LGIM to divest from four companies

Legal & General Investment Management has said it will divest from four companies due to insufficient action on climate change.

In its latest Climate Impact Pledge report, LGIM has said that companies falling short of its minimum standards on climate change and emissions will be subject to voting sanctions as well as potential divestment from LGIM funds.

LGIM will divest its holdings in Industrial and Commercial Bank of China, AIG, PPL Corporation and China Mengniu Dairy for unsatisfactory responses to engagement and/or breaches of ‘red lines’ around coal involvement, carbon disclosures or deforestation. These companies are in addition to China Construction Bank, MetLife, Japan Post, KEPCO, ExxonMobil, Rosneft, Sysco, Hormel and Loblaw, all of whom remain on LGIM’s existing exclusion list.