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.