Influencing stakeholders in the transition to a low carbon economy
The world is changing. We want companies to adapt to this energy transition. Companies that adapt should be better performers than those that do not.
Sacha Sadan, Director of Corporate Governance LGIM, April 2017
We aim to deliver our business a 2°C world. Our steps to achieve this include:
- Reducing 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
- As part of our Climate Impact Pledge Legal & General has written to 84 global companies to warn that it will vote against board chairmen at businesses that fail to prepare for a move to a greener economy
- 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 aim to provide capital for up to 5% of the UK clean energy market, enough to sustainably power 5% of all UK households by 2021
Our performance is demonstrated through our environmental data which compares progress towards achieving our 2020 targets compared to our 2013 baseline:
|Reduction per policy||TARGET by 2020||ACHIEVEMENT as at 31.12.2017|
|Reduce carbon emission||20%||17% improvement on 2015|
|Reduce operational office water consumption||20%||38% improvement on 2013|
|Reduce total waste generation||25%||27% more waste than in 2013*|
|Reduce paper consumption||30%||16% improvement on 2013|
*This is in part due to our new construction businesses.
Please refer to the following sections of our CSR report for details on how we approach our key environmental issues.