Taking action to create a low-carbon economy
Avoiding climate catastrophe is our greatest global priority. The debate about whether higher concentrations of greenhouse gasses cause global warming is long over. The science is clear and we can see the change with our own eyes. The focus now should be on what we do about it.
Chief Executive Officer, Legal & General Group
Tackling a deepening global crisis
Because we have a decade to prevent catastrophic climate change, Legal & General’s most critical commitment is our journey to net zero. As a global organisation working over generations and decades, rather than just years and months, we can use our scale to embed long-lasting reforms. Our active stewardship is already changing the environmental behaviour of hundreds of other corporations and as a responsible business we are also building our own journey to net zero.
We have a responsibility to support the fight against climate change as one of the UK’s top 40 companies and through our ownership of one of the largest global institutional investors. Our policy is to decarbonise the assets on our balance sheet to align with the UN Paris Agreement and UK Government legislation to achieve net zero carbon emissions by 2050. We have set carbon intensity targets and additional governance and control around the acquisition of high
We have set out four areas of investment risk related to climate change
- We will decarbonise the assets on our balance sheet to align with the Paris objective. We interpret the Paris objective as targeting 1.5 degrees Celsius of warming.
- We advocate for urgent action to mitigate the climate emergency from both governments and the companies we are invested in.
- We will use our influence as a large investor to promote a transition to a low carbon economy.
- We support the UK Government legislation to achieve carbon neutrality by 2050.
We’re making a number of other commitments to achieve net zero carbon emissions by 2050:
- From 2030, all homes built by our housing business will be capable of operating at net zero carbon emissions. In addition, we’re seeking to understand and monitor the embodied carbon associated with the construction of our homes.
- From 2030, our operational footprint (occupied offices and business travel) will operate with net zero carbon emissions.
- We will develop energy efficient commercial properties in our urban regeneration business and set Science Based Targets that are aligned with the Paris objective.
We have implemented additional governance and control around the acquisition of high carbon investments. This includes controls to comply with new guidelines that apply to the funding of new coal facilities.
We have exclusions for certain stocks including thermal coal written into the Investment Management Agreements for all relevant asset classes we manage. In addition, we have set carbon intensity targets to monitor alignment with the Paris objective and are funding the development and roll-out of key technologies which have the potential to accelerate the transition to net zero carbon
We have undertaken a strategic review of our carbon risks and opportunities and actively manage and report on our carbon emissions.
We are working to remove plastics in our offices, as well as being focused on reducing water consumption and waste generation.
This year we’ll be running a Climate Change Hackathon. The aim is to identify ideas which can have a genuine impact if delivered; and to identify the talent and the teams which can come together to bring them to life.
The tech to enable a net zero nation
Our tech ecosystem to accelerate green growth
|Digital Infrastructure||Scientific Infrastructure||Research into energy generation||Research into more effective mobility|
|£230m into Kao Data Campus between Cambridge and London||Newcastle Science City project||Tokamak research into small toroidal vessels - fusion generation||Podpoint for electric car charging|
|Appointment of award winning start - up Demand Logic to monitor and enhance building performance across the company's portfolio||Science parks with Bruntwood||Oxford PV: Leaders in perovskite solar technology||£200m investment into new tri - mode metro trains to replace old diesel rolling stock|