LGIM Sets Climate, Biodiversity & Lobbying Expectations for “Dial Mover” Companies
Legal & General Investment Management (LGIM), one of Europe’s largest asset managers, unveiled a series of expectations for over 100 “dial-mover” companies, or those selected for targeted engagement based on their size and potential to spur climate action in their sectors.
In additions to significantly growing its dial-movers list from 60 companies to 105, the expectations for those companies has been expanded to incorporate biodiversity risk and climate lobbying, in addition to net zero target setting and climate-related disclosure.
Expectations for companies now include setting comprehensive and certified net-zero targets, including a transition plan with interim targets, disclosure of actions and investments embedded in the companies’ net zero plans, disclosure of whether executive remuneration is aligned with emissions targets, and disclosure of climate lobbying activities – including membership in trade associations and action plans if the lobbying activities of the associations are not aligned with a 1.5°C scenario. For companies in sectors in which there is a clear link between biodiversity and net zero strategies, companies are expected to assess impacts and dependencies, and for companies in sectors in which the transition could have direct social implications, LGIM will expect the incorporation of just transition factors in decarbonization strategies.
