Legal & General Investment Management (LGIM) has dropped US insurer AIG, the state-owned Industrial and Commercial Bank of China (ICBC), US utility PPL Corporation and China Mengniu Dairy from selected funds over climate concerns.
According to the $1.8tn asset manager, the four companies failed to meet its expectations on managing climate risks and had not responded adequately to engagement efforts.
They join nine other firms on LGIM’s climate ‘blacklist’: China Construction Bank, MetLife, Japan Post, KEPCO, ExxonMobil, Rosneft, Sysco, Hormel and Loblaw.
The asset manager, the UK’s largest, made the move in accordance with its Climate Impact Pledge programme, which sets out minimum sector-based climate requirements or ‘red lines’ for companies included in $87m of LGIM’s actively-managed portfolios, including all auto-enrolment default funds in L&G Workplace Pensions and the L&G Mastertrust. Those found breaching the red lines face sanction…