Climate Finance Policy Engagement Analysis
Climate Lobbying Overview: Legal & General appears to be actively advocating for ambitious regulation on climate, with most of its policy engagement carried out by its asset management arm, Legal & General Investment Management (LGIM).
Top-Line Messaging on Climate-related Financial Policy: LGIM supported urgent action to keep global temperature rise to below 1.5C in its 2023 Net Zero 2050 Update, and Legal & General supported the UK Treasury’s proposals on integrating climate change into the financial services regulatory framework in a 2022 consultation response. LGIM strongly supported the development of the UK’s sustainable finance framework in its Q2 2022 Active Ownership Report and advocated for ambition in the UK’s Green Finance Strategy.
Position on Regulated Corporate Climate Disclosure: Legal & General appears actively engaged on and supportive of mandatory corporate climate disclosures. LGIM supported the widespread adoption of the International Sustainability Standards Board (ISSB) standards by national jurisdictions, with a focus on Japan and Korea, in its Q4 2024 Quarterly Engagement Report. LGIM also advocated for greater ambition in the disclosure standards proposed by the Sustainability Standards Board of Japan (SSBJ) in a 2024 consultation response, and for the SEC to uphold ambition on prescriptive Scope 3 emissions reporting in 2022 comments to the regulator. LGIM CEO Michelle Scrimgeour supported the work of the UK Transition Plan Taskforce (TPT) in developing a disclosure framework for transition plans in an article hosted on the TPT website. LGIM also supported the mandatory implementation of the TPT framework in 2023 comments to the House Environmental Audit Committee.
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 2023 evidence given to the UK Environmental Audit Committee, LGIM supported the development of the UK Green Taxonomy.
Position on Climate Standards/Labels/Benchmarks: LGIM has offered broad support for the Financial Conduct Authority’s (FCA) proposed labeling regime in its 2023 Q1 ESG Impact Report, however suggested it did not support provisions ‘incompatible with how the sustainable investment market currently operates’ and client interests. In a 2022 website article LGIM appeared to support the proposed labelling system and suggested it would bring ‘much needed clarity’ to the market.
Position on Incorporating Climate Factors Into Investor Duties: LGIM supported the Monetary Authority of Singapore’s proposal to integrate sustainability into investor duties regulation in its Q4 2023 Quarterly Engagement Report. In the US in 2023, LGIM America supported an Illinois bill requiring investment managers to disclose how climate factors are integrated into decision making, according to a witness slip. In the UK, Legal & General supported including climate preferences in default pension options in a 2022 consultation response.
Position on Real Economy Climate Policy: In a 2022 and 2023 letter to the US Environmental Protection Agency, LGIM America supported methane emissions regulation, and advocated to increase the ambition of the proposed rules. In 2024, LGIM America was a signatory to a letter to the Canadian Minister of Environment and Climate Change, strongly supporting Canada’s proposed regulation on methane reduction and advocating for more ambitious measures. In Japan, LGIM supported GHG emissions reduction targets of 75% by 2035 in an engagement with the Japan Climate Leaders Partnership (JCLP],. Through the JCLP, LGIM has also supported mandatory zero-emissions buildings and housing requirements by 2030 in its GHG Reduction Targets and Strategic Energy Plan. In the same plan, LGIM advocated for Japanese policymakers to increase the ambition of carbon pricing systems.
Position on Energy, Industry, and Land Transition: LGIM supported Paris-aligned government policy in Japan in its 2024 PRI Full Transparency Report. It opposed investments prolonging the role of fossil fuels in 2024 recommendations to the Japanese government, and supported the scale up of renewables in its Q4 2023 Quarterly Engagement Report and through JCLP recommendations. It has also supported the expansion of electrification and targets for decarbonization in the JCLP GHG Reduction Targets and Strategic Energy Plan, ZEV infrastructure and targets for vehicle electrification in the same report.
Industry Association Governance: Legal & General has disclosed a partial list of its industry association memberships, including its memberships of IIGCC, The Investment Association, and Council of Institutional Investors, but appears to exclude some associations which are actively engaged on climate policy, including its membership of UK Finance, and the position of its CEO António Simões as head of TheCityUK Leadership Council.
InfluenceMap collects and assesses evidence of corporate climate policy engagement on a weekly basis, depending on the availability of information from each specific data source (for more information see our methodology). While this analysis flows through to the company’s scores each week, the summary above is updated periodically. This summary was last updated in Q1 2025.