Legal & General
TCFD Supplement 2020

Addressing climate change.


Legal & General is one of the UK's leading financial services groups, with businesses in the US, Europe, Middle East and Asia. With almost 1.3 trillion in assets under management at 31 December 2020, Legal & General is a major global investor. 

Legal & General's purpose is to improve the lives of its customers, build a better society for the long term and create value for its shareholders. This inspires Legal & General to use its long-term assets in an economically and socially useful way to benefit everyone in its communities. In doing so, it places a strong emphasis on building a decarbonised society. 

Addressing climate change is a strategic priority for Legal & General. It is one of its six growth drivers and it is embedded in how it runs its business, from how it invests in its proprietary assets to how it influences as one of Europe's largest asset managers. 



We have worked with Legal & General, starting with its annual report, since 2008. The 2020 Financial Climate Report is the company's third Task Force on Climate related Financial Disclosures (TCFD) supplement, and the second we have worked on. In a complex area of reporting, a key aspect of our work has been to make content, which is often very complicated, more accessible. In addition the TCFD supplement needed to document Legal & General's path to climate stability and to demonstrate continuous improvement in this evolving, but important, area of reporting. 


As noted, Legal & General's purpose is to improve the lives of customers, build a better society for the long term and create value for its shareholders. This shapes every aspect of how the company does business. 

The TCFD supplement is a key document in Legal & General's corporate reporting suite. It takes the straightforward and clear approach of the annual report and evolves it to make varied and sometimes complex content as accessible as possible. A clear document structure was implemented with strong information hierarchy and signposting to guide readers through what is a substantial report. 

The brand Illustration style adds personality to the Report and expresses the wider themes raised in the content. Photographs illustrate more specific aspects of Legal & General's reponse to climate change. 

The strategic importance of addressing climate change is signalled in the statements from the Chairman and Chief Executive Officer. An introduction sets out the purpose of the Report, audiences and progress during 2020, and icons are introduced for each of the three strategic pillars Legal & General builds on in addressing climate change. 

As a report in line with the recommendations of the TCFD, Legal & General's 2020 Climate Report contains a summary page structured around the 11 recommended disclosures, as well as further details. 


Legal & General sets out its five climate risk policy statements, supplemented by a table summarising how its commitments deliver on its policies over three separate time horizons: active, next five years and next ten years. 

To improve transparency in this evolving area of reporting, Legal & General sets out considerations it has made and views it has taken in assessing climate risks and opportunities. These, such as the three climate pathways Legal & General consider, are accompanied by illustrations and concise narrative to enhance their accessibility. 

Legal & General has developed its own bespoke framework in partnership with Baringa to understand the 30-year transition and physical risk financial impacts. The framework is made up of several elements, each of which aims to answer specific questions and is flexed using a number of variables to produce complex outputs. To aid understanding, the narrative is broken down into elements and is linked to the charts provided in the rest of the document.