- $1.1B+ total investment: L&G scales EM sustainability portfolio with $235M commitment via new Nature and Social Outcomes strategy.
- Innovative debt financing: Strategy leverages credit-enhanced bonds to back conservation and essential infrastructure.
- DC pension impact: New fund opens access for 5.5M UK DC members to high-growth, high-impact EM debt markets.
Legal & General (L&G) has launched its Nature and Social Outcomes strategy, deploying $235 million (£183M) in emerging markets to support nature conservation and sustainable development — pushing the firm’s total EM impact investments beyond $1.1 billion (£890M).
The strategy targets biodiversity protection, healthcare, education, clean water, and other social infrastructure — tapping into the $4 trillion annual shortfall to meet UN Sustainable Development Goals.
“Exposure to emerging markets has the potential to offer attractive returns for investors whilst aiming to support communities and ecosystems which play an indispensable role in upholding economies across the globe,” said Jake Harper, Senior Investment Manager at L&G.
“Innovative debt financing allows investors to allocate to nature conservation and sustainable development in EMs whilst benefitting from an improved credit rating and higher returns.”
The strategy channels capital through L&G’s Future World Multi-Asset Fund and Retirement Income Multi-Asset Fund, both key pillars of its Target Date and Lifetime Advantage ranges, which serve 5.5 million UK Defined Contribution (DC) members.
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L&G uses credit-enhanced instruments like:
- Use of proceeds bonds
- Debt conversion bonds
- Outcome bonds
These are backed by multilateral guarantees and insurance to improve risk-return profiles.
Deployment in action:
- $250M cornerstone investment in Ecuador’s second debt conversion for nature — the first of its kind focused on forestry and freshwater conservation, unlocking $460M for the Biocorridor Amazónico project (4.6M hectares of forest + 18,000 km of freshwater).
- $465M+ across Belize, Gabon, and Ecuador in debt-for-nature swaps.
- $350M in bonds supporting solar energy in Senegal, clean water in Africa, a public university in Ivory Coast, and social housing.
- Up to $100M to ImpactA Global, a women-led EM infrastructure investor.
L&G evaluates projects via key performance indicators across:
- Inclusive economy
- Health, wellbeing, and quality of life
- Nature protection and enhancement
This is supported by active engagement with development finance institutions, NGOs, and industry stakeholders to ensure governance and accountability.
“We’re delighted to be launching our Nature and Social Outcomes strategy as an opportunity for DC members to gain exposure to a fast-growing and impactful part of the global debt market,” said Jesal Mistry, Head of DC Investments at L&G.
“Today’s announcement is a great example of the increasingly diverse range of assets that DC schemes can invest in, combining the need to unlock financing where it is often most needed with the aim of delivering positive returns for members in retirement.”
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