According to Legal & General Investment Management (LGIM), investors must urgently address climate change, as its financial and environmental impacts are increasingly evident. LGIM stresses that investing in companies with high emissions or those whose products significantly influence others’ emissions can have the most significant impact. Targeting these firms offers the greatest potential for reducing overall climate risks while driving meaningful change across industries, per the asset manager.

“We believe in encouraging the companies to pull the levers necessary to target improved aggregate climate outcomes. The goal is to allocate more capital to drive the business opportunities the transition creates, while simultaneously driving down emissions over time,” said Nick Stansbury, Head of Climate Solutions, LGIM.

Read the full whitepaper here.