Legal & General Investment Management (LGIM), one of the world's largest asset managers¹, and Swedish premium pension provider AP7, representing five million Swedish pension savers, confirm their partnership to establish an innovative climate transition strategy.

The active investment strategy will aim to drive real-world change as well as unlock long-term shareholder value by investing in, and then engaging with, specific companies that are 'climate laggards' in their sectors. The strategy will seek to identify those companies across climate-critical sectors that are currently not, but have the potential to become successfully aligned with the Paris goals. This contrasts with approaches that invest in those companies already aligned with Net Zero by 2050.

The strategy aims to play a part in ensuring that the market as a whole, not only climate leaders, rise to the net zero transition challenge as rapidly and efficiently as possible. The engagement with portfolio companies will be highly targeted with the equal objectives of accelerating the pace of the climate transition, and maximising long-term shareholder value. The strategy will follow a data-driven, fundamental and engagement-led investment approach seeking to support the climate transition to reach Net Zero by 2050, leveraging insights from LGIM's Global Investment Research, tools and Investment Stewardship teams.