LGIM's "Expanding our Climate Impact Pledge" reveals stepped up monitoring, engagement, and voting on climate change across ~1,000 companies in "climate-critical" sectors (i.e., key in the global transition to a low-carbon economy) (page 3) purportedly responsible for 60% of listed company greenhouse gas emissions. Its "traffic light" scoring system sanctions companies with adverse voting and potential investment consequences if they fall into the "red zone" based on poor disclosure and/or performance relative to individual sustainability indicators based on LGIM's global minimum standards across the five pillars of (i) Governance, (ii) Scenario Analysis, (iii) Metrics & Targets, (iv) Risks & Opportunities, and (v) Strategy. Searching a particular company here fosters familiarization with the scoring system and methodology. Access details on the methodology by sector on the bottom of this page.
Access additional resources on our Institutional Investors page » LGIM and our Sustainability/ESG page. This post first appeared in the weekly Society Alert!