Legal & General

InfluenceMap Score
B-
Performance Band
83%
Organisation Score
55%
Relationship Score
Sector:
Financials
Head​quarters:
London, United Kingdom
Brands and Associated Companies:
Legal & General Investment Management
Official Web Site:
Wikipedia:

Legal & General appears to be active in advocating for ambitious regulation on sustainable finance. Legal & General has supported net-zero by 2050 goals in the UK and the EU and appears to support reform to address short-termism in markets. At the group level, Legal & General has stated in its 2019 Annual Report that it is advocating for regulation on sustainable finance through engagements with policymakers. In 2021, Legal & General’s CEO, Nigel Wilson, co-signed a letter to UK’s Prime Minister advocating for action to achieve net-zero by 2050. Legal & General Investment Management (LGIM) also appears to be strongly supportive of net-zero by 2050 and ambitious regulation on EU’s Renewed Strategy on sustainable finance.

Legal & General appears to be most engaged on the issue of mandatory corporate climate disclosures, particularly in the UK and US. In various blogs throughout 2020-2021, LGIM has called for mandatory implementation of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and advocated for EU policymakers to increase the ambition of the Non-Financial Reporting Directive (NFRD). In its 2020 Active Ownership report, as well as in response to DWP and FCA during 2020-2021, LGIM strongly supported mandatory implementation of the TCFD for both pension schemes and listed issuers. It also advocated for increased ambition of BEIS’ proposed regulated corporate disclosures for public companies in 2020. Similarly, in a 2021 letter to the SEC and in a 2020 ESG Impact Report, LGIM strongly supported regulated corporate ESG disclosure in line with TCFD recommendations. At the group level, Legal & General also stated support for the update of the NFRD in its 2020 CDP response.

Legal & General has stated broad support for the taxonomy in its 2019 TCFD report and CDP response. In its 2019 CDP response, Legal & General also indicated high-level support for the EU's new labels for climate benchmarks.

Legal & General has also stated high-level support for policy to integrate sustainability into investor duties regulation in its 2020 CDP response and LGIM's 2019 Active Ownership Report. LGIM also engaged with UK policymakers on these issues through consultations in 2018, supporting the Department for Work and Pension (DWP)'s proposals on clarifying and strengthening trustee' investment duties and advocating for ambitious an ambitious UK Stewardship Code in response to the Financial Reporting Council (FRC). However, in feedback to the European Commission on the EU’s Sustainable Finance Disclosure Regulation in 2020, LGIM argued that the regulation should be more flexible and suggested a key set of indicators in place of those proposed.

In a 2020 ESG Impact report and in response to the US Department of Labor consultation on fiduciary duties in 2020, LGIM strongly opposed proposed regulations that would limit fiduciaries' ESG Investing and voting on ESG issues. In 2020, it also opposed a SEC proposed rule which would limit shareholder rights.

LGIM's Active Ownership Report and ESG Impact reports contain a clear disclosure on sustainable finance policy engagement, but the group level disclosure is less clear. Similarly, Legal & General does not appear to disclose details of indirect engagement through trade associations at the group level, but LGIM has disclosed memberships to third-party organizations in its Active Ownership reports.

QUERIES
DATA SOURCES
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Strength of Relationship
STRONG
 
 
 
 
 
 
 
WEAK
 
56%
 
56%
 
53%
 
53%
 
53%
 
53%
 
46%
 
46%
 
42%
 
42%
 
49%
 
49%
 
81%
 
81%

How to Read our Relationship Score Map

In this section, we depict graphically the relationships the corporation has with trade associations, federations, advocacy groups and other third parties who may be acting on their behalf to influence climate change policy. Each of the columns above represents one relationship the corporation appears to have with such a third party. In these columns, the top, dark section represents the strength of the relationship the corporation has with the influencer. For example if a corporation's senior executive also held a key role in the trade association, we would deem this to be a strong relationship and it would be on the far left of the chart above, with the weaker ones to the right. Click on these grey shaded upper sections for details of these relationships. The middle section contains a link to the organization score details of the influencer concerned, so you can see the details of its climate change policy influence. Click on the middle sections for for details of the trade associations. The lower section contains the organization score of that influencer, the lower the more negatively it is influencing climate policy.