Legal & General
Performance Score
The performance score highlights several major limitations in L&G's climate strategy. Climate objectives remain incomplete, as they do not include scope 3 emissions from portfolio companies, which obscures the bulk of the real carbon impact. The company also lacks dedicated intangible investments for developing internal climate expertise. The portfolio's climate performance shows the continued presence of coal and oil/gas-related assets, as well as an insufficiently clear definition of low-carbon activities. Governance, while involved, suffers from a lack of specific expertise and a transition plan that is still too vague. Finally, while the engagement programme is substantial, its impact is difficult to demonstrate and lacks robust objectives, while interactions with professional associations and the business model could be better aligned with a low-carbon trajectory.
Narrative Score
Data quality and reputation are positive. Among the significant improvements L&G could implement are greater alignment of its core business with the transition to a low-carbon economy, a clear roadmap for divestment from all high-emission sectors, and the integration of scope 3 from the entities in which L&G invests into its climate strategy and disclosures.
Trend score
L&G has a transition plan but does not anticipate significant improvements to its climate strategy or its implementation.
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