35% Fewer Companies Failing to Meet Climate Change Standards, says LGIM

UK-based global investment firm Legal and General Investment Management (LGIM) has published its Annual Climate Investment Pledge (ACIP) report, which shows a 35% reduction in the number of investee companies failing to meet its minimum climate change standards in the past year. Companies which fail to meet LGIM’s standards are subject to voting sanctions. The ACIP report reveals the number of companies subject to sanctions fell from 130 to 80, just 8% of the 1,000 companies included in the annual assessment. The report also said that 31 of the 59 companies LGIM had identified for deeper engagement due to having a greater influence on their sectors have set a net zero target since 2021. Catherine Ogden, LGIM’s Sustainable and Responsible Investment Manager, said: “While we continue to be encouraged by the rapid growth in the number of companies with climate commitments, we are observing a lack of detailed net-zero transition plans to support these targets. In 2022, we will continue to press companies to establish robust decarbonisation strategies, with granular interim roadmaps to 2050, to accompany their public announcements. 

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