We have expanded the list of climate policies we assess company engagement with to incorporate land-use related policy, referring to legislative or regulatory measures to enhance and protect ecosystems and land where carbon is being stored. Assessments under this category are currently underweighted in terms of their contribution to the overall company metrics. This weighting will be progressively increased over the next 6 months.
We adjusted the terminology used to describe the queries running down the left-hand side of our scoring matrix and added additional explanatory text to the info-boxes. This has no impact on the scores and methodology. It has been done following user feedback to improve clarity.
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Emma Douglas, Head of DC at Legal & General Investment Management is Chair of the Policy Board at the PLSA
Emma Douglas (Head of DC, LGIM)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
Emma Douglas, Head of DC at Legal & General Investment Management is Chair of the Policy Board at the PLSA
Emma Douglas (Head of DC, LGIM)
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of October 2022, Legal & General Investment Management is a member of UK Finance which is a national association member of EBF
not specified
--no extract--
InfluenceMap Data Point on Corporate - Influencer Relationship
(1 = weak, 10 = strong)
As of October 2022, Legal & General Investment Management is a member of UK Finance which is a national association member of EBF
not specified
--no extract--
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.
Open PDF file of Data Source
Sustainable Finance Lobbying Overview: Legal & General appears to be actively advocating for ambitious regulation on sustainable finance, with most of its engagement carried out by its asset management arm, Legal & General Investment Management (LGIM).
Top-Line Messaging on Sustainable Finance Policy: 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. 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. LGIM also appears to be strongly supportive of net-zero by 2050 and ambitious regulation on sustainable finance.
Position on Regulated Corporate ESG Disclosure: 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. In a 2022 letter to the US SEC, LGIM strongly supported its proposed climate change disclosure rule. In its 2021 Active Ownership report, LGIM also stated support for the adoption of the TCFD standards in Japan.
Position on Taxonomies: In its Q1 2022 Active Ownership report, LGIM stated that it was engaging with policymakers on the EU taxonomy, advocating against weakening of criteria for agriculture and supporting the extension of the taxonomy to transition and harmful activities. In a 2023 article in Responsible Investor, LGIM stated support for the development of the UK green taxonomy.
Position on ESG Standards/Labels/Benchmarks: In its 2021 CDP response, Legal & General indicated high-level support for the EU's new labels for climate benchmarks and the EU Ecolabel.
Position on Incorporating ESG Factors Into Investment Duties: Legal & General 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. 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 an SEC proposed rule which would limit shareholder rights.
Transparency: LGIM's Active Ownership Report and ESG Impact reports contain a clear disclosure on sustainable finance policy engagement. There does not appear to be a group level disclosure, but Legal & General states that its policy engagement is primarily conducted by LGIM. Legal & General does not appear to disclose details of indirect engagement through trade associations at the group level. LGIM has disclosed memberships to third-party organizations in its Active Ownership reports, without further details of governance of its indirect engagement.