Legal & General go cold on climate change culprits

Legal & General Investment Management (LGIM) has announced it will start taking action against companies that are failing to address climate change.

LGIM is one of Europe’s biggest investment funds, so its move to remove offending firms from its Future World index fund will draw attention. If those firms are featured in any of LGIM’s other equity funds, the asset manager has said it will vote to strip board members of their positions.

So, who should be worried? In their statement LGIM identified China Construction Bank and Rosneft, a Russian oil and energy company, as examples of companies ignoring – and actively contributing to – climate change.

In a press release, LGIM said: ’China Construction Bank remains the world’s largest funder of coal mining and plants. While the company has increased its lending to green projects, it does not disclose the total (greenhouse gas) emissions associated with its business.’ Rosneft meanwhile, was criticised for producing a 150-page sustainability report that failed to even mention climate change.

As firm believers in transforming the world of finance for the better, we’re excited to see LGIM advocating for change. As a sector, financial services wields vast power and influence. Using that power to create positive change – in our own industry and in wider society – is the responsibility of all of us.