The economic impact of our business.


As a business we contribute to the economy in a number of ways:

  • We have responsibility for approximately 4% of all London-listed equities on behalf of our customers. In 2011 our assets under management were £371bn. As an organisation we take our stewardship of other companies seriously and have in fact seen an increased in engagements with these boards by 153% versus 2010 as part of our Good Governance Campaign.
  • We invested £439m in our supply chain to purchase of products and services in 2011. 84% of this was with UK companies. For more information see Sustainable Procurement 
  • We’re giving our employees more opportunities to use their expertise to support local communities. In 2011 this represented an investment of over £3.8m worth of support. See Action in our communities

Our approach to transparency

Companies need to be increasingly transparent: they must show they are trading equitably and demonstrate the value they contribute to a broad range of stakeholders.

Top 49 most sensitive issues raised by NGOs with companies in 2011 (SIGwatch).

Top 49 most sensitive issues raised by NGOs with companies in 2011 (SIGWatch) (bar chart) We apologise that this bar chart is not currently accessible, and we aim to have a full textual version of this bar chart available shortly.

In October, Legal & General were named in the New Scientist article “The Capitalist Network that Rules the World”1 where we were rated the 7th most super-connected company through ownership of others on a global basis. Our prominence as an investor means we take our engagement responsibilities with investee companies very seriously.

Economic materiality

We’ve chosen proactively to disclose our position in sensitive areas. These include:

  • our policy on public policy work and interactions with Government including more of our house view on social
  • our offshore taxation policy and practices
  • our policy on pay and remuneration

We have also used 2011 to highlight opportunities to trade in different ways. These include:

  • leading an industry-led taskforce on non-banking finance
  • supporting the social enterprise sector
  • the role of fixed Income to create marketplace change.
  • supporting local authorities thinking about regeneration
  • supporting employees in supporting SMEs

1 http://www.newscientist.com/article/mg21228354.500-revealed--the-capitalist-network-that-runs-the-world.html

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