Legal & General Investment Management America (LGIMA)

Rating Overview

Legal & General Investment Management America (LGIMA) is High Risk.

Legal & General Investment Management America (LGIMA) is High Risk. The company yields to political activism in shaping corporate governance, potentially alienating consumers, dividing employees, and harming shareholders. LGIMA embraces corporate initiatives that redirect its central focus from business goals to partisan policies and divisive issues. This approach fails to safeguard free exercise, free speech, and free enterprise.

Rating Criteria

Corporate Weaponization Risk Levels
Criteria	Risk Level
Cancellations	High Risk
Discriminatory Philanthropy	No Data
Employment Protection	High Risk

Corporate Weaponization ⓘ

Corporate Governance and Public Policy Risk Levels
Criteria	Risk Level
Advocacy Bias	High Risk
Funding	High Risk
Political Actions	No Data

Corporate Governance and Public Policy ⓘ

Rating Criteria Detail

Criteria Risk Level Rationale

Corporate Weaponization

Criteria:

Has canceled customers, suppliers, or vendors due to their political views or religious beliefs OR corporately boycotts, divests, or sanctions regions, people groups, or industries.

Risk Level:

High

Rationale:

LGIMA integrates ESG into its business practices. LGIMA created a Climate Impact Pledge that focuses on qualitative and quantitative metrics measuring company policies surrounding climate change. It divested from 14 companies due to a failure to meet climate and other ESG metrics (1). LGIMA voted against specific companies’ recommendations at their Annual General Meetings “due to a lack of board-level ethnic diversity” (2).

Criteria:

Charitable giving (including employee matching programs) policies or practices discriminate against charitable organizations based on views or religious beliefs.

Risk Level:

N/A

Rationale:

LGIMA does not publish charitable giving guidelines (1).

Criteria:

Employment policies fail to protect against viewpoint or other discrimination and/or are ideological in nature.

Risk Level:

High

Rationale:

LGIMA appears to prioritize diversity over merit in its compensation. From its 2022 Active Ownership Report: “Across LGIM, the core metrics that inform employees’ annual compensation reflect culture and other ESG factors, such as diversity and inclusion” (1). LGIMA does not publish a nondiscrimination policy (2)(3).

Corporate Governance and Public Policy

Criteria:

Uses corporate reputation to support causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

LGIMA supports DEI within its business practices, employing a DEI Council (1). LGIM was part of the Net Zero Asset Managers initiative, committed to carbon neutrality with its investments by 2050 (2)(3)(4). LGIM is a member of Climate Action 100+, committed to carbon neutrality by 2050 (5)(6). LGIMA is committed to net zero carbon emissions by 2050 (7).

Criteria:

Uses corporate funds to advance ideological causes, organizations, or policies hostile to freedom of expression.

Risk Level:

High

Rationale:

LGIM is a partner of the Diversity Project, which includes a commitment to setting ethnicity goals in the business (1). LGIM supports Investing Ethnicity, focusing on racial equity initiatives (2)(3). Otherwise, LGIM has not used corporate funds to advance ideological causes, organizations, or policies (4).

Criteria:

Uses corporate political actions and/or financial contributions for ideological, non-business purposes.

Risk Level:

N/A

Rationale:

LGIM does not operate a PAC or engage in lobbying at this time (1)(2)(3).