Legal & General Investment Management (LGIM), one of Europe’s largest asset managers, released results from an analysis of shareholder votes, revealing that key Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More issues, including climate and human rights, are among the top resolutions attracting investor votes.
The analysis was conducted on data provided from LGIM’s partnership with impact-focused fintech Tumelo. Launched in September 2020, the collaboration enables LGIM’s pension members to see which companies they have in their portfolio, and to evaluate and express their opinions on pending shareholder proposals, while providing LGIM with insight into the issues that matter to members.
Since the partnership began, over 13,000 votes have been cast by individual members of DC pension schemes administered by LGIM.
Stuart Murphy, Co-Head of DC at LGIM, said:
“This technology and exciting partnership with Tumelo is already making an important difference. Pension Schemes and fund managers managing relationships with corporate boards are increasingly going to be able to consider and even reference this polling of scheme members.
“Equally, and perhaps more importantly for the long term of the pensions system, this has opened up a new way for individuals to feel truly consulted about the detailed ways their retirement funds will shape corporate activity and society at large.”
According to the analysis, “Pay” is the issue attracting the most resolutions and votes, with resolutions ranging from board remuneration to staff wages. In the second spot are “Climate” related resolutions, bolstered by “Paris Agreement”-specific resolutions in the #7 spot. “Rights,” including resolutions encompassing human, Social criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates. More and animal rights closely followed climate as the most frequently voted upon.
Rounding out the top ten were several other ESG-relevant topics including Lobbying, Plastic, Packaging, Diversity, Racial and Pollution.
Georgia Stewart, CEO of Tumelo commented:
“Working closely with LGIM, we have proven members care passionately about Environmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. More issues and that these issues can be used as successful engagement topics to improve members’ connections to their long-term savings.”
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