L&G Asset Management, one of Europe’s largest asset managers with over $1,399 billion in AUM, has embedded climate considerations across its investment, stewardship and operational decisions. Its inaugural Climate Transition Plan (2023) sets out net-zero targets across three pillars—investments, influence as an asset manager, and operations—including a 50% reduction in GHG emissions intensity by 2030, and net zero by 2050.
L&G AM’s responsible investing approach encompasses investment stewardship and collaborative research undertaken by Global Research and Engagement Groups, guided by key documents such as its Climate Impact Pledge (CIP). The CIP is a two-fold engagement programme that combines (1) a quantitative assessment of more than 5,000 companies across 20 “climate-critical” sectors, rating companies across a range of criteria and driving potential voting decisions aligned with TCFD, and (2) targeted qualitative engagement with ~100 “dial-mover” companies. Companies that fail to meet sector-specific minimum standards or ‘red lines’ may face votes against or divestment implications.
CIP ratings, methodologies and sector guides are publicly available, supporting transparency and consistency at scale. The framework is used to set minimum expectations, drive potential voting decisions, and incentivise companies to meet a 1.5°C-aligned transition.
Examples of engagement in Asia - for example, with a major aluminium producer in India is detailed.
Scoring tool drives scalable stewardship: L&G Asset Management’s Climate Impact Pledge combines quantitative ratings across 5,000+ companies with qualitative engagement on sector “red lines”, enabling clear minimum expectations, consistent voting decisions and public accountability across 20 climate-critical sectors.
Escalation pathways strengthen real-economy impact: Through targeted engagement, collaborative initiatives (e.g., NZEI) and willingness to escalate to voting sanctions, L&G Asset Management translates climate expectations into concrete stewardship outcomes—illustrated by its multi-year engagement with Hindalco, focused on net-zero credibility, governance and sector-specific decarbonisation levers
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