Legal & General Investment Management (LGIM) CEO Michelle Scrimgeour Plans to Use LGIM's Shareholding to Influence Sustainable Development
Legal & General Investment Management (LGIM), one of the world’s largest asset managers, has just announced its intention to divest its stake within four companies due to these organisations’ “insufficient action” to address #climate change risks.
These include US insurer American International Group (AIG), US #energy company PPL Corporation, Industrial and Commercial Bank of China and #manufacturing and distribution company China Mengniu Dairy.
These four firms join a number of other companies – including China #Construction Bank, ExxonMobil, Hormel, Japan Post, KEPCO, Loblaw, MetLife, Rosneft and Sysco -- which are to remain on LGIM’s existing exclusion list.
Representative of #business leadership that “walks the talk,” the decision was based on the fact that these companies provided “unsatisfactory responses” to LGIM’s climate questions or breached LGIM’s requirements around “coal involvement, #carbon disclosures or deforestation.”
Over the last year, Legal & General has demonstrated its intent to use its position of influence to apply pressure on corporate boards around the world. While climate change is one mission-critical aspect it has taken on, the company has also illustrated its commitment to #sustainability leadership on a range of other issues including #diversity and board #governance.
LGIM Chief Executive Officer Michelle Scrimgeour and her #leadership team have been forthcoming in saying there are funds where LGIM doesn’t have the latitude to “contractually [be] able to divest".
However, the point is about not letting pass those opportunities where LGIM can show stewardship, shape the #future and, as Scrimgeour put it, “raise standards across the entire market for the benefit of all.”
#Sustainable development relies on committed leaders. What are you doing to deliver #betterbusiness?
Read full article