L&G’s Workplace DC business, together with the L&G Mastertrust are to go net-zero setting out a roadmap to achieve the goal by 2050 across all auto-enrolment default investment options and building on L&G’s commitment to a net-zero company by 2050.

In December 2020, Legal & General Investment Management (LGIM) pledged to work with clients to increase the proportion of assets managed under a net-zero target and the announcement represents an important milestone with over 4 million DC scheme members and £53bn AUM now being offer a framework to reduce carbon.

Aligned to this, L&G has established a roadmap to enable the Mastertrust’s auto-enrolment defaults to target reduced carbon emissions intensity, including the setting of minimum climate expectations for investee companies.

These targets are designed to reflect the beginning of alignment with the Paris Agreement goal to limit warming to 1.5C and are expected to be reviewed periodically in-line with the best available science-based approaches and industry practice, such as the Paris-Aligned Investment Initiative.

In parallel to reducing emissions, the relevant investment strategies will also seek to increase their exposure to climate solutions – such as sustainable forestry and renewable energy.

Commenting on Legal & General’s net-zero commitment, Richard Curtis, co-founder at Make My Money Matter commented: “This ambitious announcement from Legal & General shows that the race to the top among pension providers is picking up pace. Their target of reducing emissions by 65 per cent by 2030 is particularly encouraging, and demonstrates the speed and urgency required by providers to combat the climate crisis.”

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