LGIM collaborates with National Trust to launch fossil fuel exclusions strategy

LGIM’s new strategy aims to facilitate the transition towards net zero whilst targeting long-term, sustainable returns.

LGIM has collaborated with The National Trust to launch the Legal & General Future World ESF Developed Fossil Fuel Exclusions Index Fund to provide an innovative solution to help charities institutions and investors meet fossil fuel divestment commitments.

LGIM created the Fund  to help investors meet their ex-fossil fuel commitments – the fund will launch with significant initial seed funding.

The Fund will be open to UK investors including charities and endowments, platforms and wealth managers.

The launch of the fund responds to growing demand for ex-fossil fuel solutions, with over 1,500 public commitments to fossil fuel divestment from institutions in 2021, globally.

The strategy aims to provide an efficient, low-cost solution to enable investors to seek to reduce their exposure to fossil fuel companies and those particularly with high carbon emissions and reserves, facilitating the transition towards net zero whilst targeting long-term, sustainable returns.

The Fund further incorporates LGIM’s Climate Impact Pledge, focused on speeding up companies' progress in addressing climate change and transitioning to a low-carbon economy. In 2022, LGIM identified over 5000 companies in 20 climate-critical sectors and ranked them against criteria such as their commitment to the net zero transition, board composition, strategy and transparency.

Mark Johnson, Head of Institutional Clients at LGIM: “This partnership reaffirms LGIM’s purpose to use our scale and expertise across indexing and investment stewardship to provide innovative, cost-effective portfolio solutions for charities and institutions. We are dedicated to helping enable charities and institutions generate financial returns, whilst investing in line with their respective missions.”

Find out more here.