Climate Impact Pledge 2026: A decade in review, a future in focus

Through minimum standards, a graduated approach to engagement and voting, and sustained in-depth dialogue, we have sought to raise the baseline of corporate climate practice. This is rooted in our belief that climate change is a financially material issue for our clients’ portfolios: recognising the potential risks and the opportunities presented by a low-carbon transition is key to creating and protecting long-term value.  The pledge provides a structured framework to identify and engage with investee companies on how they are addressing related risks and opportunities.

This report reflects on the outcomes achieved and insights gained over ten years of pledge engagement, the context companies are currently operating in, and how these inform our future direction.

From an initial universe of 80 companies in 2016, we expanded the pledge to approximately 1,000 companies in 2020, and to more than 5,000 companies across 20 sectors by 2022. Today, the pledge now covers 80% of the carbon emissions attributable to our corporate equity and debt holdings [2].

We have continued to hold companies to account where progress has been insufficient:

• 22 companies have been divested in total3
• over 1,500 companies identified for a vote escalation, including ~280 companies in the 2026 proxy season

At the same time, we have celebrated company progress: 

• 7 companies have been reinstated since 2018 following continued engagement after divestment
• ~50% reduction in companies identified for a vote against because of improvements made against our minimum standards in 2025 [4].

We believe that the pledge supports positive change and we are committed to act as a partner to our clients and the companies in which we invest to navigate the transition, seize its opportunities, manage risk and deliver long-term value for our clients.

A decade on, this momentum is clear. However, delivering real-economy transition requires more. The challenge now is no longer just awareness or ambition, but whether the transition can be delivered in practice, at pace and at scale, within real-world constraints.

We are therefore refocusing the pledge to emphasise unlocking some of the key barriers to transition through both company and system-level engagement, and we will expand our approach to further include adaptation, resilience and nature. Our aim is to continue to move beyond improved disclosures and the development of strategies and action plans, to supporting their implementation and ultimately helping to accelerate progress towards the delivery of net zero commitments.

Read the full Climate Impact Pledge report

 

While L&G’s Asset Management business, where relevant, has integrated financially material Environmental, Social, and Governance (ESG) considerations into its stewardship practices and investment decision-making, funds that do not include specific ESG goals within their objectives might not pursue responsible investing goals.

Assumptions, opinions, and estimates are provided for illustrative purposes only. There is no guarantee that any forecasts made will come to pass. Risk management cannot fully eliminate the risk of investment loss.

[1] The pledge is L&G’s corporate engagement programme, through which we encourage companies to address climate – and nature-related risks and opportunities and support the transition to a low-carbon, resilient economy.

[2] as at 31 December 2025.