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Legal & General Investment Management (Holdings)

PRI reporting framework 2018

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Governance and human resources

SG 07. RI roles and responsibilities

07.1. Indicate the roles present in your organisation and for each, indicate whether they have oversight and/or implementation responsibilities for responsible investment.

Roles present in your organisation

          Director of Corporate Governance
        

Other description (1)

          Future World Advisory Board
        

Other description (2)

          Future World Oversight Group
        

07.2. For the roles for which you have RI oversight/accountability or implementation responsibilities, indicate how you execute these responsibilities.

The dedicated corporate governance team has overall ownership and responsibility for engagement and voting activities on ESG issues for investments. The team engages closely with portfolio managers and investment analysts on material issues for investments and is more fully integrating this process.

Sacha Sadan, Director of Corporate Governance, has direct responsibility for Corporate Governance and Responsible Investment.  He is on the board of LGIM and reports directly into LGIM's Chief Executive Officer (CEO), Mark Zinkula.. This structure, as well as the ability to engage with two independent non-executive directors on LGIM's board, ensures that strategy and goal setting is agreed and has oversight at the highest level.

LGIM also has a Corporate Governance Board, which has overall responsibility and oversight for the evolution and implementation of corporate governance policies. LGIM's CEO, CIO, Director of Corporate Governance, and Non-Executive Directors sit on this Board.

To co-ordinate our best practice globally, LGIM has set up dedicated cross-team and cross-region Innovation Groups for both factor-based investing and ESG, each of which reports directly to our Chief Investment Officer.

LGIM's Head of Sustainability & Responsible Investment Strategy is the Chair of the ESG Innovation Group and objectives of the group are incorporated into the annual appraisal process of its members.

Portfolio managers have responsibility to integrate ESG into their investment decisions.  Senior portfolio managers have oversight responsibilities for how this is integrated in their team.

Investment Analysts also have responsibility to integrate ESG into the investment analysis. Senior investment analysts have  oversight responsibilities for how this is integrated in their team additionally, senior investment analysts work with the corporate governance team to input into the ESG tools and resources available to support the investment analysts.

Service providers and associations do implement some of the responsible investment strategy through formal collaboration.  For example, as members of the UK Investor Forum we will often conduct collaborative engagement that is led by the Forum.

The Future World Advisory Board comprises LGIM’s CEO, Head of Investments (CIO), head of Sustainability and two independent expert members, Nick Stern and Andreas Hoepner.  They are responsible for overseeing and advising on  climate change and corporate governance as part of the Future World Fund strategy.

The Future World Oversight Board reports into the Future World Advisory Board and comprises senior management of LGIM.  It has responsibility for overseeing the implementation of the Future World strategy. 

 

07.3. Indicate the number of dedicated responsible investment staff your organisation has.

11 Number

07.4. Additional information. [Optional]

We have deliberately built a team with diverse experience and expertise across the spheres of ESG engagement, fund management, financial analysis, corporate governance, sustainability, public policy and regulation.

The ESG team is independent of the active equity and fixed income managers.  However, the teams work in close collaboration, on  ESG integration and the development of new products, company engagement meetings, policy work, government and regulatory consultations, and thematic topics.

The ESG team has responsibility for using LGIM's scale and influence to bring about positive change to create sustainable investor value. They are responsible for ensuring that companies integrate ESG factors into their culture and everyday thinking, and that markets and regulators create an environment in which sound management of ESG factors is valued and supported.  The investment management team draw on the deliverables as a further source of information to inform their investment and asset allocation decisions.

The exchange of information takes place through formal weekly, bi-weekly, monthly and quarterly meetings and sharing of information on internal systems. Ad-hoc informal sharing takes place, while the teams also hold joint company meetings where appropriate.


SG 07 CC. Climate-issues roles and responsibilities (Private)


SG 08. RI in performance management, reward and/or personal development (Private)


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