LGIM warns of ‘climate catastrophe’ as it takes action against corporate boards

The fund management division of Legal and General (L&G), Legal and General Investment Management (LGIM), is to continue to vote against boards where concerns remain around environmental-based issues.

In LGIM's latest corporate governance report, director of corporate governance Sacha Sadan said: “the point here is that we are facing a climate catastrophe”.

“More and more people are realising this, especially as we have seen further evidence that the effects of climate change will soon be irreversible. This will affect economies, politics and, as a result, our clients’ assets all around the world. We all need to move faster.”

According to the latest figures, in the US, LGIM supported more shareholder resolutions on climate change in key votes that any of the world’s 10 largest asset managers.

Furthermore, a total of 14 funds were launched with ESG-related objectives as part of the ‘Future World’ range and 11,000 companies were assessed under LGIM’s ESG score.

Across the corporate governance spectrum, LGIM said it voted against 3,864 directors globally in 2018, up 37 per cent since 2017.

LGIM report here.

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