In 2017, Legal & General (L&G), an asset management firm established in the United Kingdom, was ranked 12th out of 400 management firms globally. The ranking is based on several merits, including assets under management and the number of wealth managers on staff.
More recently, the UK firm, which manages over $1,047,470 in assets, may have just upped the ante. Helena Morrissey, head of personal investing at Legal & General, announced that starting May 2018, the firm would be “naming and shaming” and pulling its investments from companies that fail to act on climate change.
What does this mean, exactly?
Helena Morrissey, head of personal investing, said that individuals often don’t invest in the market because they fear placing their money in organizations where it would be used for purposes they do not agree with. As an alternative, Morrissey suggested sustainable investing.
Sustainable investing, or “sustainable, responsible and impact investing” (SRI), is a discipline of investing that considers environmental, social and corporate governance in generating long-term competitive financial returns and positive social impact.
Legal & General understands the impact of money – Morrissey argues that “if we add all our trillions together, we can certainly drive change.” Moreover, L&G has a climate change & environment policy – they are trying to “influence stakeholders in the transition to a low carbon economy.” Among their targeted steps are things such as “supporting the development of key technologies with the potential to accelerate the transition to a low carbon economy” and developing low carbon, energy efficient homes in our housing business.”
It will be interesting to see how many organizations spend the time cleaning up their act out of fear of losing major investors like Legal & General.
Have you considered SRI investing?
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