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Article

24 Apr 2020

Author:
Mark Sweney, The Guardian

UK's largest fund manager says it will take action if companies fail to show good corporate practice during COVID-19

"Legal & General warns firms to act fairly during coronavirus crisis", 22 April 2020

One of the world’s largest fund managers, Legal & General Investment Management, has warned companies it will take action if they fail to show good corporate practice during the coronavirus crisis.

The UK’s largest asset manager, which has more than £1.1tn in assets, is expected to take a tough stance against company directors who mistreat employees and suppliers during the pandemic, after opposing the re-election of 4,000 directors at annual meetings last year.

“I worry that the industry could fall short at this juncture,” said Sacha Sadan, LGIM’s director of investment stewardship. “Sustainability, good governance, and fair treatment of employees will be the building blocks of a better future. LGIM will continue to support and hold companies to account for their stakeholder responsibilities.” ...

The company said it had taken sanctions against 11 companies named as “laggards” for failing to take sufficient action on climate change...

As well as the response to coronavirus, LGIM said it planned to focus on key corporate governance areas such as diversity, employee pay and data privacy.

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