20 May 2021
Legal & General launches Sustainability and Inclusive Capitalism report
Inclusive capitalism: long-term investing for positive change.
Legal & General has today launched its 2020 Sustainability Report, mapping out how it will deliver its vision of inclusive capitalism against the three elements of environmental, social and governance (ESG) practice.
Legal & General’s vision of inclusive capitalism is founded on the belief that investment which delivers both positive economic and positive social outcomes is the best way to achieve progress at scale, enabling more people to benefit from economic growth and financial opportunities. By delivering this vision, Legal & General seeks to accelerate meaningful change for employees, investors, customers and wider society.
The report brings inclusive capitalism to life by reporting on progress and outcomes achieved through Legal & General’s investments in things that are good for society.
- “Our Journey to net zero” - The transition to a low carbon future is both a risk and an opportunity. It shapes every part of the Legal & General business, from proprietary asset investment strategy and influence over investee companies, through to day-to-day operations.
- “Building a better society” - Inclusive capitalism is an economic system where today’s capital is used to benefit tomorrow’s society. Making investments that drive social outcomes is core to Legal & General’s work – especially in the need to support society in emerging from Covid-19 more resilient and inclusive.
- “Growing our business responsibly” - Responsibility to employees, customers, communities and society is the foundation on which Legal & General delivers inclusive capitalism. This includes being responsible for behaviour, corporate culture and high standards of integrity.
Since the UK went into lockdown in March 2020, Legal & General has invested £1.5 billion in the UK’s towns and cities, creating 30,000 jobs in the long term and supporting “levelling up” through regional economic recovery.
Achievements in 2020
- Legal & General is committed to the Science Based Targets initiative (SBTi) and will extend these set of targets for investments and operational footprint.
- We have increased investments in renewable energy and low carbon technology.
- All new homes built by Legal & General’s housing business will be capable of net zero carbon operation from 2030.
- We have held hundreds of companies to account through the Climate Impact Pledge, to drive progress towards net zero.
- Our charitable giving exceeded £11m in 2020. Major donations included Edinburgh University Advanced Care Research Centre, the Newcastle Care Home initiative, the Trinity College Challenge and FastFutures digital apprenticeships. Employees were directly engaged in £3.5m of our charitable giving through matching programmes and the COVID-specific Community Fund for smaller charities.
- We launched a £500,000 Emergency Community Fund which distributed funding to over 200 charities.
- We established a Global Diversity and Inclusion Council tasked with defining and driving an ambitious agenda for D&I across the Group.
- We operated throughout 2020 without accessing any furlough scheme or other Covid-19 business support. Extending services and opportunities for employees to manage mental health issues and deal with stress.
2020 was an extraordinary year and Covid-19 is the greatest challenge to life in recent times. Legal & General remains confident and ambitious for the future as it looks ahead to playing its role in the economic recovery.
Our inclusive capitalism agenda has never been more urgent or important. The unforeseen consequence of the pandemic has been more inequality and we risk a K-shaped economic recovery; we’re matching words and deeds to help level up society and build back better. Our purpose sets us apart in our response to Covid-19. The human and economic cost of the pandemic reaffirms our commitment to inclusive capitalism as the only way to do business responsibly.
Nigel Wilson, Group CEO