Journey to net zero

Tackling the climate crisis

We understand that managing climate risk is crucial to building resilient communities, but equally the demands of our environmental and social obligations can sometimes compete. So we invest where we see potential to drive decarbonisation while at the same time providing long-term, positive outcomes for investors and society alike.

We advocate an investment-led recovery with a greener approach to the built environment and efforts to grow climate-friendly business. At the same time, we need to manage the risks and ensure the resilience of our business and investments. We use our influence as a large investor to promote a transition to a low carbon economy. This includes supporting the goal of carbon neutrality by 2050, in line with global efforts to limit warming to 1.5°C. We have also committed to the Science Based Target initiative (SBTi).

Our decision making process needs to ensure that we integrate wider sustainability/ ESG considerations. For example, our commitment to building more social housing will inevitably impact on our carbon emissions. But our balanced and measured approach to all our commitments means they are considered holistically, in the broader context of our vision for inclusive capitalism.

Commitments we are making to support us to achieve net zero carbon emissions by 2050:

  • We have set Paris aligned carbon intensity reduction targets for the assets on our Group’s balance sheet.
  • Climate-related targets are now part of our Executive remuneration scorecard from 2021.
  • In March 2021, we launched a climate solution to enable investment management clients to quantify climate risks and temperature alignment of their assets.
  • All new homes we build from 2030 will be designed to operate with net zero carbon emissions. Work on reducing embodied carbon is continuing.
  • Our operational carbon footprint (occupied offices and business travel) will be net zero from 2030.


Download our full sustainability and inclusive capitalism report

200

Started development of a net zero retirement community to create 200 age-appropriate homes powered by renewable energy generated on site

£1.4bn

Clean energy investments

A- Rating

Carbon Disclosure Project score

#1

LGIM’s approach to climate change was rated number 1 globally in 2020 (ShareAction)

What role will ESG investing play in a more resilient post pandemic future?
The role of cities may look different in a post-covid world and an inclusive and investment-led recovery must be focused on levelling up regions and sectors.

Read the full article here

Rebuilding the economy through our fight against climate change
Our 2020 Climate Report, in line with the Task Force on Climate-related Financial Disclosures, explains our role as a business committed to the Science Based Target initiative and focuses on the need for and our contribution to a green, post-pandemic recovery.

Our Climate Risk Policy Statements set out how we plan to tackle the crisis, and focus on five key areas:

  1. Decarbonising the assets on our balance sheet to align with the Paris Agreement of limiting global warming to 1.5°C
  2. Advocating for urgent climate action from governments and companies we invest in
  3. Using our influence as a large investor to promote a transition to a low-carbon economy
  4. Supporting the goal of carbon neutrality by 2050
  5. Committing to the Science Based Target initiative (SBTi)


Download our TCFD report here

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