For some, it might seem that global stewardship initiatives have been on hold for the last year, but behind the scenes, there has been a great deal of activity, particularly in Europe.
From the beginning of this year, the reviewed UK Stewardship Code 2026 came into effect; the Issuer and Investor Forum produced a new charter and report; and the Investment Association (IA) published its Realigning Stewardship report in February.
As Deputy Chair of the IA Stewardship Committee, Jeannette Andrews will play a key role in implementing the report’s recommendations and in shaping the continued evolution of L&G’s stewardship and engagement strategies.
“What may appear externally as a pause in momentum is a period of significant evolution – one that is reshaping how stewardship is defined, delivered and measured,” says Andrews. “At the heart of this shift is a move away from activity-based reporting towards a clearer articulation of outcomes, grounded in financial materiality and long-term value creation.
“We mustn’t forget our core business is to create and protect value for investors, and we believe stewardship is critical to the ecosystem of efficient capital markets. It is how we hold public companies accountable.”
From transparency to insight
Over recent years, transparency in stewardship has increased dramatically. Asset managers now disclose far more about their engagement activities, voting records, and ESG assessments than ever before.
This expansion of disclosure has created a new challenge: distinguishing between information that is merely available and information that is genuinely useful. “Our response is to prioritise outcome-oriented reporting over input-oriented reporting,” says Andrews.
“Rather than simply listing the number of engagements conducted or votes cast, the focus is shifting to the impact of those actions – what has changed, and how that contributes to long-term financial returns.”
This “so what?” factor is becoming central. Clients are no longer satisfied with activity metrics alone; they want evidence of change.
Stewardship as a value driver
L&G’s stewardship strategy is anchored in the belief that effective engagement is a source of both value creation and value protection. This is particularly important for long-term, diversified investors, who are exposed to systemic risks across the entire market.
Issues such as climate change, biodiversity loss, and even antibiotic resistance are not isolated concerns; they are financially material risks that can affect entire portfolios.
Addressing them requires more than company-by-company engagement; it requires coordinated action across the broader ecosystem, including policymakers and regulators.
“In the past, stewardship efforts were often focused on establishing basic transparency, encouraging companies to disclose carbon emissions or governance structures,” says Andrews.
“The challenge now is deeper: using that information to drive meaningful change and value. Engagement must demonstrate why addressing these issues is not only socially desirable, but commercially advantageous for companies to address.”
A sophisticated transition
This evolution marks a transition into a more sophisticated phase of stewardship. It requires greater expertise, more nuanced analysis, and a clearer link between ESG factors and financial performance.
“We emphasise that stewardship is no longer about broad principles alone,” says Andrews.
“It is about detailed, informed conversations with companies and holding them accountable for how they manage risks and opportunities that are material to long-term investors. This includes scrutinising governance structures, assessing transition plans, and challenging companies on their strategic direction.”
At the same time, stewardship must remain a collective endeavour. Collective engagement – where asset managers act together – may amplify the investor voice and help address systemic challenges.
Initiatives such as the Net Zero Asset Managers initiative exemplify this approach, signalling a shared commitment to tackling climate risk at scale, even as regulatory clarity continues to evolve across different markets.
Aligning the investment chain
A defining feature of L&G’s approach is its emphasis on the entire investment chain. “As an asset manager, we sit between clients and the companies in which we invest,” says Andrews. “This role carries a responsibility to connect priorities across all stakeholders, from end beneficiaries to corporate boards.
“Our stewardship strategy is therefore built on dialogue. It seeks to bring clients into the process, understanding their priorities and integrating these into engagement activities.” This is particularly evident among charity clients, which have consistently demonstrated strong support for responsible investment and stewardship.
Importantly, these clients are becoming more exacting. “There is now a clear expectation for deeper insight, ongoing progress tracking, and tangible evidence of impact,” Andrews explains. “This has driven us to enhance both our reporting and engagement practices.”
To meet these expectations, L&G continues to expand its reporting capabilities. This includes publishing detailed ESG assessments and climate transition plan evaluations for individual companies, using a clear “traffic light” system so clients can quickly assess performance against minimum standards.
“In addition, we have invested in fund-level reporting that links engagement activity directly to client portfolios,” Andrews adds. “This allows clients to understand not just what engagement is taking place, but how it relates to their specific investments.”
The aim is twofold: to demonstrate the value of stewardship and to make reporting as usable and useful as possible. Providing consistent, accessible data helps charities communicate effectively with a range of stakeholders, from trustees to donors.
Fast facts
5th largest charity manager*
£7.8bn** of charity assets
*5th largest manager of charities’ long-term assets. www.civilsociety.co.uk
** Source L&G internal data as at 31 December 2025
What we do
L&G’s Asset Management business is a major global investor across public and private markets, with £1.2trn in AUM.*
Our clients include individual savers, pension scheme members and global institutions, who invest alongside L&G’s own balance sheet. Our investment philosophy and processes are focused on creating value over the long term.
*Source: L&G internal data as at 31 December 2025. The AUM disclosed aggregates the assets managed by L&G in the UK, L&G – Asset Management, America in the US, and Hong Kong (2018-2019 only) and Singapore from July 2023. Excludes assets managed by associates (Pemberton, NTR, BTR).
