Lloyd’s is committed to using its influence as a shareholder to promote better management of climate change amongst the companies it invests in, and uses F&C’s reo® service to vote and engage on the companies in its equity portfolio on its behalf.
Although Lloyd's does not retain any direct property investments, it does make equity investments in listed property companies. F&C’s reo® service applies to these equity investments as well as investments in other property-related companies such as building materials and construction companies.
In 2009, F&C undertook a project to better understand and evaluate the environmental, social and governance practices of a cross section of global property companies in our listed real estate securities portfolio. Through this project, companies were asked to answer four specific questions relating to the environmental performance of their buildings, including whether they had:
- adopted an environmental management standard for their properties;
- regularly monitored and disclosed the environmental footprint of their buildings including energy use;
- evaluated the climate resiliency of their properties; and
- introduced programmes to reduce their environmental impacts through their direct operations and through their tenants and suppliers.
