Legal & General Investment Management (LGIM) today announces the launch of its Sustainable DC Property Fund ('the Fund'), in response to a growing demand from DC schemes to access real assets and to incorporate more ambitious environmental, social and governance (ESG) targets.

The Fund is reshaping an existing property portfolio to include responsible investing as a core target, with explicit environmental, social and governance (ESG) objectives, including net zero operational carbon in the direct property portfolio by 2030. The Fund is already measuring carbon emissions and has set reduction objectives in line with 'science-based' targets.

In addition to LGIM's wider efforts to advance the low-carbon transition, the Fund has already taken actions to deliver measurable progress on ESG with a focus on explicitly reducing operational energy consumption. The Fund has developed carbon reduction roadmaps at individual asset level and commissioned an estimate of social value created by the Fund, as a baseline against which to measure future social impact. This is already influencing occupier engagement and producing tangible outcomes. Occupiers are also being screened based on ESG exclusion criteria.

Valued at £238 million (as at 30 June 2021), it provides exposure to a diversified portfolio of assets across sectors and aims to achieve both income and long-term capital growth. In addition, the Fund will target a 30 per cent allocation to the L&G Global Real Estate Equity Index Fund to provide liquidity and support daily dealing for DC clients.

On top of the specialist Real Assets ESG team which operates across LGIM Real Assets, the Fund has dedicated resource working to support full ESG integration in its asset management, investment strategy and decision making.

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Legal & General Group plc published this content on 12 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 21 October 2021 10:53:01 UTC.