cost energy efficient homes
- LGIM will engage with investee companies globally to build strong governance and strategies that are resilient and adaptive to changing policy and technology. In 2017 we will engage with 84 companies as part of Climate Impact Pledge.
- LGIM will help clients understand better the risk and opportunities created by the low carbon transition through education and then provide investment solutions to finance and benefit from the low carbon transition
- support the development of key technologies with the potential to accelerate the transition to a low carbon economy
- develop low carbon, energy efficient homes in our housing business
- Legal & General Capital will provide capital for up to 5% of the UK clean energy market, enough to sustainably power 5% of all UK households by 2021
Whilst our business grows we continue to monitor and seek to reduce our operational impacts (carbon, waste, water and items we procure). Our operational environmental targets:
- By 2020 the Group will reduce carbon emission per policy by 20% based on 2013 baseline
- By 2020 the Group will reduce operational office water consumption per policy by 20% based on 2013 baseline
- By 2020 the Group will reduce total waste generation per policy by 25% based on 2013 baseline
- By 2020 the Group will reduce paper consumption per policy by 30% based on 2013 baseline
- In 2017 the Group will review the current approach to measuring resources and seek to reset these on a scientific basis out to 2030.
CAMPAIGN 2 - We will make society more resilient with our financial solutions
In the next five years:
- across our business, we will improve our products and services to support emerging vulnerabilities in our customers’ lives
- we will be directly addressing the increasing mental health problems in the developed world through enhancing our products, services and investments available to customers
- we will design and distribute our retail products so they become more accessible, transparent and simpler to purchase by innovating product design, accessing big data and rationalising the way that we distribute products
- we aim to have 20% of the real assets we own or invest in, to have an economic and a social value generated based upon how we design and run them
- LGIM will engage with investees on key themes that will help to create more resilient societies, namely: diversity, health, technology, income inequality and financial inclusion. In 2017, we will: engage with governments and companies to promote more disclosure on income ratios and engage with US companies on gender diversity
- Legal & General Capital will integrate ESG performance into investment strategy, including investment selection, diligence and ESG policies for the companies we invest in
- the group will institutionalise long term investment into social housing
- by 2020 as a group we will deliver our 50:50 by 2020 gender mix through recruitment and retention initiatives
CAMPAIGN 3 - We will create new investments for the future economy
In the next five years:
- as group, continue our strategy to invest £15 billion into sectors of the economy that are economically, socially and environmentally useful
- develop investment solutions via LGIM that are more clearly aligned to the UN Sustainable Development Goals (SDG's)
- LGIM will develop and enhance long-term investment offerings which integrate ESG themes.
- Legal & General Capital will enable over £10 billion of funding into small to medium sized enterprises (SMEs), supporting job creation and economic growth
- as a group will expand its divestment strategy from shareholder funds to then invest in new economy assets
- as a group we will support at least one development of a new economy asset classes to create economic and social value into our communities through mechanisms such as Social Stock Exchanges, Incubators and Community Share Schemes
- By 2021as a Group, invest in major regeneration schemes in at least ten UK cities
CAMPAIGN 4 - We will run our business to a higher standard in the next 12 months
There are a number of commitments we will make on a yearly basis to simply run our business better.
In 2017 we will:
- deliver employee roadshows in all locations to test our performance with employees against business principles
- work with Open Corporates to improve our company structure disclosure to stay ahead of beneficial ownership transparency
- deliver the first local sustainability report for IndiaFirst Life and the US
- as a group we will provide financial education to at least 200 teachers and 3000 students to better prepare them for their future
- communicate externally our policy to stakeholders on big data usage to run our business
- LGIM will formally invite external stakeholders to at least two roundtables that strengthen our Corporate Governance and Sustainability policies
These targets will be reviewed on a quarterly basis by the GCRE Committee and reported on once a year in line with our sustainability report.