Legal & General Investment Management calls for a healthier debate on energy transition
Meryam Omi (photo, above), Head of Sustainability at Legal & General Investment Management (LGIM), appeals to divert the negative energy on climate debate to the urgent need to deploy capital into creating a positive energy system.
In the company’s latest Fundamentals briefing Omi considered the impact of policy changes even when there is no ‘ideal’ global policy agreement. Omi discussed the changing dynamics of the way we use our energy and how major investors such as LGIM have a key role to impact and support the transition.
Omi also stated that she found it disappointing that we shy away from a true debate on the current energy system and what that would mean for long-term investors. We shouldn’t resort to the comfort of shooting the messenger.
Meryam Omi, Head of Sustainability at LGIM, said:
“We are still largely in denial over the two major forces, climate policy and technological progress that are changing the dynamic of our energy use.
“The consequence of our reliance on inefficient fossil fuel use and its devastating pollution impacts diverts resources that governments and individuals would rather use elsewhere.
“Tackling climate change is not about losing financial value. It is about helping to build a much healthier energy system. If tackled holistically and strategically, our investments would benefit.
“We need to embrace the transition, and this has to be a front of house issue whether you are a major investor, a heavyweight political figure or, as we all are, a consumer.
“As a long-term investor, we regularly engage with policymakers and company executives, to embrace changes that are coming – with this will come a better society, greater economic efficiency and ultimately better corporate growth and investment opportunities.”
Fiona Reynolds, Managing Director of Principles for Responsible Investment, said:
“Investors have a crucial role to play in tackling climate change, including working closely with policy makers to improve company disclosure and risk management. Institutional investors with $25 trillion in assets under management have already added their name to a global investor statement to urge policy makers to take actions that support the transition to a low carbon and climate-resilient economy. We welcome LGIM’s work to raise awareness of this issue.”
For more information please contact:
PR manager, Legal & General Group
t: +44 (0) 20 3124 2092
Notes to editors
LEGAL & GENERAL INVESTMENT MANAGEMENT:
Legal & General Investment Management is one of Europe’s largest asset managers and a major global investor, with total assets of £726billion*. We work with a wide range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
Throughout the past 40 years we have built our business through understanding what matters most to our clients and transforming this insight into valuable, accessible investment products and solutions. We provide investment expertise across the full spectrum of asset classes including fixed income, equities, commercial property and cash. Our capabilities range from index-tracking and active strategies to liquidity management and liability-based risk management solutions.
*as at 30 June 2015, including derivative positions and advisory assets.