Legal & General Investment Management and Swedish pension provider AP7 have partnered to launch a new climate transition strategy.

The active strategy will invest in companies considered ‘climate laggards’ in their sectors. These are companies that are currently not, but have the potential to become, successfully aligned with the Paris goals. The strategy will follow a data-driven, fundamental and engagement-led investment approach seeking to support the climate transition to reach Net Zero by 2050, leveraging insights from LGIM’s Global Investment Research, tools and Investment Stewardship teams.

Nick Stansbury, Head of Climate Solutions at LGIM: “Many ESG strategies in the marketplace own climate leaders via index products or screen out laggards. For this strategy however we are taking a very different approach: by leveraging LGIM’s leading stewardship expertise and engagement track record, combined with our proprietary LGIM Destination@Risk tool, which allows us to assess climate-related investment risks and potential opportunities, we believe we are well placed to deliver on our commitment to drive real world change and unlock returns for investors.”

Richard Gröttheim, CEO at AP7: “We had a very thorough process to find the right partner to team up with. Finding LGIM was a meeting of minds. We look forward to developing this innovative solution together in the coming years.”

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