Climate change is one of the defining issues of our time. In recognition of its potentially catastrophic outcomes for the world – and our clients’ assets – we support efforts to limit carbon emissions to net zero by 2050. Under our Climate Impact Pledge, we commit to helping companies to reach this objective.

2023 report highlights


The number of companies across 20 climate-critical sectors assessed in 2022


Companies identified as subject to voting sanctions for not meeting minimum standards

£158 billion⁽²⁾

The amount of assets subject to our exclusion list



Sector guides

More details on the methodology, alongside research detailing the pathways and expectations for each key sector we engage with, can be found in the links below.

  1. Voting sanctions apply to companies not meeting minimum standards, in 20 pre-determined climate critical sectors in our quantitative assessment. Voting sanctions are applied across LGIM’s equity holdings.

  2. Companies are divested from selected funds with £158 billion in assets (as at 31 December 2022), including funds in the Future World fund range, LGIM’s ESG fund ranges and all auto-enrolment default funds in L&G Workplace Pensions and the L&G Mastertrust. Companies are divested up to a pre-specified tracking-error limit. If the tracking error limit is reached, holdings are reduced rather than fully divested. LGIM's total AUM was £1.2 trillion as at 31 December 2022. The AUM disclosed aggregates the assets managed by LGIM in the UK, LGIMA in the US and LGIM Asia in Hong Kong. The AUM includes the value of securities and derivatives positions.


Key risks

The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results.

Whilst LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.