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LGIM, Amundi Expand Climate Engagement Efforts

Legal & General Investment Management (LGIM) engaged with more than 2,800 companies on climate last year according to its latest Climate Impact Pledge (CIP), a new high for the organisation. The CIP is an annual engagement programme assessing more 5,000 companies across 20 ‘climate-critical’ sectors, with the objective of raising market standards and encouraging companies to play their part in achieving the goals of the Paris Agreement. A total 492 companies were identified as being subject to voting sanctions against their board chair, up from 342 in 2023, while 106 companies were subject to sanctions for not meeting the CIP’s new baseline expectations. An additional 349 companies were sanctioned for not meeting LGIM’s minimum climate change standards. The CIP covers 86% of the total carbon emissions attributable to LGIM’s corporate debt and equity holdings. “I have been encouraged by progress over the last 12 months, with many of the companies with which we have engaged making significant strides in important areas,” said Michelle Scrimgeour, CEO of LGIM. “However, it is clear that the pace of the transition is neither smooth nor fast enough. It is not the role of the asset management industry alone to tackle climate change: this is a whole-of-system transition, the pace of which is influenced by global public policy, regulatory standards and the nature of energy demand.” Radical collaboration is key to drive aligned action and decarbonisation on a global scale, Scrimgeour added. Meanwhile, engagement on climate themes was also a key focus for French asset manager Amundi, which engaged 1,471 issuers on climate, according to its 2023 engagement report. Amundi has committed to engaging with 1,000 additional companies on their climate strategy by 2025, compared to 2021 levels. As of December last year, the asset manager had already engaged with an additional 966 additional companies. The number of unique issuers it engaged last year also increased by 20% – including 618 on natural capital preservation, and 795 on human capital and rights. Legal & General (L&G) has also launched the L&G Private Markets Access Fund, offering its 5.2 million defined contribution members exposure to the benefits of diversified private markets. The fund will aim to provide investors with access to long-term growth potential and greater diversification through investments that are not typically accessible through public markets. Covered sectors will include clean energy, affordable homes and critical infrastructure.

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